Vietnam is the world's third largest producer of raw cashew nuts. To achieve its position as the largest exporter of cashew kernels, the country imports a large part of the crop from neighbouring Cambodia as well as from African production countries, especially Tanzania. Last year, according to the INC report, 310,000 metric tonnes of raw cashew nuts were harvested in Vietnam and 130,000 metric tonnes in Cambodia. Market players expect an increase in production due to good weather conditions. In December 2019, crop volumes of 350,000-400,000 metric tonnes (Vietnam) and 175,000-200,000 metric tonnes (Cambodia) were under discussion. However, cool temperatures were the reason that the harvest could only start with a slight delay at the end of February.
Decline in exports at the beginning of the year
According to the report of the Vietnam Cashew Association (Vinacas), in the first one and a half months of this year, almost 35,000 metric tonnes of cashew nuts worth USD 246 million were exported. Compared to the same period last year, the volume of exports declinedl by 1.8%, while the value of exports actually fell by 15.7%. Commodity prices have declined in recent weeks from VND 34,000 to VND 26,000-27,000 per kg, due not only to the start of the harvest, but also to the Covid-19 epidemic in China and the resulting drop in demand. China ranks third among the most important export markets for Vietnamese cashew nuts, following the USA and the EU.
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