Nuts

Cashews: Vietnam lowers export target 2022

March 8, 2022 12:23 PM, Der AUDITOR
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HANOI. After the record level of 2021, Vietnam had high export targets for 2022, but now has to row back due to the geopolitical situation. The pandemic also continues to affect exports.

Crisis in Ukraine weighs heavily on exports

The targets for Vietnamese cashew exports in 2022 were set high: After 2021 had proved to be extremely successful and a new record level of a good USD 3.6 billion was reached, the Ministry of Agriculture and Rural Development expected exports worth USD 3.8 billion for the current year. Now, however, the Vietnam Cashew Association (Vinacas) is backpedalling, fearing that this export value will not be realisable due to the current global political situation. Vinacas Chairman Pham Van Cong made the following comment:

"For cashew exports, the EU market accounts for about 35% of shipments. If the political conflict between Russia and Ukraine is prolonged or continues to be unstable, this will severely affect cashew exports in 2022, so it is necessary to reduce the target to a level that is appropriate to the actual situation".

The new target of USD 3.2 billion remains high, but seems more realistically achievable. The inevitable impact of the Ukraine crisis on the global economy, and in particular on the economies of European countries, is already occurring. In addition, the losses caused by the Covid-19 pandemic continue; even if this seems to have receded into the background at the moment, it continues to make itself felt, especially in transports.

Producers hesitate on price cuts

The markets, meanwhile, are rather quiet. Low demand is putting pressure on prices, but many growers and processors are reluctant to lower their prices significantly, according to Chelmer Foods, because they know that large buyers are just waiting for such an opportunity. The last two weeks have seen above-average rainfall in Vietnam and Cambodia, but so far market players do not expect this to have led to further crop damage. However, there is a possibility that the harvesting process will be delayed. In the West African growing countries, however, the weather conditions continue to be favourable, so that both the yields and the quality of the goods should be satisfactory.

On the European spot market, there has been no price change compared to last week; Vietnamese cashews, WW240 are unchanged at EUR 7.20/kg FCA Spain.

Cashew kernels, Vietnam

Type

EUR/kg

USD/kg

WW320

6.55

7.12

WW240

7.20

7.83

WW210

8.40

9.13

WW180

8.95

9.73

FCA Spain

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