Nuts

Cashews: Vietnam reaches export target

December 13, 2023 at 10:22 AM , Der AUDITOR
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HANOI. The export target set by the Vietnam Cashew Association for 2023 was already exceeded in November, and market players are also optimistic for 2024. Nevertheless, the future also holds some challenges.

Significant increase compared to last year

As announced by the Import-Export Department of the Vietnamese Ministry of Trade with reference to the Ministry of Customs, Vietnam's cashew exports reached 65,000 mt in November. The average export price was USD 5,512/mt, totalling around USD 358 million. While export prices fell by 12.6% compared to the previous month, the export volume was 34.6% higher and the export value 30.7% higher than in November 2022, according to the Vietnam Cashew Association (Vinacas).

In the first eleven months of 2023, Vietnamese cashew exports thus totalled 582,000 mt worth USD 3.31 billion, which corresponds to an increase in volume of 23.1% and an increase in value of 17.4% compared to the same period last year. The average export price was UDS 5,682/mt, 4.7% less last year. The export target of USD 3.1 billion set by Vinacas has therefore already been exceeded. Vinacas explains the drop in value by the fact that processing companies have to buy their RCN six months in advance. As a result, purchases were made at the beginning of the year, sometimes at high prices, and when export prices declined at the same time as companies were faced with high interest rates and fluctuating exchange rates, losses were inevitable.

Cashews face competition in cultivation

The cashew industry remains optimistic for 2024 and expects demand from important customer countries such as the EU and Japan to increase. Orders from these countries are already on the rise. Nevertheless, the market is also facing various challenges, including the procurement of RCN and the switch to "green production". Although Vietnam wants to become less dependent on other countries for raw material purchases, the area under cultivation is shrinking, according to Vinacas, as other agricultural products such as durian and jackfruit are increasingly being cultivated. The final development remains to be seen.

In India, cashew nut prices have risen in recent weeks. Indian cashews, W240 currently cost USD 8,550/mt FOB India.

Cashews, India

Type

USD/mt

LWP

6,555

SWP

5,890

W240

8,550

W320

7,900

W450

7,185

FOB India

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