Nuts

Cashews: Vietnam goes strong

July 21, 2020 4:16 PM, Der AUDITOR
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HANOI/NEW DELHI. Despite good crops in Vietnam and Cambodia, global cashew production in 2020/2021 is unlikely to exceed last year's result.

Crop increase of 20%

According to the data of the International Dried Fruit and Nut Council, a global raw cashew crop of 3.72 million metric tonnes can be expected in the 2020/2021 season, which is comparable to last year's production. In the main producing countries, Cote D'Ivoire and India, experts expect a yield reduction to 740,000 metric tonnes and 691,000 metric tonnes respectively. In Vietnam, the main exporter of shelled cashew nuts, the crop is expected to have increased by 20% to 450,000 metric tonnes, and neighbouring country and trading partner Cambodia is also expected to achieve an increase of 19% to 250,000 metric tonnes.

Cashew production (raw nuts) in mt

Country

2019/20

2020/21

Diff.

Cote D'Ivoire

785,000

740,000

-5.7%

India

742,000

691,000

-6.9%

Vietnam

375,000

450,000

20.0%

Cambodia

210,000

250,000

19.0%

Tanzania

245,000

250,000

2.0%

Nigeria

250,000

225,000

-10.0%

Guinea-Bissau

200,000

200,000

0.0%

Brazil

150,000

150,000

0.0%

Benin

130,000

130,000

0.0%

Burkina Faso

120,000

120,000

0.0%

Others

536,000

516,000

-3.7%

Total

3,743,000

3,722,000

-0.6%

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Declining prices on the spot market

Despite the pandemic, Vietnamese exporters received numerous orders from the USA and Europe. However, market players fear that stocks will not last beyond August. The country is heavily dependent on imports from Africa.

In the first five months of this year, Germany imported a total of 26,955 metric tonnes of cashew nuts (08013200 Fresh or dried cashew nuts, shelled), according to the Federal Statistical Office. That is about 15% more than last year at this time. Main suppliers were Vietnam (+14% to 13,772 mt), India (+9% to 9,004 mt), the Netherlands (+91% to 1,437 mt) and Brazil (+150% to 1,059 mt). Currently the market is quiet again. In the European spot market, prices have dropped significantly in recent weeks and Vietnamese cashew nuts, SW320 are currently traded for EUR 5.45 per kg FCA Spain, which is around EUR 0.25 per kg cheaper than in June.

Cashew prices

Type, Origin

EUR/kg

SW320, Vietnam

5.45

WW320, Vietnam

6.30

SW320, India

6.15

WW320, India

6.95

FCA Spain

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