Nuts

Cashews: Vinacas calls for action

May 3, 2023 at 12:00 PM , Der AUDITOR
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HANOI. The Vietnam Cashew Association (Vinacas) is calling for a reaction to the increasing threat to the Vietnamese processing industry. Both possible trade agreements and an import tax are being considered.

Competition is increasing

At a meeting between leaders of the Vietnam Trade and Industry Association and business associations in Ho Chi Minh City, the vice president of the Vietnam Cashew Association (Vinacas), Bach Khanh Nhut, reported a "cry for help" from the cashew industry. The Vietnamese cashew industry has been the world leader in production and exports for many years, with an annual export value of USD 3.5-3.8 billion, but the situation is becoming increasingly acute. External influences such as the coronavirus pandemic and Russia's war against Ukraine have created significant hurdles in recent years, and more problems are emerging for Vietnamese producers. African growing countries are increasingly focusing on pushing the processing of raw cashew nuts, which threatens the processing industry in Vietnam. In addition, some African countries have imposed an export tax on RCN, while the export of cashew kernels is tax-free.

In response, Vinacas has proposed to negotiate bilateral trade agreements with African producing countries. The focus is on exemption from import and export taxes for each other's goods, including RCN exported from Africa to Vietnam. If no such agreements can be reached, Vinacas is calling for a 25% import tax on African cashews to protect the domestic processing industry.

EU imports decrease slightly

According to recent data from the European Commission, cashew imports to the EU in 2022 decreased by just under 3% compared to the previous year. Vietnam remains by far the most important supplier, even though declines were recorded here (-4.4% to 115,126 mt). Côte d'Ivoire, which ranks second in terms of shipments to the EU, was able to increase its exports to EU countries by almost 65%, and Nigeria also delivered 48.4% more cashews to the EU. In contrast, shipments from India, Brazil and Indonesia, for example, declined significantly. The EU's import value increased by 9%: While cashews worth EUR 909.62 million were still purchased in 2021, this figure had already risen to EUR 991.87 million in 2022. The average import price last year was EUR 6.54/kg, compared to EUR 5.83/kg in 2021.

Cashew* imports, EU, in mt

Supplier

2021

2022

Diff.

Vietnam

120,482

115,126

-4.4%

Côte d'Ivoire

8,006

13,200

64.9%

India

11,356

9,865

-13.1%

Brazil

3,728

3,274

-12.2%

Burkina Faso

2,615

2,705

3.4%

Nigeria

986

1,463

48.4%

Indonesia

1,961

1,013

-48.3%

Togo

858

844

-1.6%

Mozambique

1,239

787

-36.5%

Benin

784

774

-1.3%

Others

4,062

2,513

-38.1%

Total

156,077

151,564

-2.9%

European Commission / Eurostat (Comext)

*08013200 Fresh or dried cashew nuts, shelled

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