AsemconnectVietnam - Vietnam is currently the largest cashew nut exporter in the world, accounting for nearly 80% of total global output, and it has held the position for 16 years in a row. It aims to earn US$4 billion from cashew nut exports this year compared to more than US$3.6 billion recorded last year.

Cashew industry facing fluctuations in raw material prices
Although exports recorded double-digit growth in the first half of 2024, Vietnam's cashew industry is facing fluctuations in raw material prices.
According to the Import-Export Department (Ministry of Industry and Trade), it is estimated that in June 2024, Vietnam exported cashew nuts to 65,000 tons, worth US$388 million, down 4% in volume, but up 4.8% in value. Compared to May 2024, the cashew exports increased 8.4% in volume and 13% in value over the same period last year. In the first six months of 2024, Vietnam exported 350,000 tonnes, worth US$1.92 billion, up 25% in volume and 17.4% in value compared to the same period last year. In June 2024, Vietnam's average cashew export price was US$5,973/tonne, up 9.2% compared to May 2024 and up 4.2% compared to June 2023. However, in the first six months of 2024, Vietnam's average cashew export price was only US$5,496/tonne, down 6.1% over the same period last year. Although exports recorded double-digit growth in the first half of 2024, Vietnam's cashew industry is facing fluctuations in raw material prices.
Types of Cashews for Exports
The main product for export is Whole White Cashew, of which 80% is whole kernels and 20% is broken kernels. The high percentage of whole cashew is due to shelling by hand which is labor-intensive. W320 Cashew grade is the most popular product for exports.
Main types of Vietnam cashew products for Exports:
• Raw Cashew Nut: A small of high-quality raw cashew nuts is exported. The rest is used by local cashew factories or food industry.
• Cashew Nut Kernel: High-quality cashew kernels such as W240, W320, W450, WS, WB, SS BB… are exported to EU, USA, Russia, Australia, UAE, India, Singapore, Japan.
• Cashew Oil: The oil extracted from the hard outer shell of cashew nuts is useful for industrial use. Main markets are China, South Korea, Indonesia, Spain, Japan.
• Cashew Shell: Cashew shell is the primary raw material for the production of cashew shell oil products. Main markets are China, India, Laos.
Processing of Cashew Kernels
Cashew kernel is the main product of cashew nut, with nutty flavor and rich taste. There are four main types:
• Whole Cashew Kernel: mainly consumed as roasted and salted.
• Broken Cashew Kernel: used in the food industry, e.g. chocolate, pastry, biscuit.
• Cashew Nut Meal: a by-product from cashew kernels, used for animal feed or cattle feed, or mix into the food for animal.
• Cashew Nut Oil: used for cosmetics or food preparation.
Since 2006, Vietnam has become the largest producer of cashew kernels, with an export volume of 127,000 tons worth US$504 million. In 2020, Vietnam exported about 450,000 tons of cashew kernels with a total value of US$3.28 billion.
Standard of Processing of Cashew Kernels:
• Collection & Drying: The raw cashew nuts are collected from farmers and dried in the sun to remove excess moisture.
• Steam Roasting: The steam roasting process is to help with the removal of outer shell of cashews. The outer shell is very hard and therefore it is required a proper steam roasting in advance.
• Shell Cutting: The shell cutting process is to remove outer shell so as to get inner kernels with soft shell. It requires skilled workers to separate the shell without breaking the inner core.
• Peeling: The peeling process is designed to remove the soft shell to produce white nuts, which is enhanced by cold treatment. White nuts are then sent for classification and grading.
• Grading: Cashew kernels are classified into different grands in accordance to international grading standard.
• Packing: Cashew kernels are packed in required standard packaging, if there is no special request from clients.
Cambodia is Việt Nam's largest source of cashew nuts
Việt Nam imported nearly 1.5 million tonnes of cashew nuts in the first six months of this year, worth US$1.8 billion. Data from the General Department of Việt Nam Customs shows that Việt Nam imported nearly 1.5 million tonnes of cashew nuts in the first six months of this year, worth US$1.8 billion, an increase of 8.4 per cent in volume and 3.4 per cent in value. Of which, over 780,700 tonnes of cashew nuts from Cambodia were imported into Việt Nam, worth up to $1 billion. Cashew imports from the Cambodian market alone increased by 36.7 per cent in volume and 28.1 per cent in value compared to the same period last year. Việt Nam is the world's number one cashew kernel exporter. However, the country's domestic supply of raw materials for processing is still limited so businesses have to import cashew nuts in large quantities.
Binh Phuoc Cashew Association asks for help in the face of counterfeit nuts
The Bình Phước Cashew Association has sent an official dispatch to the provincial People's Committee and related units to take measures to stop sales of poor quality cashew products, especially those which are falsely claiming to be from the area.
There are many domain names, accounts and small establishments posting products under the brand name 'Bình Phước Specialties' for sale on a number of websites and social networks, said Vũ Thái Sơn, Chairman of Bình Phước Cashew Association.
However, after checks, businesses that are members of the association found that the products are not cashew nuts originating from Bình Phước, but rather imported nuts from old crops or poor quality nuts.
These products have no label, no expiration date and there is no basis to trace the origin of processing, so consumers can't know who is responsible for quality and food hygiene and safety.
T.Huong
Source: Vitic