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Vietnam cashew market update at the end of June 

 Wednesday, July 10,2024

AsemconnectVietnam - The Vietnamese cashew industry is experiencing a period of exciting growth. Cashew prices are on the rise, export figures are impressive, and overall market sentiment is positive.

This introduction sets the stage for the rest of the article, which will delve deeper into the positive trends, current challenges, and future outlook for Vietnamese cashews.
Cashew prices in Binh Phuoc today, June 28, 2024, have increased slightly compared to yesterday. Specifically, the price of BB (type 1) cashews is at USD 2.89/kg, BSW (type 2) is at USD 2.63/kg, and BSW (type 3) is at USD 2.35/kg. The Vietnamese cashew industry is facing several challenges, such as new import tariffs imposed by China and rising raw material prices. The new import tariffs imposed by China since early 2024 have caused cashew export prices to this market to decline. In addition, cashew nut raw material prices are also rising due to limited supply. This is affecting the profits of cashew processing and exporting enterprises.
To overcome these challenges, the Vietnam Cashew Association has proposed several solutions, including:
• Supporting businesses in accessing capital to buy raw materials.
• Strengthening trade promotion to expand export markets.
• Improving cashew nut quality to meet the increasingly high demands of the market. In addition, the industry needs to promote the application of science and technology in production, processing, and preservation to improve product quality and reduce costs. At the same time, it is necessary to strengthen the linkage between enterprises in the industry to create competitiveness in the international market. With high demand from the international market, rising cashew prices, and impressive export results, the Vietnamese cashew industry is showing positive development steps. However, to maintain this growth momentum, the cashew industry needs effective solutions to address current challenges and enhance its competitiveness.
The Vietnamese cashew industry has great potential for development in the future. With the efforts of enterprises and the support of the government, the Vietnamese cashew industry will continue to affirm its position in the international market.
Vietnam increases raw cashewnut imports from Cambodia
Vietnam is increasing raw cashewnut imports from Cambodia, making it the major supplier of the material for re-processing, according to the General Department of Vietnam Customs.
Statistics show Cambodia became the largest cashewnut seller to Vietnam in the first five months of this year, supplying nearly 760,000 tonnes of the product valued at over US$971 million, up 39% in volume and up 29% in value from a year earlier. Along with Cambodia, Vietnam also imported nearly 450,000 tonnes of raw cashewnuts from other markets such as Ghana, Indonesia, Nigeria, Tanzania, and Ivory Coast.
Vietnam processes 3.5 - 4 million tonnes of cashew nuts for export by purchasing raw materials to process into kernels. However, processors heavily rely on the purchase of raw materials as up to 90% of the unprocessed products are imported.
Vietnam is currently the largest cashewnut 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 cashewnut exports this year compared to more than US$3.6 billion recorded last year.
Farmers expand cashew tree cultivation for more carbon-credit sales
One cashew tree can absorb 400 kilograms of carbon, while one hectare of cashew low-carbon growing area can bring $400 from carbon credit sales.
Managing a cashew material growing area of nearly 800 hectares in Binh Phuoc and neighboring areas, Gia Bao Group has teamed up with Green Journey to activate the Green Cashew project.
With the aim of helping the cashew industry become green and sustainable, Green Cashew focuses on helping cashew growers improve production and business capability. It cooperates with other parties to assess and measure carbon credits produced from cashew trees.
The formation of the green cashew factory in Binh Phuoc will develop the cashew industry but also contribute to the green transition of Vietnam’s agriculture sector.
Carbon credits are certificates that can be traded. They represent the right to emit an amount of CO2 or another amount of a CO2 equivalent. One carbon credit is equivalent to 1 ton of CO2 or 1 ton of CO2 equivalent.
Cashew exports are struggling because of being on passive in raw material sources
For each container of exported cashew kernels, enterprises lose hundreds of millions of dong when they have to import raw materials at high prices, while export prices are not adjusted to increase accordingly. According to many cashew export processing enterprises, with the rising price of raw cashew materials in Africa, partners have broken contracts, causing cashew export processing activities of Vietnamese enterprises to suffer, the more they export, the more they lose money.
Mr. K.Q.T, Director of a cashew export enterprise in Binh Phuoc, said that Vietnam's cashew export processing industry depended largely on raw materials from Africa. The domestic cashew growing material area was still maintained but only met about 20-25% of the demand of processing factories.
Currently, the biggest difficulty for cashew processing and export enterprises is that raw cashew materials imported from Africa have increased prices. “The price of raw cashew nuts has increased, many raw material suppliers from Africa do not comply with previously signed contracts, do not deliver or deliver slowly, causing domestic enterprises to face the risk of supply chain disruption, affecting the implementation of export contracts” - analyzed by a business representative.
T.Huong
Source: Vitic/VNA

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