Agricultural Exports in Early 2025: Challenges and Solutions

On the morning of February 6, the Deputy Minister of Agriculture and Rural Development (MARD) held a press conference discussing the development of the agricultural sector in January 2025. Despite positive production results, agricultural exports are facing significant challenges due to dual disadvantages.

Agricultural Export Situation in Early 2025

In January 2025, the export value of agriculture, forestry, and fishery products was estimated at $5.08 billion, a 4.9% decrease compared to last year. This poses significant challenges to the sector’s annual export target of $64 – 65 billion.

Deputy Minister Phùng Đức Tiến attributed the decline to two main factors:

• Decreased global purchasing power, affecting demand for agricultural products.
• Lower export prices, despite an increase in production volume.

Opportunities in the Cashew Industry

According to the Import-Export Department (Ministry of Industry and Trade), the global cashew market was valued at $7.78 billion in 2024 and is projected to reach $8.14 billion in 2025, growing to $11.67 billion by 2033 with an average annual growth rate of 4.6% from 2025-2033.

The demand for cashews is expected to rise significantly in 2025, driven by the expansion of the food processing industry, urbanization, changing consumer lifestyles, and the growing need for convenient food products.

Cashews are increasingly used in snacks, confectionery, and bakery products. As a result, major markets are showing a rising demand for imported cashews, presenting a significant opportunity for Vietnam’s cashew exports.

Vietnam has consistently maintained its position as the world’s leading exporter of cashew kernels, strengthening its global brand reputation. In 2024, cashew consumption surged in key markets such as the U.S., EU, China, and the UK.

• United States: In the first ten months of 2024, U.S. cashew imports exceeded $874 million, a 27.5% increase compared to the same period in 2023. Vietnam accounted for 89.65% of total U.S. cashew imports.
• European Union: Cashew imports from non-EU markets reached $732 million in the first ten months of 2024, a 4.9% increase year-over-year. Vietnam held a 71.56% market share in EU imports, with Germany being the largest consumer.

Cashews are also gaining popularity in the food and beverage industry. Food producers are incorporating cashews into cookies, cereals, ice cream toppings, and nut butter. The trend toward healthier snacking is driving increased cashew consumption, particularly in organic spreads and snack bars.

Strategies to Maintain Growth Momentum

To achieve the 2025 export target, MARD has proposed several strategic solutions:

• Focusing on key markets such as the U.S., China, Japan, South Korea, Europe, and the Philippines.
• Expanding into new markets, particularly Halal-consuming countries.
• Convening key enterprises to discuss and promote export strategies.
• Enhancing sustainable production, ensuring traceability, and implementing digital transformation aligned with green economic principles and emission reduction.

Key Issues in the Agricultural Sector

Durian Exports to China

Some durian-growing regions still face challenges in production processes, affecting export quality. MARD has instructed relevant agencies to conduct inspections and make necessary adjustments to ensure compliance with export standards and improve product competitiveness.

European Commission’s IUU Inspection

To prepare for the upcoming European Commission (EC) inspection regarding IUU (Illegal, Unreported, and Unregulated) fishing, MARD will organize four nationwide conferences to discuss compliance measures and ensure adherence to international standards.f

Despite the challenges in early 2025, MARD has proactively developed strategic solutions to sustain growth. By focusing on key markets, expanding to new regions, improving production organization, and ensuring export standards, Vietnam’s agricultural sector aims to overcome difficulties and achieve its ambitious export goals.

>>>> Read more: Why Has Vietnam’s Raw Cashew Imports from Ivory Coast Declined?