Cashew Nut Exports Poised for Growth Despite Challenges

Cashew Nut Exports Poised for Growth Despite Challenges

Current Export Overview

Vietnam maintains its position as the world’s largest exporter of cashew nuts, but this dominance faces significant challenges. Approximately 90% of the raw materials needed for Vietnam’s cashew industry are imported from Africa and Cambodia, creating vulnerability to supply chain disruptions and price fluctuations.

According to the General Department of Customs, Vietnam’s cashew nut exports for the first eight months of 2024 reached 486,470 tons, valued at nearly $2.78 billion. The average price per ton was $5,706, reflecting a 22.9% increase in volume and a 21.8% increase in value compared to the same period in 2023, though prices have decreased by 0.9%.

August 2024 Highlights:

• Export volume: 64,560 tons
• Export value: $408.44 million
• Average price: $6,326 per ton
• Compared to July 2024: 3.5% decrease in volume, 1% decrease in value, but a 2.6% increase in price
• Compared to August 2023: 6.2% increase in volume, 21.9% increase in value, and 14.8% increase in price

Key Markets and Growth

Vietnam’s top export markets for cashew nuts are:

• United States: 134,109 tons, valued at $762.72 million, a 29.3% increase in volume and a 28.9% increase in value compared to 2023.
• China: 82,863 tons, worth $464.39 million, with a 43.5% increase in volume and a 28.9% increase in value.
• Netherlands: 44,839 tons, valued at $261.13 million, showing a 15.5% increase in volume and a 14.9% increase in value.
• Germany: 16,978 tons, valued at $94.97 million, with a 23.6% increase in volume and a 22.6% increase in value.

The Vietnam Cashew Association anticipates continued growth in exports through Q4 2024, driven by rising global demand, especially in the U.S. where inventory levels are decreasing, leading to increased imports.

Challenges and Future Outlook

Despite the positive growth in export values and volumes, the cashew sector faces significant challenges:

• Rising Raw Material Costs: The cost of raw cashew nuts has increased substantially, partly due to reduced production in key supplier regions and tighter export policies from African countries. Although prices for raw cashews have slightly decreased, they remain 40% higher compared to previous years.
• Raw Material Dependency: Vietnam’s domestic cashew nut production meets only 10-12% of local demand, with the rest being imported. The shrinking local supply base and high import costs are straining the industry’s profitability.

To sustain its leading position and avoid the risk of trade imbalances, the industry needs to focus on increasing the production of high-quality, processed cashew products. Enhancing product value through deeper processing can help access more demanding markets and secure better prices.

The Vietnam Cashew Association urges businesses to innovate and adapt to these challenges to maintain Vietnam’s leadership in the global cashew industry.

Contact Information:

HCM office Address: 191/6B Le Van Viet Street, Tang Nhon Phu A Ward, Thu Duc City, Ho Chi Minh City, Viet Nam

Factory Address: Nguyen Thai Hoc Street, Phuoc Tan Hamlet, Binh Tan Commune, Phu Rieng District, Binh Phuoc Province, Vietnam

Email: sales@cptcorp.vn

Website: cptcorp.vn