The cashew industry in Vietnam, a significant player in the global market, has been experiencing substantial fluctuations since the beginning of 2024. These changes stem from various factors, including supply chain disruptions and climatic challenges. This article provides an overview of the current situation regarding raw cashew nuts and processed cashew kernels, along with relevant statistics, observations, and recommendations for stakeholders.

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Raw Cashew Nut Situation

Since early 2024, the raw cashew nut sector in Vietnam has faced significant challenges:

  • Supply from West Africa: West Africa is the largest supplier of raw cashew nuts to Vietnam. In 2023, Vietnam imported approximately 1.4 million tons of raw cashew nuts from this region, accounting for about 70% of the total raw cashew nut imports. However, due to rising transportation costs and logistical issues, the import volume from West Africa in 2024 has decreased by about 10% compared to the previous year.
  • Domestic Production: Major cashew-growing areas such as Binh Phuoc and Dak Lak have reported a decline in production of about 15% due to unfavorable weather conditions. In 2023, domestic production of raw cashew nuts reached approximately 300,000 tons, but in 2024, it is expected to drop to around 255,000 tons.

Processed Cashew Kernel Situation

The processed cashew kernel sector, which relies heavily on raw cashew nuts, has also been impacted:

  • Price Fluctuations: The price of cashew kernels on the international market has increased by about 20% since early 2024 due to the difficulties in raw cashew nut supply. Specifically, the price of W320 cashew kernels (the most common type) has risen from 3,000 USD/ton at the end of 2023 to approximately 3,600 USD/ton by mid-2024.
  • Product Quality: The shortage of high-quality raw cashew nuts has forced many companies to use lower-quality materials, affecting the final product quality. According to the Vietnam Cashew Association, the proportion of premium-grade cashew kernels (W240 and W320 types) has decreased by about 5% compared to the previous year.

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Observations

Several notable points in the current situation include:

  • Flexibility of Enterprises: Many companies have proactively sought new supply sources from Southeast Asia and South America. In 2024, the import volume of raw cashew nuts from these regions increased by about 15% compared to the previous year.
  • Government Support Policies: The government has introduced support policies to alleviate the burden on enterprises, including reducing import taxes from 5% to 2% and providing financial support of approximately 1,000 billion VND for struggling businesses.

Recommendations

To cope with the current fluctuations, enterprises should:

  1. Enhance International Cooperation: Seek and establish relationships with raw cashew nut suppliers from various countries to diversify supply sources.
  2. Invest in Processing Technology: Improve product quality by investing in modern processing technology and procedures.
  3. Focus on Product Quality: Ensure the quality of cashew kernels to maintain reputation and competitiveness in the international market.
  4. Monitor the Market Closely: Continuously update information on prices, supply, and demand to develop appropriate business strategies.
  5. Utilize Support Policies: Effectively use government support policies to navigate through challenging times.

Despite numerous challenges, the Vietnamese cashew industry still has opportunities for growth if it can leverage its resources and remain flexible in its business strategies.

The raw cashew nut and processed cashew nut markets are expected to continue to fluctuate in the coming period due to the influence of many factors. Investors and businesses need to be cautious and have appropriate strategies to minimize risks and seize opportunities. The government needs to have policies to support the cashew nut industry sustainably.

If you are looking for high-quality, healthy cashew nuts, come to CPT Corp. We are committed to providing you with the best products to meet your needs.

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

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