Export Price of Cashew Kernels Hits Record High Since the Beginning of 2024

In September 2024, Vietnam exported approximately 60,000 tons of cashew kernels, earning an export turnover of 393.4 million USD. This represents an increase of 10.1% in volume and a significant 34.84% rise in value compared to September 2023. However, this export volume is lower than August 2024, with 70,870 tons, and July 2024, with 74,120 tons, according to data compiled by the Vietnam Cashew Association (VINACAS) from the General Department of Customs (TCHQ).

Record-High Export Price in 2024

In September 2024, the average export price for cashew kernels reached 6,560 USD/ton, marking a 22.5% increase compared to the same period last year. This is the highest price recorded in 2024, surpassing previous months such as August (6,424.7 USD/ton) and July (6,279.59 USD/ton).

Overall, in the first nine months of 2024, Vietnam exported a total of 581,130 tons of cashew kernels, generating 3.38 billion USD in revenue. This reflects a 28% increase in volume and a 32.6% rise in value compared to the first nine months of 2023. The average export price for this period was 5,775.5 USD/ton, up by 2.8% year-over-year.

Why Are Prices Rising?

Several factors have contributed to the increase in cashew kernel prices in 2024, as explained by international experts:

  1. Supply Chain Disruptions: Vietnam, the world’s largest cashew processor, has seen a reduction in raw cashew imports by over 10% compared to last year. This has led to supply shortages. Poor harvests in West Africa, a key supplier of raw cashews, have further exacerbated this scarcity. As a result, raw cashew prices have surged, pushing kernel prices higher.
  2. Rising Demand in Emerging Markets: Countries like China and other regions in Asia are experiencing strong demand growth due to an expanding middle class and an increasing focus on health. This heightened competition for limited supply has driven up prices.
  3. Global Economic and Environmental Factors: Fluctuations in exchange rates and adverse weather conditions due to climate change have made production costs more expensive and unpredictable. Harvest yields have been impacted, leading to higher processing costs and, consequently, higher retail prices for consumers.
  4. Geopolitical Tensions: While political instability in regions like the Middle East has led to reduced demand, global demand remains strong, particularly in Western markets, where health-conscious consumers continue to drive consumption.

Despite these challenges, the long-term outlook for cashew kernel prices suggests continued volatility, with prices likely to remain high due to limited supply and rising global demand, especially during the year-end festive season.