Vietnam’s thriving cashew nut industry faces a challenge: fluctuating raw cashew nut and processed cashew nut markets. This report dives into the current situation, analyzing trends and offering a forecast for the future. We’ll explore factors impacting raw cashew nut prices and processed cashew nut demand, providing valuable insights for investors and businesses within the industry. By understanding market dynamics, stakeholders can make informed decisions and navigate the path forward.

Raw Cashew Nut and Processed Cashew Nut Market on May 15, 2024

  • Raw Cashew Nut Market

+ Raw cashew nut prices on the market vary depending on quality, supplier reputation, and buyer. The price is “fixed” at the level decided by the parties involved.

+ Raw cashew nut prices from West Africa are still higher than the increase in processed cashew nut prices and there are not many transactions. Some sellers are starting to offer shipments at sea: Recovery over 50 lbs at prices above USD 1300/mt, but buyers cannot afford such high prices because they cannot balance with processed cashew nut prices.

+ The harvest season in Vietnam and Cambodia is almost over and there are not many transactions.

Below is a table of raw cashew nut prices offered on the market:

Origin Outturn Count Price (USD/mt)
IVC (Delivery in May 2024) 44 200 1120-1140
Nigeria (Delivery in May-June 2024) 50 185 1285-1300
Ghana (Delivery in May 2024) 45 200 1150-1165
Guinea Bissau (Delivery in May 2024) 52 220 1340-1360

  • Processed Cashew Nut Market

+ Processed cashew nut prices offered on the market also vary depending on the type, factory, certification… The price is “fixed” at the level decided by the parties involved.

+ Prices of factories with BRC and SMETA certification are for sale to high-end markets such as Japan, China, and Arabia….

+ High raw cashew nut prices have led to processors/traders also quoting higher processed cashew nut prices.

+ Prices for broken grades like WS, LP, and SP are not increasing much compared to whole and white grades.

Below is a table of processed cashew nut prices offered on the market:

Factory Type W180 (USD/Lb) W210 (USD/Lb) W240 (USD/Lb) W320 (USD/Lb) W450 (USD/Lb) WS (USD/Lb) LP (USD/Lb) SP (USD/Lb)
BRC & Smeta 3,95-4,05 3,55-3,60 3,10-3,15 2,85-2,95 2,65-2,75 2,00-2,05 1,45-1,55 1,30-1,35
BRC 3,80-3,95 3,50-3,55 3,00-3,10 2,75-2,85 2,50-2,65 1,85-2,00 1,30-1,45 1,20-1,30
HACCP 3,70-3,80 3,40-3,50 2,90-3,00 2,60-2,75 2,40-2,50 1,70-1,85 1,15-1,30 1,10-1,20
  • Market Observations

+ The raw cashew nut and processed cashew nut markets are experiencing many fluctuations due to high raw cashew nut prices.

+ Vietnamese cashew nut processors are facing many difficulties due to high raw cashew nut prices while processed cashew nut prices are decreasing.

+ The Vietnamese government needs to have policies to support the cashew nut industry to stabilize the market and protect farmers.

>>> Maybe you are interested in The Global Organic Cashew Nut Market: Trends and Insights

Forecast for the Cashew Nut Market in the Coming Period

The cashew nut industry plays an important role in the Vietnamese national economy, with annual export turnover reaching billions of USD. However, the raw cashew nut and processed cashew nut markets are experiencing many fluctuations, causing concerns for investors and businesses. This article will analyze and forecast the raw cashew nut and processed cashew nut markets in the coming period, and provide some recommendations for stakeholders.

Market Forecast

  • Raw Cashew Nut Market

Raw cashew nut prices are expected to continue to fluctuate in the coming period due to the influence of many factors such as:

+ Global economic and political fluctuations: The risk of global recession, US-China trade tensions, and the COVID-19 pandemic… can affect the demand for raw cashew nuts from major markets.

+ Global raw cashew nut production: If global raw cashew nut production increases sharply, especially from countries like Ivory Coast, Ghana, and Nigeria… it can lead to oversupply, putting pressure on raw cashew nut prices.

+ Processed cashew nut demand: Processed cashew nut demand from major markets like the US, EU, and China… has a direct impact on raw cashew nut prices.

However, overall, the raw cashew nut market is expected to have an upward growth trend in the long term due to the increasing demand for processed cashew nuts worldwide.

  • Processed Cashew Nut Market

Processed cashew nut prices are also expected to fluctuate in the coming period due to the influence of many factors such as:

+ Raw cashew nut price fluctuations: Higher raw cashew nut prices will lead to higher processed cashew nut prices.

+ Processed cashew nut demand: Processed cashew nut demand from major markets like the US, EU, and China… has a direct impact on processed cashew nut prices.

+ Competition from other cashew nut-producing countries: Other cashew nut-producing countries like India, and Brazil… are increasing the production and export of processed cashew nuts, putting pressure on Vietnamese processed cashew nut prices.

However, overall, the processed cashew nut market is expected to have an upward growth trend in the long term due to the increasing demand for processed cashew nuts worldwide.

Observations

+ Raw cashew nut prices offered on the market vary depending on quality, supplier and buyer reputation, selling pressure… The price is “fixed” at the level decided by the parties involved.

+ Raw cashew nut prices from West Africa are still higher than the increase in processed cashew nut prices and there are not many transactions.

+ The harvest season in Vietnam and Cambodia is almost over and there are not many transactions.

+ Processed cashew nut prices offered on the market also vary depending on the type, factory, certification… The price is “fixed” at the level decided by the parties involved.

+ Prices of factories with BRC and SMETA certification are for sale to high-end markets such as Japan, China, and Arabia….

+ High raw cashew nut prices have led to processors/traders also quoting higher processed cashew nut prices.

+ Prices for broken grades like WS, LP, and SP are not increasing much compared to whole and white grades.

Recommendations

  • For investors:

+ Be cautious in investing in the raw cashew nut and processed cashew nut markets due to market fluctuations.

+ Closely monitor market conditions and conduct thorough analysis before making investment decisions.

+ Diversify investment portfolios to minimize risks.

  • For businesses:

+ Improve product quality to meet the increasingly high market demand.

+ Seek new export markets for products.

+ Apply cost-saving measures in production to enhance competitiveness.

  • For the government:

+ Have policies to support the cashew nut industry to stabilize the market and protect farmers.

+ Encourage research and development of science and technology to improve productivity and product quality.

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 in a sustainable manner.

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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