Vietnam Maintains No.1 Position in Global Cashew Exports: US and China Aggressively Hunt, Prices Reach Record High

In 2024, cashews – often referred to as Vietnam’s “golden nuts” – have continued to dominate the international market. Vietnam remains the world’s largest exporter of cashews, with nearly half of the world’s countries being major buyers, including the US and China, which have significantly increased their demand. The price of cashews has also hit a record high since the start of the year, highlighting the growing global interest in this valuable agricultural product.

Positive Growth in Vietnam’s Cashew Exports in 2024

According to the latest reports, Vietnam exported 64,560 tons of cashews in August 2024, generating USD 408.44 million, marking a 6.2% increase in volume and a 21.9% rise in revenue compared to August 2023. For the first eight months of 2024, total export volume reached 486,470 tons, equivalent to nearly USD 2.78 billion, with increases of 22.9% in volume and 21.8% in value year-over-year. However, the average export price dropped slightly by 0.9% compared to the same period.

The export price in August 2024 reached USD 6,326 per ton, an increase of 2.6% from the previous month and 14.8% compared to August 2023, setting a new record high.

Strong Demand from the US and China

The US remains the largest importer of Vietnamese cashews, accounting for nearly 28% of Vietnam’s total cashew exports. In the first eight months, Vietnam exported 134,109 tons of cashews to the US, generating nearly USD 763 million at an average price of USD 5,687 per ton. In August 2024 alone, exports to the US reached 20,099 tons, equivalent to USD 128 million, reflecting a 35.7% increase in volume and a 60.6% surge in value year-over-year.

China is the second-largest market, with 82,863 tons of cashews exported, generating USD 464 million. This represents a 43.5% increase in volume and a 28.9% rise in value compared to the same period in 2023. China’s demand for cashews has grown significantly after it lifted its Zero-Covid policy, coupled with promotional programs boosting cashew consumption.

The Netherlands ranks third, importing 44,839 tons of cashews from Vietnam, valued at USD 261 million, marking a 15.5% increase in volume and a 14.9% rise in value. The Netherlands plays a crucial role as a trading hub in Europe, re-exporting cashews to other European countries due to low local production.

Challenges for Vietnam’s Cashew Industry

Despite Vietnam’s impressive achievements in cashew exports, the industry faces significant challenges. One major issue is the growing dependence on imported raw cashew materials. Currently, 90% of raw cashews are imported, primarily from Africa and Cambodia. In the first eight months of 2024, Vietnam spent USD 2.4 billion on raw cashew imports, increasing the risk of a trade deficit.

In addition, imported raw cashew prices have surged due to reduced global supply caused by drought and declining productivity. This has driven up the price of cashews on the international market.

Shrinking Cashew Plantation Areas in Vietnam

Due to competitive pricing and difficulties in domestic production, many Vietnamese farmers have switched to cultivating more profitable crops, leading to a sharp decline in cashew plantation areas. From 440,000 hectares in 2007, the total cashew-growing area dropped to 300,000 hectares in 2023, producing 347,600 tons.

This reduction in plantation areas is a significant challenge for Vietnam’s cashew industry, threatening future supply. The International Nut and Dried Fruit Council (INC) predicts that global cashew supply will decrease by about 7% in 2024, with weather conditions likely leading to even greater shortages. Consequently, raw material shortages are expected to persist in the coming years.

Despite facing supply shortages and shrinking plantation areas, Vietnam’s cashew exports have shown positive growth, driven by strong global demand, particularly from major markets like the US, China, and Europe. Maintaining its position as the world’s largest cashew exporter is a key achievement for Vietnam’s agricultural sector. However, the industry must implement sustainable solutions to address raw material shortages and price competition to secure its future in the global market.

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