Ivory Coast has long been a key supplier of raw cashews to Vietnam, fueling the country’s thriving cashew processing industry. However, in the first months of 2024, Vietnam recorded a significant drop in raw cashew imports from Ivory Coast, even as the average import value per ton has risen. What’s causing this shift? Below, we’ll explore several factors impacting Vietnam’s cashew imports from Ivory Coast this year.
Analysis of the Decline in Raw Cashew Imports from Ivory Coast
In September 2024, Vietnam imported 188.8 thousand tons of raw cashews valued at $260 million, a decrease of 23.18% in volume but an increase of 7.42% in value. The average import price reached $1,377 per ton, up by 39.8% compared to last year, according to data from VINACAS and TCHQ.
Between January and September 2024, Vietnam imported 2.14 million tons of raw cashews worth $2.6 billion, down 11.7% in volume and 7.3% in value year-on-year. Among these imports, Ivory Coast, a major supplier, provided 494.8 thousand tons, a 33.8% decrease from the same period in 2023.
Reasons Behind the Decline
- Global Supply Chain Disruptions: Ivory Coast temporarily suspended cashew exports in April and May, leading to delays in international orders and impacting Vietnam’s import volumes.
- Rising Prices: Although import volumes fell, average prices rose sharply as Ivory Coast set a minimum price of 275 FCFA/kg to protect farmers amid global economic and political challenges. Higher prices have added cost pressures for Vietnamese businesses.
- Management and Policy Changes: Leadership changes at Ivory Coast’s Cotton and Cashew Council (CCA) following management issues may have destabilized supply, impacting exports and reducing imports to Vietnam.
- Domestic Production and Processing Goals: Ivory Coast is aiming to produce 1.25 million tons of raw cashews in 2024, a 5% increase over the previous year. The government is also promoting domestic processing, targeting 320,000 tons, which may reduce cashew exports to international markets.
Thanks to improving market conditions, September 2024 showed a modest recovery in import volumes from Ivory Coast compared to the previous month. However, import prices remain high, and ongoing supply chain and regulatory challenges contribute to market instability. These are factors that Vietnam’s cashew industry must consider amid fluctuating global markets.
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