The Import and Export Department stated that Vietnam exported 265,000 tonnes of cashew nuts for US$1.72 billion during the opening seven months of the year, representing an increase of 10.4% in volume, but a decline of 4% in value, against the same period last year.
Throughout the reviewed period, the average export price of cashew nuts suffered an annual fall of 13.1% to US$6,491 per tonne.
The decline can largely be attributed to the fact that importers generally give special attention to product quality, origin traceability, while other clients tend to ask for support or lower prices.
Paradoxically, the domestic price of cashew nuts is between 15% to 20% higher than the export price with the same product, shouldering the burden on cashew for export processors.
The Vietnam Cashew Association reported among the country’s three key cashew export markets, only China has witnessed a sharp fall in consumption in comparison to the first half of last year, while the United States and EU markets witnessed robust growth.
Moving into the remaining months of the year, the cashew industry is likely to face difficulties in production. An imbalance of supply and demand has forced several small and medium enterprises in Binh Phuoc and Dong Nai provinces to halt operations. In addition, the price of imported raw cashew nuts remains high, despite the selling price of processed cashew nuts being low.
Cashew nut exports ahead in the third quarter of the year are projected to plunge while major importers are likely to boost cashew imports during the fourth quarter to meet the rising demand that is anticipated to occur during the Lunar New Year festival.