Cashew prices reach highest in a decade

A cashew processing plant in southern Binh Duong province (Photo: tuoitre.vn)

Hanoi (VNA) - The local cashew industry has seen a spike in cashew prices, marking a 10 year record high, mostly due to increasing global prices.

As reported by Vietnam News Agency, a kilogramme of raw cashew nuts can now be sold for 32,000 VND (1.4 USD), and a kilogramme of dried cashew nuts fetches 40,000 VND, the highest prices recorded in the past 10 years.

Vietnam Cashew Association (Vinacas)’s Chairman Nguyen Duc Thanh said that cashew exporters are also buying cashew nuts from local farmers at higher prices.

“Exported cashew prices are rising due to global prices increasing. In addition, Vietnamese cashews are good quality and much favoured by foreign markets,” Thanh said.

Since early March, growers in key cashew cultivation areas in the Southern and Central Highlands provinces have started to collect their cashew nuts as it is now entering peak harvest season.

Tran Van Thi, a cashew grower in the Central Highlands of Dak Nong province said a kilogramme of cashew nuts previously sold for between 18,000 VND and 20,000, but now the prices have increased by 10,000 VND per kilogramme.

“With higher prices, a cashew growing household can now earn 90 million VND to 100 million per hectare of cashews, and after deducting all kinds of expenses and costs, they can gain from 70 million VND to 85 million VND in profit,” Thi said.

Nguyen Thi Hue, who owns two hectares of cashew plantation in the southern Binh Phuoc province’s Dong Xoai commune said this season she has collected about four tonnes of cashew nuts, adding that she has received numerous orders from cashew traders. She expects to earn a profit of 100 million VND after selling all this year’s crop.

According to statistics from Vinacas, in the first two months of this year, Vietnam exported 37,000 tonnes of cashews with a total revenue of 280 million USD, an increase of 11 percent compared with the same period last year.

Short supply

All though cashew prices are increasing, the cashew industry is still facing a shortage of cashews for export. Last year’s cashew crops saw low productivity due to unusually bad weather, which in turn led many farmers to narrow their cultivation area for cashews, or even replace cashew plantations with coffee, rubber or fruit trees.

Many farmers now feel regret because they don’t have enough cashews for traders, and therefore, the cashew industry cannot fully meet the export demands.

For many years, Thanh said, cashew prices have depended on the local traders.

"Farmers don’t directly supply cashews to export enterprises, but have to sell them through several traders. Therefore profits for farmers have been significantly diminished," he said.

In addition, Vietnamese farmers lack advanced preservation technology so they cannot store cashews for long periods. Often farmers will sell the raw cashew nuts right from their gardens, and can easily suffer losses.

"There should be a basic development strategy for the domestic cashew industry, including closer links between farmers, traders and exporters to protect the rights of cashew growers. The State should formulate policies to encourage and support farmers,” Thanh said.

To improve the situation, he said that Vinacas is cooperating with relevant agencies to develop a model linking production, processing and consumption, gradually connecting cashew growers with exporters, and helping farmers to increase their profits.-VNA