Illustrative image (Photo: VNA) HCM City (VNA) – Amid global demand slump, cashew remains a silver lining of the overall cloud of export, heard a conference on cashew market outlook taking place in HoChi Minh City on July 26.
Vietnam Cashew Association (VINACAS)’s Standing VicePresident Bach Khanh Nhut said from the remaining months of 2023 until the firstquarter of 2024, the industry will continue to face many hurdles. In the context that the global economy continues to decline, cashew will not an essentialcommodity and, as a result, consumer demand will continue to decline.
Nhat also said that in the optimistic scenario, thecashew industry will grow thanks to the consumption of cashew kernels, when thedemand stimulus is effective, the inventory level in major consuming marketsincluding the US and Europe will decrease, pushing the demandat the end of the year.
However, VINACAS has adjusted the target of cashewnut export turnover in 2023 to 3.05 billion USD, a decrease of 50 million USDcompared to the previously set plan and 750 million USD lower than the targetof the Ministry of Agriculture and Rural Development (MARD) for the industry from thebeginning of the year.
Chairman of VINACAS Pham Van Cong said that theassociation has recommended the State continue to support thepromulgation of appropriate mechanisms and policies to import cashew kernels toensure fairness for domestic processing enterprises.
Besides, it has suggestedministries, branches and localities to create the most favourable conditions forcashew businesses, especially in terms of bank credit, tax and customspolicies, Cong added.
VINACAS has also proposed the Ministry of Industryand Trade (MOIT) to introduce industrial promotion programmes, support enterprises toinvest, improve technology, equipment, digital transformation, and to upgradeprocessing facilities while supporting and encouraging businesses to expandmarket, investing in deep processing, and diversifyingexports.
It has requested the MARD to early conduct survey, assessment of cashew growing areas, and introduce mechanisms to support Vietnamese cashew farmers. In addition,ministries, branches and diplomatic and trade agencies have been requested to strengthen information on markets, customers, consumption trends and traderisks in foreign markets and support cashew businesses when there areunforeseen difficulties that may occur.
In the first six months of 2023, the industryexported over 279,000 tonnes of cashew nuts of all kinds with a turnover of about 1.6 billion USD, up 9.49% in volume and 7.65% in value. However,the average export price of cashew kernels was only about 5,717 USD per tonne,down 1.73% over the same period last year.
In the reviewed period, Vietnamese cashew enterprises imported about 1.44million tonnes of raw nuts worth about 1.8 billion USD, up 19.79% in volumeand 5.16 % in value. The average import price of raw cashew nuts decreased by11.34% to only 1,251 USD per tonnes./.
