Forecast rise in world cashew nut prices brings hope to domestic processors

Hanoi (VNA) – The world prices of cashew nut are forecast to recover in the second quarter of this year to levels higher than that in the past two years, according to the Department of Farm Produce Processing and Market Development under the Ministry of Agriculture and Rural Development.

Export revenue from cashew nut export this year has seen a strong reduction due to decreasing prices in the world market. Some 44,000 tonnes were shipped abroad in the first two months of this year for 365 million USD, down 3.1 percent in volume and 22.3 percent in value on a yearly basis. The export price in January averaged 8,136 USD per tonne, 21 percent lower than one year ago.

The US, China and the Netherlands remained the three largest customers of Vietnam’s cashew nuts, accounting for 33 percent, 15.6 percent and 10.4 percent, respectively, of the country’s total earnings from the export of the nut.

In the short term, the prices of cashew nut are expected to continue going down as it is harvest time in many major cashew nut producing countries such as Brazil, Indonesia and Nigeria.

However, the prices are said to begin picking up in April towards the end of the year, helped by rising demand in China and other importing countries, according to the International Nut and Dried Fruit Council.

Although Vietnam is a leading exporter of cashew nut, the country’s export value remains modest as many enterprises are still dependent on imported materials.

In 2018, Vietnam’s cashew export revenue hit 3.52 billion USD, but up to 70 percent of cashew materials for processing were imported, leading to high costs.

According to the Vietnam Cashew Association (Vinacas), in 2019, Vietnam plans to ship abroad 350,000 tonnes of cashew nuts for about 4 billion USD, a lower volume but higher value than the previous year. -VNA