Vietnamplus

The price of pepper and cashew in southern Vietnam is falling as demand has dropped due to the COVID-19 crisis, affecting farmers and businesses.

The Vietnam Cashew Association (Vinacas) has recently held a conference to review the industry’s performance in the first seven months of 2019 and seek solutions to the problems facing it.

Cashew prices are low at present, according to the Vietnam Cashew Association (Vinacas).

The cashew sector enjoyed sharp year-on-year rises in export volume and value in the first three months of this year at 31 percent and 43.6 percent respectively thanks to higher quality and price.

Vietnamese importers have stopped buying raw cashew from Africa due to high prices, a representative of the Vietnam Cashew Association (VINACAS) said at a conference in HCM City on February 27.

Although global cashew demand is predicted to continue rising, the Vietnam Cashew Association (Vinacas) and cashew processors and exporters are worrying about a high price trap which may affect their activities in 2018.

The export turnover of 353,000 tonnes of cashew in 2017 touched 3.52 billion USD, the highest level ever recorded, according to the Ministry of Agriculture and Rural Development.

Many farmers in the southern provinces of Binh Thuan, Binh Phuoc and Ba Ria – Vung Tau have been encountering difficulties due to a poor cashew crop caused by bad weather and plant diseases.

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