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Vietnam’s cashew nut exports outlook

Vietnam’s cashew nut exports outlook

Tuesday 09, 08 2022
Vietnam exported 1.7 billion USD worth of cashew nuts in the first 7 months of 2022. However, the amount of exported cashew kernels will lower in the coming months, possibly lasting until the end of 2022.

Cashew exports in the first 7 months of 2022

Vietnam’s cashew nut exports in July 2022 reached 45 thousand tons, equivalent to a turnover of 260 million USD, down 3.2% in volume and 8.7% in turnover compared to June. Compared to July 2021, exports are down by 17.5% in volume and 26.1% in turnover.

Vietnam’s cashew nut exports

In the first 7 months of 2022, Vietnam’s cashew nut export is estimated at 294 thousand tons, with a turnover of 1.76 billion USD, down 10.5% in volume and 12.1% in turnover over the same period in 2021.

Data from the General Department of Customs shows that Vietnam’s cashew nut export in the first half of 2022 reached 249.4 thousand tons, equivalent to a turnover of 1.5 billion USD, down 9.1% in volume and 9.2% in turnover over the same period in 2021.

The average cashew nut export price in the first 6 months of 2022 was 6,017.7 USD/ton, down 0.1% compared to the same period in 2021. However, in June 2022, the export price rose to the mark of 6,131.6 USD/ton, up 0.4% compared to May. It is still lower by 2.6% compared to June 2021.

In the first 6 months of 2022, Vietnam mainly exported cashew nuts to the US, China, and the Netherlands. Exports to these markets accounted for 53.7% of the total cashew nut export.

The amount exported to said three markets all declined compared to the same period in 2021. Specifically, exports to China reached 28.49 thousand tons, equivalent to a turnover of 180.9 million USD, down 27.1% in volume and 37.9% in turnover. Exports to the US were down 8.7% in volume and 4.9% in turnover, equivalent to 76.2 thousand tons of cashew nuts exported, with a turnover of 440.6 million USD.

The amount exported

Vietnam’s cashew nut exports to the UAE increased sharply in the first 6 months of 2022, with the volume exported reaching 5.08 thousand tons, equivalent to an export turnover of 31.80 million USD, up 45.6% in volume and 57.7% in turnover over the same period in 2021.

Difficulties projected

Up to this point, Vietnam’s cashew nut export turnover has reached over 1.7 billion USD. However, factors such as the Russia – Ukraine conflict and global inflation will affect export until the end of 2022. The fact that China continues the “Zero Covid” policy will pose many challenges when exporting to this market.

Another problem for companies in the cashew industry is the price of raw cashew material.

In the first 5 months of 2022, cashew companies imported about 968,000 tons of raw cashew, equivalent to 1.4 billion USD, down 35.24% in volume and 37.84% in turnover. However, from the beginning of the crop until now, the import price of raw cashew from Africa has increased by 15-20% over the same period in 2021.

Cashew companies

Cashew companies in Vietnam stated that the increase in raw cashew prices, in addition to the rising price of petrol and transport, is creating difficulties for them. Especially since the export price of cashew kernels remains the same, even decreasing. Several small cashew manufacturers have stopped operation to avoid loss. Bigger factories have to reduce capacity and process in moderation since there will be more loss if they keep the usual processing scale.

Considering the problem above, experts said that the amount of cashew kernels for export is forecasted to decrease in the following months, which may last until the end of 2022.

The quality of cashew is another problem. Due to the impact of the pandemic, the logistics jam, and the large-scale lack of empty containers, the raw cashew imported from Africa to Vietnam was delayed, and some were stored for a long time, resulting in a decline in quality.

With said difficulties, the cashew industry proposes to adjust the export target to 3.2 billion USD, down 600 million USD compared to the original target of 3.8 billion USD.

Besides the adverse factors, the Agency of Foreign Trade assessed that the global cashew nut market is forecasted to grow at an average rate of 4.6% in the period 2022 - 2027. Global trends are favoring the vegan and plant-based diet, favoring alternative protein sources, leading to increased demand for nuts and nut-based foods.

In Europe, due to the increasing health consciousness of consumers, cashew nut consumption is increasing. Recently, cashews have also been increasingly used as an ingredient in dishes and snacks.

The EVFTA can help Vietnam’s cashew to penetrate some of the European markets that have yet been familiar with the product, such as France.

 

Source: The Ministry of Industry and Trade

Compiled by VietnamCredit

 

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