Cashew companies to step back in 2018 before gearing up again later

In 2017, Vietnam exported 353,000 tons of cashew nuts, worth $3.52 billion, an increase of one percent in quantity and 23.8 percent in export turnover compared with 2016. 

Vietnam exported 353,000 tons of cashew nuts in 2017

The cashew nut export turnover was even higher than the vegetable & fruit, coffee, rice and pepper turnover.

This was the 12th consecutive year Vietnam ranked first in the world in cashew nut export.

According to the International Nut and Dried Fruit Council (INC), cashew nuts account for the largest market share in the global dry nut market with the value of $30 billion a year. 

It is expected that cashew nuts would amount to 29 percent of the dry nut market by 2021, above walnuts. This means a great opportunity for Vietnam to boost exports of cashew nuts.

The volume of cashew nuts Vietnam plans to export in 2018 would be 53,000 tons lower, worth $500 million. But Vietnamese exporters have every reason to set the target.

The volume of cashew nuts Vietnam plans to export in 2018 would be 53,000 tons lower, worth $500 million. But Vietnamese exporters have every reason to set the target.

For many years, Vietnamese cashew nut processors and exporters have imported 1-1.2 million tons of materials each year, mostly from Cote d Ivoire, Campuchia, Ghana, Nigeria, Madagascar and Guinea, worth $2-2.4 billion, because domestic material supply could only satisfy 30 percent of demand.

They face high risks with the imports. The products have high humidity (over 10 percent), while some African exporters often break promises by not delivering goods on time or delivering low quality products. In many cases, imports get stuck at ports and the cashew nuts rot.

To date, Vietnam still does not have a cashew trading floor. Of 200 cashew material importers, many if the enterprises scramble for imports by raising import prices, thus creating unhealthy competition.

To offset the anticipated decrease in cashew nut export turnover, Vietnamese enterprises plan to increase the output of processed products and pay higher attention to developing the domestic market. It is expected that 20 percent of cashew nuts will be deeply processed by 2020.

In Vietnam, cashews are grown on a total area of 300,000 hectares across the country, mostly in Binh Phuoc, Binh Duong, Dong Nai, Binh Thuan and Ninh Thuan provinces. 

The agriculture ministry once planned to raise the total cashew growing area to 500,000 hectares, but this was unfeasible because of the lack of land.

Some enterprises are considering working with Cambodian enterprises to grow cashews in Cambodia, where land is available and climate conditions are favorable.

In the latest news, the Vietnam Cashew Association (Vinacas) in late 2017 had a working session with Cambodian agencies on the plan to grow cashews on 500,000 hectares. Under the plan, Vietnam will be responsible for the consumption of cashew materials.