Cashew nut exports mostly rely on imported raw materials

Cashew nuts are one of Vietnam's key agricultural export commodities. However, this industry is heavily dependent on imported raw materials.

Chart of volume, turnover and average price of exported cashew nuts in 2016 and the first 2 months of 2017. Chart: T.B

According to the latest information of the General Department of Customs, by the end of February, 2017, the country exported 31,499 tons of cashew nuts and reached turnover of $US 286.325 million, down 9.9% in volume but increased 8.7% in value compared to the same period in 2016.

Notably, at the same time, Vietnam imported 100,836 tons of cashew nuts, with a total turnover of $US 214.9 million, up 67.3% in volume and up 119.5% in value compared to the first two months of 2016.

Thus, the average export price of cashew nuts is $US 9,090 per ton, while the average import price is $US 2,131 per ton.

Talking with the correspondent of the Customs Newspaper (on March 15, 2017) and sharing the remarkable information above via telephone, Mr.Dang Hoang Giang, Vice chairman and General Secretary of the Vietnam Cashew Association (VINACAS) said import prices are lower because we import raw materials and export cashew nuts.

Is the cashew industry heavily dependent on imported raw materials? Answering this question, Mr. Dang Hoang Giang said that it was too early to comment in the first two months of 2017, because the country has not harvested yet (harvesting from March to June) .

However, the leader of the Cashew Industry also acknowledged that currently the amount of imported raw materials occupied a large proportion. For example, in 2016, the domestic cashew production reached about 500,000 tons and imported about 1 million tons (preliminary assessment of the General Department of Vietnam Customs is 1.039 million tons), accounting for 2/3 of raw materials.

The major markets importing raw material of Vietnam in the past two months were: Indonesia, Ivory Coast and Cambodia. Meanwhile, the export markets were the US, EU, China, etc.

In 2016, the Cashew Industry exported 346,844 tones, with a total turnover of $US 2.842 billion, up 5.7% in volume and 18.5% in value. This is an agricultural export commodity group with the second highest turnover after coffee in the country.