The Import and Export Department forecasts that cashew nut exports will be favorable shortly because the demand for cashew nut consumption in Europe and the US increases annually. Many large enterprises have orders for delivery in 2022.
According to the General Department of Customs, in July 2021, cashew nut exports reached 54 thousand tons, worth $ 350 million, down 8% in volume and 5% in value compared to June but increased sharply by 30% in volume and increased 44% in value compared to July 2020.
(Production of organic cashews at Fomexco JSC)
In the first 7 months of the year, cashew exports reached 328.5 thousand tons, worth over 2 billion USD, up 23% in volume and 16% in value over the same period in 2020.
Cashew nut export price in July reached 6,457 USD/ton, up 11% compared to July 2020. However, accumulated in the first 07 months of the year, the average export price was only 6,095 USD/ton, down 6% over the same period in 2020.
Evolution of the average export price of cashew nuts in the period of 2019 - 2021 (Source: Import-Export Department)
In the first 07 months of the year, cashew nut exports to most of the main markets increased sharply, except for Australia.
The Vietnam Cashew Association (Vinacas) said that the cashew nut market is temporarily stable. Summer demand is slower and creates stability and balance between supply and demand at the moment.
Businesses are not really in a hurry to sell while customers go on vacation and return to the office during the second half of August and September.
The increase in the price of cashew kernels will depend on the situation of COVID-19 control in the country because Vietnam accounts for more than 80% of global cashew exports. The stable export price of cashew nuts will boost the world's consumption demand.
(Fomexco's staff support to Farmers To Overcome The Covid-19 Pandemic - The Project to develop the organic cashew material areas)
The Import-Export Department forecasts that cashew exports will be favorable soon because the demand for cashew nuts in Europe and the US increases according to the cyclical factor. Many large enterprises have orders for delivery in 2022.
However, Vinacas said that it is difficult to predict what will happen to the cashew industry in the coming months because logistics problems, freight rates push up cashew prices, making customers afraid to buy.