In more than 20 days, many cashew farms in Dong Giang and Thien Nghiep will be ready for harvest and farmers will enter the harvest season massively. However, the cashew price at the beginning of the crop is lower than in the same period last year.
THE CASHEW PRICES ARE LOW AT THE BEGINNING OF THE CROP
Mr. Nguyen Duc Vinh (Thien Nghiep, Phan Thiet) has an area of 7,000 m2 of cashew trees. In 2022, the yield generally reached one ton of nuts; the selling price at the beginning of the crop was 28,000 VND/kg, in the middle 26,000 VND/kg, and 22,000 VND/kg at the end of the crop. However, it will be difficult to achieve the same productivity and selling prices in 2023 as last year. Up to this time, most cashew trees will be ready for harvest in the next 20 days. The number of flowers is less than the previous year.
The cashew prices are expected to increase.
Mrs. Nguyen Thi Thanh Mai (Ham Thuan Bac) said: Unseasonal rain makes the rate of flowering low, so young fruits on cashew trees are less than last year. The selling price is only 24,000 VND/kg at the beginning of the crop which is 4,000 VND/kg lower than last year’s. By the middle of the crop, what the price will be is the question waiting ahead. Not only me but also other farmers are worried about the price and yield of cashew.
Mr. Vinh said that in recent years, the situation of pests destroying cashew trees has affected the growing area as well as the production. From one ha of cashew trees being harvested to now only 7,000 m2 of cashew trees, not to mention other diseases. Farmers have actively sprayed for tree protection in time but they cannot control it. Cashew growers are facing many difficulties, hoping that prices will increase in the coming days.
According to some cashew purchasing points, there are more than 20 days until cashew nuts are ready for harvest massively. The price this year is lower than last year. The purchase price depends on the companies so the purchasing points do not know why the price is low. In Thien Nghiep (Phan Thiet), the purchase price of cashew nuts ranges from 22,000 – 23,000 VND/kg, and 23,000 – 24,000 VND/kg in Dong Giang (Ham Thuan Bac). Particularly in Tanh Linh, the cashew nut began to ripen (starting to harvest massively), priced at 27,500 VND/kg within this week. At the beginning of this crop, the price is only under 25,000 VND/kg.
WHY?
According to The Hindu Business Line of India, the cashew sector is currently facing the situation of high raw cashew prices. Meanwhile, processing costs are rising and export prices are falling. If in 2022, the price of cashew nut type W320 was 2.95 – 3.1 USD/pound (1 pound equivalent to 0.45 kg), the price this year is only 2.5 – 2.6 USD/pound. The price of raw nut is currently about 1,240 USD/ton compared to last year’s 1,200 USD/ton. As calculated, the raw cashew price is too high compared to the current kernel cashew price.
The cashew prices are low at the beginning of the crop.
Usually, at the beginning of the year, enterprises sign contracts at least until the third quarter of the following year. However, in 2023, most importers in the US and EU do not plan to import cashew until the end of the second quarter. This forecasts that the production and business of cashew in 2023 will be more difficult.
In the context of lower demand and export prices, processors and cashew-related businesses are not in a hurry to import raw cashews, especially when prices remain high. Besides, due to climate change, the cashew crop in Africa and India comes later than usual, which can lead to crop loss. Many factors and the story whether the price is stable or not are still ahead. It is forecast that 2023 will be a challenging year for the cashew industry due to reduced exports and demand.
It is the general situation of the cashew industry in the world that more or less affects domestic cashew prices. 90-95% of cashew output is for export and 5-10% is for domestic consumption. Meanwhile, foreign markets cut down spending on non-essential goods including cashew nuts. Specifically, the export value of cashew nuts in Feb 2023 was 327 million USD, down 14.3% over the same period last year. The price of domestic raw materials will be affected. The price of cashew at the beginning of the crop in 2023 in some provinces and cities is also lower than the previous year, fluctuating at 26,000 VND/kg or less. The cashew price at the beginning of the crop in Binh Thuan is in the same situation./.