Vietnam’s cashew nut exports in the first quarter of 2024 reached about 147,000 tons, worth 782 million USD, up 31.8% in volume and 20.5% in value over the same period in 2023. However, Cambodia, the supplier of raw materials to Vietnam is facing many difficulties.
According to statistics of the General Department of Customs, in March 2024, Vietnam’s cashew exports reached 55,000 tons, worth 289 million USD, up 106.8% in volume and 103.4% in value compared to February 2024.
In the first quarter of 2024, Vietnam’s cashew nut exports reached about 147,000 tons, worth 782 million USD, up 31.8% in volume and 20.5% in value over the same period in 2023.
Will cashew supply to Vietnam be affected when Cambodia, the top supplier is in difficulty?
It is estimated that Vietnam’s average export price of cashews reached 5,248 USD/ton in March 2024, which was down 1.7% compared to February 2024 and 11.6% compared to March 2023. Vietnam’s average export price of cashews was about 5,329 USD/ton in the first three months of the year, which was down 8.6% over the same period in 2023.
The US and China are now the two largest markets importing a large amount of cashew nuts from Vietnam. According to data from China Customs, in the first two months of 2024, China imported 8,410 tons of cashew nuts, worth nearly 42.16 million USD, up 9.7% in volume and 42% in value over the same period last year.
In the first two months of 2024, China imported cashew nuts mainly from Vietnam, reaching 6,430 tons, worth 36.78 million USD, up 65.1% in volume and 61.3% in value over the same period in 2023. Vietnam’s market share of cashew nuts accounted for 76.53% of China’s total imports in the first two months of 2024.
Regarding the US, this market tends to increase cashew imports from Vietnam, India, and Thailand.
Despite being the world’s leading exporter of cashew nuts, Vietnam has to import a large amount of raw materials from Cambodia. However, Cambodia’s cashew industry now is facing many difficulties.
According to Khmer Times, the Cambodian cashew industry now has to cope with the challenges caused by El Nino.
Vietnam is the world’s leading exporter of cashew nuts but has to import huge amounts of raw materials from Cambodia.
The Cambodian Cashew Association said that, currently, output is exceeding demand. Therefore, what farmers must do is to avoid extending their farms and increase productivity and quality, instead. At the same time, factories should focus on production quality to ensure a premium taste and create high-quality products that are highly competitive.
The Association recommends cooperation between local farmers, large farms, and cooperatives to jointly promote market access and quality improvement. On the other hand, they should build plans to make the most of digital platforms for market access, blockchain for traceability, and new approaches to sustainable farming.
Quality is a top priority and strategies are set to implement quality standards and sustainable farming guidelines through periodic training workshops for all stakeholders. To improve the efficiency of the cashew supply chain, the platform will support the establishment of purchasing centers, processing units, and distribution networks. Last but not least, the project looks for cooperation and funding from UNDP, FAO, and other international organizations to implement and expand the project.
If all goes as planned, the platform will ensure market transparency and fairness, improve quality and sustainability, income and livelihoods of farmers as well as capacity for sustainable agricultural practices and foreign investment.
Cambodia has been the top supplier of cashew nuts to Vietnam for many years and is rising as a major Asian supplier. In 2023, Vietnam imported 644,191 tons of cashew nuts from Cambodia with a value of more than 836 million USD, down 9% in volume and 23% in value compared to the previous year./.