Although the season ended for a long time, raw cashew prices have increased unexpectedly. This has caused the market to become busy; however, there are potential risks in production and business.
RAW CASHEW PRICES HAVE INCREASED UNEXPECTEDLY
In Dong Nai province, the area of cashew trees is now just over 27,000 ha, down tens of thousands of hectares compared to a few years ago. This year, the weather was hot and dry. Although the crop was bad, the price of raw cashew sold by farmers in Dong Nai was lower than in the same period every year. At the beginning of the season, the raw cashew price ranged from 25,000 to 26,000 per kg. But by the end of the season, it was only 20,000–21,000 VND per kg. This price was 2,000–3,000 VND/kg lower than in the same period last year.
Mr. Le Ngoc Vinh’s family in Xuan Loc district (Dong Nai) were picking cashew nuts.
Mr. Le Ngoc Vinh in Xuan Tam commune (Xuan Loc district) has nearly two hectares of cashew. This year, production was less than one ton per hectare.
BAD CROPS AND LOW PRICES MAKE FARMERS UNHAPPY
After the cashew harvest in 2024 ended, raw cashew prices in Dong Nai suddenly increased again. The price of raw cashew purchased by factories and processing facilities from traders was higher than 40,000 VND/kg.
“This is a record price so far. However, farmers do not have much cashew left to sell,” Mr. Vinh said.
In Binh Phuoc province, for more than a month, the price of raw cashew has increased sharply, up to 40,000 VND/kg. Many people are so surprised by market fluctuations.
Ms. Luu Thi Thu, a cashew farmer in Dak O commune (Bu Gia Map district), said that she has 4 ha of cashew. Recently, she sold raw cashew at the highest price of 28,000 VND per kg. Due to the low price for many years, she and many other farmers no longer think of stocking raw cashew.
RAW CASHEW PRICES FLUCTUATE WITH MANY POTENTIAL RISKS
According to cashew purchasing and processing facilities, the price of raw cashew has suddenly increased due to many reasons that have been happening silently for many years.
Limited supply is pushing up the price of raw cashew.
Ms. Phung Thi Loan Oanh, owner of Binh Oanh cashew processing business in Phuoc Long Town, said that due to the high demand from customers and the bad crop both at home and abroad this year, the price of raw cashew has gone up, leading to an increase in the price of cashew kernels and products made from cashew.
Also in Phuoc Long Town, Ms. Phung Thi Kim Yen, owner of Kim Yen cashew processing facility, said that the supplies of raw cashew in the domestic market and imported are limited.
Large companies that signed contracts with foreign businesses now have to push up prices to buy raw materials to complete these contracts. This causes the price of raw cashew to increase suddenly. Many businesses are under pressure, Ms. Yen shared.
Earlier, the Vietnam Cashew Association (Vinacas) had warned that African raw cashew exporters may break contracts due to fluctuating prices. This puts the world market at risk of supply chain disruption.
A cashew processing facility in Binh Phuoc.
Accordingly, Ivory Coast decided to temporarily pause the export of raw cashew. Shipments are delayed or less than the contract, so domestic processors are facing a shortage of materials.
Raw cashew containers at sea are offered for sale at higher prices. However, to have enough materials to perform the contract properly, Vietnamese enterprises must buy because they have already signed a long-distance delivery contract.
Every year, cashew processing enterprises import more than 80% of raw cashew for production. Therefore, experts said that if this situation is prolonged, it is likely that in the third and fourth quarters, the cashew industry will face great difficulties when there is a shortage of raw materials. This situation may even extend to the first quarter of 2025. /.