In 2024, Vietnam’s cashew nut exports to traditional and potential markets both have grown positively compared to the same period in 2023. Specifically, in August 2024, Vietnam exported 64,560 tons of cashew nuts, equivalent to 408.44 million USD, up 6.2% in volume and 21.9% in turnover compared to August 2023.
In the first 8 months of the year, cashew exports reached 486,470 tons, equivalent to nearly 2.78 billion USD, up 22.9% in volume and 21.8% in turnover but down 0.9% in price compared to the first 8 months of 2023.
The average export price of Vietnam’s cashew nut in August was 6,326 USD/ton, up 2.6% over the last month and 14.8% compared to August 2023, a record high.
Cashew nuts were exported the most to the US market, which accounted for nearly 28% of Vietnam’s total volume and export turnover of this item. It reached 134,109 tons, equivalent to nearly 763 million USD. The export price to this market averaged 5,687 USD/ton.
Vietnam’s cashew nuts are ordered by nearly half of the world.
In August 2024 alone, cashew exports to the US were 20,099 tons, equivalent to 128 million USD, up 35.7% in volume and 60.6% in turnover compared to August 2023.
China ranked second with 82,863 tons, worth 464 million USD, up 43.5% in volume and 28.9% in turnover over the same period last year. The strong growth of the Chinese market shows that cashew nut demand is rising again after the country removed its zero COVID policy. Besides, there are promotions to consume cashew nuts in China. Therefore, cashew nut consumption in this market is quite good.
The Netherlands ranked third with 44,839 tons, equivalent to 261 million USD, up 15.5% in volume and 14.9% in turnover. Because Europe has a very low output of cashew nuts, it has to depend on imports from many different countries. The Netherlands plays an important role as a trading center in Europe, as most of the imported cashew nuts are re-exported to other European countries.
The Vietnam Cashew Association said that Vietnam’s cashew exports will increase in the fourth quarter of 2024 thanks to increased world demand. In particular, consumption demand in the US has shown signs of recovery, and the sharp decline in inventories will lead to an increase in imports.
Vietnam is currently the world’s No. 1 exporter of cashew nuts. Vietnam’s cashew industry has about 500 manufacturing and processing enterprises with a capacity of 4 million tons of raw cashew per year. Vietnam’s cashew nut products are now available in more than 90 countries and territories around the world.
Despite exports earning nearly 2.8 billion USD, the cashew industry has spent up to 2.4 billion USD importing raw cashew materials for processing. Thus, Vietnam’s cashew industry is facing a very high risk of a trade deficit.
In addition, domestic cashew is difficult to compete with imported goods. Because of low income, many farmers give up on cashew to switch to other crops for higher economic efficiency. This is also the reason why the price of cashew nuts increased to the current record. The price of imported raw cashew nuts also increased strongly due to a decrease in supply caused by drought and a sharp decrease in productivity.
The above situation causes the growing area in Vietnam to gradually decrease year by year. Specifically, from 440,000 ha in 2007 to 305,000 ha in 2022. Last year, the area of cashew nut decreased to 300,000 ha, and the output reached 347,600 tons.
The International Nut and Dried Fruit Council (INC) said that the global supply of cashews will decline by about 7% compared to last year due to the influence of weather. However, the likelihood of such a decline could be much greater. Therefore, the shortage of raw materials is forecast to be prolonged.