Vietnam's cashew industry facing fluctuations in raw material prices

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According to the Import-Export Department (Ministry of Industry and Trade), it is estimated that in June 2024, Vietnam exported cashew nuts to 65,000 tons, worth US$388 million, down 4% in volume, but up 4.8% in value. Compared to May 2024, the cashew exports increased 8.4% in volume and 13% in value over the same period last year.

In the first six months of 2024, Vietnam exported 350,000 tons, worth US$1.92 billion, up 25% in volume and 17.4% in value compared to the same period last year.

In June 2024, Vietnam's average cashew export price was US$5,973 /ton, up 9.2% compared to May 2024 and up 4.2% compared to June 2023. However, in the first six months of 2024, Vietnam's average cashew export price was only US$5,496/ton, down 6.1% over the same period last year.

Although exports recorded double-digit growth in the first half of 2024, Vietnam's cashew industry is facing fluctuations in raw material prices.

The Vietnam Cashew Association (Vinacas) said that Vinacas has received feedback from businesses about not receiving enough raw materials from partners in West African countries due to the surge in raw cashew prices. The reason is that cashew output in West Africa decreased and some countries such as Ivory Coast applied a policy of temporarily suspending the export of raw cashew nuts to support domestic cashew factories.

Facing above situation, Vinacas has written a petition to the Government and relevant ministries to remove difficulties for the cashew industry, including influencing African countries to lift the ban on raw cashew exports. For the Ministry of Agriculture and Rural Development, Vinacas proposed paying attention to developing cashew raw material areas and developing high-quality, high-yield cashew varieties. This will help cashew processors reduce their dependence on imported sources.