Cashew exports: Tough nut to crack due to global fluctuations

08:41 | 03/03/2020 Trade

(VEN) - Amid fluctuations in the global cashew market, the Vietnam Cashew Association (Vinacas) will focus on improving the quality of Vietnamese cashew nuts for exports, while increasing processing efficiency. Vietnam is one of the world’s largest cashew exporters.

tough nut to crack due to global fluctuations

Vinacas Chairman Pham Van Cong said Vietnam’s cashew kernel exports in 2019 reached 450,000 tonnes earning more than US$3.6 billion and exceeding set targets. Vietnam imported 1.5 million tonnes of cashew. The number of semi-processed cashew nuts imported by Vietnam increased sharply compared to the previous years.

In the first half of this year, the prices of raw and processed cashew nuts will fluctuate as a result of complex developments in the global economy, in addition to the ongoing trade war between the US and China, as well as between the US and India. Moreover, African countries, such as the Ivory Coast and Mozambique, have devised new policies to tighten trading of raw cashew nuts.

India is the largest consumer of cashew nuts globally with a population of approximately 1.3 billion people. However, it is applying tax policies aimed at limiting the quantity of imported cashew nuts, mainly from Vietnam.

The US and the EU will apply some additional food safety standards and will check for banned chemical residues as supermarkets are becoming stricter about food safety.

Amid these fluctuations in the global cashew market, Vinacas will continue to strive for better export quality.

Pham Van Cong said Vinacas will continue to renovate machinery and equipment in a bid to increase processing capacity and efficiency, while promoting cooperation with cashew associations in various countries in order to produce and trade both raw and processed nuts. Businesses need to adjust their 2020 plans in accordance with market supply and demand and enhance information exchanges with major businesses as a means of devising detailed plans to import raw cashew nuts and supply processed ones to the market.

Vietnam’s cashew sector is likely to import about two million tonnes of raw cashew nuts and export more than 500,000 tonnes of processed cashew nuts in 2020.

Nguyen Hanh