Cashew processing at the My Le Co in Binh Phuoc Province. Viet Nam gained year-on-year growth of 21 per cent in cashew exports to the US in the first two months this year. — Photo vietnambiz.vn
Viet Nam’s cashew exports to the US in the first two months of the year rose by 21 per cent in volume to 17,900 tonnes and 3.6 per cent in value to US$126.2 million year-on-year, according to the General Department of Customs.
The department said the country exported a total volume of 50,700 tonnes of cashews worldwide, a year on year increase of 6.5 per cent, but value fell 8.4 per cent to about $357 million.
The average export price of cashew nuts in the first two months decreased by 14 per cent over the same period last year to $7,046 per tonne, it said.
The US, the Netherlands and China remained the top three largest cashew export markets for Viet Nam.
The department also reported that Viet Nam's total cashew exports in February reached 26,100 tonnes, earning $185.2 million. This marked a surge of 5.7 per cent in volume and 7.3 per cent in value month-on-month, and 76.8 per cent and 50.6 per cent, respectively, year-on-year.
In February, Viet Nam achieved growth in cashew exports to many markets, including the US, the Netherlands, the UK, Germany, Canada, Thailand, Australia and Saudi Arabia, but exports to China fell sharply due to low demand during the coronavirus (COVID-19) pandemic.
Viet Nam's cashew industry was expected to face difficulties in exports during the first half this year due to the COVID-19 pandemic and oversupply, said the Viet Nam Cashew Association.
The purchasing price of dried cashew nuts has fallen from VND33,500 per kilo at the beginning of February to VND33,200 early this month in Dak Lak Province.
In Binh Phuoc, the price of raw cashew nuts was only VND27,000-29,000 per kilo, lower than the VND34,000 posted before Tet.
By mid-March, the domestic price of raw cashew nuts had fallen VND6,000 per kilo compared to the end of February.
The association said the COVID-19 pandemic posed many risks and unpredictable fluctuations on the cashew market at home and abroad.
The cashew harvest has arrived in Viet Nam, Cambodia and West Africa, with countries relying on high yields, especially Cambodia and the Ivory Coast.
Raw cashew exporting companies in West African countries were facing pressure to sell raw cashew to pay off debts while banks have limited credit for them.
Meanwhile, Tanzania was expected to harvest 350,000 tonnes of cashew this year. Mozambique had an inventory of 140,000 tonnes of cashew, according to the association.
Viet Nam was also expected to have high cashew output this year, which would likely push prices down, said the association.
It has recommended local cashew export processing enterprises to consider carefully before signing of contracts to buy raw cashews without an outlet.
They should monitor the market closely to make suitable production and business plans this year, including buying raw cashew, selling processed cashew, and storing raw materials and finished products.
The association said this year, the domestic cashew industry would continue to improve quality and processing efficiency with the renovation of machinery and equipment for the processing stage.
It would promote cooperation in the production and trade of raw and processed cashew nuts with associations in countries that had large output such as India and the Ivory Coast.
Viet Nam has targeted total export value of cashew at US$4 billion this year. — VNS