As cashew exports in the first half of 2022 fell by 9.2 per cent against the same period last year, the Vietnam Cashew Association (VCA) has to adjust down its annual export target by US$600 million.
Viet Nam imported nearly 1.2 million tonnes of raw cashew nuts worth US$1.9 billion in the first four months of this year, increases of 300 per cent and 323.5 per cent year-on-year, respectively.
Viet Nam stood out as the world’s largest cashew exporter last year but there remains many challenges ahead for the country to retain its leading position in the future.
Viet Nam’s cashew sector targets exports of 350,000 tonnes this year, 10 per cent lower than last year, according to the Viet Nam Cashew Association (Vinacas).
Viet Nam’s cashew industry would need to restructure production and processing in order to ensure enough raw materials for sustainable development, according to experts.
Viet Nam will need to import more than 300,000 tonnes of raw cashew nuts in the remaining months of the year for processing to meet the demand of exporters, according to processing companies.
Cashew nut processing plants have halted operation due to a lack of raw materials, the Vietnam Cashew Nut Association (Vinacas) has said, urging processors to stay calm in the face of price fluctuations on the world cashew market.
Viet Nam’s cashew industry has targeted 300,000 tonnes of cashew exports at a value of US$3 billion this year, a year-on-year reduction of 50,000 tonnes in volume and $500 million in value, according to the Viet Nam Cashew Association.
Viet Nam’s cashew nut exports are forecast to surpass the US$3 billion benchmark for the first time in 2017 thanks to increasing shipments in the first ten months of the year.