24 June 2021, China: In the first 5 months of 2021, cashew imports increased by 3 digits in both volume and value. Notably, cashew imports from Cambodia increased by more than 500% in value. Imports increased abnormally, causing the cashew industry to fall into a trade deficit for the first time with more than 1 billion USD.
According to the Ministry of Agriculture and Rural Development, the volume of cashew imports in May 2021 is estimated at 220 thousand tons with an estimated import value of 329.8 million USD, bringing the total volume and value of cashew imports in the first 5 months. 2021 reached 1.4 million tons and 2.2 billion USD, up 236.8 percent in volume and 273.4 percent in value over the same period in 2020. Cambodia, Tanzania and Ivory Coast are the main three markets supplying cashew nuts to Vietnam in the first 4 months of 2021 with 92.1% market share. The value of imported cashew nuts in the first 4 months of 2021 from these three markets all increased over the same period in 2020, with an increase of 576.8%, 112.6% and 155.4%, respectively.
In the opposite direction, the export volume of cashew nuts in May 2021 is estimated at 55 thousand tons with a value of 339 million USD, bringing the cashew nut export volume in the first 5 months of 2021 to 216 thousand tons and 1.29 billion USD, respectively. up 18.3% in volume and 4.9% in value over the same period in 2020. The average export price of cashew nuts in the first 4 months of 2021 reached $5,882/ton, down 14.6% compared to the same period last year. In the first 4 months of 2021, the United States, China and the Netherlands remained the three largest cashew export markets of Vietnam, accounting for a market share of 26.5%, 16.7%, respectively. and 9.8% of total cashew nut export value. In the first 4 months of 2021, the export value of cashew nuts increased the most in the United Arab Emirates market (3.61 times). In contrast, the market with the largest decrease in cashew nut export value was the United States (-30.3%).
Also Read: Seed license of SOPA suspended
According to exporting enterprises, the reason for the sharp increase in raw cashew imports from Cambodia is that it can be easily transported by road to Vietnam in the context that sea transportation from Africa is still facing difficulties. Dang Hoang Giang, General Secretary of the Vietnam Cashew Association (VINACAS), said that this is a record import volume ever recorded from Cambodia, because the number of first 5 months of 2021 has exceeded imports. the whole year 2020 (216,330 tons) and the whole year 2019 (175,000 tons). The association was also surprised by the unusual growth of cashew imports from Cambodia as well as a review in its member businesses and worked with customs to clarify the data from Cambodia.
Cashew imports in 5 months increased by nearly 300% in volume and value, causing the cashew industry to fall into a trade deficit for the first time. Cashew industry experts noted that Cambodia is not only a key supplier of cashew materials for cashew processing enterprises in Vietnam, but also sells directly to many Korean and Chinese traders. In addition, Cambodia is also aiming to increase the export processing capacity of cashew nuts instead of exporting raw cashew materials.
Not only that, African countries – the traditional source of Vietnam’s long-standing imported raw cashew nuts, now also tend to retain the source of raw materials and shift towards building on-site cashew processing industry.
Facing this situation, many argue that expanding the cashew acreage in areas with suitable soil and climate conditions not only helps the cashew industry to be more self-sufficient in raw materials, but also creates more jobs and jobs. income for farmers. In addition to continuing to promote the strategy of developing the domestic raw material area, it is necessary to forecast the impact of the international market on the cashew industry to help businesses have timely and accurate information for better processing, export and avoid market risks./.