Global Agriculture

Cashew nut exports to the EU are estimated to increase by 15% in volume in 2022

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24 January 2022, China: According to the Ministry of Industry and Trade, it was estimated that Vietnam’s cashew exports in 2021 to the EU market reached 135 thousand tons, worth 816 million USD, up 16.5% in volume and 7.9% in value compared to the previous year. The above positive growth is due to the high demand for cashew nuts in the EU in the last month of the year according to the cyclical factor, in order to serve the Christmas holiday and welcome the new year.

Notably, the structure of Vietnam’s cashew exports to the EU market has generally fluctuated. In addition to focusing on exporting the main types of cashew nuts W320 and W240, the Vietnamese cashew industry promotes the export of high-value cashews such as W180.

Cashew nut exports to the EU in 2022 are expected to increase by about 15% in volume and 10% in value compared to 2021, reaching over 155,000 tons, worth 900 million USD.

Based on supply and demand factors, export prices tend to recover from the end of 2021.

The EU is currently Vietnam’s second largest cashew nut importer, accounting for 23% of the total volume and 22% of the total value of the industry. Therefore, the growth of cashew nut exports to the EU contributed significantly to the overall growth of the industry.

The tax rate for cashew nut processing products exported to the EU was reduced to 0% immediately after the EU-Vietnam Free Trade Agreement (EVFTA) took effect from August 1, 2020. This reduction is very important because before the EVFTA’s validity, the tariff on Vietnam’s cashew nuts exported to the EU ranged from 7 to 12%.

This continues to help Vietnam’s cashew industry increase exports to the EU and expand its market share not only in the main market but even in niche markets in 2022.

Also Read: Union Budget 2022-23: Transformation Agriculture through irrigation and win back India’s farmer

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