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Reducing the export target of cashew kernels to $3.2 billion

Monday- 08:59, 27/06/2022

(VAN) Great difficulties in cashew kernels export this year have prompted the Vietnam Cashew Association (Vinacas) to request a reduction in export quotas.


Cashew kernel exports are facing many difficulties.


At the Conference on Reviewing Cashew Business and Production in the first six months of 2022, organized by Vinacas on June 26, Mr. Tran Van Hiep, Vice Chairman of Vinacas said that over the first five months of 2022, cashew kernel exports reached more than 206 thousand tons, worth over $1.19 billion. Consequently, cashew nuts have entered the list of billion-dollar export items during the first five months of the year.

However, compared to the same period last year, cashew kernel exports decreased in quantity and value, decreasing 7.81% and 6.81%, respectively.

Explaining this, Mr. Ta Quang Huyen, Chairman of the Board of Directors of Hoang Son 1 Joint Stock Company, said that in 2021, as Vietnam has to implement social distancing to prevent Covid-19, importers of cashew kernels were afraid of production disrupt in Vietnam. In response, they increased imports by 18% in quantity (the average increase is only about 10-12%/year). Due to strong imports in 2021, cashew kernels in import markets are still in storage. Additionally, due to Covid-19 in Vietnam being under control, importers are no longer worried about supply disruption and not in a hurry to make purchases in the first few months of this year. Vinacas said that the amount of imported raw cashew nuts decreased sharply (down 35% in the first five months of the year) due to the price of raw cashew nuts being very high compared to cashew kernels price. It is also an important reason affecting the export of cashew kernels. The Russia-Ukraine conflict also affected cashew kernel exports in the first half of this year. In 2021, Russia was the 11th largest market of Vietnam's cashew kernel exports, with a turnover of $61.8 million. In addition, Vietnamese cashew kernels are also strongly contested by many other nuts such as almonds, walnuts,…

According to Vinacas, the export of cashew kernels in the last months of the year will still face many difficulties due to high global inflation causing a decrease in purchasing power, China continues to maintain the policy of "Zero Covid", and shipping rates remain high… It is forecasted that these factors will reduce the number of cashew kernels exported in the coming months, which may last until the end of the year. Consequently, after discussing and considering, Vinacas requested MARD to adjust the export target of cashew kernels this year to $3.2 billion, down $600 million compared to the plan set out in the previous year and down $400 million compared to 2021.

Author: Thanh Son




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