Vietnam's cashew exports in the first quarter of 2023 reached 122 thousand tons, worth 708 million USD, up 16.6% in volume and 14.2% in value over the same period in 2022.
Vietnam's cashew industry still holds the number 1 position in the world in terms of export volume.
In January 2023, cashew exports declined sharply in both volume and value, but from February 2023 up to now has grown rapidly again. According to data of the General Department of Customs, in February 2023, cashew kernel exports reached 34.3 thousand tons, worth USD 197.7 million, up 25.8% in volume and 26.9% in value. compared to January 2023; and over the same period in 2022, up 35.4% in volume and 31.2% in value.
CASHEW INDUSTRY IS SUPER PRESSURE OF COMPETITIVENESS
By March 2023, Vietnam's cashew nut exports had increased sharply with 60,000 tons, worth 355 million USD, up 75% in volume and 79.5% in value compared to February 2023, and over the same period in 2022, an increase of 50.4% in volume and 48.6% in value.
In the first quarter of 2023, cashew nut exports reached 122 thousand tons, worth 708 million USD, up 16.6% in volume and 14.2% in value over the same period in 2022.
According to the Chinese Customs, the country's cashew imports in the first quarter of the year decreased by 25% compared to the same period in 2022. Notably, China reduced its imports of cashew nut from Vietnam, but sharply increased imports from Vietnam. Ivory Coast, Togo, Tanzania, Benin... This shows that Vietnam's cashew industry is facing quite a lot of competition from other producing countries in exporting to the Chinese market.
Vietnam's cashew industry still holds the number 1 position in the world in terms of export volume. In January 2023, cashew exports declined sharply in both volume and value, but from February 2023 up to now has grown rapidly again. According to data of the General Department of Customs, in February 2023, cashew kernel exports reached 34.3 thousand tons, worth USD 197.7 million, up 25.8% in volume and 26.9% in value. compared to January 2023; and over the same period in 2022, up 35.4% in volume and 31.2% in value. CASHEW INDUSTRY IS SUPER PRESSURE OF COMPETITIVENESS In the first quarter of 2023, cashew nut exports reached 122 thousand tons, worth 708 million USD, up 16.6% in volume and 14.2% in value over the same period in 2022. According to the Chinese Customs, the country's cashew imports in the first quarter of the year decreased by 25% compared to the same period in 2022. Notably, China reduced its imports of cashew nut from Vietnam, but sharply increased imports from Vietnam. Ivory Coast, Togo, Tanzania, Benin... This shows that Vietnam's cashew industry is facing quite a lot of competition from other producing countries in exporting to the Chinese market. "In March 2023, Vietnam's average export price of cashew nut reached 5,913 USD/ton, up 2.6% compared to February 2023, but down 1.2% compared to March 2022. In general. In the first quarter of 2023, the average export price of our country's cashew nuts was estimated at 5,826 USD/ton, down 2.1% over the same period in 2022. According to the General Department of Customs. Looking back at 2022, the year that the cashew nut processing and export industry ended the 10-year period of continuous export growth. According to the Vietnam Cashew Association (Vinacas), Vietnam's cashew nut exports in 2022 reached 519,782 tons, worth 3.08 billion USD, down 10.3% in volume, down 15.1% in value compared to the previous year. in 2021. In which, the proportion of cashew exports to the Chinese market has decreased from 15% to about 10% of Vietnam's total cashew export turnover. However, with more than 3 billion USD in revenue, Vietnam's cashew industry still holds the No. 1 position in the world in terms of technology and export volume, accounting for about 80% of the global cashew nut trade. The main export markets of Vietnam's cashew nuts are the US, Europe, China... According to Vinacas, the decrease in cashew nut exports in 2023 in both volume and value is due to high global inflation, making living costs more expensive, spending on essential needs increases. significantly higher, resulting in the consumption of cashew nuts and other non-essential foods being heavily affected. Besides, the fact that the central banks raised interest rates also made importers no longer able to buy cashew nuts in large quantities to reserve as before. "The price of raw cashew nuts is high while the price of cashew kernels is low, making it difficult for Vietnamese cashew businesses," Vinacas emphasized. Overcoming difficulties to find growth again Pham Van Cong, Chairman of Vinacas, said that in 2023, Vietnam's cashew industry will continue to face difficulties, consumption demand is slow, prices are difficult to increase. Production activities, the global cashew supply chain in general, and Vietnam in particular face many difficulties and great challenges from the international economic and political situation; exchange rate fluctuations USD/VND; consumption decreases, processing costs are increasing... Along with that is the problem of inflation in the main consuming markets of Vietnam's cashew kernels; especially the status of cashew kernel inventory in these markets. In the above context, the cashew industry has set a goal of cashew export in 2023 at a "modest" level of 3.1 billion USD, a slight increase of 30 million USD compared to 2022. At the same time, maintaining the policy of "reducing quantity, increasing matter". According to Vinacas, for many years, Vietnamese cashew businesses have had the habit of massively buying raw cashew nuts at the beginning of the crop. This causes an increase in buying, which keeps the price of raw cashews at a high level. In addition, due to financial pressure, purchased raw cashew nuts must be put into production immediately and sold to recover capital. "The way to speculate on raw cashew nuts like in previous years is no longer suitable at the present time. In the coming time, businesses and the cashew industry need to have a methodical strategy for building and managing brands to make the most of it. brand value of a world leading industry", Mr. Pham Van Cong, Chairman of Vietnam Cashew Association (Vinacas). Since then, leading to a situation of selling and selling, making the price of cashew kernels unable to increase. Not only that, focusing only on a few traditional markets also makes Vietnamese cashew businesses always in a passive position and pressured prices… In order to overcome the current difficult period, Mr. Pham Van Cong recommended that cashew processing and export enterprises should implement many solutions. |
Looking back at 2022, the year that the cashew nut processing and export industry ended the 10-year period of continuous export growth. According to the Vietnam Cashew Association (Vinacas), Vietnam's cashew nut exports in 2022 reached 519,782 tons, worth 3.08 billion USD, down 10.3% in volume, down 15.1% in value compared to the previous year. in 2021. In which, the proportion of cashew exports to the Chinese market has decreased from 15% to about 10% of Vietnam's total cashew export turnover.
However, with more than 3 billion USD in revenue, Vietnam's cashew industry still holds the No. 1 position in the world in terms of technology and export volume, accounting for about 80% of the global cashew nut trade. The main export markets of Vietnam's cashew nuts are the US, Europe, China...
According to Vinacas, the decrease in cashew nut exports in 2023 in both volume and value is due to high global inflation, making living costs more expensive, spending on essential needs increases. significantly higher, resulting in the consumption of cashew nuts and other non-essential foods being heavily affected.
Besides, the fact that the central banks raised interest rates also made importers no longer able to buy cashew nuts in large quantities to reserve as before. "The price of raw cashew nuts is high while the price of cashew kernels is low, making it difficult for Vietnamese cashew businesses," Vinacas emphasized.
Overcoming difficulties to find growth again
In the domestic cashew market, which is currently in the harvest season, the price of cashew nuts sold by farmers in the garden is much lower than every year. Currently, cashew nuts sold at farmers' gardens are only from 25-28 thousand VND/kg, 10,000 VND/kg lower than the same period last year.
Pham Van Cong, Chairman of Vinacas, said that in 2023, Vietnam's cashew industry will continue to face difficulties, consumption demand is slow, prices are difficult to increase. Production activities, the global cashew supply chain in general, and Vietnam in particular face many difficulties and great challenges from the international economic and political situation; exchange rate fluctuations USD/VND; consumption decreases, processing costs are increasing... Along with that is the problem of inflation in the main consuming markets of Vietnam's cashew kernels; especially the status of cashew kernel inventory in these markets.
In the above context, the cashew industry has set a goal of cashew export in 2023 at a "modest" level of 3.1 billion USD, a slight increase of 30 million USD compared to 2022. At the same time, maintaining the policy of "reducing quantity, increasing matter".
According to Vinacas, for many years, Vietnamese cashew businesses have had the habit of massively buying raw cashew nuts at the beginning of the crop. This causes an increase in buying, which keeps the price of raw cashews at a high level. In addition, due to financial pressure, purchased raw cashew nuts must be put into production immediately and sold to recover capital.
"The way to speculate on raw cashew nuts like in previous years is no longer suitable at the present time. In the coming time, businesses and the cashew industry need to have a methodical strategy for building and managing brands to make the most of it. brand value of a world leading industry", Mr. Pham Van Cong, Chairman of Vietnam Cashew Association (Vinacas). |
Since then, leading to a situation of selling and selling, making the price of cashew kernels unable to increase. Not only that, focusing only on a few traditional markets also makes Vietnamese cashew businesses always in a passive position and pressured prices…
In order to overcome the current difficult period, Mr. Pham Van Cong recommended that cashew processing and export enterprises need to implement many solutions to expand export markets and contribute to achieving the set goals, such as bringing products to the market. reaching more young consumers through online channels, celebrities and building brands through B2B, B2C models (business models in business-to-business e-commerce) .
For large export markets with strict requirements, businesses need to have a plan for traceability, build a value chain for the industry, and create conditions to ensure the criteria for export.
“Cashew businesses need to be pioneers in green production practices to secure tickets to high-end markets such as the EU and Japan. Because this is a global trend, in which, the EU is taking the lead in this trend," emphasized Mr. Pham Van Cong.
To support the sustainable development of the cashew industry, Vinacas proposes that the Ministry of Agriculture and Rural Development continue to support research and development of specialized technical standards and regulations for cashew nuts and products. by-products of the cashew tree.
Along with that, the National Inquiry Office and Inquiry Point on Sanitation, Epidemiology and Phytosanitary (SPS Vietnam Office) should continue to coordinate with relevant authorities and associations to support the cashew enterprises in implementing new regulations on food safety control of foreign markets, especially China, EU, and US markets.
Vinacas proposed the Ministry of Industry and Trade to have industrial promotion programs, support enterprises to invest, improve technology and equipment, digital transformation, upgrade processing facilities in accordance with international standards... At the same time, supporting and encouraging businesses to find customers, invest in deep processing of cashew-related products and diversify export products.
Chuong Phuong
Source: VNEconomy
