July alone witnessed Vietnamese cashew exports hit 54,675 tonnes worth more than US$304.3 million, a drop of 7.5% in volume and 10.2% in turnover compared to the previous month.
The average export price during the reviewed period stood at US$5,805 per tonne, down 3% on-year. Cashew nuts were one of the agricultural products with export value at over US$1 billion during the seven-month period.
Regarding markets, the United States represented the largest import market of Vietnamese cashew nuts. Specifically, cashew nut exports to the US in July reached 14,385 tonnes with a turnover of more than US$79.5 million.
Throughout the reviewed period, cashew nut exports to the US hit 88,903 tonnes valued at more than US$512 million, up 0.7% in volume and 0.32% in value over the same period from 2022.
According to information given by the Import-Export Department under the Ministry of Industry and Trade, during the opening months of the year, the weakening economy, high inflation, and continued conflict between Russia and Ukraine caused the majority of the world's major economies to reduce cashew nut imports. This thereby had a negative effect on the global cashew industry in general, including Vietnam.
Moving forward, it is forecast that in the short term the global cashew industry will still be negatively hit amid demand for cashew nuts used as snacks or for cooking and desserts decreasing due to growing consumer inflation.
In the long term, when inflation is brought under control and the global economy recovers, the demand for cashew nut consumption will increase again.
According to Reuters, global demand for cashew nuts reached US$9.94 billion in 2018 and is expected to hit US$13.48 billion in 2024, with an average growth rate of 5.2% in the 2018 to 2024 period
This is based on the following factors such as growing market demand for healthy snacks, including growing demand from the EU, the US, China, and the rise of large processing facilities in Africa.
Vietnamese cashew nut exports are anticipated to increase in the third quarter of the year thanks to the cyclical factor coupled with the increasing demand for imports from the US and EU.
Currently, domestic factories have signed many new orders and the demand for this item has begun to increase again.
Improving quality, diversifying products, and making good use of opportunities from major markets will contribute to helping the cashew industry continue to grow and make breakthrough in the time to come.
Investment in deep processing and product diversification is an advantage for Vietnamese cashew nuts to easily compete for exports. Typically, Hanfimex Group Joint Stock Company always achieve export orders to export to demanding markets thanks to their delicious and high-quality products. This is also the right direction for local businesses to move towards.
