Domestic prices of raw cashew have risen about 6% in the last two weeks climbing to 14,000-15,000 dong a kilogram, representing an increase of 50% over the same period last year.
Total harvesting cashew yield is estimated to be below the forecast figure and is just enough to supply 70% of local processors’ demand, said a source of Vietnam Association of Cashew (Vinacas) . In all likelihood, many cashew-processing plants will have to work at perfunctory capacity because of shortage of input materials.
However, things seem optimistic with the Long An Food Export Processing Co or Lafooco. The listed firm firm has bought enough materials for to maintain normal production, said Lafooco director general Nguyen Van Chieu. The increase in cashew price has also been anticipated by the company, added Chieu.
In 2004, the export price of cashew saw an abrupt increase and brought in large profit for many cashew processors. In the first five-months this year, the business climate is quite good with cashew producers, but due to seasonal characteristics of this industry and changes in the market, it is hard to foretell the market the last half of the year.
According to Chieu, there are many forecasts on cashew market in the last months of the year which said opposite trends. In the last week, export cashew price in the world market was on a downward trend which is far different from what Vinacas announced previously about market trends. Perhaps, the reduction in cashew price is blamed on the downsizing of consumption in the summer time, said some sources. However, experiences in last years indicated that this situation would not repeat regularly.