Cashew export prices likely to recover

10-Aug-2018 Intellasia | The Saigon Times | 6:02 AM Print This Post

Despite declines in cashew export volume and value, its price is forecast to recover in the coming period, owing to increasing demand and dwindling supply in the last few months of the year.

A report by the Ministry of Agriculture and Rural Development shows that Vietnam exported some 202,000 tonnes of cashew nut worth $1.94 billion between January and July, up by 7.4 percent and 4.8 percent, respectively, year-on-year. The export price of the product averaged $9,699 per tonne in the first half of the year, down by 0.3 percent year-on-year.

In June, the export volume of cashew nut was some 32,300 tonnes, worth $293.1 billion, down by 11.4 percent and 14.1 percent, respectively, against May.

Vietnamese cashew nut is sold in 27 countries and territories, of which the United States, the Netherlands, China and the United Kingdom are Vietnam’s key export markets, accounting for a combined 64.6 percent of the total exports.

In the first half of this year, the United States was the biggest buyer, importing some 66,400 tonnes of Vietnam’s cashew nut worth $646.8 million. The Netherlands came second, with 42,800 tonnes, worth $218.3 million, followed by China (18,400 tonnes, $178 million) and the United Kingdom (7,100 tonnes, $66.5 million).

Meanwhile, the export of cashew nut to many other markets, such as Ukraine, Greece and the Philippines, had a growth rate of more than 80 percent in the first half of the year.

The main reason cashew exporters faced difficulty in June and July is that the contracts for purchasing raw cashew from some African countries were terminated, so local producers were faced with a shortage of raw materials. However, they still tried to fulfill the commitments of the cancelled contracts for exporting cashew nut. In addition, the low market season had pulled export prices down, resulting in serious losses for these producers.

Vietnam’s cashew nut export price in the first half of 2018 averaged $9,072 per tonne in June, down by 3.5 percent against the first half of May and by 11.5 percent compared with last year.

In addition to problems in securing enough raw materials, cashew processors, especially small enterprises, were faced with a capital shortage.

August often sees global cashew demands start to rise, so importers are likely to purchase increasing volumes of cashew nuts in the second half of the year. This is also an opportunity for firms to speed up their exports.

http://english.thesaigontimes.vn/61845/cashew-export-prices-likely-to-recover.html

 


Category: Economy, Vietnam

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