Local cashew industry to face challenges next year
Local cashew industry to face challenges next year
The domestic cashew industry would continue to face difficulties in processing and trading cashew nuts next year, according to the Viet Nam Cashew Association (Vinacas).
Prices were likely to remain unchanged from now until March-April 2019, said the association.
There are only about six weeks to go until the Lunar New Year (Tet) holiday, when cashew processing factories stop production during the holiday, but many have already halted operations causing a slump in demand.
This had led to prices being left in limbo in Viet Nam and Cambodia, as well as in West Africa, said Dang Hoang Giang, deputy chairman and general secretary of Vinacas.
Even if Tanzania increased supplies, prices were unlikely to rise, excluding the price of raw materials that had fallen sharply this season, he said.
This year, cashew traders and processors in Europe and the US have not imported as much material from overseas countries as in previous years. This has created a difficult situation for Vietnamese exporters.
The association had recommended local producers find new export markets next year. At the same time, the domestic cashew industry needed to improve competitiveness and meet food hygiene and safety standards to provide efficient export procedures and good customer care services.
The association reported Viet Nam exported 342,000 tonnes of cashews in the first 11 months of the year, earning US$3.1 billion. Those figures were up 5.9 per cent in volume but down 3.1 per cent in value year-on-year.
The average export price of Vietnamese cashew nuts in November reached $7,865 per tonne, down 7.2 per cent compared to October. This price in the first 11 months dropped 8 per cent to $9,115 per tonne year on year.
The US, the Netherlands and China remained the three biggest export markets for Vietnamese cashews, accounting for 37.5 per cent, 12.3 per cent and 11.6 per cent, respectively.
The association said last week demand and prices of cashews exported to China had fallen significantly, meaning China probably had enough supply for the coming Lunar New Year.
New regulations in China also require importers to sign contracts and pay duties. This had increased the price of cashews imported from Viet Nam, cutting the country’s competitiveness.
Viet Nam expected to make $3.5-3.7 billion from cashew exports this year, according to the association.
