CashewInformation
News

Home   >   NEWS & VIEWS   >   News

    1
  • Cashew nut export market is very difficult 10/17/2022

    Oct 17th, 2022

    The export market is facing many difficulties, inflation in the US has escalated, the EU has also fallen into an economic crisis, and geopolitical tensions have caused a sharp drop in demand for cashews. In 9 months, Vietnam's cashew exports dropped sharply in both volume and value In September 2022, the export price of raw cashew nuts from producing countries in Africa decreased compared to August 2022. In Benanh, the export price of raw cashew nuts decreased by 75 USD/ton to 1,175 USD/ton; In Ivory Coast, Ghana and Nigeria, the export price of raw cashew nuts decreased by 75 USD/ton to 1,125 USD/ton. According to China Customs, in August 2022, the country imported cashew nuts with a turnover of over $27 million, up 59.5% compared to August 2021. In particular, China imports cashews from the markets of Vietnam, Togo and Ivory Coast. Generally, in the first eight months of 2022, China's cashew imports reached 192.4 million USD, an increase of 85.7% over the same period in 2021. In which, China's cashew imports from Vietnam reached approximately 169.42 million USD, up 85%, market share accounted for 88.05% of total value. According to ITC, Brazil's cashew exports in the first 7 months of 2022 reached 6.38 thousand tons, worth $41.72 million, down 27.1% in volume and 26.5% in value over the same period last year. in 2021. In which, Brazil's cashew nut exports to the Netherlands and Mexico markets increased, but exports to the US, Argentina and Italy markets decreased. The exam is in full swing With Vietnam, export turnover of cashew nuts has dropped sharply by 14% after 9 months. According to estimates, in September 2022, cashew nut exports reached 40,000 tons, worth 245 million USD, down 14.6% in volume and 10.3% in value compared to August 2022; compared with September 2021, down 22.2% in volume and 28.2% in value. In the first 9 months of 2022, cashew nut exports are estimated at 382 thousand tons, worth 2.29 billion USD, down 10.6% in volume and 14% in value over the same period in 2021. In September 2022, the average export price of Vietnam's cashew nuts was estimated at $6,136/ton, up 0.5% compared to June 2022, but down 7.7% compared to September 2021. In the first 9 months of 2022, the average export price of Vietnam's cashew nuts is estimated at 5,992 USD/ton, down 3.7% over the same period in 2021. Armed conflict between Russia and Ukraine affects Vietnam's cashew exports. The recession of major economies, high inflation makes consumers tend to increase savings. This will be a barrier for the US to reduce cashew imports in the remaining months of 2022, although consumption demand may increase at the end of the year (according to the cyclical factor). High-priced products are likely not going to be the choice of many people in the context of the not-so-good economic situation. However, the market still showed a positive signal when the demand for cashew imports from the EU and China still increased strongly. Therefore, Vietnam's cashew industry needs to exploit the advantages that new-generation Free Trade Agreements bring to boost exports to these markets. Types of exports: In August 2022 compared to August 2021, exports of most types of cashews increased, except for W240 and DW cashews. In general, in the first 8 months of 2022, the decrease of W320 and W240 cashew nut exports has affected the overall decline of the industry. Export proportion of W320 cashew nuts accounted for 41.31% of the total volume and 45.53% of the total value; W240 cashew nuts accounted for 14.03% of the total volume and accounted for 16.28% of the total value. According to the Import-Export Department: In the context of the unfavorable economic situation, high-priced products are unlikely to be the choice of many people. Cashew exports to the US slowed down but there were good signals in China and the EU. The Import-Export Department recommends that Vietnamese cashew businesses need to exploit the advantages that new-generation Free Trade Agreements bring to boost exports to these markets. Cashew exports in 2022 are even difficult to reach the figure of 3.2 billion USD The Vietnam Cashew Association (Vinacas) said that cashew exports in 2022 are even difficult to reach the figure of 3.2 billion USD. Because, Vietnam's cashew nuts are mainly exported to the US and EU, accounting for more than 50% of the industry's export turnover. However, the export market is facing many difficulties, inflation in the US has escalated, the EU has also fallen into an economic crisis, and geopolitical tensions have caused a sharp drop in cashew consumption demand. “It is forecasted that until the end of the year, cashew exports will not prosper because the economic and political situation in the EU is increasingly complicated. This caused large enterprises to stall production, and small and medium-sized factories had to close due to lack of orders," Vinacas said. The exam is in full swing The Vietnam Cashew Association (Vinacas) said that cashew exports in 2022 are even difficult to reach the figure of 3.2 billion USD. According to experts, in the current difficult context, the cashew industry will have to find a direction to focus on "core" markets such as the European Union, the United States... to boost exports. The EU is currently Vietnam's second largest cashew nut export market, accounting for 23% of the total volume and 22% of the total value of the industry. The growth of cashew nut exports to the EU contributed significantly to the overall growth of the industry. The tax rate for cashew nut processing products imported into the EU from Vietnam will be reduced to 0% immediately after the EVFTA 9 (Vietnam - EU Free Trade Agreement) takes effect from August 1, 2020. This reduction is very important because before the EVFTA took effect, the tariff on cashew nuts imported into the EU from Vietnam ranged from 7 to 12%. The implementation of EVFTA is expected to bring great opportunities for the cashew industry. For example, Vietnam is currently the largest source of cashew nuts for the French market, but Vietnam's cashew market share in France tends to decrease. According to statistics from ITC, in July 2022, France imported 1.17 thousand tons of cashew nuts, worth USD 8.73 million, down 6.9% in volume and 8.4% in value compared to with June 2022; compared to July 2021, down 24.1% in volume and 26.8% in value. In the first 7 months of 2022, France's cashew imports reached 9.53 thousand tons, worth 72.1 million USD, down 2.6% in volume and 6.5% in value over the same period last year. 2021. Thus, it can be seen that the difficult economic situation and high inflation have affected the consumption trend of the French people in particular and many European countries in general. High-priced products are not the first choice of consumers in the context that Europeans are under pressure from high energy prices, especially the coming winter. According to the European Statistics Agency, the number of unemployed people in France in July 2022 reached 2.289 million people - ranking second in the EU, just behind Spain. In July 2022, the average import price of French cashew nuts was only $7,427/ton, down 1.6% compared to June 2022 and down 3.5% compared to July 2021. Generally, in the first 7 months of 2022, the average import price of French cashew nuts reached US$7,566/ton, down 4.1% over the same period in 2021. In which, the French cashew nut import price decreased from different sources. supply, but increased sharply from Ivory Coast. Regarding the supply structure in the first 7 months of 2022, France reduced the import of cashew nuts from the following sources: Vietnam, India, the Netherlands, but increased imports from Ivory Coast and Germany sharply. According to ITC, Vietnam is the largest source of cashew nuts for France. In the first 7 months of 2022, France imported approximately 6.12 thousand tons of cashews from Vietnam, worth 45.92 million USD, down 6.8% in volume and 8.2% in value compared to that of Vietnam. same period in 2021. Vietnam's cashew nut market share in total French imports decreased from 67.07% in the first 7 months of 2021 to 64.19% in the first 7 months of 2022. According to information from the Vietnamese Counselor In France, there are no Vietnamese-branded cashew nut products in supermarkets and hypermarkets in France. Most businesses only focus on wholesale but have not paid attention to brand development and increase product value. In the first 7 months of 2022, France sharply increased the import of cashews from Ivory Coast, an increase of 605.8 percent in volume and 766.4% in value compared to the same period in 2021, reaching 844 tons, worth 5. $74 million. The cashew nut market share of Ivory Coast increased sharply from 1.22% in the first 7 months of 2021 to 8.86% in the first 7 months of 2022. The sharp increase of France's cashew imports from Ivory Coast shows that it is likely that France wants to diversify its supply. This may also be a market for supplying cashews to compete with Vietnam's cashews in the future. Therefore, the Vietnamese cashew industry needs to make good use of the opportunities brought by the EVFTA to increase the value of exports to France. In order to exploit the French market well, the Vietnamese cashew industry, in addition to the rules of origin to enjoy preferential tariffs, needs to meet French regulations. The food-related legal system of this regional market is quite complex and has its own regulations on mycotoxins, pesticide residues, heavy metal content, and microbiological pollutants. It is known that the current food consumption trend of the European market focuses on factors with products such as: Focusing on health; convenience and technology; alternative proteins (vegetable origin); sustainability and waste reduction; Looking for new flavors and experiences. Meanwhile, cashews are one of the products with high nutritional content, low glycemic index beneficial to health, and at the same time, this is also a product with many flavors, suitable for preferences, popular with consumers. European consumers prefer. With FTAs ​​such as EVFTA, Vietnam-UK FTA (UKVFTA), tariff barriers are removed, import tax on cashew nuts into the EU market of 27 countries and the UK market are all equal to 0% are factors. It is quite favorable to promote the export of this item in the near future, especially in the context that cashew nut exports to many markets are forecasted to be difficult...


    Source: https://www.vinacas.com.vn/
Top