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  • Cashews: processors struggle with RCN shortage

    Jun 18th, 2024

     

    The short supply of raw cashew nuts poses major challenges for Vietnamese processors and exporters. Meanwhile, Germany's imports are remaining at roughly the same level as last year.

    Record prices for raw nuts

    As reported by the Vietnam Cashew Association (Vinacas), commodity prices in the country have reached a new record high. Raw cashew nuts sold to factories and processing plants cost between VND 41,000 and 43,000/kg, which corresponds to around EUR 1.50-1.58/kg. The reason for this is the short supply; on the one hand, the acreage in Vietnam has shrunk and, on the other hand, the hot and dry weather has affected both the crop quantity and the quality of the nuts.

    Prices in Africa are also rising

    Processors in Vietnam have been relying on high imports to meet global demand and ensure that Vietnam remains the number one exporter of cashew nuts, and not just since this year. More than 3 million mt of RCN are imported into the country every year, of which around 2.2 million mt are of African origin. Vietnam's own cultivation can only cover around 10% of demand. The problem for Vietnamese buyers is that suppliers from West Africa have also raised their prices significantly. While these were still around USD 1,000/mt in February, they have now climbed to USD 1,500/mt. This is also due to crop losses and government decisions, according to which some West African producing countries have banned or restricted the export of raw cashew nuts in order to promote domestic processing. Some Vietnamese suppliers are now forced to pay the high prices in order to fulfil their contracts – which harbours high financial risks. In addition, many raw material shipments are arriving late or in smaller volumes than agreed, meaning that processing companies are facing a significant raw material shortage.

    In India, prices are currently remaining relatively stable and there has only been a moderate increase of USD 10/mt compared to last week. Cashew kernels, W320 currently cost USD 7,915/mt FOB India.

     

    Cashews, India

    Type

    USD/mt

    W240

    8,565

    W320

    7,915

    W450

    7,200

    LWP

    6,570

    SWP

    5,905

     

    Germany reduces imports from India

    Meanwhile, German cashew imports remained almost at the previous year's level and only increased by a moderate 0.1% in the September-April period. Vietnam remains by far the most important supplier, followed by Côte d’Ivoire and the Netherlands. The sharp declines in imports from India (-35%) and Indonesia (-48.1%) are striking, while imports from Nigeria and Mozambique have risen significantly.

     

     

     


    Source: https://www.mundus-agri.eu/
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