W16 Cashew Update: Raw Material Prices Surged in Cambodia and Yields Declined in Vietnam and India

Published 2024년 4월 26일

In W16 in the cashew landscape, Cambodia's cashew production reached 474 thousand mt in Q1-2024, with 424 thousand mt exported to Vietnam. In addition, fresh cashew nut prices in Cambodia increased to USD 1.25/kg, reaching the highest point in 15 years. The price is expected to rise further due to El Niño's impact. In addition, Vietnamese cashew farmers face decreased yield and quality in the 2024 harvest due to severe heat and drought. This quality issue has led to a significant drop in prices. Furthermore, the 2024 cashew yield in Goa, India decreased by 50% YoY due to climate change.

Cambodia's Fresh Cashew Prices Reached Fifteen-Year High

According to the Cashew Nut Association of Cambodia (CAC), in Q1-2024, Cambodia's cashew production reached 474 thousand metric tons (mt). Of this number, 424 thousand mt were exported to Vietnam, amounting to approximately USD 543 million, marking a 13% year-over-year (YoY) increase compared to the same period in 2023. Notably, the price of fresh cashew nuts in Cambodia surged to USD 1.25 per kilogram (kg), reaching its highest point in 15 years.

This price spike can be attributed to farmers holding onto their cashew nuts for drying when fresh cashew prices dip, which led to decreased availability for exports, particularly to the Vietnamese market. Moreover, forecasts indicate a further rise in cashew nut prices due to the anticipated impact of the El Niño phenomenon on major cashew-producing countries. In particular, Cambodia's cashew production in 2024 is expected to decline by 10 to 30% YoY due to the influence of El Niño.

Decreased Yield and Quality Challenge Vietnamese Cashew Farmers Challenged by Declined Yield and Quality

The 2024 harvest season poses significant challenges for cashew farmers in Vietnam, marked by notable declines in yield and quality due to severe heat and drought conditions. This environmental strain has resulted in a drop in market prices, plummeting from USD 7 to 7.28/kg at the beginning of the season to USD 5.6 to 5.9/kg. Furthermore, there has been a sharp reduction in the cultivation area, with only 27 thousand hectares (ha) dedicated to cashew production this season. This decrease is particularly noticeable in regions lacking adequate water resources, rendering them unsuitable for crop cultivation.

Cashew Yield in Goa, India, Decreased by 50% YoY

Cashew farmers in Goa, India are facing hardships as the overall yields of cashews comparatively declined by 50% YoY in 2024. According to the director of the Department of Agriculture, the recent rainfall will not affect the crops as it rained only once. However, the continuous rain might pose a threat to the plantation.