W48 Cashew Update: Cambodia's Cashew Nut Exports Decline While Vietnam Hits Record High

Crucial Improvement of Cambodia’s Processing Capacity as Cashew Nut Production and Exports Decline

According to a report released by the Cambodia Cashew Association, Cambodia exported over 610 thousand metric tons (mt) of cashew nuts in the first ten months of 2023, with an export value of USD 831 million, a year-on-year (YoY) decrease of 16.7%. The report also mentioned that Cambodian cashew nut production in the 2022/23 season was 651 thousand mt, with a price range from USD 1,700 to 1,900/mt. In 2021, Cambodia surpassed Côte d'Ivoire and became the world's largest cashew nut producer, with a production of 1.18 mmt. However, the production declined sharply to 690 thousand mt in 2022 due to falling prices and climate change, which led farmers to reduce planting scale.

Despite Cambodia's leading position in cashew nut production, the country's processing rate is relatively low, ranging from 5 to 10%, due to insufficient processing facilities. The remaining cashews are exported abroad as raw materials, mainly to Vietnam. From Jan-23 to Oct-23, China imported 27.4 thousand mt of cashew nuts from Vietnam, while Cambodia imported only 1,934 mt. Cambodia needs to improve its processing capabilities to ensure the industry's sustainability.

Vietnam's Cashew Exports Reach Record High in 2023 Despite Quality Concerns

Vietnam's cashew exports reached a new record high in Oct-23, with 64 thousand mt valued at USD 358 million, a 47.7% increase in volume, and a 37.1% rise in value compared to 2022. For the first ten months of 2023, Vietnam shipped 517 thousand mt of cashews worth USD 2.95 billion, marking a 21.8% increase in volume and a 15.9% increase in value compared to the same period in 2022.

However, the ten-month average export price for Vietnamese cashews dropped by 4.8% YoY to USD 5,703/mt due to complaints about the quality of many Vietnamese cashew nut shipments. Some partners have raised issues like vermin, pesticide residues, and foreign impurities, which have negatively affected the reputation of Vietnamese cashews. The Vinacas Chairman confirmed that declining food safety has reduced the price of Vietnamese cashews for the international market, making it lower than the price of cashews from India. Addressing these food safety issues is crucial for protecting and restoring the reputation of Vietnam’s cashew industry.

Tanzania's Agriculture Minister Orders Investigation into Cashew Sale Issues

The Minister of Agriculture in Tanzania has ordered the National Cashew Board (CBT) to establish an independent commission led by the National Security Officer to investigate the issues that negatively affect the sale of raw cashews in the country. The commission is expected to work within 14 days and submit its report to the ministry for further action. The decision was made following complaints from cooperatives in the Mtwara, Lindi, and Ruvuma regions about challenges, including the drop in cashew prices during the initial auction, night transportation, and warehouse flow problems.