W9 Cashew Update: 13th Vietnam International Cashew Conference Held in Đồng Hới and Global Cashew Supply Chain Disruption Risk Due to Increasing Outputs From Africa and Cambodia

Published 2024년 3월 5일

In W9 in the cashew landscape, the 13th VICC was held in Đồng Hới, Vietnam, to address the challenges faced by the global cashew industry and restructure the supply chain. Vietnam’s cashew kernel exports reached a new high of 654.32 thousand mt in 2023, showing a significant 24.33% YoY increase. In addition, increased raw cashew output in Africa and Cambodia has led to decreased cashew kernel prices in Vietnam, causing cashew factories to shut down. If the situation persists, VINACAS warns that this could lead to a shortage of cashew kernels and a surplus of raw cashews in the market.

13th VICC Addresses Challenges Faced by Global Cashew Industry

On February 27, 2024, the 13th Vietnam International Cashew Conference (VICC) was held in Đồng Hới, Quảng Bình province, drawing participants from over 40 countries. The conference addressed the challenges the global cashew industry face, including COVID-19, world conflict, and high inflation. Its primary objective was realigning the global cashew supply chain, including necessary adjustments to its price structure. Vietnam is a significant player in the cashew market, importing nearly 65% of the world's raw cashew output and accounting for almost 80% of cashew kernel exports.

Additionally, Vietnam's cashew kernel exports reached a new record of 654.32 thousand metric tons (mt) in 2023, an increase of 24.33% year-on-year (YoY). The export value was USD 3.58 billion, an 18.78% YoY increase compared to 2022.

Increased Raw Cashew Output in Africa and Cambodia Leads to Decreased Prices in Vietnam

The Vietnam Cashew Association (VINACAS) has raised concerns about increased raw cashew output in Africa and Cambodia and decreased cashew kernel prices in Vietnam. In Ivory Coast, cashew production has risen significantly from 400 to 500 thousand metric tons (mt) to 1.25 million metric tons (mt) in 2023 and is expected to increase another 130 to 150 thousand mt in 2024. Similarly, Cambodia’s production has grown from 200 thousand mt to 650 thousand mt in 2023 and is expected to reach 1 mmt by 2024. As a result, cashew kernel prices in Vietnam decreased significantly, forcing some cashew factories to shut down. In 2023 alone, about 100 factories in Bình Phước were closed due to financial issues, and thousands of factories in the country will likely shut down in the next five years. VINACAS leaders warned that if this situation persists, it could lead to a shortage of cashew kernels and a surplus of raw cashews in the market.