Risk of disruption in the global cashew industry's supply chain

Published Feb 28, 2024

Tridge summary

The Vietnam Cashew Association (VINACAS) has raised concerns over a potential disruption in the global cashew supply chain due to a rise in raw cashew output in Africa and Cambodia, and a drop in cashew kernel prices. Despite the surge in raw cashew supply, prices are escalating due to competition among Vietnamese businesses and African policies limiting raw cashew sales. This situation, combined with the inability to sell processed cashew kernels, is causing financial losses and widespread closures of cashew processing factories. VINACAS anticipates this could lead to an excess of raw cashews and a shortage of cashew kernels in the market.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Mr. Tran Huu Hau, Deputy Secretary General of VINACAS, informed that in recent times, raw cashew output in Africa and Cambodia has increased very rapidly. In Ivory Coast, cashew output was previously only 400,000 - 500,000 tons, but by 2023 it has increased to 1.25 million tons (this year it is expected to increase by 130,000 - 150,000 tons). Cambodia previously had 200,000 tons, but now it has increased to 650,000 tons (expected to reach 1 million tons this year). These areas are continuing to expand cashew growing areas to take advantage of high selling prices. Therefore, raw cashew output will continue to increase. Mr. Hau stated a paradox: Although the supply of raw cashew nuts is increasing rapidly, the price is also increasing, while the price of cashew kernels is decreasing. The reason is that Vietnamese businesses often compete to buy raw cashews at the beginning of the season, pushing up prices, because they believe that cashews at the beginning of the season are of good ...

Source: Vietstock