In W44 in the cashew landscape, the global cashew market displayed robust performance, reaching a market size of USD 7.2 billion in 2022. Projections suggest sustained growth, with an anticipated expansion to USD 9.3 billion by 2028. This forecast reflects a steady compound annual growth rate (CAGR) of 4.14% from 2023 to 2028.
In the first ten months of 2023, Vietnam's agriculture, forestry, and fishery product exports reached a total turnover of USD 43.08 billion, resulting in a trade surplus of USD 9.3 billion, marking a 26.2% year-on-year (YoY) increase. Agricultural and livestock products have experienced growth, with agricultural exports valued at USD 21.94 billion, a 17% YoY increase attributed to higher exports of fruits, vegetables, and rice. Cashew nuts also experienced a 14.8% YoY increase. The main export markets for Vietnamese agricultural products are China, the United States (US), and Japan. The Ministry of Agriculture and Rural Development is closely monitoring the domestic commodity market, ensuring a stable supply and addressing price fluctuations.
Furthermore, Bình Phước, the largest cashew-producing province in Vietnam, has seen notable success in cashew production, generating annual export revenue of over USD 1 billion in recent years. With 152 thousand hectares (ha) dedicated to cashew cultivation, the province accounts for half of Vietnam's total cashew area and a significant portion of its overall farming land.
Bình Phước's favorable soil and climate conditions have made it an ideal location for cashew growth. The province houses more than 1.4 thousand small and medium-sized processing units, offering employment to over 50 thousand workers. Over the past three years, the province has replaced 35 thousand ha of old cashew trees with high-yield varieties, surpassing 2.5 metric tons (mt) per ha. To enhance income, Bình Phước has also promoted intercropping and animal husbandry in cashew orchards.
Many cashew cooperatives have partnered with various stakeholders to develop concentrated farming areas, ensuring outlets and stable prices. Despite these achievements, challenges persist, such as the lack of contracts between processors and farmers for consistent supply. In addition, limited financial capacity is a concern for numerous cashew processors. Experts recommend investing in deep processing to create diverse cashew products that meet consumer demands.
Lastly, stakeholders in Nigeria's cashew sub-sector convened for a National Cashew Consultative meeting in Lagos to address the issue of foreigners infiltrating the cashew value chain by directly purchasing from farmers. This disruption has had detrimental effects on the livelihoods of local players and the nation's economy, tarnishing the country's international reputation. Stakeholders emphasized that while foreigners are welcome to do business in Nigeria, they must adhere to established industry rules and not engage in farm gate trade, which leads to premature harvesting and lower product quality. The meeting aimed to discuss the modalities of implementing the national policy on farm gate trade and address the challenges posed by foreigners in the sector. Stakeholders believe that enforcing the policy will protect local farmers and the cashew value chain, ensuring that the benefits remain within the country. They are also working to promote cashew production and processing in Nigeria to become a significant player in the global cashew industry.