W46 Cashew Update: Vietnamese Cashew Exports Surge and Tanzania Reports an Active Start to the 2023/24 Season

In W46 in the cashew landscape, in Sep-23, China emerged as the leading importer of Vietnamese cashew nuts, doubling the export value to USD 73.2 million, contributing to Vietnam's overall export of 56.8 thousand tons, valued at USD 310 million. Cashew exports for the first nine months of 2023 experienced an 18.8% increase in quantity and a 13.5% increase in value compared to 2022, solidifying cashew kernels as the third-fastest-growing commodity in the agricultural sector.

Vietnam's Cashew Exports Surge with Challenges, Showing Impressive Volume Growth Amid Quality Concerns and Global Competition

In Oct-23, Vietnam's cashew nut exports surged to 64,320 tons, marking a 47.7% year-on-year (YoY) increase with a value exceeding USD 358 million, reflecting a 37.1% YoY rise. Over the first ten months of 2023, the country exported 516.87 thousand tons of cashew nuts, indicating a 21.8% YoY increase, with an expected export value of USD 2.95 billion, showing a 15.9% YoY rise. Despite the impressive volume growth, the average export price experienced a decline, reaching USD 5,703/ton in the first ten months, down 4.8% YoY. While Vietnam has set a 2023 export target of USD 3.1 billion, the United States (US) and European associations raised concerns about declining quality standards, urging the Vietnamese cashew industry to focus on processing quality and diversification of deeply processed products to enhance competitiveness.

The industry, grappling with quality issues and competition from other countries, particularly Cote d'Ivoire, faces challenges to meet domestic raw material demands, as only 30% of the processing capacity relies on domestic resources. The Vietnam Cashew Association predicts that Vietnam's cashew exports will witness growth in the final two months of 2023 due to cyclical factors and increased import demand from major markets like the US, the European Union (EU), and China, potentially exceeding the initial USD 3.1 billion target and reaching an estimated USD 3.3 billion in 2023.

Mozambique's Almond Institute Boosts Cashew Exports and Tanzania's Mtwara Port Prepares for Active 2023/24 Cashew Season with Government Support

During the first investment forum in Niassa, Mozambique, the director of the research area at the Almond Institute of Mozambique, Américo Wassiquete, announced that the country earned USD 220 million in the last five years from the export of cashew nuts. Over this period, Mozambique exported 240 thousand tons of cashew nuts, making it the top nut variety contributing foreign currency. Wassiquete highlighted the role of the Almond Institute in promoting the cultivation of nuts, emphasizing the government's plans to incentivize investments in this crop due to its commercial value.

Lastly, the cashew season in Southern Tanzania for 2023/24 has started actively, with Mtwara Region serving as the key hub for cashew farmers and stakeholders overseeing the export of cashews worldwide. Following President Dr. Samia Suluhu Hassan's directive, the port of Mtwara has been designated as the exclusive channel for shipping cashews from the Southern Regions of Tanzania abroad, addressing the shortage of packaging containers through the receipt of 1.39 thousand empty containers. The port anticipates the arrival of nine ships in Nov-23, equipped to load over 102.65 thousand metric tons (mt) of cashews, with various incentives provided by the Tanzania Ports Authority (TPA) to enhance productivity and support port users during the cashew season.