W12 Cashew Update: Vietnam Faces Strong Competition From African Countries and Cambodia, VINACAS Calls for Industry Reform Due to the Margin Challenge

Cashew Industry in Vietnam Faces Strong Competition From African Countries and Cambodia

Vietnam's cashew industry faces fierce competition from African countries and Cambodia. These countries are witnessing a surge in raw cashew production and deep processing, posing a challenge for Vietnam's cashew exports. The Vietnam Cashew Association (VINACAS) has advised these countries to proceed with caution in their transactions since the global supply of raw cashew nuts exceeds the total amount of cashew kernels consumed. This has resulted in a continuous decline in cashew kernel prices each year, dropping by approximately 10% from 2018 to 2023. Unfortunately, this has led to the closure of over 100 cashew factories in Vietnam due to financial problems.

Cashew Industry in Kogi State, Nigeria, is at Risk of Collapse Due to Multiple Taxations

Kogi State in Nigeria, the country's leading producer of cashew nuts, is facing a potential industry collapse due to the state government's multiple taxations. Cashew farmers are protesting against high inspection fees and other levies imposed by the Produce Inspection Department. The Federation of Farmers in Nigeria has also accused a lawmaker of unlawfully seizing their produce. The state government denies allegations of multiple taxations and promises to stabilize grading costs. According to the National Cashew Association of Nigeria (NCAN), Kogi State produces around 55 thousand metric tons (mt) of cashews annually.

Vietnam Sets New Record in Cashew Kernel Exports, but Industry Faces Challenges from Declining Prices and Rising Cost

Vietnam's cashew kernel exports set a new record of 645.32 thousand mt in 2023, surpassing the 2021 record of 609.26 thousand mt. The export price for W320 cashew kernels decreased sharply to USD 2.3 per pound (lb), compared to USD 2.6 to 2.7/lb in 2022, but it is still difficult to sell. Raw cashew prices decreased slowly and remained high at USD 1,100 to USD 1200/mt. The Chairman of VINACAS called for the industry to reform and restructure the global cashew supply chain.