Weekly Product Updates

W8 Cashew Update: Unknown Pest Threatens Cashew Production in Mozambique, Cashew Offers Available After Tết Holiday, Farmers in Ivory Coast Request Government Support to Avoid Bankruptcy

Cashew Nut Kernel
Mozambique
Published Feb 27, 2024
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In W8 in the cashew landscape, production in Mozambique's Maputo province is experiencing a 30% decline due to an unknown pest that causes cashew tree flowers to dry and fall off. The Almond Institute suggests climate change could contribute to the problem, and the industry must take necessary measures to address the issue. In addition, after the Tết holiday, cashew offers from Cambodia, Vietnam, and African countries have become available for shipment. Factories are operating at full capacity, with orders for Mar-24 fully booked, and the bumper harvests in Vietnam and Cambodia are expected to alleviate raw material prices. Lastly, cashew nut processors in Ivory Coast are urging the government to renew cashew subsidies to avoid potential bankruptcy.

Unknown Pest Threatens Mozambique's Cashew Nut Production

An unknown pest threatens cashew nut production in the Manhiça district of Mozambique's Maputo province. The pest is causing the flowers of cashew trees to dry and fall off, hindering fruit growth. As a result, the country's largest cashew producers are experiencing an estimated 30% production decline. Experts from the Almond Institute suggest climate change could contribute to this problem, and the industry must take necessary measures to address the issue.

Cashew Offers from Cambodia, Vietnam, and African Countries Available for Shipment After the Tết Holiday

Cashew offers from Cambodia, Vietnam, and African countries have become available for shipment after the Tết holiday. These offers include a high supply of larger-sized nuts such as WW160, WW180, and WW210, all exhibiting excellent quality from the initial harvest. Many factories, particularly those involved in self-manufacturing, operate at full capacity, with orders for Mar-24 fully booked. Consequently, they can only accommodate shipments from Apr-24 onwards, especially for WW240 orders. Additionally, the bumper harvests in Vietnam and Cambodia due to favorable weather and soil conditions are expected to alleviate raw material prices. This anticipated price decrease will likely facilitate kernel production, making it more accessible compared to the previous seasons.

Cashew Nut Processors in Ivory Coast Request Government Support to Avoid Bankruptcy

Cashew nut processors in Ivory Coast urge the government to renew cashew subsidies, citing potential bankruptcy if support is not provided. The Ivory Coast Cashew Industry Group (GTCI), which represents five cashew processors with the capability to process 41 thousand metric tons (mt) per year, wrote a letter to the government in Dec-23 requesting subsidy renewal, citing the fact that the GTCI processed 22% of their output domestically in 2023, which met the requirement of processing up to 20% at the start of each season.

According to the Agriculture Minister of Ivory Coast, the 2024 cashew production is anticipated to increase to 1.25 million metric tons (mmt), showing a 5% year-on-year (YoY) growth. In 2023, Ivory Coast exported around 849.25 thousand mt of cashews, which was 18.22% YoY higher than the 719.9 thousand mt in 2022. Vietnam received 81% of the cashew exports, while India received about 18%. Notably, around 22% (265.86 thousand mt) of the total cashew output was processed locally.

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