With such a large demand at the moment, it is common sense that the domestic cashew price will also increase. However, the reality of the market happened in the opposite direction when the price of raw cashew nuts decreased by about 3,500 VND/kg. The reason is due to the influence of heavy rain that makes people unable to dry cashews.

According to the Department of Agricultural Products Processing and Market Development (Ministry of Agriculture and Rural Development), the volume of cashew imports in March 2021 is estimated at 300,000 tons with an estimated import value of 490 million USD, bringing the total volume and value of cashew imports in the first 3 months of 2021 reached 539 thousand tons and 839 million USD, increased by 174.2 percent in volume and 171.5 percent in value over the same period in 2020.

The Department of Agricultural Products Processing and Market Development said that Tanzania, Cambodia and Ivory Coast are the three main markets that supply imported cashew nuts to Vietnam in the first two months of 2021.

 

The structure of cashew imports from other countries. (Source: Vietnam Cashew Association (Vinacas)

However, the value of imported cashew nuts in the first two months of 2021 from these three markets all increased sharply compared to the same period in 2020, with an increase of 2.6 times, 3.3 times and 2 times, respectively.

Import volume and turnover of raw cashew nuts from 2017 to the end of March 2021. Source: Vietnam Cashew Association (Vinacas)

Talking to the writer, a representative of the Vietnam Cashew Association (Vinacas) said that it is currently in the peak period of purchasing of cashew processing factories, so the demand for importing raw materials has increased sharply.

The sharp increase in the volume of cashew imports shows that the demand for raw materials in processing factories is growing. Even factories accept imports at a much higher price than at the same time last year.

With such a large demand, it is common sense that domestic cashew prices also increase. However, the reality of the market happened in the opposite direction when the price of raw cashew nuts decreased by about 3,500 VND/kg.

Specifically, buying dry raw cashews at the cashew growing capital in Binh Phuoc decreased from 34,000 VND/kg to 31,500 VND/kg.

Generally in the first 3 months of the year, the price of raw cashew nuts in Binh Phuoc increased from the beginning of the year until about mid-March, then began to decrease.

Explaining this problem, a representative of the Vietnam Cashew Association (Vinacas) said that in recent times in the cashew growing provinces, heavy rain occurred right at the harvest.

Therefore, farmers cannot dry their cashews, leading to enterprises not being able to buy and farmers cannot sell them.

“The most serious in Binh Phuoc, the recent rains are very heavy, even cashew nuts piled up in the drying yard and germinated. Enterprises cannot buy this kind of cashew, so the price has dropped,” said a representative of Vinacas.

He added that due to the complicated weather this year, the cashew crop arrived more than a month later, so it is not possible to estimate the output and how much damage.

As noted by the VNA reporter in Binh Phuoc, in March, people were entering the first phase of the cashew harvest. However, due to the unusual weather from February to now, many cashew growing areas are in the risk of yield decrease compared to the previous crop year.

Answering the VNA, Deputy Director of Binh Phuoc Department of Agriculture and Rural Development Ms. Le Thi Anh Tuyet said that previously, farmers’ cashew fields have developed very well, this year’s crop is expected to be higher than the previous crop.

However, after the Lunar New Year, due to weather changes at the time of flowering and fruit set, it was damaged.