Vietnam Cashew Nuts Industry- part 2

Monday, 10 November 2014 14:54

VIETRADE - In May 2014, VINACAS signed the MOU with The Cotton and Cashew Council of Cote D’Ivoire. The objective of the MOU is to help Cote D’Ivoire as followed: - Supporting in consulting and training producers of cashew in Cote D’Ivoire on cultivation technical and post-cultivation steps; - Exchanging information of the industry; - Protecting the trade exchange between the two countries; and - Supporting technical device. Trends on supply and demand of cashew in Vietnam Vietnam is among the biggest producers of cashew in the world, only after India and Cote D’Ivoire. However, in order to meet the demand of the local processing industry, Vietnam has to import a large quantity of cashew from the Africa and Cambodia. Import of raw cashew has stably increased for over 13 years. The increasing rate of quantity and value of imports is 45.45% and 32.99% from 2000 to 2013. The main suppliers of raw cashew are African countries and Cambodia. In 2013, Vietnam imported 643,380 tons of raw cashew, valued at US$ 604,590 thousand. Export of cashew kernels of Vietnam Export of cashew kernels of Vietnam has continuously increased since the establishment of Vietnam Cashew Association in 1990. Since 2006, Vietnam has become the biggest exporter of cashew kernel in the world. Export of cashew kernel in 2000 has increased by 17.7% in volume and 22.6% in value. Vietnam mainly exports cashew kernels to Middle East countries, the European Union, China, Australia and New Zealand. Vietnam accounts for 92% of the market share of the Australia market and 90% of the New Zealand market. Vietnam’s strengths include high productivity of raw cashew, meeting requirements of food safety and lower price than that of India. In 2013, Vietnam exported 264.86 thousand tons of raw cashew, valued at US$1,655.45 million. In August 2014, the export quantity of Vietnam was 33,267 tons, amounting to US$219 million, contributing to the exports of the first 8 months of 198,743 tons, amounting to US$ 1.285 billion, up 21.5% comparing with the same period in 2013. Especially, the export value increases in all main markets by 10.29%, 45% and 10.4% to the US, the Netherlands and Canada, respectively. India is the main importer of broken cashew of Vietnam with the increasing rate of 61.73% in 7 years (from 2007 to 2013). In 2013, India imported 4,265.80 tons of broken cashew from Vietnam, valued at US$14.61 million. In 2014, it is estimated that the export value would be 270 thousand tons of cashew kernels with the export value of US$1.8 billion (in comparison to US$1.66 billion in 2013). If we count all other by-products, the export value of the cashew industry can reach US$2.2 billion, increasing by US$0.4 billion in comparison to that of 2013. Table: Trends on supply and demand of cashew in Vietnam 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CAGR Volume (thousand ton) 205 240 312 309 292 311 309 298 265 252 1.46 Import (thousand ton) 17 26 21 200 250 250 350 395 333 643 50.00 Ratio of main suppliers of raw cashew in the total imports Cambodia 25.8 22.1 25.7 15.8 3.3 2.1 3.4 3.3 19.0 9.6 28.8 Cote D’Ivoire 11.1 14.6 8.9 14.9 7.1 4.5 8.5 6.0 29.4 4.1 42.9 Nigeria 24.0 34.0 23.9 18.5 3.1 1.5 3.2 3.7 20.2 0.0 22.3 Indonesia 25.1 18.3 31.8 23.8 2.3 1.8 6.4 1.0 5.7 4.1 13.7 Ghana 1.2 1.2 1.9 6.3 1.8 1.0 1.1 4.7 9.9 - 80.9 Guinea Bissau - - - - 2.2 0.5 0.6 1.6 5.1 - 46.2 Others 12.8 9.8 7.7 20.7 80.2 88.5 76.9 79.9 10.7 82.2 83.6 Medium import price 3.26 3.26 3.26 0.65 0.88 0.62 0.79 1.41 1.00 0.94 -12.42 Total supply (thousand ton) 222 266 333 509 542 561 659 693 598 895 Production of cashew kernel(thousand ton)* 56 67 83 127 136 140 165 173 150 224 14.68 Export of cashew kernel  (thousand ton) 87 103 115 142 161 176 190 174 218 265 11.73 Ratio of main markets in the total exports US 40.28 31.25 32.28 31.75 28.31 29.48 31.59 26.83 27.39 30.67 8.89 China 16.49 20.01 20.88 18.43 19.12 22.46 17.35 21.75 21.78 19.68 13.37 Netherlands 10.82 12.13 10.88 15.28 17.35 13.83 13.08 15.42 11.13 8.85 10.83 Australia 10.70 10.91 11.09 8.11 7.11 6.77 7.24 6.65 6.56 5.32 3.42 UK 5.49 5.46 4.70 5.61 5.24 3.97 3.87 3.25 3.39 3.18 4.25 Canada 4.32 3.71 2.69 2.91 3.36 2.22 2.60 2.30 2.66 3.26 7.51 UAE 0.38 0.48 0.39 0.57 0.74 1.19 1.60 1.53 1.16 1.20 31.62 Russia 1.06 2.45 3.76 3.59 4.15 2.37 3.39 3.67 3.79 3.44 20.77 Others 10.46 13.60 13.32 13.74 14.61 17.71 19.28 18.59 22.14 24.40 21.58 Medium export price of cashew kernel (USD/lb. FOB) 2.22 2.22 1.80 1.94 2.49 2.15 2.65 3.76 3.00 2.83 5.45 Note: CAGR: Compounded Annual Growth rate; Lb.: 0.45359237 kg Source: Ministry of Agriculture and Rural Development of Vietnam, Vietnam Customs