Volume Down, Value Up & Price Fluctuations

• In June 2024, Vietnam exported 65,000 tons of cashews worth $388 million, a 4% decrease in volume but a 4.8% increase in value compared to May 2024.
• This marks an 8.4% increase in volume and a 13% increase in value over the same period last year.
• For the first six months of 2024, Vietnam exported 350,000 tons worth $1.92 billion, a 25% increase in volume and a 17.4% increase in value compared to the same period last year.

Impact of Raw Material Price Fluctuations

• In June 2024, the average cashew export price was $5,97 per kg, up 9.2% from May 2024 and 4.2% from June 2023.
• However, for the first six months of 2024, the average cashew export price was $5,50 per kg, down 6.1% from the same period last year.
• Despite double-digit export growth in the first half of 2024. Vietnam's cashew industry faces challenges due to fluctuations in raw material prices.

Raw Material Shortages Affect Cashew Industry

The Vietnam Cashew Association (Vinacas) reported feedback from businesses about insufficient raw material supplies from West African partners due to rising raw cashew prices. Decreased cashew output in West Africa and policies like Ivory Coast's temporary export suspension have contributed to these challenges. Vinacas has petitioned the government and relevant ministries to address these issues. Including influencing African countries to lift the export ban and developing high-quality, high-yield cashew varieties domestically. This would help reduce reliance on imported raw materials.

In summary, Vietnam's cashew industry is experiencing mixed trends with increased export value despite decreased volume and fluctuating raw material prices. The industry's reliance on imported raw materials poses challenges. Prompting calls for government intervention and domestic development of high-quality cashew varieties. Addressing these issues is crucial for sustaining growth and stability in the cashew market.