Steady Growth in Cashew Prices Over Recent Months

Vietnamese cashew nut prices have been on a consistent rise for the fourth month in a row. In August 2024, the average price for cashew nuts reached USD 6,33 per kg, a 2.6% increase from July 2024 and a 14.8% jump compared to August last year. This marks the first time since September 2022 that cashew prices have remained above USD 6,00 per kg for several consecutive months.

In July 2024, the price of cashew nuts was USD 6,17 per kg, which was a small increase from June. Back in June, prices were at USD 6,01 per kg, continuing the upward trend we’ve seen over the past few months. Although prices have been climbing steadily, the average price during the first eight months of 2024 was slightly lower compared to the same period last year.

Boost in Export Volumes and Earnings

Even as prices fluctuate, the volume of cashew exports from Vietnam has grown significantly. In the first eight months of 2024, Vietnamese businesses exported 0.486 million tonnes of cashews, worth USD 2,77 billion. This represents a 22.9% increase in volume and a 21.8% rise in value compared to the same time last year. Most global markets have shown a steady demand for Vietnamese cashew nuts. With only Saudi Arabia showing a slight drop in volume, though its value increased by 4.2%.

Internationally Growing Demand

Vietnam's cashew exports have flourished in markets like China, where exports jumped by 43.5% in volume and 28.9% in value. The United Arab Emirates also saw strong growth, with a 38.5% rise in volume and a 48.1% increase in value. The United States, Spain, and Germany have similarly shown significant demand, driving the strong performance of Vietnam’s cashew industry this year.

Challenges in Sourcing Raw Cashew Nuts

Despite the strong growth in exports, Vietnam’s cashew industry faces problems in finding suitable raw cashew nuts. Vietnam imported nearly 2 million tonnes of raw cashew nuts in the last eight months, with Cambodia being the top supplier, delivering 0.762 million tonnes. However, many of these cashews are larger in size, which doesn’t meet the specific needs of all international buyers.

On the other hand, cashews from Guinea-Bissau, another key supplier, tend to be smaller. While Guinea-Bissau accounted for 6% of Vietnam’s raw cashew imports in 2023, the total volume of smaller-sized cashews remains limited.

Conclusion: Steady Growth with Some Roadblocks

As global demand for cashews continues to rise, Vietnam's export prices and volumes are expected to grow further, especially with the upcoming holiday season. However, the factors affecting the sourcing of right size and quality of raw cashews persists, and this will require strategic planning to ensure that Vietnamese exporters can meet market demands in the months ahead.





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