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Manthan1709

Mar 26, 2025

Vietnam’s Cashew Industry Cautious on Raw Nut Purchases

Vietnam’s Cashew Industry Cautious on Raw Nut Purchases

Global Production Rise Keeps Pressure on Vietnam’s Cashew Industry

Vietnam’s cashew industry had a remarkable performance in 2024, exporting 765,368 tonnes of cashew kernels, generating a record USD 4.6 billion in revenue. For the 18th consecutive year, Vietnam remained the world’s top cashew exporter, a strong foundation as the industry enters the 2025 season.

According to the Vietnam Cashew Association (VINACAS), harvesting is proceeding normally in Vietnam, Cambodia, and Africa. However, traders remain cautious. Despite a forecasted increase of 8–10% in global raw cashew nut production, processors are not rushing to buy.

In Bình Phước province — Vietnam’s largest cashew-growing region — many leading processors agree with this outlook. Mr. Vu Thai Son, Chairman of the Bình Phước Cashew Association, predicts a 15–20% rise in total raw cashew output globally due to newly planted areas entering production.

Tanzania’s Cashew Market Reflects Surplus Conditions

Hoang Son 1 JSC, a major cashew processor in Bình Phước, purchased over 20,000 tonnes of Tanzanian raw cashew nuts by early March. However, the company strategically delayed large purchases. Initial offers from Tanzania were USD 2,000–2,050 per tonne, but Hoang Son 1 waited. Only when prices declined to USD 1,350 per tonne did the company begin buying in volume.

This sharp price drop indicates a supply glut. Mr. Ta Quang Huyen, the company's General Director, confirmed that the 2024 Tanzanian crop was nearly 200,000 tonnes higher than the previous year, reflecting strong output despite irregular rains.

No Urgency as Global Kernel Prices Remain Uncertain

VINACAS Vice Chairman Nguyen Minh Hoa echoed similar views, pointing to a potential 10–15% rise in global production. With global supply nearing 6 million tonnes, raw nut prices across Africa are trending downward.

In summary, Vietnam’s processors are keeping a close eye on market conditions — focused more on strategic timing than volume in raw cashew purchases.
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