Cashews: suppliers to benefit more from free trade agreements
February 12, 2025 at 12:49 PM ,
Der AUDITOR
Cambodia exports a third more to Vietnam
In just a few years, Cambodia has become the second most important producer of raw cashew nuts – only Côte d'Ivoire produces more and has already cracked the 1 million mt mark. Vietnam, the world's largest exporter of cashew nuts, sources large quantities from its neighbour Cambodia. Data from the customs authority shows that almost 820,000 mt of RCN worth USD 1.07 billion were imported from Cambodia last year, which is 33.5% more in volume and 27.4% more in value than in the previous year. This puts Cambodia in first place among the most important suppliers of raw materials for Vietnam. Although cashews are also grown domestically, the volume is nowhere near enough to meet the high export demand. For 2024, Vietnamese cashew exports are estimated at 723,800 mt worth USD 4.34 billion, as reported by the Vietnam Cashew Association (Vinacas) with reference to Vietnamnet. This would correspond to an increase of 12.4% in volume and 19.2% in value compared to 2023.
Expanding markets and improving quality
Nevertheless, Vietnam's cashew exporters will still face challenges in 2025 that affect all exporters in the agricultural sector. For example, Deputy Minister of Agriculture and Rural Development Phung Duc Tien stated that Vietnam's strong exports will prompt other countries to impose trade restrictions to protect domestic markets. In addition, the agricultural sector will continue to be restructured and processing promoted to maintain the industry's growth rate at a high level, as Vinacas pointed out.
Market experts also encourage companies to expand their customer markets – according to Associate Professor Dr. Ngo Tri Long, former Director of the Institute for Price Market Research at the Ministry of Finance, suppliers should expand into new markets such as the Middle East, Africa, etc. to minimise risks and take advantage of the opportunities offered by the free trade agreements signed by Vietnam. Regardless of this, the focus should always be on improving the quality of products in order to fulfil international standards and maintain and increase market share. The importance of free trade agreements is also emphasised by the Ministry of Industry and Trade.
Stable prices in India
India also plays an important role in the global cashew market, as reported by the experts at Mordor Intelligence, among others. The nuts are grown here on 700,000 hectares and annual production is around 800,000 mt. According to the experts, the market potential is expected to reach USD 2.49 billion in 2025. Meanwhile, Indian prices have remained stable in recent weeks and are at USD 8,685/mt FOB India for cashews, W240.
|
Cashews, India |
|
|
Type |
USD/mt |
|
W240 |
8,685 |
|
W320 |
8,035 |
|
W450 |
7,320 |
|
LWP |
6,690 |
|
SWP |
6,025 |
|
FOB India |
|
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