Vietnam, located in Asia, was the world’s largest exporter of cashew nuts. But in the last two years i.e. in 2021, the cashew nut industry of Vietnam experienced the first ever shortfall in the last 31 years. To manage the loss, Vietnam had to import raw cashew from other exporting countries. On the basis of an analysis laid down by an analyst, Vietnam’s cashew industry will still experience certain infirmity. The import value of raw cashews by Vietnam is recorded at 2.87 million tonnes worth US$4.2 billion, which is up by 98.3% and 131.5% year-on-year respectively.
Small-scale farmers continue to dominate cashew nut agriculture in Vietnam, while large-scale production has yet to emerge. Furthermore, Vietnam is somewhat primitive in cultivation practices, which impedes the expansion of the cashew nut business.
Export Of Raw Cashew From Cambodia
Cambodia, a Southeast nation located in Asia also produces raw cashews. Cambodia’s cashew nut production is increasing year-on-year over the past few years. Thus, Cambodia is also becoming one of the core producers of raw cashew.
Cashew production in Cambodia is high because the smallholder farms of cashew in Cambodia is comparatively larger than the cultivation area of competing countries. Cambodia has some high-yielding land area which is the most productive cashew growing area. In addition, the cashews of Cambodia are known for their nut size and quality. The price of Cambodian raw cashew is Rs 170 per kg. Previous year, Cambodia shipped around 98.5% of the raw cashews that is valued more than $1 billion to Vietnam. That indicates that the Vietnamese market accounted for 98.5% of the total export value. Around 670000 tonnes of raw cashew were imported to the overseas market.
In comparison to 2021, sales to markets outside of Vietnam declined by 34.65%. As per the Vietnam Trade Office in Cambodia, 660,000 tonnes were exported to Vietnam.
According to the Vietnam Cashew Association, the country imported 1.9 million tonnes of raw cashew nuts the previous year. The entire value of imports from various nations, including Cambodia, was $2.66 billion.
Vietnam Cashew Market
Vietnam processes a large portion of its raw cashew nut imports before re-exporting them. In 2022, Vietnam shipped 514,699 tonnes of cashew nuts for $3.05 billion, a 12.6% decrease in volume and a 16% decrease in value over 2021.
Currently, the country has a cashew-growing region of over 300,000 hectares, with crude nut output fulfilling approximately 30% of processor requirements.
In recent years, the cashew-growing area has reduced, with many major material areas vanishing as farmers chose for more economically efficient crops. The group has requested that the Ministry of Agriculture and Rural Development review the long-term stability and management of cashew-cultivation areas.
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