U.S. increases cashew imports from Vietnam due to low prices

U.S. increases cashew imports from Vietnam due to low prices - PHOTO: TTXVN

Ho Chi Minh City - Since early this year, the U.S. has boosted cashew imports from Vietnam due to their lower prices. In the first four months of the year, cashew shipments to the U.S. surged 30.3%, raising the market share of Vietnamese cashew in the U.S. to 81.3%, well above the 65.5% in the same period last year, local media reports.

Additionally, in the first half of June Vietnamese cashew was priced at US$9.07 per kilogram, down 3.5% month-on-month and 11.5% over the same period one year ago.

The U.S. is Vietnam’s major cashew buyer, accounting for 36.4% of Vietnam’s cashew exports.

According to the U.S. International Trade Commission, from January to April, the U.S. bought 41,400 tons of cashew, up 5% in volume and 12% in value, year-on-year.

India is Vietnam’s key rival in the U.S., but its cashew export volume stateside plunged 66.6% in the first four months of the year. In the first half of June, its cashew prices ranged from US$10.9 to US$16 per kilogram, far more expensive than Vietnam's cashew.

As of last month, Vietnam had exported 141,000 tons of cashew nut worth US$1.4 billion, up 24% in volume and 25% in value.

Ta Quang Huyen, vice chairman of the Vietnam Cashew Association (VINACAS), said cashew processors have been concerned about the lack of cashew materials for processing in the second half of the year, so they chased up the purchase price of cashew materials in March and April. However, cashew prices decreased last month.

Domestic processors did not anticipate that importers might raise cashew prices when the volume of commercial cashew decreased and African exporters hiked raw cashew material prices, causing losses for local processors.

Therefore, 70-80% of cashew processors nationwide had to suspend their operations as of June 15, according to VINACAS.

In the first five months of the year, Vietnam imported 283,000 tons of raw cashew, less than in the same period last year. In the second half of this year, an additional 900,000 tons of raw cashew materials is to be imported.

VINACAS Chairman Nguyen Duc Thanh said the Ministry of Agriculture and Rural Development expected to have 300,000 hectares for growing cashew by 2020-2025.

In addition, the country will retain the volume of cashew exports to raise their prices, said VINACAS General Secretary Dang Hoang Giang.

Also, the association will encourage the development of value chains involving enterprises and farmers, and boost the quality and traceability of the product to reach export revenues of US$4 billion next year.