HANOI, Feb 28 (NNN-VNA) – Vietnam is expected to earn 3.1 billion U.S. dollars in cashew nut exports this year, due to falling global demand and high raw nut prices.
Vietnam’s cashew nut exports last year fell 15.5 percent to around 3.07 billion dollars, from the previous year, snapping a 10-year growing streak, said the Vietnam Cashew Association (Vinacas).
Industry experts said, the disruptions in production and supply chain will continue unabated, due to the impact of the geopolitical crisis in Eastern Europe and inflationary pressures.
Cashew processors are caught in higher input prices and lower global demand, weighing on export prices that have hit profitability of the processing companies in the country, according to Vinacas.
Vietnamese cashew processors imported 660,000 tonnes of raw nuts worth one billion dollars from Cambodia in 2022, said the Ministry of Industry and Trade’s office in Cambodia, adding that, the country’s cashew industry spent nearly 2.7 billion dollars last year, on 1.9 million tonnes of raw nuts for processing for export.
Vietnamese farmers have about 300,000 hectares of cashew, producing only 30 percent of the raw nuts required for annual processing, Vinacas said on its website. The country is dependent on raw nut imports, mostly from Africa and Cambodia.
The cashew industry would continue to face global uncertainty and challenges, said Vu Ba Phu, head of the Vietnam Trade Promotion Agency, under the Ministry of Industry and Trade.
He urged cashew farmers and exporters to shift towards sustainable agriculture and technological solutions, to boost the production quality and export value.– NNN-VNA
