The Vietnam Cashew Association (Vinacas) has decided to lower the cashew nut export target to US$3.2 billion this year, down from the US$4 billion set in late 2019, given the impact of COVID-19.

Exports reached 232,000 tonnes in the first half, up more than 16% year-on-year, while value rose just 1% to US$1.53 billion, as export prices slumped by nearly 14%.

Demand in China fell nearly 30% in volume and while value was down 44%. The US and European markets, however, still performed well.

 Vincas Chairman Pham Van Cong said export inventories remain high while trade disputes are on the rise due to falling prices.

According to the association, it is difficult to accurately forecast demand for cashew nuts between now and year’s end. Consumption at accommodation facilities and restaurants has fallen strongly due to the introduction of social distancing measures.

The importation of raw cashew nut materials was also hit by COVID-19, with importers not only facing a delay in delivery but also receiving lower-quality products compared to previous crops.

Vinacas has proposed companies import and export better quality cashew nuts to overcome the ongoing difficulties.