Illustrative image (Photo: VNA)

Amid global demand slump, cashew remains a silver lining of the overall cloud of export, heard a conference on cashew market outlook taking place in Ho Chi Minh City on July 26.

Vietnam Cashew Association (VINACAS)’s Standing Vice President Bach Khanh Nhut said from the remaining months of 2023 until the first quarter of 2024, the industry will continue to face many hurdles. In the context that the global economy continues to decline, cashew will not an essential commodity and, as a result, consumer demand will continue to decline.

Nhat also said that in the optimistic scenario, the cashew industry will grow thanks to the consumption of cashew kernels, when the demand stimulus is effective, the inventory level in major consuming markets including the US and Europe will decrease, pushing the demand at the end of the year.

However, VINACAS has adjusted the target of cashew nut export turnover in 2023 to 3.05 billion USD, a decrease of 50 million USD compared to the previously set plan and 750 million USD lower than the target of the Ministry of Agriculture and Rural Development (MARD) for the industry from the beginning of the year.

Chairman of VINACAS Pham Van Cong said that the association has recommended the State continue to support the promulgation of appropriate mechanisms and policies to import cashew kernels to ensure fairness for domestic processing enterprises.

Besides, it has suggested ministries, branches and localities to create the most favourable conditions for cashew businesses, especially in terms of bank credit, tax and customs policies, Cong added.

VINACAS has also proposed the Ministry of Industry and Trade (MOIT) to introduce industrial promotion programmes, support enterprises to invest, improve technology, equipment, digital transformation, and to upgrade processing facilities while supporting and encouraging businesses to expand market, investing in deep processing, and diversifying exports.

It has requested the MARD to early conduct survey, assessment of cashew growing areas, and introduce mechanisms to support Vietnamese cashew farmers. In addition, ministries, branches and diplomatic and trade agencies have been requested to strengthen information on markets, customers, consumption trends and trade risks in foreign markets and support cashew businesses when there are unforeseen difficulties that may occur.

In the first six months of 2023, the industry exported over 279,000 tonnes of cashew nuts of all kinds with a turnover of about 1.6 billion USD, up 9.49% in volume and 7.65% in value. However, the average export price of cashew kernels was only about 5,717 USD per tonne, down 1.73% over the same period last year.

In the reviewed period, Vietnamese cashew enterprises imported about 1.44 million tonnes of raw nuts worth about 1.8 billion USD, up 19.79% in volume and 5.16 % in value. The average import price of raw cashew nuts decreased by 11.34% to only 1,251 USD per tonnes./.