Cashew Kernel Market Review - Aug 2022

Cashew kernel exports fell in both quantity and value as raw material prices rose; unfavorable global market movements are causing the cashew industry to face numerous challenges; overall exports are expected to be lower than in 2021.

Cashew exports were in a difficult situation in the first half of 2022 because purchasing was much lower than in previous years. This is due to the fact that many customers in key markets increased their reserve purchases in 2021 due to concerns about the COVID-19 epidemic, causing inventories to extend into this year. Furthermore, with the current inflation situation, consumers are forced to cut back on spending on unnecessary products, resulting in a decrease in cashew nut consumption.

In terms of processing, businesses are having difficulty because the price of raw cashew nuts has increased by 15-20% over the previous year, plus fuel and transportation costs continuously increasing while the price of cashew kernels for export has not increased. , even decreased. Many small processing factories in Binh Phuoc, the cashew processing capital, have had to suspend production in order to "cut losses." Large factories have also reduced their capacity and processed in moderation because the more they process, the more they lose.

The price of raw cashew nuts is unlikely to fall because the crop has been harvested, processing enterprises are only waiting for a signal that the export market will be better at the end of the third and fourth quarters of 2022. At that time, the amount of inventory cashew nuts in the markets had decreased, along with the time of year-end festival seasons, which could stimulate demand for cashew nuts, allowing the price of cashew kernels to be raised and profit margins to be maintained for processing and exporting enterprises.

Edited from Website info by AFRGO MARKETING Aug.2022

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