Cashew exports likely to fall
(VOV) - Vietnam’s cashew exports are declining due to lower output and storage, according to the Vietnam Cashew Association (Vinacas).
It cited three main challenges for the sector such as a shortage of raw materials, fierce competition and wild fluctuations in price.
In the first two months of the year, the country exported 33,000 tonnes worth US$240 million, representing an increase of 60.7 percent in volume and 35.3 percent in value year-on-year, Vinacas Chairman Nguyen Duc Thanh said.
Vietnam had earned US$1.7 billion from exports of 200,000 tonnes of cashew nut and cashew-based products last year, he said.
The value can be the same as last year, but volumes will definitely be down, he said, adding that due to prolonged hot weather, cashew output is forecast to fall.
Domestic businesses have recently had to import cashew from Cambodia, Ivory Coast, and other African countries to reprocess for export but there are risks inherent in raw product quality, Thanh said.
As the average price of raw cashew nuts in the domestic market is just VND29.000-30.000 per kilo.
Not a few export companies might incur losses if they failed to receive bulk orders in time.