The local cashew industry has seen a spike in cashew prices, marking a 10 year record high, mostly due to increasing global prices.
As reported by Vietnam News
Agency, a kilogramme of raw cashew nuts can now be sold for VNĐ32,000
(US$1.4), and a kilogramme of dried cashew nuts fetches VNĐ40,000, the
highest prices recorded in the past 10 years.
Việt Nam Cashew Association (Vinacas)’s chairman Nguyễn Đức Thanh said that cashew exporters are also buying cashew nuts from local farmers at higher prices.
“Exported cashew prices are
rising due to global prices increasing. In addition, Vietnamese cashews are
good quality and much favoured by foreign markets,” Thanh said.
Since early March, growers in key
cashew cultivation areas in the Southern and Central Highlands provinces have
started to collect their cashew nuts as it is now entering peak harvest season.
Trần Văn Thi, a cashew grower in the Central Highlands of
Đăk Nông Province said a kilogramme of cashew nuts previously sold
for between VNĐ18,000 and 20,000, but now the prices have increased by
VNĐ10,000 per kilogramme.
“With higher prices, a cashew growing
household can now earn VNĐ90 million to 100 million per hectare of
cashews, and after deducting all kinds of expenses and costs, they can gain
from VNĐ70 million to VNĐ 85 million in profit,” Thi said.
Nguyễn Thị Huệ,
who owns two hectares of cashew plantation in the southern Bình
Phước Province’s Đồng Xoài Commune said this season she
has collected about four tonnes of cashew nuts, adding that she has received
numerous orders from cashew traders. She expects to earn a profit of
VNĐ100 million after selling all this year’s crop.
According to statistics from
Vinacas, in the first two months of this year, Việt Nam exported 37,000
tonnes of cashews with a total revenue of $280 million, an increase of 11 per
cent compared with the same period last year.
All though cashew prices are
increasing, the cashew industry is still facing a shortage of cashews for
export. Last year’s cashew crops saw low productivity due to unusually bad
weather, which in turn led many farmers to narrow their cultivation area for
cashews, or even replace cashew plantations with coffee, rubber or fruit trees.
Many farmers now feel regret
because they don’t have enough cashews for traders, and therefore, the cashew
industry cannot fully meet the export demands. For many years, Thanh said,
cashew prices have depended on the local traders.
"Farmers don’t directly supply cashews to export enterprises, but have to sell them through several traders. Therefore profits for farmers have been significantly diminished," he said.
In addition, Vietnamese farmers
lack advanced preservation technology so they cannot store cashews for long
periods. Often farmers will sell the raw cashew nuts right from their gardens,
and can easily suffer losses.
"There should be a basic
development strategy for the domestic cashew industry, including closer links
between farmers, traders and exporters to protect the rights of cashew growers.
The State should formulate policies to encourage and support farmers,” Thanh
To improve the situation, he said
that Vinacas is co-operating with relevant agencies to develop a model linking
production, processing and consumption, gradually connecting cashew growers
with exporters, and helping farmers to increase their profits.