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  • Raw cashew prices plummeted

    Mar 26th, 2019

    The domestic cashew yield is only about 400,000 tons while the annual demand of enterprises (DN) is about 1.5 million tons. The processing industry depends heavily on imported materials, so the price of purchasing raw materials is also affected.

    Fresh thing is only 28,500 - 30,000 VND / kg

    In the past days, the fresh thing purchased in the garden in Binh Phuoc is only 28,000 - 30,000 VND / kg, if delivered to the factory price 30,000 - 32,000 VND / kg, the price of dried cashew is about 36,000 VND / kg. While last year, the price of fresh cashew was at VND 40,000 - 42,000 / kg, dry cashew was up to VND 50,000 / kg. According to traders, the price is still going down, there is no sign of recovery.

    Mr. Tran Huu Hau, Standing Member of the Vietnam Association of Cashew Association, calculated that this price has increased slightly compared to the record low in late February: fresh thing is only 20,000 - 24,000 VND / kg due to the time. Meanwhile, cashew processing factories still have Tet holidays.

    Mr. Nguyen Van Tuan, the owner of a cashew orchard in Xuyen Moc, Ba Ria - Vung Tau province, said that the price of cashew in this area is higher than other areas due to better quality and convenient traffic but this price is often purchased. pierced. At the beginning of last week, fresh things bought at the garden cost 32,000 - 33,000 VND / kg, now only 29,500 VND / kg, down 2,500 - 3,500 VND / kg. Currently in the harvest season, many garden owners worry about the lower the price, the easier it is for traders to squeeze prices or take up capital by "buying bear".

    Depends on the price of imported materials

    Mr. Ho Ngoc Cam, Director of Phuong Minh Agricultural and Forestry Products Import and Export Co., Ltd, said that at this time, new enterprises imported a small amount of raw materials to Vietnam, but the price of domestic cash dropped dramatically. If the next time enter a large quantity, it will push down the domestic cashew price. According to Mr. Cam, the price of material in the world tends to decrease. Raw cashew price in Africa offered 1,300 - 1,400 USD / ton, down by 600 - 700 USD / ton compared to last year. The world price of cashew nuts also fell sharply, from USD 9,000 / ton to USD 7,500 / ton.

    Mr. Cam informed more, the whole year, the cashew industry fell into losses, many businesses had to suspend operations, even closed long-term. Previously, enterprises imported thousands and even tens of thousands of tons of raw materials but from the beginning of the year until now, enterprises only imported a few hundred tons, enough to produce. "Businesses have psychology to wait for the world price to drop further. On the other hand, most enterprises in this industry depend on bank capital, now banks are afraid to lend because of high risks so businesses do not have money to import raw materials" - Mr. Cam said .

    At the conference to review cashew industry, which took place earlier this year, the Vietnam Cashew Association stated difficulties in the past year and called for export cashew processing enterprises not to buy high-quality raw materials as before but only buy at 1,200 USD / ton. Drawing experience in 2018, the price of raw materials increased too high, enterprises rushed to import raw materials for processing but the export prices fell sharply, many businesses suffered heavy losses. The enterprises have agreed "where to buy to buy there".

    Mr. Nguyen Minh Hoa, Vice Chairman of Vietnam Cashew Association, suggested businesses are not rushing to buy raw materials massively as in previous years. According to Mr. Vu Thai Son, Chairman of Long Son Joint Stock Company, there are many sources of cashew in the world, raw cashew exporters in Africa are in large quantities, so they will likely continue to reduce prices. .

    15,000 tons of Cambodian cashews come back to Vietnam every day

    According to the Vietnam Cashew Association, since the beginning of the year, cashew processing plants have been operating thanks to domestic raw materials and imported from Cambodia. On average, about 15,000 tons of raw cashew nuts from Cambodia are brought to Vietnam for consumption every day. It is expected that domestic and Cambodian cashew production this year will be equivalent to 2018.