Export prices of Vietnamese cashew nuts continue to fall following a sharp decrease in price on the global market, according to the Vietnam Cashew Association (Vinacas).
A ton of cashew is now offered at around US$3,700-3,800, down by US$400-500 per ton compared to last month’s level.
Vinacas blamed the price decrease on low demand in the world market. Meanwhile, some major cashew suppliers like India, Brazil and African countries, report lucrative cashew harvests.
Prices for unshelled cashew nuts have also shrunk by as much as 50 per cent to only VND8,000 per kilo on average at the local market, pushing local farmers into a miserable situation as they are likely to witness a poor cashew harvest due to prolonged drought last year.
Cashew nuts have been recognized as one of Vietnam’s key products for export in the 2006-2010 period, which is expected to generate around US$700 million in 2007 and US$1 billion by 2010.
The Vietnamese government is working to create favorable conditions for the further development of this industry by granting interest support and tax exemptions to cashew importers and exporters.
Vietnam currently is one of the world’s top five cashew nut producers, making up for 28 per cent of the world’s total cashew nut output, according to President of Vinacas, Ho Ngoc Cam.
He also revealed that the cashew industry recorded an export turnover of US$486 million from exporting 104,000 tons last year.
At present, Vietnamese cashew nuts are available in some 100 countries and territories worldwide with the US, China, Netherlands and Australia being the largest importers who account for 33 per cent, 18 per cent and 11 per cent of the country’s total cashew nut export volume, respectively.
Cashew growing areas will be expanded to around 450,000-500,000 hectares by 2010 from currently 400,000ha.
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