The export revenue target for cashew nuts in 2023.

28/07/2023 09:19

The cashew nut export revenue target for 2023 has been reduced by the cashew industry to $3.05 billion USD, a decrease of $50 million USD compared to the previous set plan and $750 million USD lower than the target set by the Ministry of Agriculture and Rural Development at the beginning of the year.

On the afternoon of July 26, the Vietnam Cashew Association (VINACAS) held a conference to review the cashew industry's activities for the first six months of 2023.

According to VINACAS's report, during the first six months of 2023, the entire cashew industry exported over 279 thousand tons of various types of cashew nuts, with export revenue of about 1.6 billion USD. This marked an increase of 9.49% in volume and 7.65% in value. However, the average export price of cashew nuts reached approximately 5,717 USD per ton, a 1.73% decrease compared to the same period last year.

Mr. Bạch Khánh Nhựt, Vice Chairman of VINACAS, stated that the cashew industry, like the nut industry in general, faced many difficulties during the first six months of 2023, primarily due to external factors such as political crises, tight monetary policies by central banks, global inflation, reduced purchasing power in key markets, and global consumer spending restraint. As a result, cashew processors encountered challenges in sales during this period. The market trend during the first half of 2023 was dominated by immediate purchase orders with small quantities, making it difficult for prices to decrease significantly or experience sudden surges as seen in previous periods.

However, on a positive note, the competitive pricing of cashew nuts compared to other nut varieties and the abundant supply led global retailers to promote and offer various promotions to stimulate purchases.

According to VINACAS, there is an expectation of increased demand in late 2023 with the idea that the current situation might represent the "market bottom" and the time to "buy low," but processors remain cautious as it is not yet the peak season for sales.

Given this market situation, VINACAS proposed two possible scenarios for the remaining haft past year:

In the positive scenario, boosting demand and accelerating consumption would help reduce inventory levels in major consumer markets such as the United States and Europe. This, in turn, would lead to increased buying towards the end of the year. Additionally, stricter quality control in key markets would limit access to low-priced and lower-quality cashew nuts, stabilizing both prices and the quality of exported products.

In the less favorable scenario, VINACAS assumes that the global economy will continue to face recession, and cashew nuts might not be considered an essential commodity, leading to further reduced demand from end consumers. Buyers in various markets may postpone cashew nut purchases until they witness signs of recovery and ensure favorable profit margins.

Considering market factors, VINACAS suggested revising the cashew nut export revenue target for 2023 down to 3.05 billion USD, a decrease of 50 million USD from the previously set plan and 750 million USD lower than the target set by the Ministry of Agriculture and Rural Development at the beginning of the year.

To support the cashew industry's export activities, Mr. Phạm Văn Công, Chairman of VINACAS, recommended that the government strengthen trade promotion programs to help businesses seek new markets, improve product quality, and build the Vietnamese cashew nut brand.

Moreover, to boost export growth in key markets, including markets under the EVFTA and CCTPP agreements, it is essential to enhance the promotion of Vietnamese cashew products to raise awareness and increase usage among consumers. Promotion efforts could be carried out through various channels, including media campaigns, trade fairs, and national-level trade promotion programs.

In light of this, Mr. Công requested the Ministry of Industry and Trade to continue supporting trade promotion programs for products and industries, facilitating the promotion of cashew products at international trade fairs. He also suggested conducting various trade promotion activities, such as surveys and market promotion programs in Japan towards the end of 2023, an international cashew conference in Quang Binh in the first quarter of 2024, survey and promotion activities in the Chinese market in 2024, as well as providing counseling and training to enhance the skills and experience of businesses and the association.

Source: haiquanonline.com