Cashew kernel prices are expected to tend to increase, because the supply of cashew nuts in Vietnam is not much while the price of raw cashew is still high, not balanced with the price of cashew nuts, so processors are very cautious in importing cashew. rough.
Positive outlook for cashew prices
According to the Department of Agro-Processing and Market Development, in December 2020, the volume of cashew nuts exported by Vietnam was estimated at 47 thousand tons with a value of $ 280 million, bringing the volume of cashew exports in the first 12 months of 2020. reached 511 thousand tons and 3.2 billion USD, up 12.1% in volume but down 3% in value over the same period in 2019.
The US, China and the Netherlands remained the three largest cashew import markets of Vietnam in the first 11 months of the year, accounting for 31.5%, 15.6% and 12.4% of the total price respectively. cashew exports.
Cashew export value increased the most in the Japanese market, up 62.5%, in contrast to the market with the strongest drop in cashew export value was Spain, down 29%. The average export price of cashew nuts in the first 11 months of 2020 reached US $ 6,274 / ton, down 13.3% over the same period in 2019.
"Cashew kernel prices are expected to tend to increase, because the supply of cashew nuts in Vietnam is not much while the price of raw cashew is still high, not balanced with the price of cashew kernel, so processors are very cautious in importing cashew nuts. raw cashew ", Department of Processing and Market Development of Agricultural Products said.
EU is tightening regulations governing import of nuts
According to the Import-Export Department, the outlook for Vietnam's cashew exports in the coming time is very positive thanks to the Free Trade Agreements.
With the EVFTA Agreement put into effect, the Memorandum of Understanding for the conclusion of the Free Trade Agreement Vietnam - UK (UKVFTA) was signed, opening up export opportunities for many key products of Vietnam, including cashew nuts.
Preferential tariffs with more than 99% of tariff lines exported to the UK will be eliminated within 6 years after the UKVFTA comes into effect and trade facilitation will create conditions for Vietnamese cashew nuts.
However, technical barriers to imported goods from the EU and UK are very tight. For agricultural products, although UKVFTA inherits the preferences with the provisions in EVFTA, the Vietnamese agricultural industry is still limited due to the lack of uniformity in each shipment, and uneven quality.
Recently, the Agro Processing and Market Development Department said that from 2021, the EU will apply new regulations for organic products for imported grains and grains.
The important point in this new set of rules is that the EU not only controls the use of pesticides in products, but also concerns soil management and food production issues.
The EU will not accept various organic standards that are recognized as equivalent to the EU standards but instead organic producers have to adopt a new set of EU rules in place of the equivalent.
The agency said that manufacturers need to pay attention to grasp and meet the requirements under the new regulations.
However, the Department of Agro-Processing and Development forecasts that Vietnam's cashew kernel export prospects in the coming time will be more positive thanks to the Free Trade Agreements.
With the EVFTA Agreement put into effect, the Memorandum of Understanding for the conclusion of the Free Trade Agreement Vietnam - UK (UKVFTA) was signed, opening up export opportunities for many key products of Vietnam, including cashew nuts.
Preferential tariffs with more than 99% of tariff lines exported to the UK will be eliminated within 6 years after the UKVFTA comes into effect and trade facilitation will create conditions for Vietnamese cashew nuts.
Cashew kernel prices are expected to tend to increase, because the supply of cashew nuts in Vietnam is not much while the price of raw cashew is still high, not balanced with the price of cashew nuts, so processors are very cautious in importing cashew. rough.
Source: Vietnam Biz