Cashew, Market Update.
Production increase in Cambodia
The current production estimates of the International Nut and Dried Fruit Council (INC) look quite positive for this season. They amount to 4.11 million mt of raw cashew nuts, which is an increase of 5.8% compared to last year. The two most important producing countries, Côte d'Ivoire and India, can increase their crops by 11.1% and 6.8% respectively, while Vietnam is expected to record a decline of 11.1%. According to INC data, Cambodia could achieve a production increase of 57.9%. (Mundus-Agri)
(Total production of Cashew)
Quality could become an obstacle
One problem could be the quality of the crops this season. According to the INC, there were harvest delays in Tanzania, and the inadequate and sometimes improper storage conditions could mean that the goods might fail to convince buyers. Meanwhile, the cultivation areas in Southeast Asia had to struggle with heavy rainfall, which also left its mark on the cashew plantations. In contrast, things are currently looking better in West Africa and India. (Mundus-Agri)
The demand for cashews in 2021 has increased compared to the previous year in both the USA and the EU. The INC interprets this as a clear indicator that new consumers are accepting cashews as a healthy food and are increasingly consuming them. In China, too, buying interest has increased, which was particularly evident around the Chinese New Year. One problem that both African and Asian exporters continue to face is the ongoing logistical hurdles. Covid-related congestion at ports, container shortages and high freight prices are causing delays and dissatisfaction among buyers. (Mundus-Agri)
