Cashew nuts: fall in the price of the white kernel

by time news

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Cashew processors are going through a complicated period: the price of the processed nut, which we consume, is down sharply, while that of the raw nut is rather stable, even rising in some countries.

Cashew kernel purchases have been declining for several weeks. It is the combined effect of Western consumption which is weakening, and still good stocks in the West, which means that importers are much less active. The demand today is terribly” sluggish, reports the agricultural news bulletin N’Kalo, which explains the fall in cashew kernel prices.

But this “devaluation” of the processed nut should not last, because in the months to come the supply could decrease significantly. Vietnam, the leading nut processor and locomotive of the world market, is indeed idling: the country lacks nuts to process. For the month of May alone, its imports of raw cashews fell by 120,000 tons, in particular due to a drop in arrivals from Cambodia, but also from Côte d’Ivoire, Tanzania and Ghana.

Less volume processed in Vietnam

As a result, exports of processed nuts fell in May. A decline that should continue in the second half of 2022. The price context “ makes raw cashew processing in Vietnam unprofitable Point N’Kalo.

But how much can this drop in shipments from Vietnam affect prices? The question is crucial for West Africa. The answer will depend, among other things, on the development of demand in consumer countries. If prices pick up again in the coming months, this will benefit processors, whether in Côte d’Ivoire or Benin. Those selling today are forced to lower the price of their kernels when they paid a relatively high price for their raw cashew.

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