U.S. fears cashew nut supply chain from Vietnam will break down due to COVID-19 impact

Selling to the US, China, Japan favorably, Vietnam’s cashew nut exports declined sharply in the first half of August 2021 due to the impact of covid-19. Fearing a supply chain rupture, the American Food Industry Association also asked Vietnam to vaccinate cashew workers. USA is Vietnam’s largest cashew nut export market.

According to statistics from the General Department of Customs, in the first 15 days of August 2021, Vietnam’s cashew exports reached 20,400 tons, worth 137.44 million USD, down 21.6% in volume and 18.5% in value compared to the first 15 days of July 2021; decreased by 1.2% in volume, but increased by 14.5% in value compared to the first 15 days of August 2020.

Vietnam’s cashew exports in the first half of August 2021 showed signs of decline due to the impact of the Covid-19 epidemic.

Accumulated from the beginning of the year to the end of August 15, 2021, Vietnam’s cashew nut exports reached 348,700 tons, worth 2.14 billion USD, up 21.5% in volume and 15.6% in value over the same period in 2020. The effects of covid-19 in the southern provinces have affected cashew exports. Currently, the US is Vietnam’s largest cashew export market. In 7 months of 2021, the US spent 572.9 million USD to import 101,247 tons of cashew from Vietnam; China ranked second with 45,414 tons and 336.9 million USD.

Vietnam Cashew nut
Vietnam Cashew Nut – Manual sorting at farmer’s house

It is forecasted that Vietnam’s cashew exports will be favorable in the near future because the demand for cashew nuts in Europe and the US increases according to the cyclical factor. Many large enterprises have orders for delivery in 2022. Therefore, when the Covid-19 epidemic broke out in the southern provinces, the risk of the supply chain of the cashew industry being affected, the American Food Industry Association suggested that the Vietnamese

Government prioritize the distribution of Covid-19 vaccines. to the labor force, workers in agricultural production and food processing in Vietnam, especially in the cashew industry. The reason is because the US market accounts for nearly one-third of Vietnam’s total $3.5 billion in annual cashew exports, and keeping supply stable is the key to ensuring continued growth.

Switzerland increased purchases, exports prospered and had a great competitive advantage

According to statistics from the International Trade Center, Switzerland’s cashew imports in the 2016-2020 period grew on average by 13.6%/year (by volume) and by 12.9%/year (by volume). by value), from 1,900 tons, worth 18.98 million USD in 2016 to 3,120 tons, worth 28.24 million USD in 2020.

In which, Switzerland’s cashew nut import rate from Vietnam increased on average by 20.4% (by volume) and by 19.8%/year (by value), from 742 tons, worth 7 million USD in 2016 increased to approximately 1,500 tons, worth 12.33 million USD in 2020.

In the first 6 months of 2021, Switzerland imported 1,460 tons of cashew nuts, worth $13.37 million, up 1.9% in volume and 0.9% in value over the same period in 2020.

In the first 6 months of 2021, Switzerland increased its cashew nut imports from Vietnam, but decreased imports from India and the Netherlands. Statistics show that Switzerland’s cashew nut imports from Vietnam in the first 6 months of 2021 reached 777 tons, worth 6.52 million USD, up 40.4% in volume and 35.6% in value. prices compared to the first 6 months of 2020.

Vietnam’s cashew nut market share in total Swiss imports increased from 38.58% in the first 6 months of 2020 to 53.16% in the first 6 months of 2021.

Statistics show that Vietnamese cashew nuts have a great competitive advantage in the Swiss market.

Source: Dan Viet News