Cashews: fall in the price of the white core

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

Purchases of cashew kernels have been declining for several weeks. It is the combined effect of Western consumption that is weakening, and still good stocks in the West, which makes importers much less active. Demand is now “terribly” sluggish, reports the agricultural news bulletin N’Kalo, which explains the fall in cashew kernel prices.

However, this “devaluation” of the processed nut should not continue, because in the coming months the supply of processed nuts may decrease significantly. In May alone, imports of raw cashews fell by 120,000 tonnes, mainly due to reduced arrivals from Cambodia, but also from Côte d’Ivoire, Tanzania and Ghana.

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

But how much can this decline in deliveries from Vietnam affect prices? The issue is crucial for West Africa. The answer will depend, among other things, on the development of demand in consumer countries. If prices rise again in the coming months, this will benefit breeders, whether in Côte d’Ivoire or Benin. Those who sell today are forced to lower the price of their kernels when they paid a relatively high price for their raw cashews.

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