Overview of the Vietnamese Cashew Industry
The year 2024 has been a landmark period for Vietnam’s cashew industry, showcasing impressive growth, international collaboration, and strategic advancements in global markets. With continued efforts to enhance quality and diversify export destinations, Vietnam has reinforced its position as the largest exporter of cashews in the world, accounting for over 80% of global market share.
Key Highlights of 2024
1. Exceptional Export Growth
Vietnam achieved remarkable export results, with total export turnover estimated at $3.6 billion, a 7% increase compared to 2023. From January to November, the country exported 711,500 tons of cashews, marking a 22.2% rise in volume and 30.7% growth in value year-over-year.
- USA: Remains the largest market with 147,000 tons exported, generating $866 million (20.6% of total export value).
- China: Secured the second position with imports valued at $616 million (15.06% of total exports).
- European Union and Others: Accounted for 64.33%, equivalent to 457,000 tons, valued at $2.75 billion.
2. Rising Cashew Kernel Prices
Early 2024
The domestic raw cashew price ranged from 28,000 to 32,000 VND/kg, showing a slight increase of 5% compared to the same period in 2023.
Reason: Limited supply caused by a decline in raw cashew production from major producers like India and Côte d’Ivoire.
Mid-2024
The international price of W320 cashew kernels reached $6,900 to $8,100/ton, a strong increase of 10% compared to early 2024.
In Vietnam, W320 cashew kernels were priced at around 130,000 to 135,000 VND/kg, marking the most significant growth in the past three years.
Late 2024
The price of raw cashews slightly decreased to 26,000 to 28,000 VND/kg, as raw cashew imports from Africa resumed.
W320 cashew kernel prices remained stable at high levels, around $7,000 to $7,200/ton, driven by strong demand from the U.S. and EU markets.
Reasons Behind Price Fluctuations
Limited Supply
- Vietnam’s raw cashew production in 2024 is estimated at 420,000 tons, a slight 2% increase from 2023, but insufficient to meet processing demands.
- Major raw cashew exporters like Côte d’Ivoire and Ghana reported lower production due to adverse weather conditions.
Increased International Demand
- Vietnam’s cashew exports to major markets, including the U.S., EU, and the Middle East, saw robust growth.
- Demand for high-quality kernels like W320 and W240 increased by more than 15% compared to the previous year.
Fluctuating Logistics Costs
- While international shipping costs decreased slightly compared to 2023, domestic logistics costs remained high, adding to product prices.
Focus on Value-Added Production
- Value-added products such as cashew milk, cashew butter, and roasted cashews gained significant attention in the international market, contributing to the increased kernel prices.
3. Domestic Cashew Production
Vietnam’s raw cashew production reached 420,000 tons, a modest 2% increase compared to 2023, supported by favorable weather and high-yield cashew varieties.
4. International Collaboration
Vietnam signed several cooperation agreements with key raw cashew suppliers such as Ivory Coast and Ghana, ensuring a stable supply chain and strengthening global value chains.
5. Sustainable Production Practices
In 2024, many Vietnamese cashew enterprises adopted international sustainability standards such as Rainforest Alliance and Fair Trade. These efforts focus on improving product quality, protecting the environment, and supporting local farming communities.
6. Logistics and Supply Chain Optimization
While volatile international shipping costs posed challenges, Vietnam made significant progress by expanding direct shipping routes to key markets such as the USA and the EU, reducing logistics pressure for exporters.
7. Expanding New Markets
Vietnam successfully penetrated emerging markets like Russia, South Korea, and the Middle East. Notably, exports to Russia rose by 15%, showcasing resilience despite geopolitical challenges.
8. Global Promotion Campaign
The Vietnam Cashew Association (VINACAS) launched a global branding campaign under the slogan: “Vietnam Cashew – Your Trusted Choice,” emphasizing the superior quality and leadership of Vietnamese cashew products in the global market.
Challenges in 2024
Despite its achievements, the Vietnamese cashew industry faced several challenges:
- Reliance on Raw Cashew Imports: Domestic production remains insufficient to meet processing demands, leading to dependency on imports from Cambodia and African countries.
- Fluctuating Logistics Costs: High shipping costs continued to impact profit margins.
- Competitive Markets: Intense competition from other cashew-exporting countries requires Vietnam to innovate and sustain its global edge.
Prosi Thăng Long’s Role in 2024
Prosi Thăng Long contributed significantly to this success, exporting 8,238 tons of cashews, representing 1.08% of the national market share. By delivering high-quality products and adhering to sustainable practices, Prosi Thăng Long has reinforced Vietnam’s standing as the premier source for cashews globally.
Conclusion and Outlook
2024 has been a transformative year for Vietnam’s cashew industry, with growth driven by strategic market expansion, sustainable practices, and international collaboration. Looking ahead, the focus on enhancing production efficiency, diversifying markets, and promoting sustainability will ensure Vietnam maintains its leadership in the global cashew market.
Prosi Thăng Long remains committed to supporting this vision, delivering premium products, and driving the industry’s continued success.
For more information about our products and services, please contact our sales team or visit our product catalog section.
#ProsiThangLong #Prosi #GlobalTrade #VietnamSpices #VietnamNuts #Pepper #Cashew #Cinnamon #Coconut #StarAnise #VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
Vietnam Star Anise Export Report (January – August 2024)
In the first eight months of 2024, Vietnam’s star anise exports faced several challenges, with both export volume and revenue experiencing declines. By the end of August, Vietnam had exported 9,831 tons of star anise, generating a total export value of 47.3 million USD. This represents a 1.7% decrease in export volume and a 17.8% drop in revenue compared to the same period in 2023. The disparity between volume and revenue suggests that the average price of star anise has declined, possibly due to global economic conditions or shifts in demand.
Market Performance Breakdown
Despite the overall decline in exports, certain markets showed significant growth, underscoring the ongoing demand for Vietnamese star anise:
- India: Vietnam’s largest market for star anise, India imported 6,083 tons, which is 61.9% of Vietnam’s total star anise exports. This volume represents a 6.3% increase compared to the same period last year, reflecting India’s growing demand for this spice in both culinary and medicinal applications.
- United States: The U.S. imported 694 tons of star anise from Vietnam, a 8.4% increase year-on-year. Although the volume remains relatively small, the U.S. market continues to show steady growth, driven by the increasing use of star anise in food, beverages, and essential oils.
- Taiwan: One of the most notable developments in 2024 has been the 168.8% surge in exports to Taiwan, reaching 301 tons. This sharp increase indicates Taiwan’s rising demand for star anise, possibly driven by changes in food consumption trends or increased use in traditional remedies.
Prosi Thăng Long – The Market Leader
Prosi Thăng Long has solidified its position as Vietnam’s largest star anise exporter, holding nearly 20% of the market share. The company exported 1,805 tons, an impressive 12.1% increase compared to the same period in 2023. This growth is significant in light of the overall market downturn, showcasing Prosi Thăng Long’s ability to maintain strong customer relationships, ensure product quality, and adapt to market fluctuations.
As the leader in Vietnam’s star anise exports, Prosi Thăng Long’s consistent growth has been attributed to several factors:
- Strong operational capacity: The company has a well-established supply chain and state-of-the-art processing facilities that enable it to meet growing demand efficiently.
- Focus on premium quality: By emphasizing high-quality products that meet international standards, Prosi Thăng Long has gained the trust of its global customers.
- Diverse export markets: Prosi Thăng Long exports to a wide range of markets, which helps mitigate risks associated with economic downturns in specific regions.
Competitive Landscape
Several other Vietnamese exporters contributed to the country’s overall star anise exports. However, many of them experienced fluctuations in their export performance:
- Nedspice Vietnam: The second-largest exporter, Nedspice, exported 622 tons, but saw a 35.9% decrease from the previous year. This decline suggests that Nedspice may be facing challenges such as supply chain disruptions or reduced demand from key markets.
- Tuấn Minh: With an export volume of 526 tons, Tuấn Minh achieved a 25.8% growth, reflecting its successful market expansion and stronger foothold in niche markets.
- Senspices Vietnam: This exporter saw solid growth with 378 tons exported, marking a 23.5% increase. Senspices has likely capitalized on growing demand in regions where star anise is increasingly used in both food and pharmaceutical industries.
- Hồng Sơn Vietnam: With 334 tons exported, Hồng Sơn saw a 1.5% increase. While modest, this growth demonstrates stability in its export operations, even in a challenging market.
Industry Outlook
The star anise export market is expected to face continued fluctuations in the coming months due to several factors, including:
- Global economic conditions: As inflation rates and economic instability impact consumer spending in major markets, demand for star anise could be affected.
- Supply chain challenges: Disruptions caused by logistical bottlenecks and fluctuating transportation costs may continue to influence export volumes and revenues.
- Emerging markets: While established markets such as India and the U.S. remain strong, emerging markets like Taiwan are showing significant potential for growth, which could provide new opportunities for Vietnamese exporters.
Conclusion
Despite the overall decline in Vietnam’s star anise exports, Prosi Thăng Long has not only maintained but strengthened its leadership position in the market. The company’s growth, even in a challenging economic environment, reflects its operational resilience and ability to meet global demand with high-quality products. Moving forward, Prosi Thăng Long is well-positioned to capitalize on new market opportunities and continue driving the success of Vietnam’s star anise industry.
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
Vietnam Pepper Exports: Strong Performance Amidst Challenges in H1 2024
The Vietnamese pepper industry demonstrated resilience in the first half of 2024, with export earnings surging despite a slight dip in export volume.
Key Highlights:
- Export Volume: Vietnam exported 142,586 tons of pepper, marking a 6.8% decrease compared to the same period in 2023. This decrease was primarily attributed to a shortage in supply.
- Export Value: Despite lower volumes, export turnover soared to $634.2 million USD, a substantial 30.5% increase year-on-year. This growth was fueled by higher pepper prices, driven by strong global demand and limited supply.
- Average Export Prices:
- Black pepper: $4,365 USD/ton (922 USD increase compared to H1 2023)
- White pepper: $5,983 USD/ton (1,028 USD increase compared to H1 2023)
- Top Exporters: Olam Vietnam led the pack, followed by Phuc Sinh, Nedspice Vietnam, Haprosimex JSC, and Pearl.
- Leading Markets: The United States remained the largest importer, with exports increasing by 44.6% to 37,435 tons. Germany, UAE, India, and the Netherlands also saw significant growth in imports.
Challenges and Opportunities:
While the industry thrived in terms of export value, it faced challenges due to supply constraints and rising shipping costs. The latter posed a significant hurdle for exporters, particularly smaller businesses.
Prosi Thăng Long’s Position:
Prosi Thăng Long continued to maintain its position as one of Vietnam’s top 10 pepper exporters, contributing to the nation’s strong performance in the global market. Despite the industry-wide challenges, Prosi Thăng Long exported nearly 4 tons of pepper, demonstrating its ability to adapt and thrive in a dynamic environment.
Looking Ahead:
The Vietnamese pepper industry is expected to continue its upward trajectory, with strong demand from international markets driving growth. However, supply constraints and rising shipping costs remain key concerns. It is crucial for exporters to focus on diversifying their markets and adopting innovative solutions to overcome these challenges.
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
