Cashew nut price : global sector in crisis
Cashew nut price update since march 2018.
Cashew nut price, since March, in the international market have lost more than a half of their value. Causes : Vietnamese cashew nut exporters condemned 2018 February’s high-priced supply contracts from producers and exporters in Ivory coast. United States and Saudi Arabia judged the price of cashews too high. Thus, they reduced their demand from the Vietnamese cashew nut exporters that buys raw cashew nuts in Ivory Coast. This caused price decline.
However, Vietnamese operators struggled because in Ivory Coast, State and the industry operators guarantee minimum selling price. “Operators have seen their sealed contracts revised”, says Adama Coulibaly, chief executive of the Cotton and Cashew Council in Ivory Coast. “Vietnamese processors have seen their margins eroded.”
Therefore, Ivory Coast understands. But they would not relent and give up, refusing to revise contracts signed 5 months ago, at the beginning of the campaign. According to Ivorian cashew nut suppliers, about 150,000 to 200,000 tonnes (t) of nuts would not have been sold as Vietnamese operators refuse to pay this cashew nut price level. Volumes that remain in the Ivorian warehouses, not finding takers. For their part, Ivorian producers say they want to shift to other crops or other activities Should the issue remain unresolved.
Cashew nut price weakening the entire economy of the country
A situation that is likely to continue, according to the specialist Rongead. Note that this later in early July, advised “those who have stocks to dry their cashew. And, hoping that the market will resume one day. And, as soon as they have an opportunity, their need to sell all their cashew nuts because the market is still uncertain. ”
This is an entire part of the economy in Ivory Coast. But buyers weakens and undermine it. Note that the country counts 450 000 producers. A situation that could find an answer in the Ivorian strategy of wanting to further transform on the spot and thus export the final product. This will ensure selling without going through the Asian, Vietnamese or Indian cashew nut suppliers. And therefore, will help more competitive price. Adama Coulibaly recalled that of the 150 000 t of raw nuts processed on the spot currently. The country aims to increase to 300 000 t to reduce the vulnerability of the sector, but by 2020.