GLOBAL SUPPLY OF SEASON 2020
In 2019, Vietnam is the leading country in the world in the import of raw cashew nuts with nearly 1.7 million tons, processing and supplying to the global market of 487,000 tons of cashew kernels. India ranked second with 763,000 tons of raw cashew nuts imported and 341,000 tons of cashew nuts processed.
The West African countries processed about 22,000 tons of cashew kernels while the East African countries only reached 8,500 tons of kernel.
The total quantity of cashew kernels supplied to the global market in 2020 will reach nearly 900,000 tons.
GLOBAL CONSUMPTION MARKET
India is still the world's largest consumer of cashew kernel with 32% market share equivalent to 275,000 tons of kernel in 2019.
Next is North America (USA and Canada) with 22% market share or 184,000 tons
Europe ranked third with 16% market share or about 141,000 tons of kernel.
These are also the 3 markets that are most affected by the Covid19 epidemic
RCN Imported to VN – Source: LongSon
CK exported from VN – Source: LongSon
Based on market reports in major consumer countries such as the US, Europe, the Middle East and India and China. We can see that Vietnam's cashew nut exported to major consumer markets like the US and Europe has increased sharply. The main reason is that Western importers are afraid of disruptions in the global supply chain because of the blockade due to Covid, so buyers have asked sellers to speed up delivery soon so that they can receive goods and store them in stock to ensure sufficient supply for consumers in case that Vietnam is as blocked like India.
Due to the low price and attractiveness, importers have increased their purchases since December 2019 to build inventories and when the epidemic broke out, they pushed sellers to ship as fast as possible.
Market research also shows that European and American consumers have a habit of increasing snack at home more, which means that consumption also increases compared to the time of no blockade.
Due to the heterogeneous impact on the different industries, the market changes unpredictably.
Particularly in the European market, the impact on countries is also different based on the effectiveness of the government's disease response policies.
Although the volume of imports increased in the first quarter of 2020, the sales and consumption in the months are showing signs of decreasing. Typically for both the US and European markets with sales up 30% in March, down 10% in April and unchanged in May. Leading to summarize the inventory of importers still big.
Unlike the European and American markets, the Middle East and India markets, China suffered a severe decline from -30 to 70% depending on the segment due to the impact of the covid epidemic. While India and China were severely damaged by disease and complete blockade, the Middle East market was hit hard by crude oil prices plunging to historically negative levels.
While India is still struggling to re-open limits in the case of rising cases, China has completely controlled the epidemic but the recovery of consumption is still slow and unreliable. nothing positive.
According Market report of Mr Vu Thai Son – Long Son Via INC
