| The market of cashewnutkernels is relatively stable with a positive undertone. Consumer demand is positive and stability of prices are creating more sales opportunities. The EU market is expected to grow still in the years ahead with CBI reporting a potential growth of 5-6% over the next 5 years into the European market. The positive move we also notice is increasing demand for African processed kernel. EU imports are now 16-18% coming directly from Africa while US -as more price sensitive market- is a bit behind on this percentage. In the enclosed figure (reported by ACA) you see that the US is a challenge at the moment because of the import tariffs (especially from Vietnam at 20%) but fortunately other world markets are picking up on volume so that total volume exported from Vietnam is more or less the same as the previous year.
We are awaiting the new crop from East Africa now. This crop is looking good and might have a positive impact on RCN prices later in the year. New crops in West Africa will start during January/February and enough product will become available for processing. Question mark remains if the import tariffs in the US market will hold. Most buyers are just cautious for the moment as the unclear situation remains and continue to buy hand to mouth.
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