Cashew Market Insights January 2022 Week 2

The cashew market is enjoying a good start to the new year. The outlook of 2022 so far is the same as what we saw last year. In spite of the troubles by the dried fruit and nut industry as a whole due to a new wave of COVID variants, we’re seeing a healthy demand and supply.

In general, supply looks good across all regions with no complaints or issues reported so far. As mentioned, the demand for cashew nuts is pretty healthy, and it is expected to remain strong in the foreseeable future. 

Since the pandemic began, we’ve seen an increase in health-conscious consumers which has definitely helped not only the cashew nut, but all major organic foods industries. The continued emphasis on healthy eating has been further aided by reasonable prices that don’t fluctuate too much.

Of course, high logistic costs will continue to be a topic of discussion for most of the year. The challenges brought about by COVID don’t seem to be going anywhere, anytime soon and given how there seems to be spikes in the spread of the disease, like last year, 2022 is going to be uncertain on predicting the eradication of the virus.

There’s good news from the African front. As investments are being made, processing units in Africa are expected to increase and this has piqued many importers’ interest. This is largely due to the fact that their quality is much better than the average Vietnamese cashew quality. An additional advantage is the shorter supply chain which most companies are encouraging as it ensures sustainable and fair trade.

In the grand scheme of things, there won’t be any major changes in terms of prices. However, due to the uncertainty of the times, we do expect periodic spikes and dips in prices due to uncertain news and rumours. But this is very typical of any industry whether it is during a pandemic or not. Overall, everything looks good for now.