Cashews nuts

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Cashew Nuts From Vietnam – The origin of cashew can be traced back to tropical South America, particularly the coastal regions of Northeast Brazil, where the warm and humid climate provides the ideal conditions for its cultivation. The name “cashew” is derived from the indigenous dialect word “acaju.”
Nowadays Vietnam Cashew Industry is currently referred to as the “undisputed King of Cashew nuts for exports,” outdoing many Southeast Asian countries, and emerging as the leading producer and exporter of cashew nuts for the last 17 years. One of the most abundant cashew nuts producing area is in the Southern region of Daklak. In this area, the farmers plant cashew nut trees that are of South American origin.

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Cashew is a perennial tree that is widely grown in Dak Lak province, second only to coffee, rubber, and pepper in terms of cultivated area. The current cashew area in the province stands at 23,849 hectares, with a productive area of 20,732 hectares and an average yield of 10.34 tons per hectare. The cashew area has been steadily increasing due to the rising prices of cashew nuts.

Duc Thinh Company a prominent player in the Vietnamese cashew industry, operates a cashew farm and factory located in Dak Lak.

With 20 years of experience in the field, Duc Thinh is a trusted supplier of top-quality cashew nuts and kernels, sourced from its own farm and reliable partners. The company offers a wide range of cashew products, including W240, W320, WS, WB, LWP, LP, and BB, each with different qualities and competitive prices to meet the specific needs of domestic wholesalers and export markets such as Europe, Japan, and the United States. Duc Thinh’s commitment to quality and standards ensures that its cashew nuts meet the strict requirements of these demanding markets.

Our main cashew kernel for export:

Harvesting

Typically, the cashew harvesting season in Vietnam begins early, usually around late January or February and ends in May or June, depending on weather conditions and cultivation practices. The cashew tree bears a fruit called a cashew apple, with a single nut inside. Vietnamese cashews are harvested during the ripe stage of both the cashew apple and the nut.
Harvesting can be done while the fruit is still on the tree or after it has fallen to the ground. After harvesting, the cashew apple is separated, and the nut is washed with water and then dried in the sun for 2-3 days. The nuts undergo a preliminary sorting process, are packaged, and stored in a dry, cool area.

Cashew processing procedure:

Duc Thinh Company is a reputable and high-quality cashew buyer. The cashew processing at Duc Thinh is synchronized and closely monitored from the stage of separating raw cashews to the stage of separating cashew kernels. Cashews are classified and undergo another round of inspection before being processed using modern roasting methods and a closed packaging process.

Packaging:

We understand the importance of packaging in preserving the quality and flavor of cashews. Our modern packaging facility ensures that our products still keep the perfect condition after being delivered to you. Our packaging options include: Vacuum-sealed bags to maintain the best quality of the nuts for the longest time. Environmentally friendly packaging options. Customized packaging solutions to meet customer branding and retail needs.

Cashew Certificates

Cashew industry in Vietnam

Vietnamese cashew industry introduction

 

    Currently, the Vietnamese cashew industry is recognized as a leading industry in cashew nut exports, surpassing many Southeast Asian countries. Vietnam has consistently held the position of the leading cashew nut producer and exporter for the past 17 years. The southern region of Dak Lak and Binh Phuoc stands out as one of the regions with the highest cashew productivity. In these areas, farmers grow cashew trees that originated in South America.

Harvesting

    Typically, the cashew harvesting season in Vietnam begins early, usually around late January or February and ends in May or June, depending on weather conditions and cultivation practices. The cashew tree bears a fruit called a cashew apple, with a single nut inside. Vietnamese cashews are harvested during the ripe stage of both the cashew apple and the nut.

     Harvesting can be done while the fruit is still on the tree or after it has fallen to the ground. After harvesting, the cashew apple is separated, and the nut is washed with water and then dried in the sun for 2-3 days. The nuts undergo a preliminary sorting process, are packaged, and stored in a dry, cool area.

Production

    Since 2017, Vietnam has emerged as a global cashew processing hub and the leading exporter of cashew kernels worldwide, contributing to over 50% of the world’s processed raw cashew production. The province of Binh Phuoc, recognized as the largest high-quality cashew growing region in Vietnam, plays a key role in this success.

   Annually, Vietnam exports approximately 400,000 to 550,000 tons of cashew kernels. In 2018, the Vietnamese cashew industry reached a milestone production of approximately 2,660,000 tons, including shells, surpassing India by 3.4 times. By 2020, Vietnam solidified its position as a leading producer and exporter of cashews, with an export volume of 515,000 tons.

   The main cashew product of Vietnam is Whole White Cashews, with the industry comprising 80% whole cashews and 20% broken cashews. The prevalence of whole cashews in Vietnam is due to manual shelling, a labor-intensive process performed by hand.

Analysis of Vietnamese cashew grades:

Grades:

  • Whole Cashew: 80%
  • Broken Cashew: 20%

   W320 cashew kernels are considered the flagship product of the Vietnamese cashew industry. An estimated 60% of cashews are consumed as snacks, often roasted with salt. The remaining 40% finds application in confectionery and bakery products, replacing peanuts and almonds. The Vietnamese W320 cashew is highly sought after, making it the most popular cashew kernel and readily available from reputable Vietnamese cashew companies.

Vietnamese cashew export markets:

    Vietnam is the leading exporter of cashews worldwide, maintaining a dominant presence in the US, Europe, and various other regions. Vietnamese cashew exports continue to hold the top position globally, accounting for 50% of processed raw cashew capacity and over 60% of total global cashew exports. Vietnam’s cashew export market is highly diversified, encompassing countries like Spain, France, Germany, Netherlands, Poland, Greece, Turkey, Russia, Switzerland, USA, Australia, South Africa, UAE, India, Singapore, Japan, and many others.

The top 3 countries for Vietnamese cashew exports are:

  • United States – accounting for 36.8% of total export value.
  • Netherlands – accounting for 11.9% of total export value.
  • China – accounting for 6.9% of total export value.

Main types of cashew nuts for exporting

  • Raw Cashew Nuts (RCN): Most of Vietnam’s raw cashew nuts (RCN – cashew nuts with shells) are used by local cashew processing factories in Vietnam. A small portion of the remaining high-quality raw cashew nuts are exported to India, China, and other countries.
  • Cashew Kernels: High-quality cashew kernels such as W240, W320, W450, WS, WB, SS BB, etc., are exported to the EU, USA, Russia, Australia, UAE, India, Singapore, Japan, and other countries.
  • Cashew Nut Shell Liquid (CNSL): Oil extracted from the outer shell of cashew nuts is highly valuable for heavy industries. Major export markets for CNSL include China, South Korea, Indonesia, Spain, and Japan.
  • Cashew Nut Shells: Cashew nut shells (before oil extraction) are the primary raw material for producing CNSL. Cashew nut shells are exported to China, India, and Laos for CNSL extraction.

Cashew Nut Prices in Vietnam

   The abundant supply of cashew nuts in Vietnam contributes to the stability of the domestic prices. However, the price of cashew nuts in Vietnam depends on various factors, including nut size, nutritional content, origin, processing stages, and market dynamics. Overall, the price of cashew nuts in Vietnam is most significantly influenced by the following four factors:

  1. Types of Cashew Nuts
  2. Origin of Cashew Nuts
  3. Market Impact
  4. Processed Cashew Nuts

Additionally, it is remarkable that the export of cashew nuts from Vietnam has a distinct advantage of enjoying a 0% export tax as stipulated in Government Decree 125. Furthermore, the price of cashew nuts from Vietnam is highly competitive, belonging to the lowest group in the market.

The class of Vietnamese Cashew nuts

    Cashew nuts are typically classified according to the AFI Standard. The nuts undergo a classification process, separating them into whole white kernels, scorched kernels, pieces, etc., based on factors such as size, shape, and color. Although there are many types of cashew nut kernels, only a few are commonly selected and traded in the commercial market.

The cashew industry in Vietnam adheres to the standards set by the following organizations:

  • Association of Food Industries (AFI’s)
  • TCVN 4850 1998 – Vietnamese Cashew Kernels and Technical Requirements
  • Combined Edible Nut Trade Association (CENTA), United Kingdom
  • Technical specifications of the class according to CEPCI

Types of Cashew Nuts in Vietnam for Export (Grade/Type) include:

  • Whole kernels: W180, W210, W240, W320, W450, W500
  • Pieces: WB, WS, LP, LWP, SWP, SS, SP, SB
  • Scorched kernels: SW240, SW320, SW450
  • Dessert kernels: DW1, DW2, DW3, SK1, SK2, SK3
  • Cashew shells: Raw cashew shells, Cashew shell husk, Cashew nut shell (Testa)
  • Cashew nut oil: Cashew nut shell liquid (CNSL)
  • Pure Cashew Kernels