Côte d’Ivoire Cashew nut export ban starting to have global market impact
During a recent meeting between the government of Côte d’Ivoire and industry representatives it was decided that 30,000 tonnes of raw cashew nuts would be made available by export companies with stocks at the ports of Abidjan, San Pedro and Bouaké to local cashew processors to make up for the shortfall.
The 30,000 tonnes are being made available at a price of 455-485 CFA/kg, which is seen to be 95 to 115 CFA/kg higher than the market price in Korhogo and 80 to 100 CFA more expensive than the market price in Bouaké, a processor based in Yamoussoukro told Reuters. Local processors also told Reuters that the 30,000 tonnes of raw cashew nuts is a step in the right direction for local processors, but they are seeking 60,000 metric tonnes to meet targets and ensure normal factory operations.
“Now we are seeing the reality of the temporary export ban. The RCN (raw cashew nut) prices from other key producers in West Africa will likely go up in the coming days,” an African cashew processor told Mintec.
Côte d’Ivoire began its temporary suspension of raw cashew nut purchases for export on 7 May. It is still in force. According to the authorities, the suspension measures are in line with the national policy for the development and promotion of the agro-industry and is aimed at ensuring supply of local processing units.
“If we allow the export of nuts, local companies engaged in processing might not have raw materials to process. We are therefore protecting our market. If we manage to process 100% of our production as the leading producer, there’s a good chance we will also become the leading processor,” said the Minister of Communication and Media, Amadou Coulibaly, during a press conference on 8 May.
“Our country has decided to process its raw materials. We are the world’s leading producer and the third largest processor of cashew nuts. With a little effort, we can achieve the top spot. Especially since the President’s goal is to profoundly transform our economy through industrialization,” he added.
Since the ban, prices for WW320 cashew kernels have risen by 55 cents, with the Mintec Benchmark Prices for this grade (FOB Vietnam, BRC sellers) up to $3.23/lbs in the week of 30th May, up 20% m-o-m.
Côte d’Ivoire is a leading global grower of cashew nuts, but only small volumes are processed locally. Côte d’Ivoire’s production of raw cashew nuts in 2023 is estimated at 1,225,935 tonnes, up 19% compared to 1,028,172 tonnes in 2022, report local media sources.
Meanwhile, the INC (International Nut and Dried Fruit Council) has recently projected that global 2024/25 cashew output will reach approximately 5.1 million tonnes, down 7% year-on-year compared to 5.48 million tonnes in 2023/24. This has finally brought some clarity to the market, dismissing speculation about a significant production shortfall during the current campaign. Nonetheless, Vietnamese cashew processors struggle to source sufficient raw material volumes from West Africa due to the export ban in Côte d’Ivoire.
“No one really knows the size of the crop. In reality, there will likely be enough product, but supply chain issues are real,” a UK-based trader said.
Many market participants oppose the latest protectionist steps imposed by the Côte d’Ivoire government. “It will not work out. The market has already increased a lot, the rally cannot be sustained,” an Indian trader said. “I am not sure what to make of this market anymore. Crops are short but not so bad as people try to make them look,” a broker said.
European potato prices rise on prospects of another delayed harvest
The Mintec Benchmark Price for Dutch processing potato price surged by 26.7% month-on-month to €475/MT in May. Market sources report that prices are continuing to rise as the likelihood of a delayed harvest due to wet plantings increases, further straining the limited 2023 potato stocks.
Planting progress for the 2024 potato crop varies across Europe. Germany has nearly completed planting, with a 4.0% year-on-year increase to 275,400 hectares, according to government estimates from Destatis. In Belgium, less than half of the crop had been planted by 21st May due to weather delays, as per a survey by Viaverda/PCA a research organisation involved in Belgiums potato market. Meanwhile, France has planted over 80% of its area, though some regions are experiencing slower progress due to rain, according to market sources. In the Netherlands, planting has accelerated and is almost complete, with 10-20% of the area remaining. Overall, favourable conditions of sunshine and showers have supported growth, though challenges persist in some regions due to heavy soil and wet weather.
According to Viaverda, prolonged delays in planting work make it increasingly difficult to maintain the quality of the already delivered seed potatoes. In extreme cases, early varieties stored since March suffer the most, with seed potatoes losing much of their initial quality as half tubers dry out or show rot on the cut surfaces.
Written by Jake Mills-Zivanovic
