In the first 5 months of 2024, cashew nut exports to the UK reached more than 8.1 million tons with a value of more than 40.1 million USD, up 13% in volume and 5.8% in value compared to 2023.
Market with great potential
According to the Ministry of Industry and Trade, like other Western European countries, the UK does not cultivate cashew nuts, so all products for processing, domestic consumption or re-export are imported. Meanwhile, Vietnam is the world’s leading producer, processor and supplier of cashew nuts. Cashew output and productivity have grown positively in recent years.
The Import-Export Department (Ministry of Industry and Trade) cited data from the General Department of Customs, saying that in May 2024, Vietnam exported more than 67,000 tons of cashew nuts, worth more than 370 million USD, up 1% in volume and 3.3% in value compared to April 2024; up 18.1% in volume and 9% in value compared to May 2023.
In the first 5 months of 2024, Vietnam exported 285,000 tons of cashew nuts, worth 1.53 billion USD, up 29.5% in volume and 18.5% in value over the same period last year.
In the structure of Vietnam’s exports to the UK market, cashew nuts have always been one of the key products, contributing significantly to Vietnam’s export scale to the UK market.
According to the General Department of Vietnam Customs, in the first 5 months of 2024, the export turnover of cashew nuts to this market reached more than 8.1 million tons with a value of more than 40.1 million USD, an increase of 13% in volume and 5.8% in value over the same period last year. This is also the 6th largest market among Vietnam’s cashew nut export markets.
Of the UK’s total imports from the world, Vietnam’s cashew market share increased from 89.06% in the first quarter of 2023 to 91.63% in the first quarter of 2024. In the first quarter of 2024, the UK also increased cashew imports from markets such as Ivory Coast, India, and Nigeria with triple-digit increases.
However, the UK’s cashew nut imports from the above markets are low. Thus, Vietnamese cashew nuts have many opportunities to expand their market share in the UK market.
Take advantage of opportunities to increase market share
For cashew nuts, in the Vietnam – UK Free Trade Agreement (UKVFTA), the UK commits to immediately eliminate tariffs on fresh cashew nuts from Vietnam such as: Fresh or dried cashew nuts, shelled or unshelled (HS 08013100, 08013200).
In addition, the UK has also committed to completely eliminating tariffs on processed nut products, including cashew nuts imported from Vietnam (HS code 200819), since the Agreement officially comes into effect.
However, according to the Ministry of Industry and Trade, the opportunity for tariff incentives is like that, but with the changes in a series of trade policies, import regulations of the UK market and the constant movement of consumer trends , tastes, distribution channels… Vietnamese export enterprises need to grasp.
Typically, the UKVFTA stipulates that the shelling step is a simple processing step and will not be taken into account when considering the origin of the product. Thus, in the case of importing unshelled cashew nuts from Cambodia to Vietnam, then shelling and exporting them to the UK, the shelled cashew nuts will not be considered to have origin under the UKVFTA.
“Cashew nuts, shelled or unshelled, must be of pure Vietnamese origin to be considered to meet the origin criteria under the UKVFTA. For processed cashew nuts, the UKVFTA allows the use of cashew nuts originating outside the UK and Vietnam, provided that the non-originating sugar used in the production process does not exceed 20% of the product’s weight,” the Ministry of Industry and Trade informed.
In terms of quality, UK standards are still fundamentally based on the EU, which is built on the standards of the United Nations Economic Commission for Europe (UNECE) and the Codex Alimentarius. Agricultural products and foods such as cashews must comply with common market standards. Products that comply with UNECE standards will be considered to comply with market standards…
Therefore, when exporting cashew nuts to this market, some experts believe that businesses need to improve their competitiveness, strictly control the production process, increase the application of science and technology, and promote chain linkages from production/processing to export.
