<p></p><p>Due to multiple problems, some two-thirds of cashew processors in Binh Phuoc Province, the largest cashew material production in Vietnam, have had to shut down, put up factories for sale and switch to other business fields. The main cause is cashew nut prices have fallen below costs as traders have to sell their products at low prices to cut losses and repay bank debts, said the Vietnam Cashew Association (Vinacas).</p> <p>Statistics show that there are around 300 cashew processors and exporters in Binh Phuoc. The province has about 100,000 hectares under cashew cultivation. Another reason is several Chinese traders have directly bought cashew nuts in Binh Phuoc through Vietnamese firms and then exported it to China. </p><p>These traders often sell the products to China at 20-30 U.S. cents lower than the prices quoted by local enterprises. As a result, some exporters have lost their orders to Chinese rivals. Over the last three weeks, cashew export prices have constantly dropped. The price of the popular cashew type for export coded WW320 currently stands at US$3.1 a pound (or 0.454 kilo), down US$1 over the same period last year. </p><p>Given such difficulties, Dang Hoang Giang, general secretary of Vinacas, predicted the 2012 cashew export turnover could only reach US$1.1 billion, or US$400 million lower than the association’s forecast in the first quarter. The U.S. remains the largest importer of Vietnamese cashew in terms of both volume and value. Specifically, in the first six months, Vietnam exported some 29,000 tons to the U.S, bringing in US$168 million. </p><p>China is Vietnam’s second largest cashew export market, with over 16,300 tons worth US$108 million, up 16% in volume but down nearly 4.5% in value against the same period in 2011. According to data of the General Department of Customs, in the year’s first half, Vietnam exported over 88,500 tons of cashew of all kinds, with a turnover of more than US$602 million, picking up 28% in volume and 14% in value year-on-year. The average export price reached over US$6,800 per ton. </p><p>With Olympic London and Ramadan festival to take place in the coming time, Vinacas forecast cashew consumption would surge strongly. This will help push up prices or at least prevent prices from dropping further to below US$3.1 per pound, the lowest level in three months </p><p> </p><br><p></p>