Oh. “Cashew.” Sorry I misunderstood you.
My usual nut supplier advised today that cashew prices would rise at least $1 a pound in 2017. (They currently sell a five-pound sack of raw whole cashews for $51.) Apparently this is why:
Get ready for some cashew sticker shock.
The global popularity of the kidney-shaped nut has been growing faster than any other tree nut — even almonds. Demand jumped 53 percent since 2010 and outpaced production in at least four of the past seven years, industry data show. Now the worst drought in a century for Vietnam, the largest exporter, is raising concern that supplies will be even tighter in a market valued at $5.2 billion.
A lack of rain in the once-fertile Mekong Delta and elsewhere in Vietnam has cut output of its major agricultural exports including rice, black pepper, coffee and seafood. This year’s cashew harvest fell 11 percent, and domestic prices jumped by as much as a third to an all-time high, a growers’ group estimates. That spells trouble for buyers in the U.S., by far the biggest importer.
It’s already trouble in Vietnam:
The domestic price of raw nuts has jumped to 52,000 dong ($2.33) a kilogram, the highest on record, from 38,000 dong at the start of the year, according to the cashew association.
That’s a lot of dong.
Fortunately, I use relatively few cashews.