• Africa supplied only 7% of US cashew kernel imports in 2024

• Vietnam accounted for about 89% and is set to benefit most

• African exporters continue to favor Europe for higher prices

The decision announced on November 14 by US President Donald Trump to remove import tariffs on cashew nuts has reassured the global industry, but African producers are expected to see only limited benefits. That is the view of market expert Jim Fitzpatrick.

According to the analyst, African countries supplied only 7% of cashew kernels imported by the United States in 2024, compared with nearly 89% from Vietnam, which is set to benefit the most from the measure by further strengthening its market dominance.

While African processors are expected to benefit overall from the return of US buyers to the international market, their growth prospects in the United States remain limited.

Mr. Fitzpatrick noted that, unlike European buyers who place greater emphasis on sustainability and quality in sourcing decisions, US importers are far more price-sensitive, with Vietnam able to offer lower prices.

As a result, many African exporters continue to prioritize the European market, which offers higher prices and lower shipping costs. In 2024, African suppliers met about 21% of the European Union’s cashew demand.

“The removal of U.S. tariffs on cashew will have a limited impact on Africa, while it will have a much more significant effect in Vietnam. What we may see is that, as American buyers gradually return to the market, they may look to diversify their sources of supply. The challenge, therefore, would be for African processors to increase their market share in the U.S. However, this is difficult to achieve, as it is very hard to compete with Vietnam on price. Moreover, over the past three or four years, American buyers’ interest in African cashew kernels has actually declined,” he said.

More broadly, Mr. Fitzpatrick said the cancellation or withdrawal of USAID development projects has also affected the cashew sector in West Africa, with many previously active programs having been halted.

“This means that farmers, and to some extent processors, no longer receive the marketing support in the U.S. market that they once did. It is also worth noting that, although import tariffs have been removed, the situation remains quite volatile,” he added.

Espoir Olodo