Market Trends of South America Cashew Industry
Rising Global Demand for Cashews
Global demand for cashews has been steadily increasing, particularly in developed countries, due to their nutritional value and versatility in food applications. According to the ITC Trade Map, cashew export volume reached 12 thousand metric tons in 2023, a 20% increase from the previous year's 10 thousand metric tons. This growth is primarily driven by demand from developed countries such as the United States, Netherlands, and Canada, which collectively account for 55% of the total export volume. Notably, the United States' cashew imports from Brazil in 2023 totaled 4,388 metric tons, a 38% increase from the previous year's 3,177 metric tons.
South American producers are expanding production to meet this global demand, especially in North American and European markets. FAOSTAT data shows that cashew nut production volume in 2022 reached 164,447.88 metric tons, a 31% increase from the previous year's 125,442.79 metric tons. This production growth is attributed to government support and the adoption of precision agriculture practices by farmers in the region. The increasing demand from neighboring countries is anticipated to drive further market growth in South America.
Brazil Dominates the Market
Brazil leads cashew nut production in the region with extensive cultivation areas. FAOSTAT data shows Brazil's cashew production volume reached 1.47 million metric tons in 2022, a 32.5% increase from 1.11 million metric tons in the previous year. Small farmers, cultivating areas under 20 hectares, are key contributors to this production growth. The Brazilian Confederation of Agriculture and Livestock (CNA) reported approximately 170,000 cashew producers in the country in 2022, spread across 53,000 properties, with 70% being small farmers.
The Brazilian government has implemented policies to promote cashew cultivation, including subsidies and research and development programs. The annual Pronaf scheme supports local farmers, with a significant budget allocation of USD 65 billion for 2022-2023. This initiative provides credit lines, production subsidies, and interest payment subsidies to cashew farmers. Brazil's position as a major exporter of both raw cashew nuts and processed cashew kernels further solidifies its importance in the global cashew market. The combination of increasing production, government support, and growing global demand has solidified Brazil's position as a dominant cashew producer in the region.
