Ivory Coast increases its anticipated cashew production as exports are impacted by proposed tariffs

Ivory Coast, the leading cashew producer globally, has increased its expected output to 1.3 million metric tons from 1.15 million tons, despite challenges posed by potential U.S. tariffs and a declining dollar affecting exports, according to the head of the sector regulator in a statement to Reuters.

Mamadou Berte of the Cotton and Cashew Council (CCA) stated that the rise in production is partly due to restrictions on the smuggling of raw cashews to neighboring Ghana and Burkina Faso.

Berte noted that, concurrently, Vietnamese buyers have significantly reduced their purchases of Ivorian raw cashews for processing due to U.S. tariffs.

Vietnam typically purchases 80% of the cashew production from Ivory Coast, with 60% of that being re-exported to the United States.

According to Berte, Vietnamese buyers have acquired only 200,000 tons of raw cashews this year, in contrast to the 700,000 to 800,000 tons purchased last year.

In the previous month, the administration of U.S. President Donald Trump revealed extensive tariffs affecting numerous countries, including Ivory Coast, which encountered a tariff rate of 21%, the highest in West Africa. Trump subsequently suspended the tariffs for a period of 90 days to allow for negotiations, while maintaining a universal levy of 10%.

Vietnam will encounter a 46% tariff if an agreement on reduction is not reached before the expiration of a U.S. moratorium in July.

“If we continue, we will face total loss,” stated the manager of a Vietnamese cashew company.

Berte noted that the decline of the U.S. dollar this year has complicated contract execution and reduced prices for local producers, as contracts were established at the higher rate.

Berte noted that prices have decreased to as low as 200 CFA francs ($0.35) per kilogram, down from 425 CFA francs ($0.73) earlier this year, likely influenced by the impending U.S. tariffs and a weakening dollar impacting exports and profitability.

Eight buyers and five exporters, comprising Vietnamese and Indians, have confirmed to Reuters the decline in price.

The buyers indicated that approximately 200,000 tons of raw cashew nuts from Ivorian producers remained unsold, cautioning that local producers would have to either store them or sell them locally to prevent waste.

Berte reported that local buyers have purchased over 650,000 tons of raw cashew nuts this year, in contrast to 300,000 tons from the previous year.

“In light of the current challenges with low sales, the CCA is exploring support options for the complete acquisition of the remaining inventory,” he stated.