Chestnuts for Asia can be an outlet for small producers – 02/22/2023 – Shuttle

The increase in the purchasing power of the population in Southeast Asia may provide a good option for small and medium-sized Brazilian producers.

The region’s economic evolution and the rise of a large part of the population to a new consumption pattern, especially those seeking healthier food, increased the consumption and importation of chestnuts and walnuts.

A market assessment in the region, carried out by the CNA (Confederação da Agricultura e Pecuária do Brasil), identified good opportunities for these Brazilian products.

The participation of small and medium-sized producers may occur through the Agro.BR project, by CNA and Apex-Brasil, aimed at consolidating specific markets for the country. The project’s mission is to expand the Brazilian export basket.

At least five countries have potential for the Brazilian product: India, Vietnam, Singapore, Malaysia and Thailand. These countries, which have been registering an increase in consumption, cover their internal demand with imports from the United States, China, Tanzania and other Asian and African countries.

Brazil has the potential to increase supply, as it produces four of the eight most consumed nuts in the world: cashew nuts, Brazil nuts, pecans and macadamia nuts.

The most interesting markets at the moment for Brazilian producers are India and Vietnam, the ones with the greatest need for imports. The Vietnamese, which have a large industrialization center for the product, imported 1.3 million tons in 2020.

Vietnam increases purchases because the country has become a major supplier of the industrialized product. From 2017 to 2020, Vietnamese exports grew by 10% per year.

In addition to the need for purchases for re-export, chestnuts are an important part of the country’s cuisine. The product is gaining importance, and the average price per kilo was between US$ 15.8 and US$ 18 last year, according to the CNA.

As in Vietnam, chestnuts and nuts are part of the diet in India. The country imported 999,000 tons in 2020, and demand is growing with the arrival of new consumers at a higher income level.

The product is still, however, less accessible to the low-income population, since the internal value is from US$ 2.8 to US$ 4.98 per kilo, according to average prices for 2022. The sector moved US$ 7. 5 billion, according to the CNA.

In addition to nuts, India has great potential for several other types of grains, such as lentils and chickpeas, according to Embrapa.

Brazil could develop a lot in this sector called “pulses”. Indian demand is growing, domestic production is not keeping pace with consumption and the need for imports grows year by year.

Southeast Asia is made up of ten countries, with a population of 675 million. Malaysia, Singapore and Thailand are also nut consumers. Among them, though, Thailand has the most potential for exporters. Although with smaller volumes than India and Vietnam, Thailand’s annual imports grew by 31% from 2017 to 2020.

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also there Producers in the US Midwest are expecting good income this year. High interest rates, weather and the evolution of the world economy, however, are reasons for concern for the sector.

difficulties in sight The non-renewal of the agreement on the grain export channel to Ukraine, which is at war with Russia, could return instability to the world grain market.

Sight difficulties 2 Prices would rise again, and food inflation would rise. The current agreement runs until mid-March, and Russia wants, in order to carry out this renewal, the elimination of sanctions on its products.

Sight difficulties 3 Even being able to export, Ukraine will participate less in the international market this year. The government estimate is for a harvest of 50 million tons of grain, after having reached 86 million in 2021, before the war.

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