Market Trends of Brazil Cashew Industry
Increasing Cashew Production owing to various Food Applications
Cashews play a significant role in Brazilian cuisine, valued for their versatility and nutritional benefits. Both raw and roasted varieties are popular snacks, offering a distinctive texture and flavor. They are also a key ingredient in various culinary applications, including baked goods, confectioneries, and traditional dishes. Cashews are prized for their high content of monounsaturated fats, vitamins, and minerals, which contribute to cardiovascular health and overall wellness. Beyond their nutritional value, cashews are essential in cultural foods such as Tijuana, a beverage made from cashew apple juice, and cashew wine, a traditional fermented drink. Due to their adaptability to various dishes and dietary requirements, cashews remain a fundamental component of Brazilian culinary culture.
In addition, Cashews serve as a significant ingredient in Brazilian confectionery, contributing a distinctive nutty flavor and textural element to various traditional sweets. Notable examples include Brigadeiro de Castanha de Caju, a variation of the classic brigadeiro that incorporates cashew nuts in place of chocolate sprinkles. Cajuzinho, another popular confection, is crafted to resemble small cashew apples and consists of a mixture of cashew nuts, sugar, and sweetened condensed milk, often finished with a sugar coating. Doce de Caju, a traditional sweet, features cashews simmered in sugar syrup until they achieve a soft, caramelized consistency. These desserts exemplify the versatility of cashews in Brazilian culinary traditions, demonstrating their capacity to enhance both flavor profiles and textural attributes. Cashew-based confections are prevalent in both celebratory events and everyday consumption throughout Brazil.
According to the Brazilian Institute of Geography and Statistics, Ceara was the leading cashew nut-producing state in 2022, with a production of nearly 95.7 thousand metric tons. Piaui ranked second, producing 21.6 thousand tons in the same year. The total production of cashew nuts in Brazil reached 147.1 thousand tons in 2022. The high demand for cashew nuts in Brazil is driven by the ongoing trend towards healthier nutrition and a strong preference for sustainably produced foods. This demand is further fueled by the rapidly increasing popularity of healthy snack products, which is anticipated to boost the Brazilian cashew market during the forecast period.
Brazil Leads in the Export of Cashew
Brazil stands as a leading global exporter of cashew nuts. The country's cashew exports are driven by increasing domestic demand, fueled by a growing focus on healthy nutrition and a preference for sustainably produced foods. Additionally, the rising global demand for snack products contributes to this trend. The competitiveness of Brazilian cashew exports in the international market is likely to depend on the sector's performance and its ability to adapt to consumer requirements, given the strong correlation between demand and prices. According to the ITC Trade Map, Brazil's cashew export volume increased from 10,026 metric tons in 2022 to 12,011.8 metric tons in 2023. The United States remains the largest importer of Brazilian cashews, importing 4,388 metric tons valued at USD 24,828 thousand in 2023. Other significant importers in 2023 included the Netherlands, Canada, Argentina, Germany, and Chile.
The export process primarily relies on sea transportation, with major ports such as Fortaleza, Natal, and Recife managing the majority of cashew shipments. Brazil's cashew industry has maintained its market position despite challenges including fungal diseases and labor shortages. This resilience is attributed to the implementation of advanced agricultural practices and innovations focused on enhancing yield and quality.
The Brazilian cashew industry receives substantial government support and infrastructure investment, which aids in mitigating challenges. Research and development programs, coupled with subsidies for small-scale farmers, are instrumental in sustaining and expanding the industry. The Brazilian government implements various initiatives to enhance productivity, ensure sustainability, and improve market access in the cashew sector. Notable programs include the Agricultural Activity Guarantee Program (Proagro), which provides financial assistance to farmers for mitigating climate risks and improving crop yields, and the Rural Insurance Premium (PSR) Subsidy Program, which facilitates farmers' access to rural credit for cashew cultivation.
Cashew trees are cultivated in numerous tropical regions worldwide, where both the nuts and peduncles are harvested, processed, and exported to various countries. The cashew has diverse applications, serving as a nutritious component in animal and human diets, while its valuable nut oil finds use in industrial processes. Although originating in Brazil, cashew is now extensively cultivated across tropical areas globally. More than 14% of domestic production is exported to major international markets, primarily as natural cashew kernels of various grades and sizes, including some organic varieties.
