Olam Global Cashew Market Sep 06 ENG

Page 1

ACA Meeting Benin - Sep 2006 Global Cashew Scenario

Source: Trade


West Africa -- leading RCN producer . . . World Cashew Production 2005 Origin

Production (MT ‘000)

IMP/EXP (MT ‘000)

Production (‘000 ctn)

Domestic (‘000 ctn)

Export (‘000 ctn)

South (Sept-Jan) of Prev. Yr

Brazil

245

0

2,450

(200)

2,250

E. Africa

165

(140)

250

0

250

Indonesia+Combo

115

(110)

50

0

50

India

360

580

9,400

(4,000)

5,400

Vietnam

300

85

3,850

(40)

3,810

W. Africa

425

(415)

100

0

100

1,610

0

16,100

dia, dia, Thailand

North Feb-June

TOTAL Source: Trade

(4,240) 11,860


…with India leading in kernel production. World Cashew Production 2006 Origin

Production (MT ‘000)

IMP/EXP (MT ‘000)

Production (‘000 ctn)

Domestic (‘000 ctn)

Export (‘000 ctn)

South (Sept-Jan) of Prev. Yr

Brazil

245

0

2,450

(200)

2,250

E. Africa

170

(140)

300

0

300

Indonesia +

115

(110)

50

0

50

India

360

584

9,440

(3,800)

5,640

Vietnam

300

90

3,900

(40)

3,860

W. Africa

435

(424)

110

0

110

1,625

0

16,250 (4,040)

12,210

North (Feb-Jun)

TOTAL Source: Trade

’06 vs ’05 exports up 2%- 3%.


N.A. continues to be the major user World Cashew Usage Asia / Other 21% North America 50%

Europe 29% Source: Trade


Most popular tree nut in Snack Category but‌ U.S. Snack Nut Sales 50% 45%

Value % US Snack Nut Sales

40%

Quantity %

35% 30% 25% 20% 15% 10% 5%

Source: AC Nielsen Last 52 wks ending April 29, 2006

Other

Pecans

Macs

Seeds

Almonds

Trial Mix

Pistachios

Mixed Nuts

Cashews

Peanuts

0%


…cashew growth rate went negative Oct’05 Snack Category Growth: Cashews vs Almonds Feb’05-Apr’06

50

Cashew Snack Demand

Almond Snack Demand

30 20 10 0

Source: AC Nielsen Last 52 wks

A p r-0 6

M a r-0 6

F e b -0 6

J a n -0 6

D e c -0 5

N o v -0 5

O c t-0 5

S e p -0 5

A u g -0 5

J u l-0 5

J u n -0 5

M a y -0 5

A p r-0 5

M a r-0 5

-10 F e b -0 5

% Change vs PY

40


Even with record prices, almond demand is still strong‌ Almond Snack Category Growth vs Market Price 45

$4.50

40

BS Price Lagged 6 months

$3.50

30 $3.00 25 $2.50

20

Source: AC Nielsen Last 52 wks

Apr-06

Mar-06

Feb-06

Jan-06

Dec-05

Nov-05

Oct-05

Sep-05

Aug-05

Jul-05

Jun-05

May-05

Apr-05

$2.00 Mar-05

15 Feb-05

% Change vs PY

35

Dollars Per LB

$4.00

Almond Snack Demand


…while cashew prices and demand decreased Cashew Snack Category Growth vs Market Price $2.70

20

$2.60 $2.50

10 $2.40 Cashew Snack Demand

5

$2.30 0 $2.20 -5

$2.10

Apr-06

Mar-06

Feb-06

Jan-06

Dec-05

Nov-05

Oct-05

Sep-05

Aug-05

Jul-05

Jun-05

May-05

Apr-05

$2.00 Mar-05

-10

Dollars Per LB

W320 Price Lagged 6 months

Feb-05

% Change vs PY

15


Thank You


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