New Season Begins

EARN MONEY WITH RAW CASHEW NUTS BUSINESS

WHO ARE THE BUYERS OF NIGERIA RAW CASHEW NUT..

Nigeria raw cashew nut buyers are Indians, Vietnamese and Chinese. Moreover,, This buyers presently started making deals with Nigeria raw cashew nut traders and farmers. Though the season is not yet start but the buyers are busy sealing deals for supply of raw cashew nut.

Why You Need To Start raw Cashew Nut Trading..

(1). Profit is 15%-40%

(2). You don’t Need to look for buyers but buyers look for you.

(3). Ready to buy buyers in large quantity

(4). You get upfront payment to supply more (only when you have the demanded specification)

(5). Multiple profit at once.

(6). Large quantity demanding( last year we are not able to supply the demanded quantity , as we have 3000 tonnes to supply but only able to supply 1800 tonnes…pleas calculate #25,000 profit by 1800 tonnes we supply and see exacly how much profit we gain during the trading..#45,000,000 ) why we are unable to supply this quantity is because the order came late with a specification …though this deal is sealed and work together with different cashew nut traders not just one trader.

How Profitable is Buying And selling Of Raw Cashew Nut..

The best is to start with the season started immediately, and the best is to buy directly from the farmers.

Last year we started the season with price at #55,000 as farmgate price and resell at #75,000- #100,000 ON CASH AND CARRY DEAL.The reselling price is not fix because it depend on the grade of the raw cashew nut, the higher the grade the higher the profit. Example : the ones resell at #75,000 are the ones that have a lower grade but the ones selling at #90,000 and above are the ones that are been added value and become higher grade.

Let make some little calculation base on last year deal, on a base of CASH AND CARRY(meaning no transportation, buyers come to you, they check and see, they pay you and they carry)

You buy directly from farmers at #55,000 and resell it at #70,000 . You gain #15,000 as profit per tonne.

Let say you buyers decide to buy 30 tonnes, here will calculate #15,000*30=#450,000 as profit.

NOTE: the #15,000 profit is based on You never added Value to the cashew nut, you buy from farmers and decided to resell it without adding value.

NOW ADDED VALUE TO THE CASHEW NUT AND RESELL AT #85,000

Now Let add value to to cashew nut, example..you buy directly from farmers at #55,000

Note: when you added value to your cahsew nut, the quantity will reduced but your reselling price will increase. added value is to make the cashew nut international stander. HOW DO YOU ADDED THE VALUE??? THAT IS WHERE YOU NEED MY SERVICE. send me mail at admin@davidprof.com

example1. Let say you buy 30 tonnes of raw cashew nut at #55,000 per tonnes in total of #1,650,000.

You now added value to the raw cashew nut and the quantity dropped to 27 tonnes.

You then resell it at #85,000 . Now let calculate #85,000*27 tonnes= #2,295,000

Our profit is #85,000-#55,000=#30,000 profit per tonne.ok. Now #30,000*27=#810,000 profit.

HIGHER THE VALUE YOU ADDED , THE HIGHER THE DEMAND, THE HIGHER THE RESELLING PRICE/PROFIT YOU GAIN.

Nasarawa state has the lower price of cashew nut, example last year. Cashew nut sold at ogbomosho at the price of #100,000 per tonnes HIGHER GRADE but in nasarawa state we sold at #85,000 per tonnes HIGHERE GRADE. So what will be the couse of this you may ask?

Well, ogbomosho already makes names across global and many international buyers rush to that region for their cashew deal. That continue untill they start getting short of supply before they now look for alternative source and that will be visiting Nasarawa state or kogi state for their purchase.

For you to make more money buying and selling of cashew nut, you need to add more value to your cashew nut.Adding more value to your raw cashew nut make you higher profit and also hold down your buyers for more deals.

Now, when i said adding more value to your raw cashew nut, i meant make it to be export/international stander. When you buy your Raw cashew nut directly from farmer, it will be in a general stander in the sense that, those farmers plug any kind of cashew nut, mixed them together and then sold to you. For you to make a killing profit , you have to add value to the cashew nut and make it international/export stander.

Home Processing of Raw Cashew Nuts

Both the nut (after processing), and the apple of the cashew are edible. The apple (the large fleshy fruit at the top of the nut) can be eaten at a stage when it is just ready to fall naturally. Care should be taken as the apple is very attractive to fruit flies. Some people find that their mouths blister from eating the apples so one should experiment a few times before eating any quantity of the fruit. Flavour of the apple varies considerably from tree to tree.
When considering the processing of the nuts it should be remembered that the shell of the nut contains a blistering caustic sap which is released if the shell is damaged in any way. Do not attempt to crack the unprocessed nuts.
The processing consists of roasting the nuts at 350 - 400°F (180-200°C) for 10 - 20 minutes on fine sand to extract the caustic cashew nut oil. The oil may spurt from the shells when the nuts are heated. During this initial roasting the sand will take up the oil and also prevents the oil from spurting. Never attempt this initial roasting without first either covering the nuts with sand, or else having a lid on the container.
The temperature used for roasting has to be hot enough to cause the oil to exude from the shell of the nut but not hot enough to cause the kernel to dry out. Temperatures of 450 - 500°F (230 - 260°C) will cause the oil to vaporise and issue as a choking cloud from the oven as well as causing the kernel to dry out.
A small amount of experimentation may be needed to obtain the exact temperature and time needed for oil extraction.
Care should be taken to inhale a minimum of the fumes given off during roasting.
Preferably use an old dish when doing the initial roasting of the nuts as the oil may be difficult to remove from the dish after the baking is finished.
After the initial roasting, the nuts are sieved out of the sand and washed in water and detergent to remove the final traces of oil. Care should be taken not to wipe your face or eyes with your hands while washing or cracking the nuts, because of the possible residue of caustic oil.
The nut is then cracked and the kernel freed of the thin brown skin. The final process is roasting the kernel in coconut oil at 300°F (150°C) for 5 minutes.

Cashew Cultivation

Cashew (Anacardium occidentale) is an evergreen
tropical and frost sensitive tree crop that forms large
canopy and can grow to 12 metres high. It grows well in
fertile sandy loam soil, requires temperature between 25 -
30 degree celsius and precipitation between 1000 and
2000mm. It is a native of Brazil and was introduced in
Nigeria by Portuguese in the 16th century. The tree is
mostly valued for the nuts which are mainly harvested
once in a year.
Indians and Indonesian importers are the major buyers
of the nut in Nigeria. They mostly buy from places where
quality cashew nuts are produced in abundant quantities.
Reports and observations from cashew nut production
and marketing have shown that the bulk of quality
cashew nuts comes from Ogbomoso, Oyo State. The
town has suitable soil and weather for cashew nut
production.
Cashew varieties
There are three main varieties which are Brazilian
cashew, Chinese cashew and Indian cashew. Brazilian
cashew is mostly grown in Nigeria.
Land preparation and planting
After clearing of the vegetation, the land must be
ploughed and harrowed. The nuts can be sowed 3 -4 per
hole or raised in nursery and transplanted in the field.
After the establishment the plant are thinned to one
healthy and vigorous plant per stand.
Plant spacing
Two spacing methods can be adopted and these are 9m
X 9m and 4.5m X 4.5m. The improved varieties start to
produce fruits eighteen months after planting. The yield
can't be much during the first few years but after 5 years
there will be increase in the yields. Cashew can be
intercropped with arable crops such as soybean,
cowpea, groundnut, melons and vegetables for some
years. It is not advisable to to intercrop cashew with
corns because the crops can grow taller than the
seedlings and cast shadows on them. The crops can
also cause significant removal of soil nutrients.
Expected yields can be determined as follows:
At 18 months after planting 1kg per tree is expected, and
with the spacing of 4.5m X 4.5m, 132 plant stands will
produce average of 132kg per acre. Between 3 and 5
years it will produce average of 15kg per tree and 1980
kg per acre. Between 5 and 10 years it will produce
average of 35kg per tree and 4620kg per acre. Above ten
years a tree will produce average of 80 kg per plant. The
plant population should be reduced to 9m X 9m at the
end of 5 year to allow the trees to form big crowns.
Weeding
Manual and chemical weeding can be practiced. Manual
weeding can be done at the seedling stage but after full
establishment, herbicides can be used in the plantation.
Contact herbicide is recommended, but the spray must
not touch the leaves.
Flowering
Flowering and fruiting is affected by the weather
condition. It takes two months from flowering to
ripening of the fruit, and flowering can continue for
three months.
Harvesting
The apple must be harvested and processed immediately
because it is highly perishable and gets spoilt within few
hours. It can be eaten fresh or processed into juice. The
nuts must be well dried in the sun before they are
bagged and stored. Well dried nuts can be stored more
than a year before they are shelled or sold.
The apple is very rich in nutrients, 3 times greater than
orange in vitamin C. Syrup, wine and gin can also be
produced from the apple. The nut kernel contains 21%
vegetable protein and is as rich as milk, egg and meat in
proteins, vitamins and minerals.
Shell oil or fluid is a by product that contains
combination of anacardic acid and cardol. It is used in
the manufacturing of materials that are resistant to heat,
friction and caustic products. It is used in clutch plates,
special isolators, varnish and plastic materials.
The bark of cashew tree is rich in tannin being used in
leather tannin. Other parts such as leaves, fruits, wood,
gum, bark and juice are used for preparation of local
medicines.
Measuring quality of Cashew nut
The quality of cashew nut is measured by Kernel Outturn
Ratio (KOR) which is the amount of usable kernels after
shelling of the nuts. It is measured as the weight of the
kernels in Ibs per bag of cashew nuts (80kg or 176 Ibs).
A KOR of 48 means there are 48 Ibs (21.8 kg) of usable
cashew nut kernels in a bag of 176 Ibs (80kg). KOR
ranges between 20 - 24%.
Cashew nut is an export commodity and highly
demanded for in the USA, Japan, Australia, Canada and
some European and Middle East countries.

I Need 2 Know

CASHEW NUT is an agro export crop. Though active to
South America, it is cultivated in some parts of West,
Middlebelt and Eastern Nigeria. Areas like Ogbomosho,
Ilorin, Oyo, Anyigba, Enugu, Lafia, Keffi etc.
The cashew nut tree is mostly cultivated for its nuts: the
raw cashew nut is gray in color with about 3mm thick
shell, inside this shell is the edible kernel covered by a
light brown skin. It is either exported as raw cashew nut,
i.e. in-shell or as processed cashew nut kernel in special
packaging.
Most raw cashew nut is exported to India and
Vietnam while the processed cashew kernel is
exported to Europe and America being the largest
consumer in the world.
The crop season in Nigeria is from February - May. But
trading is usually all year round, some traders usually
store the raw cashew nuts and sell when it is out of
season and scarce.
HANDLING.
A raw cashew nut that looks good on the outside may
have bad kernel inside. The yield of the kernels,
percentage of defective, average size of the nuts and
moisture content are used to determine the quality of
the nuts, which usually determines the price a buyer may
offer for any raw cashew nut.
Hence effort should be made to improve or
conserve the expected good quality derived from proper
handling.
THE FOLLOWING GOOD PRACTISE CAN HELP TO
IMPROVE QUALITY OF CASHEW NUTS.
Do not harvest or pluck unripe cashew nuts because the
kernel may be shriveled or immature. Hence, only mature
and ripe cashew nuts should be harvested and this be
done daily.
Do not let the nuts remain on the ground for more than a
day before gathering to avoid long contact with soil
moisture, sprouting and deterioration e.g. decay.
Sundry the harvested nuts as soon as possible for two or
three days depending on the intensity of the sun.
Sundry on a clean surface and should be lightly spread
(not higher than 3 inches) and turned regularly to allow
uniform dryness.
Do not expose dry cashew nuts to moisture. This is a
major requirement for agricultural commodities.
Use only jute bags to bag raw cashew nuts.
Do not heap it un-bagged or in plastic containers to
avoid deterioration especially if not properly dried.
Do not bag it in poly-propylene bags.
QUALITY STANDARD.
Cashew nuts meant for export must be thoroughly dry
and reasonably free from extraneous matter such as
sticks, stalks and other vegetable matter other than
cashew nuts. It must also be free from stones.
Total impurities (stones, sticks, stalks and other
vegetable matter) shall not exceed 0.5% of 1kg
sample analyzed.
NUT COUNTS:
170 – 180 ……………….. EXCELLENT
181 – 190 ……………….. VERY GOOD
191 – 200 ……………….. GOOD
201 – 210 ……………….. MIDDLE
211 – 220 ………………. LOW MIDDLE
221 – 230 ………………. LIMIT ACCEPTABLE
ABOVE 230 ………………. POOR.
Note: 170 – 210 nut count is usually the benchmark for
exporting raw cashew nuts. But some importers may not
be willing to buy RCN that is above 200 nut counts.
In Nigeria, the nut count per 1kg sample varies from
zone to zone. While zones like Ogbomosho has between
170 and 180/185, kogi – 190 to 205/210, ondo – 190 to
205/210, Ilorin – 190 to 205, lafia/keffi
– 200 to 210, etc.
MOISTURE.
Exportable quality shall not be more than 10%. You have
to make sure the raw cashew nuts are properly sundried
and the moisture content must be properly analyzed.
KERNEL OUT-TURN RATION (KOR)
It is the quality of good nut we get from 80kg of raw
cashew nuts. The count is in pound per 80kg.
KOR REMARK
48 – 55 EXCELLENT
45 – 47 GOOD
40 – 44 AVERAGE
BELOW 40 LOW/POOR
DEFECTIVES
Diseased or mouldy – shall include all nuts which when
cut reveal the presence of fungi growth or a milky patch
or a spread of brown or black spot on the split kernel.
This is often caused by high moisture for several days
prior to proper dryings, wrong packing and
improper storage.
BROWN RANCID ROTTEN (BRR) – shall include all brown,
rancid, rotten and discolored kernels which are light
yellowish in color. This is caused by similar factors listed
above.
VOID – these are nuts which show absence of
kernel, emptiness or absence of a kernel of useful size.
This is probably caused by natural
malformation.
IMMATURE/SHRIVELED – shall include all nuts which
when cut contain space between the kernel and the
shell, shrink or contain kernel that is not fully developed.
This is caused by harvesting immature nuts.
SPOTTED – shall include all nuts which show the
presence of a black or brown spot on the kernel.
This is caused by insect bite at the early stages of the
development of the nuts.
INSECT DAMAGE (WEEVILLED) – shall include all cashew
nuts which when cut show a state of insect attack or
weevilled or presence of bead-like or powdery particles.
Poor storage condition is responsible for this.
CHECK TEST FOR QUALITY
Carrying out a quality check test on cashew nuts like
every other agricultural export produce begins with
proper sampling. Samples shall be drawn from not less
than 30% of consignment, sample shall be
properly mixed, reduced and from which 1kg
sample is drawn for analysis which include
moisture, nut count, defectives and finally KOR.
QUALITY IMPROVEMENT METHODS:
The quality of a bad cashew nut consignment can be
improved by hand picking.
HAND PICKING – means picking or removing all
suspected cashew nuts such as very small nuts, light
weight nuts apparently rotten, broken or wounded nuts
out of the consignment.

Farmers are going nut

If nothing else, most Nigerians agree that Nigeria
needs to diversify its economy. The problem is
that no one ever really explains, in practical
terms, what this diversification will look like if it
is achieved. The difficult and even painful route to
get to this diversified economy is never discussed
either.
I’ve been using the hashtag #CabalAlert (on
twitter) to chronicle the rent-seeking behaviour of
Nigerians when they come together under some
association usually to demand some kind of
‘intervention’ (read: money) or a bailout from the
government. But I find one particular cabal
tolerable — The National Cashew Association of
Nigerian (NCAN). Even when they ask for the
government to give them money, they tell real life
stories of how cashew farmers are doing in
Nigeria.
Here’s one example from last October :
The National Cashew Association of Nigeria,
NCAN, told the News Agency of Nigeria on
Sunday in Lagos that the current global
market trends showed an increase in demand
for cashew.
The association’s spokesperson, Sotonye
Anga, said that this was due to Good
Agricultural Practice and improvement
introduced to farmers in 2014.
“We are glad to witness the prosperity of
cashew farmers in Nigeria. It goes a great deal
to show that NCAN is working and in
collaboration with government and our
development partners.
“The current global market trends show an
increasing and strong demand for cashew and
Nigeria will continue to deliver its quota and
remain relevant in the cashew world.
“I therefore, urge our cashew farmers
nationwide to be serious with the cashew
business and be committed to GAP and quality
improvement protocols so as to get the cash in
cashew.
There was also this:
Some cashew farmers in Umoni Village, Ofu
Local Government Area in Kogi said on
telephone that they were happy with the
development as their lives had become better.
A cashew farmer, Samuel Haruna, said he was
able to roof his family house with the sales he
recorded from the 2015 cashew season.
Mr. Haruna, who had been in the cashew
business for more than 20 years, said he never
really made profit from selling raw cashew
nuts as much as he made in 2015 season.
“I was able to buy 14 bundles of roofing zinc
to roof my family house. I have been involved
in cashew farming for 20years and I never
had it this good.
“This 2015 cashew season was really good for
me and for my people, I realised good money
from the sale of cashew.
“We cashew farmers from Umoni village are
very happy; we are pleased with the activities
of NCAN and all the efforts at improving
cashew farmer’s livelihood.
“This year I made good money from my
cashew farm for the first time. Not just me but
other cashew farmers made good money too,”
he said.
A 30-year-old cashew farmer, Joel Thomas,
said that he bought a jeep from the sale of
cashew recently.
Another cashew farmer, also from Umoni
Village, Ibrahima Sule, said he bought a
Toyota car from the sale of cashew in 2015.
A 35-year-old, Isaac Idanyi, said he was able
to build a four-bedroom flat from the sale of
cashew nuts.
As much as it is true that the farmers have
benefitted from an international boom in cashew
nut prices, you still have to take part in the game
to stand a chance of winning anything. These guys
have been able to grow and export the nuts and
earned a decent income in ways that have
transformed their lives.

Become a millionaire from cashew nuts

Nigerians are making millions from cashew export
yearly. DANIEL ESSIET reports that the commodity has
high economic and nutritional value.
For the few Nigerians who export cashew, the
business has been of instant success. Driven by the
rise in demand from China, India and other fast-
growing economies, the global cashew boom has
generated profits at most trading houses.Together,
some cashew exporters are worth millions of
dollars in annual revenue. One of them is the Chief
Executive, Universal Quest Nigeria, Mr Sotonye Anga,
one of many of the quiet giants in commodities
business, who export cashew nuts. He has been a
success story in the business but this is not without
its challenges. For instance,he faces challenges from
companies such as Olam that command great
influence in commodities marketing globally. This
notwithstanding, Anga said there are more
opportunities to make money in cashew exports
with the reported sharp rise in imported raw cashew
nut prices from East Africa. This is encouraging
buyers to look for greener pastures in other countries.
With the government and the private sector
campaigning to farmers to increase local cultivation
, cashew exports could be inching closer to a new
peak of 400,000 tonnes.
Anga said there are high profits from cashew,
buoyed by high demand.
And with world price rising and expected to remain
steady, he said life is changing for Nigerians who
are ready to invest in cashew export.It requires an
investment of N1.5 million but the returns ranges
from 10 to 30 percent per transaction.
He said Nigerians can end their drudgery if they take
to cashew exports. The demand for the crop is high
locally and internationally, and this will hopefully
continue to rise.
According to him, exporters can get enough supply
because cashew can grow very well in more than
24 states of the federation.Maintaining high quality
cashew nuts, he said, is very critical to an exporter,
and as such, he believes in partnering with
producers with good cashew plantations,best
production processing, and marketing practices.
This,he added, is central to ensuring that cashew
businesses will develop into highly profitable
ventures.Cashew is currently exported to India and
Vietnam where it is processed and then either
consumed in those countries or shipped to the US or
to Europe for further processing and packaging.
Currently, the crop enjoys considerable patronage
around the world.
His company ships cashew to several European
countries. To this end, he works with local farmers,
to improve the quality of the cashew nuts by sharing
new farming methods, planting techniques, pre- and
post-harvest handling methods and many other skills.
This is because local farmers need to produce high
quality cashew nuts, which in turn give them the
financial gains needed to lift them out of poverty.
Going into cashew business, is not an easy task for a
new beginner because of lot of things .The major
consideration is the amount of capital one is
willing to invest . If there is enough capital, one can
export himself. It is also good for one to buy and
supply export companies in Lagos and major
shipping towns .
For him and others, a beginner needs to undergo
some form of training or mentorship to enable one
understand cashew business / terms and how many
cashew nuts are sold per tonne.
Generally, 2.13 bags make a tonne. 30 tonnes make a
truck / long trailer.One needs to know how cashew
nuts is graded or scaled. The standard and quality
required by foreign buyers and how it should be
packaged.
Anga said the cashew trading and export, still has
more room for investors. He said exporters can also
make money from cashew apples, which could be
processed into fruit juice, which is being wasted
annually because the focus was on the nuts alone. He
said: “The wastage is just too much. We are talking
about 90 per cent of our cashew apples. The cashew
shell liquid that is used for a lot of industrial
applications is wasted because we do not use it. This
is one industry that we need to explore which has not
been tapped.”
Instead of being shipped abroad in their raw form,
some Nigerians roast cashew nuts and sell on the
streets.
Chief Executive, Centre for Trade and Export
Development, Mr Titi Olukayode said his company
is ready to train more Nigerians get involved in
cashew export.
According to him, the company holds training
sessions to expose would-be exporters to
international buyers.
Meanwhile, cashew is not the only produce that his
compnay supports.
The company offers integrated support to new
and existing exporters interested in sesame, cocoa,
soybeans and other non oil exports.

Cashew Nut Biz

Making millions from cashew export
Small Business and Entreprenuership
Nigerians are making millions from cashew export
yearly. DANIEL ESSIET reports that the commodity has
high economic and nutritional value.
For the few Nigerians who export cashew, the
business has been of instant success. Driven by the
rise in demand from China, India and other fast-
growing economies, the global cashew boom has
generated profits at most trading houses.Together,
some cashew exporters are worth millions of
dollars in annual revenue. One of them is the Chief
Executive, Universal Quest Nigeria, Mr Sotonye Anga,
one of many of the quiet giants in commodities
business, who export cashew nuts. He has been a
success story in the business but this is not without
its challenges. For instance,he faces challenges from
companies such as Olam that command great
influence in commodities marketing globally. This
notwithstanding, Anga said there are more
opportunities to make money in cashew exports
with the reported sharp rise in imported raw cashew
nut prices from East Africa. This is encouraging
buyers to look for greener pastures in other countries.
With the government and the private sector
campaigning to farmers to increase local cultivation
, cashew exports could be inching closer to a new
peak of 400,000 tonnes.
Anga said there are high profits from cashew,
buoyed by high demand.
And with world price rising and expected to remain
steady, he said life is changing for Nigerians who
are ready to invest in cashew export.It requires an
investment of N1.5 million but the returns ranges
from 10 to 30 percent per transaction.
He said Nigerians can end their drudgery if they take
to cashew exports. The demand for the crop is high
locally and internationally, and this will hopefully
continue to rise.
According to him, exporters can get enough supply
because cashew can grow very well in more than
24 states of the federation.Maintaining high quality
cashew nuts, he said, is very critical to an exporter,
and as such, he believes in partnering with
producers with good cashew plantations,best
production processing, and marketing practices.
This,he added, is central to ensuring that cashew
businesses will develop into highly profitable
ventures.Cashew is currently exported to India and

How To Start Cashew Nuts Exportation Business

How to Start a Cashew Nut Export
Business
Do you reside in a region where cashew nuts are in
abundance and you want to make money out of this
abundance? Are you interested in starting a cashew
nut export business but you don’t know how to go
about it?
Do you need a sample cashew nut export business
plan template ? If you answered YES to any of the
questions above, then I advice you read on.
Lately, I have been receiving a lot of calls with
respect to exporting. So I have decided to give more
focus on exporting and issues surrounding it. Now
let’s get back to the business of the day.
Cashew is a juicy fruit that bears a kidney-shaped
nut, which is edible only when roasted. The demand
for this fruit is huge in virtually all parts of the world,
but majority of the world’s cashew comes from
Africa. Interestingly many people who consume
roasted cashew nuts do not know where they are
grown or that they grow on trees.
The huge global demand for cashew nuts has led to
increased rates of cashew production in Africa and
other cashew-producing parts of the world as well as
increased exportation to various parts of the world.
However, the annual global demand for the
commodity far exceeds the supply, which means
there is enough room for new players in the cashew
nut exportation business.
If you have been looking to start an export business
related to agriculture, then starting a cashew nut
export business might be your best option. If this
idea sounds good to you—and you would like to take
a plunge, then I advice you follow these guidelines
for starting a successful cashew nut export business.
How to Start a Cashew Nut Export
Business – Sample Business Plan
Template
1. Conduct market research
When you are just plunging into a business that you
know nothing about, you need to research
extensively to understand how things work. This is
always the first step I recommend for export
beginners.
A good way to start your research is to contact a
seasoned cashew nut exporter to make inquiries
about the business. You will need to find out:
The required startup costs
How to find local sellers (suppliers)
How to find buyers in foreign countries
How to identify high quality cashew nuts
How to process and package your nuts for
shipping
How to choose a shipping company and agent,
and so on.
Equipping yourself adequately with relevant
information about the business will help you plan
your business well and avoid all the pitfalls
associated with starting and running the business.
2. Determine your target market
A crucial part of starting any export business is
figuring out where the export commodities are going
—and the cashew nut export business is no
exception. It is important you decide which countries
you will be exporting cashew nuts to.
When you are just starting out, it is recommended
that you stick with just one country that has a good
market for the commodity. As your business grows
with time, you can consider targeting more countries.
It goes without saying that your ideal export
destinations are those countries where there is little
or no production of cashew nuts, but the demand is
high.
3. Find local sellers
You need to find
local cashew nut
sellers from whom
you will buy the
commodity. That
is, these local
sellers will be your suppliers. Be sure to have more
than one supplier, so you can turn to others should
one of them run out of the commodity.
You must also bear in mind that the success of your
business hinges largely on the quality of cashew nuts
you sell to exporters, so ensure that your chosen
suppliers have a reputation for high quality cashew
nuts.
High quality cashew nuts may cost a bit higher than
the low quality ones. However, paying the extra costs
for high quality cashew nuts will help your business
build a good reputation and win more buyers easily in
the long term.
4. Find a shipping company or agent
Since you will ship your cashew nuts to the desired
export destination, you will need the services of a
shipping company. Find out the best shipping
companies in your country from other cashew nut
exporters.
A good shipping company will deliver your goods to
the buyer in a timely and effective manner. So, the
quality of service delivered by your shipping company
can also affect the reputation of your business—
which means you should choose your shipping
company carefully.
You may find it more convenient corresponding with
a shipping agent or freight broker. Also in this case,
it is important that you choose an individual with
years of experience and a reputation of credibility.
5. Find and pitch potential buyers
To get your business going, you need to find
potential buyers in your chosen export destinations.
Search the web for information about businesses in
that country that buy cashew nuts. You can also
search online business directories listing businesses
in that country.
Another way to find potential buyers in your country
of choice is to visit the embassy office of that
country to make inquiries about businesses who
might be interested in buying cashew nuts.
Once you have a list of potential buyers, you should
craft compelling proposal letters and send to them
via the medium you deem the most appropriate. If
they are interested in your proposal, most buyers will
make a trial order to test for your credibility. Once
you give a good account with the trial order, then
you will get bigger orders from them.

Are You Dreaming of Becoming An Exporter?

Export for Beginners

First of all, do your homework and know yourself. Realize that it is a commitment for a long, long term. Know your strengths and go for it. Outlined below is a guide to export trade:

An overview of Export Trade

Categories of Exporter

You can export Products/Services from Nigeria under the following categories:

    -    Merchant
    -    Agent
    -    Producer/Manufacturer

Challenges

As a beginner in the trade, you may experience some challenges.  Some of which are:

    (i)    Lack of product and Market information

    (ii)    Logistics Management of export trade

    (iii)    Non conversant with export procedures and     documentation

    (iv)    Lack of access to fund to start export business

    (v)    Lack of export culture

How to develop an export culture
Find below some of the ways to develop an export cu;ture:
    (i)    Ignorance about exports

    (ii)    Become aware of exports but do nothing

    (iii)    Start attending workshops/seminars/conferences to acquire     export knowledge and

    (iv)    pick-up trial contract and begin to export


To start exporting, individuals, companies/cooperatives should seek further understanding on the following subjects:-  

    Registration with NEPC as an exporter

    The Export Quotation
    Product sourcing
    Market knowledge

New season begins (few years back)

There are few dreams bigger than becoming
instantaneously wealthy, and for some Nigerians that
dream may be realisable as the Nigerian Raw Cashew
Nut (RCN) season opens today February 10, 2014.
Yes, Nigerian raw cashew nuts are in high demand
particularly in Asia and most sellers will begin to enter
into contracts with their foreign off-takers as farm gate
prices become known today.
Ready for harvest
The cashew nut season which typically lasts till June,
is most rewarding in its first three months when the
kernel out-turn ratio (KOR) is highest. Kernel Out –turn
ratio which simply implies the percentage of the good
cashew kernels recoverable from a lot of raw cashew
nuts is higher in the months before the rains come.
And so, better KOR means better money. Typical KOR
at the start of the season is 51 percent but this dips to
as low as 44 percent by June so new entrants are
advised not to make ambitious commitments far into
the season.
Typically, season flag-off prices start at about
N60,000.00 per metric tonne and sell between $900 to
$1,500 per metric tonne CNF (Cost and Freight) but
could fluctuate upwards or downwards very quickly
based on the workings of the market.
Bagging the nuts
Traditional buyers of Nigerian RCN are Indians,
Vietnamese and Chinese. However, Indians often pose
certain challenges that are unusual for other buyers,
often reneging on contracts so caution is needed.
Always insist as part of contract terms that an
irrevocable Letter of Credit is opened by the buying
party. This will guarantee you of their capacity to pay
once shipping documents are presented to the buyer’s
bank.
Many Nigerian raw cashew nut traders have lost
hundreds of millions in naira to other international
trade payment options like Bills for Collection and Open
Account. Please avoid them.
Cashew nuts serve dietary, medicinal and industrial
purposes and are in large demand for the production
of anti-bacterial preparations, varnishes, insecticides
and car brake pads.
In the coming weeks, several trucks will be hauling
tonnes of RCN from Dekena in Kogi State and
Ogbomosho in Oyo State to terminals in Lagos, from
where these produce will be loaded in containers and
shipped for some extra dollars.

Excerpt from global cashew conference held in Nigeria

The event with theme: FINANCING NIGERIA’S CASHEW
INDUSTRY , held at sheba centre, Lagos, had in
attendance, cashew industry stakeholders from across
the country.
In his opening remark Mr Anga said: As Chairman of the
Local organizing committee for the NEXIM & NCAN
CASHEW FINANCE FORUM, my welcome address will be
a little different from what is normal. This is because we
are talking about the WINNER CROP and the best fruit to
eat in order to promote our health, life and economy.
When we build our cashew industry, we engage our
women, our men and most importantly our youths.
NEXIM Bank is here to meet a very important need of
the cashew industry, let us take advantage of this
window of opportunity and build our cashew businesses.
He went further to say that Nigeria’s annual production
of cashew is two million metric tonnes consisting of the
raw cashew nuts and cashew apple. Raw cashew nuts
represents 120,000 tons valued at 24 Billion Naira while
cashew apple is 1,080,000 tons of which over 80% of
cashew apple produced annually in Nigeria is lost to
waste. We cannot afford to watch this trend continue.
Cashew apple contains 6 to 10 times more Vitamin C
than any citrus including orange. Cashew apple is lovely,
juicy, fibrous, sweet, has a unique acidic taste and is an
excellent source of Vitamin C. as a way forward, we need
to convert this huge waste to wealth by establishing
cashew juice processing centres across the cashew belt.
It is important to note that the first 4 letters of the word
cashew is cash . I am therefore convinced that the time
to unlock the cash in cashew is now!

A New Season Is About To Begin

Nigerian cashew farmers announce huge 2015 profitSome cashew farmers on Sunday said they recordedhuge sales and made profits from cashew nuts duringthe 2015 cashew season.The National CashewAssociation of Nigeria, NCAN, told the News Agency ofNigeria on Sunday in Lagos that the current globalmarket trends showed an increase in demand forcashew.The association’s spokesperson, Sotonye Anga,said that this was due to Good Agricultural Practice andimprovement introduced to farmers in 2014.“We are gladto witness the prosperity of cashew farmers in Nigeria. Itgoes a great deal to show that NCAN is working and incollaboration with government and our developmentpartners.“The current global market trends show anincreasing and strong demand for cashew and Nigeriawill continue to deliver its quota and remain relevant inthe cashew world.“I therefore, urge our cashew farmers nationwide to beserious with the cashew business and be committed toGAP and quality improvement protocols so as to get thecash in cashew.“It is obvious that local cashew farmingand processing holds a great potential for nationaleconomic growth, development, employment creationand better income for farmers in rural areas,” hesaid.According to Mr. Anga, with little more steps tosupport the sub-sector by the Federal Government,cashew will soon become the number one cash crop inNigeria.He said, “We hope to do much more for thecashew sector and create more prosperity for our cashewfarmers, cashew processors, traders and exporters.’’Mr.Anga said that Africa produced over 50 per cent of theworld’s cashew and Nigeria was among the top threelargest cashew producers in Africa.He said about 400,000 hectares of land was being usedfor cashew production across the country.Mr. Anga,however, noted that Nigeria’s annual yield per hectarewas low because the nation’s current annual productionstood at 150,000 tonnes of raw cashew nuts.He said theassociation was moving forward by rejuvenating cashewplantations and increasing the area of land under cashewproduction in Nigeria.He said the recent successes ofcashew farmers in some parts of Kogi State had furtherencouraged the association to continue its drive toempower cashew farmers nationwide.He said cashewfarmers were already clearing their farms for the 2016season.Some cashew farmers in Umoni Village, Ofu LocalGovernment Area in Kogi said on telephone that theywere happy with the development as their lives hadbecome better.A cashew farmer, Samuel Haruna, said hewas able to roof his family house with the sales herecorded from the 2015 cashew season.Mr. Haruna, whohad been in the cashew business for more than 20 years,said he never really made profit from selling raw cashewnuts as much as he made in 2015 season.“I was able to buy 14 bundles of roofing zinc to roof myfamily house. I have been involved in cashew farming for20years and I never had it this good.“This 2015 cashewseason was really good for me and for my people, Irealised good money from the sale of cashew.“Wecashew farmers from Umoni village are very happy; weare pleased with the activities of NCAN and all theefforts at improving cashew farmer’s livelihood.“This yearI made good money from my cashew farm for the firsttime. Not just me but other cashew farmers made goodmoney too,” he said.A 30-year-old cashew farmer, JoelThomas, said that he bought a jeep from the sale ofcashew recently.Another cashew farmer, also fromUmoni Village, Ibrahima Sule, said he bought a Toyotacar from the sale of cashew in 2015.A 35-year-old, IsaacIdanyi, said he was able to build a four-bedroom flatfrom the sale of cashew nuts.