New season begins (few years back)
There are few dreams bigger than becominginstantaneously 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.