How To Start Cashew Nuts Exportation Business
How to Start a Cashew Nut ExportBusiness
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.