As each day goes by, the cashew business is growing, and looks set to continue in growth as long as the earth continues to complete its rotation. The cashew industry globally is not only growing but seeking towards expansion and diversifying. In Europe, consumers are willing to spend more for quality foods as they are seeking new cashew products due to its increased health awareness and nutritional facts. The world is awakening to what cashew really has to offer. There are reports that the US Cashew consumption increased in 2017 when compared with 2016, Growth is seen in cashew milk, cashew butter, health awareness among consumer is creating space for lot of newer products in the markets. In Indian state of Gujarat, 30,000 tons of RCN are currently being processed and their goal is to achieve 200,000 tons of RCN processed in the next 3 years making Gujarat a good market for broken cashews.
In Africa, according to Mr. Mahesh Patel, “3% increase in local processing of RCN in Africa will boost the household income of Africa by at least $100 million.” In 2017, Nigeria RCN exports exceeded 220,000 tons as against 160, 000 exported in 2016. In 2018, Nigeria’s RCN crop size is projected to increase by 10% to 242,000 according to NCAN. There’s also an expectation that RCN production in the country should have increased to 500,000MT by 2025. The government, through the ministry of Agriculture also hopes to develop a cashew processing capacity of 70% of the total production.
There’s an ongoing project on how de-oiled cashew shell cake could be utilized for electricity generation as we are aware that 70% of RCN by weight is from cashew shell. This just explains the potential embedded in this cashew and how it is expanding and diversifying.
There’s no better time to invest in the cashew business than now, judging by the constant increase in demand over supply across the world. In 2017, Vietnamese traders faced lots of problems while importing RCN due to subsequent deterioration of the quality of imported RCN when the demand increased. Therefore, the opportunity isn’t just in investing in cashew biz, but investing in the right type of cashew.
For more information on how to invest in the cashew business, visit the investment plan on the home page.
The National President, National Cashew Association of Nigeria, NCAN, Tola Faseru, has disclosed that the production of the commodity has increased from about 90,000 metric tonnes in 2011 to 220,000 metric tonnes at the end of 2017 translating to about $402million.
He said the cashew industry has made a lot of progress when compared to other commodities in the country.
Speaking with Agriculture journalists recently, Faseru said: “In 2011, our production was about 90,000 metric tonnes, today, as at the end of 2017, we have reached 220,000 metric tonnes. For us, that is a major breakthrough. That is more than doubled what the production was from 2011 to 2017. Barring all issues of climate change and all of that, for us, that is a major effort.”
He added “the earning has increased tremendously, the earnings in 2011 were about $48 to $50 million annually but as at 2017, we have reached $402 million. What it means is that the value of Nigerian cashew has increased.
“In 2011, we were talking of something in the region of between $300 and $500 per ton. Today, we are talking about $1800 and we have explored an upward trend in the marketability and acceptability of the Nigerian cashew across the world.”
Tola Faseru said the increased earnings from cashew has impacted positively on the farmers. “In the past, a farmer was selling at the local price of N30,000 to N40, 000 per ton, but today, the farmer can sell at about N300,000 per ton.
“Thus, our farmers are now living a decent life; they provide shelter for themselves, have good cars and that had encouraged them to plant more. By and large, it has encouraged them to take good care of their farms.”
He said one of the reasons for the growth in the sector is the sensitisations and trainings given to the local farmers. “We have given farmers trainings on how to store their cashew properly, they are able to first of all put in best agricultural practices; they are able to do what they call proper harvesting which is critical to the yield and to the quality.
“Farmers are able to dry cashew properly; most importantly, they are able to package it well. When we came in, cashew nuts were usually packaged in polythene bags and we said this will kill the quality because the cashew will not have proper air to breathe because it will get heated up and what will happen is for the cashew to spoil.
“So, we said jute bags should be the way. Jute bags give way for air to flow in and out, the cashew farmers have imbibed that as well.”
He added that drying of cashew has now become something farmers now handle professionally and has become the norm across the value chain.
Be wise, join the smart investors to invest in our ongoing cashew-cassava investment plan and join the league of Nigerians benefiting from this new “Nigeria Goldmine” by clicking on https://hastomnigeria.com/cashew-cassava-plan/
Read more at: https://www.vanguardngr.com/2018/05/982285/
Someone is thinking what sort of business this could be, well, don’t stress too much, it’s the cashew business of course.
A conversation with some local cashew farmer forced me to draw a conclusion that majority of these local cashew farmers will argue the fact that the cashew business is worth a Billion-Dollar simply because till now, individual and co-operate effort to grow cashew has not been wholly incredible in terms of the yield.
Paying close attention to the results from these farmers’ cashew farm, and their returns over the years, they could be justified to crucify me for referring to this same business “a Billion-Dollar business”. Also, after paying a closer attention to their methods of cultivation, I should be justified to give them strokes of cane because their so-called cashew plantation isn’t well cultivated.
There’s so much ASSURANCE attached to Cashew Cultivation because the yield can be improved upon drastically. This made us at Hastom Nigeria, put in a lot of effort in this research and found out that with modern practice, improved hybrid cashew seedlings and under favourable climate and soil condition, 10 acres of cashew plantation would have produced an average of 70,000kg of cashew nuts within few years, meaning that from just ten acres you would have made an average of 40million naira (with the current market price of cashew nuts), without adding the cash in from the cassava intercroppings.
A cashew tree can exist for more than 50years, this implies that, in fifty years you would have made a fortune out of the business.
This implies that, you aren’t just investing for yourself when you invest in cultivating cashew, you are also planning to leave an inheritance for your children to live on.
This is not just a paper maths, you can click here for the investment plan and join the smart agro-investors to invest in this “Billion-Dollar Business”
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Cashew is seasonal fruit that is highly sought after in the Nigerian Market as well as the global market. The species is originally native to the North Eastern Brazil. Major production of cashews occurs in Vietnam, Nigeria, India and Ivory Coast. The Cashew nut is eaten on its own, used in recipes or processed into Cashew cheese or butter. The cashew apple can be processed into a sweet fruit drink or distilled into liquor.
Driven by the rise in demand from china, India and other fast-growing economies, the global cashew boom has generated profits, the business has been of instant success for investors in the cashew business, as investors now worth millions of dollars in annual revenue, and with the world price rising and expected to remain steady, life is changing for those ready to invest in the business.
The cashew Industry has been a growing business over the years in Nigeria in particular. Cashew Production for 2015 was 160,000 tonnes, and fetched 57.6 billion naira revenue. In 2016, we exported 185,000 tonnes and earned 259 million dollars (93.2 billion naira). Last year 2017, 220,000 tonnes was exported and earned 123 billion naira, which means that the value continues to row over the years. But with this still, the demands is yet still more than the supply, this just implies a lot of room and opportunities for investments in this cashew business.
Investing in Cashew Nut business is one of the most lucrative investments you can make. The reason is not far- fetched. Nigeria is one of the largest producers of cashew in the world. It implies that you already have access to the essential commodity. In addition to this, the cashew industry has a high potential for growth, with cashew tree having the ability to last at least 50 years. There is a lot of money to be made if you invest in the cashew nut business.
The National Cashew Association of Nigeria (NCAN) has stated that Nigeria will generate a turnover of about ?N1 trillion in the next 10 years, noting however that necessary support and encouragement from regulators would make the target achievable.
The association also said Nigeria must promote cashew business and unlock financing for the sector for it to thrive. National Publicity Secretary and Chief Executive Officer (CEO), Universal Quest Nigeria, Mr. Sotonye Anga, who spoke on behalf of the group stated that the cashew industry requires a financing to the tune of N50 billion to boost production, processing and marketing. He said there was a need for value addition in the nation’s cashew industry to create more jobs for unemployed young people, diversify the economy and earn foreign exchange.
Anga who spoke at the export platform business luncheon tagged: “Multibillion N?aira Cashew industry”, stressed that exporting raw cashew, also exports job opportunities, stressing the need for the nation to reverse this trend.
“Let us not forget that Africa is the center of the cashew world, producing over 40 per cent of 2.6 million tons of the world’s cashew nuts with Nigeria standing as one of the largest cashew producers in the continent alongside Ivory Coast, Guinea Bissau, Tanzania, Ghana, Kenya, Mozambique and recently Mali,” he said. “The time to add value to our cashew and thereby create more jobs for our unemployed young people, reduce unemployment, diversify our economy, reduce the pressure on our Naira, stimulate economic growth? and get a bigger share of the cashew dollar is now,” he added.
According to him, $1.8 billion per annum in Naira is an equivalent of N351 billion from just cashew alone, noting that it is as a matter of urgency for Nigeria to have a paradigm shift to look away from petrol dollar to cashew dollar. He also stated that developing and investing in Nigeria’s cashew industry offers a straight route from poverty to financial freedom and prosperity for thousands of families. “Today, cashew is a major foreign exchange earner for Nigeria and thus listed as a transformational crop in the Agricultural Transformation Agenda (ATA) of the federal government of Nigeria,” he said. He pointed out that the nation’s annual production of raw cashew nuts now stands at 144,000 tones, stressing that in the last 9 years, cashew prices in Nigeria had increased by 266.7 per cent. Furthermore, he advised that Nigeria needs to consolidate its place in the cashew world by increasing its cashew production and processing, considering the growth in demand for cashew globally and the rising ?consumer appetite for the crop. “As we allocate more land for cashew cultivation, our major focus should be to increase our national average in terms of yield per hectare which is around 400kg to 600 kg per hectare to at least 1,000 to 1500 kg per hectare. He said as a result of this, there was the need to establish a national cashew seed program, improve farm level productivity by planting improved disease-resistant high-yielding cashew seedlings, rejuvenate old cashew farms and organize capacity building programs for cashew farmers.
Nearly 42% of the global cashew crop is produced by about 2.5 million small farmers in Africa. The vast majorities of these farmers live in rural areas and struggle to make as little as € 90 to € 330 per year through the production of cashews. Such low incomes result from a number of factors, including low yields, poor quality nuts and a lack of business skills. Cashew farmers in Africa rarely organize themselves into associations, which lead to a weak bargaining position with dealers.
They are also insufficiently linked to international markets, primarily because of the poor quality of their product. Adding to the problem is the fact that less than 5% of African raw cashew production undergoes further processing in Africa, leaving a tremendous opportunity for poverty reduction and job creation largely untapped.
“If the value chain for cashew nuts in Africa were well-organized, according to our calculations the industry would have accounted for US$ 1.9 billion in 2013.” Roger Brou is Managing Director at the African Cashew Alliance, an industrial platform whose goal is to promote the African cashew industry.
Such is the potential of the African cashew market. Africa produces 42% of the estimated 2.6 million tons of raw cashews every year. Of this, it exports 90% to the rest of the world, retaining the rest for domestic produce. In the recent past, while most of the efforts were aimed at improving farm level productivity through seed programs, replantation and rejuvenation, training and capacity building on farm management practices etc., a lot has also been done on reforming markets and revitalizing institutional infrastructure too. Tanzania, through the Cashew Board of Tanzania, has put in place a robust warehouse receipt based auction system to ensure quality nuts get fair price and small-holder farmers are not discriminated against. This has been working very well. Further, the Cashew Board of Tanzania is going ahead with establishment of three processing plants under public-private partnership model with the involvement of producer cooperative and government. Like-wise, Cote d’Ivoire, through its regulatory body, the Cotton and Cashew Council (CCC), sealed raw cashew movement through the land route and restricted raw cashew exports only through Abidjan and San Padro ports to bring in accountability. Besides, it fixed a minimum price for raw cashew for 2014 season and ensured farmers do not sell below it. Cote d’Ivoire with its significant production volume thus brought in necessary discipline in the raw cashew trade and exports. Simultaneously, CCC have started engaging with Vietnam at government to government to level to get access to Vietnam cashew processing technology into Cote d’Ivoire in exchange for assured supply of raw cashews to Vietnam. Cote d’Ivoire is largely replicating its successful model of cocoa in cashew. These are just two examples. The gist is every major raw cashew producer is evolving its own model to add value to raw cashew and in the process generate employment and wealth for the nation. Organizations such as ACA and ACi along with its partners are enabling and hastening this transition. Africa undoubtedly is the most happening place for cashew and rightfully, this decade belongs to African mammoth cashew industry.
In recent times, the focus of the African development Bank has been how it will invest billions of dollars to improve the field of agriculture in Africa. How it will empower more farmers, create economic opportunities and wealth creation. The wave is roaring across Africa.
Also, here in Nigeria, President Buhari just recently made public his agenda to make the agriculture sector, which Nigeria was once known as the powerhouse, become highly relevant and once again a major economy driver.
In ten years’ time, big-time farmers will ride Lamborghinis and drink coffee with the richest men on this planet. That is not difficult to know? Is it? Because by 2030 the world population is expected to increase by 40%, that’s about 2-3 billion more people that will need to eat. Here comes the biggest opportunity for the “Smart” farmers to tap into that opportunity.
Agriculture is the last frontier, and Big-time farming is the key. Africa has the best land and climatic factors which are basic to excellent agriculture.
Cashew nuts investment is like no other considering the potential in it and the economic opportunities tied to it. There are more than enough reasons why you need to invest in cashew precisely.
High Demand/Low Supply
During cashew seasons foreigners, especially from India, bombards the streets of Ogbomosho with millions of dollars seeking local cashew nut dealers to trade with and also plotting for ways to maintain a direct link with local farmers. The supply has never been enough in respect to how high the demand for cashew has been in the last few years. Now, most of them, individual and in groups are tired of low supply, now acquiring lands to start their own plantations too. According to research, in respect to the demand-supply scenario presently, there is no amount of cashew that will be produced in the next five years that will be enough for the market. What an opportunity!
Read what was said concerning cashew at a national meeting in Abuja:
“The time to add value to our cashew and thereby create more jobs for our unemployed young people, diversify our economy, reduce the pressure on our Naira, stimulate economic growth,? and get a bigger share of the cashew dollar is now.”
“$1.8 billion per annum in Naira is an equivalent of N351 billion from just cashew alone, noting that it is as a matter of urgency for Nigeria to have a paradigm shift to look away from petrol dollar to cashew dollar.”
“Today, cashew is a major foreign exchange earner for Nigeria and thus listed as a transformational crop in the Agricultural Transformation Agenda (ATA) of the Federal Government of Nigeria.”
You’ll never know that Cashew is this important to NIGERIA!
Nigeria’s Vantage Point of the Best Farmlands
In terms of land mass, Nigeria’s total land area is 92.4million hectares. Of this area 91 million hectares is adjudged to be suitable for cultivation. Approximately half of this cultivable land is effectively under permanent and arable crops, while the rest is covered by forest wood land, permanent pasture and built up areas. The UN’s Food and Agriculture Organization (FOA) said by year 2050, world’s population will rise to 9 billion, and to satisfy global food demands, food production for developing countries like Nigeria, will need to increase by 70 percent.
Nigeria currently ranks sixth worldwide and first in Africa in farm output, and it’s one of the unique countries where cashew grows in almost all its states in sizeable quantities. Cashew is produced in commercial quantities in 15 of the 36 States in Nigeria, across its South Eastern, South Western and North Central regions. Not all other crops can thrive everywhere like that. It’s quite easy to say cashew loves the Nigerian soil. So, take advantage of that!
Nigeria, Africa’s largest economy, is projected to expand 4.9 percent this year, according to the Bloomberg survey and it’s one of the top-ranking, fasted developing nations in the world alongside Kenya in Africa. In a nation where population is expected to reach 250million in less than a decade, food insecurity has been a rampaging menace and more than half the population still lives below the poverty level.
To improve the menace, cashew nuts have taken root, even heralded by the federal government as a veritable investment opportunity that can generate enormous wealth for individuals, institutions, and the nation at large. In fact, the cashew nut has been listed as a transformational crop in the Agricultural Transformation Agenda (ATA) of the Federal Government of Nigeria. In lieu of that, the focus on cashew nuts as a potent economic booster cannot be underemphasized. It’s a great investment.
General global demand for Cashew Nuts
Cashew is a major product for millions of majorly small-scale farmers. The annual production worldwide is about 2.1 million tons of raw nuts (RCN) with an estimated value of US$ 1.5 -2 billion. The main cashew production regions are Africa, India, Vietnam and Brazil. Africa is the world second largest producer.
The world cashew demand is growing strongly in terms of volume and value. Prospects are that world demand for cashew will continue to increase rapidly. Main buyers from US and Europe, but also India, Vietnam and Brazil will have to source from Africa because Currently 40% of the cashew world production of Raw Cashew Nuts (RCN) is produced in Africa.
The interest in the sources for the African continent have intensified in the past 2-3 years, major actors from India, Vietnam, China, Brazil and Europe are investigating the opportunities to invest with a new focus towards large scale mechanized processing.
There is a growing interest in the major production area, Africa.
Ease of Management
Not so difficult to manage that even a dummy can be taught how to do it! Cashew has no serious disease that afflicts it, been one of the crops with an extremely high resistance to diseases. That considerably reduces or eliminates expenses that could have been used on herbicides and pesticides. In a nut shell, Cashew farm is not one of those farms that you have sleepless nights of worrying over. The only real threat is fire outbreak, and that can be taken care of through adequate security measures.
With cashew, you can intercrop other crops like cucumber, soya, water melon, etc. which can generate enough revenue as high as, or even more than the invested capital. Weeding cost can also be considerably reduced through inter-cropping.
Many would argue that revenue from cashew comes after a long time. The point is, is 3 years a long time? Such argument is not real for a smart farmer. With intercropping, a farmers start to make money as fast as four months after planting in the short term and that can always be repeated over and over again.
The Ogbomosho Advantage
Ogbomosho has the best land for cashew and produces the best quality cashew nuts in the country. Everybody knows that. If you have a cashew farm in a place like Ogbomosho, you can always be happy that you are in for very high quality produces that make your investment highly profitable. You will make more money than other investors in other places. The quality of Nigeria cashew nuts, measured in KOR, is between 42-54 KOR (KOR = Nut Counts) Ogbomosho cashew nuts have the highest. Recently, a kilo in Ogbomosho sold for 220,000 naira per ton (around $1,250), while it was much lesser in other states. The higher the Nut Counts (KOR), the higher the value and worth of the Raw Cashew nuts (RCN), the more the profits!
From production waste alone which is as a result of low quality nuts, the country loses a whopping $50m (N2.9bn) in export earnings yearly due to the rejection of poor quality nuts popularly referred to as “export rejects.”
Derivative Business Opportunities
There are further investment opportunities in cashew nuts which includes processing and exporting. Anybody can do it under the right conditions.
Africa is the second largest cashew producing continent in the world, but from all the cashew nuts, about 40% of the world total production, only 10% gets processed (shelling and peeling) in cashew kernels in Africa. The rest gets processed in mainly India and Vietnam followed by Brazil. Therefore a lot of value in the value chain gets lost for Africa.
According to a representative of African processor association, processing of cashew nuts in Africa has the potential to add U.S$2.8Billion every year and the employment of more than 275,000 people in factories.
The competitive disadvantage of Africa as far as processing is concerned, will change at the moment the mechanization is implemented.
The industry’s potential productive capacity is estimated at N200bn yearly. While the estimated worth of local consumption is not known, the country is only realizing N23bn from exports. This leaves a difference of N177bn in annual losses due to lack of value addition and poor processing. This shortcoming has opened up opportunities for investment in cashew nuts farm plantations and what to do with the nuts thereafter: processing, or exporting.