Monday, March 10, 2014
Cashew exports in the first three quarters are seen higher by 28% in value realisation, and 20% in volume compared with the performance in the same period last year.
Value realisation for the first nine months of the fiscal has already touched R3,888.8 crore and likely to exceed last years performance by a handsome margin. In the last fiscal, cashew exports totalled 1,03,645 tonne with a value realisation of R4,046 crore. India is the world's largest consumer of cashew nuts with trade estimates of consumption ranging from 1,70,000 to 1,90,000 tonne. It is also one of the largest processor and exporter of kernels.
“Following a reasonable growth in usage in all markets in 2013, there are signs that usage will be good in 2014 as well due to the high prices of other nuts and relative stability of cashew prices at the lower end of range of last few years,” Pankaj Sampat of Mumbai-based Samsons Trading said.
“We believe the market may see some volatility between till May 2014 depending on news about the crop progress. After that, it should stabilise and move in a narrow range for rest of the year. If there is any strong kernel demand from the US and EU in March-April, the raw nut prices will not come down and will remain firm,” he added.
Cashew is probably the only nut for which prices have remained steady for two years in a row.
Pratap Nair of Vijayalakshmi Cashews, who is also the ambassador of the International Nut & Dried Fruit Council (INC) feels the consumption of cashew nuts is likely to increase due to a rise in the awareness level of health benefits.
Saturday, March 8, 2014
Vietnam has over taken India in Cashew exports. Vietnam exported 257000 tonnes of cashew nuts in 2013, up 15.8% year-on-year, presenting the 8th consecutive year the country has topped the world’s cashew nut exports.
Raw Cashew nut production in India has more than doubled in the last two decades, according to the experts.
Thursday, March 6, 2014
Vietnam's cashew trading in the first two months of this year declined as increased prices of raw material for cashew nut caused difficulties for companies in production and exports, Xinhua reported.
A report by Vietnam's Ministry of Agriculture and Rural Development shows that the country imported 28,000 tons of raw cashews at USD36 million in the first two months.
The figure represents a 36.4 percent decreased in volume and a 20 percent decreased in value when compared to the corresponding period a year before.
The US was the largest importer of Vietnamese cashew nuts accounting for 20 percent of the total. China came next at 20 percent of total cashew nut exports.
The National Cashew Association of Nigeria (NCAN) said the country produced about 120,000 metric tons of cashew nuts yearly.
NCAN’s National Publicity Secretary, Mr Sotonye Anga, told newsmen in Lagos that the production was huge. Anga said that as a result of the production, there was the need for the federal government to strengthen the cashew value chain. He, however, noted that an unaccounted amount of the production was exported illegally to neighbouring countries.
“Nigeria produces about 120,000 tons of raw cashew nuts yearly and they are mainly exported as raw nuts to India and Vietnam. However, due to the porous nature of our borders, so much unaccounted for and illegal exported raw to neighbouring countries.
“This illegal trend of cashew export is also weakening the nation’s export potential of the crop,’’ Anga said.
Wednesday, March 5, 2014
Kochi, March 5:
Cashew exports during the current fiscal have increased significantly in volume and value. If the trend continues, total shipments will be a record high.
However, Vietnam has overtaken India in cashew exports. For the past eight years, the Far-East nation is the top shipper of cashew.
“We expect record shipments this fiscal. The exchange rate has been favourable for exporters,” Sasi Varma, Executive Director & Secretary, Cashew Export Promotion Council of India, told Business Line.
During April 2013-January 2014, total shipments of cashew increased to 1,00,477 tonnes valued at ₹4,206.26 crore at a unit value of ₹418.63 a kg against 85,879 tonnes valued at ₹3,350.81 crore at the unit value of ₹390.18 a kg.
Export of cashew nut shell liquid rose to 8,260 tonnes valued at ₹40.03 crore against 7,334 tonnes valued at ₹24.29 crore during the period, he said.
Raw nut imports
On the other hand, the exchange rate is unfavourable for some exporters who have to import raw cashew nuts. The volatile exchange rate due to swinging rupee coupled with high (non-parity) prices have dragged imports of raw nuts. This could affect exports at a later stage, he said.
Imports of raw nuts decreased during the period to 6,90,526 tonnes valued at ₹3,896.69 crore from 8,04,425 tonnes valued at ₹4,802.62 crore in the same period a year ago, he said. Though raw cashew nut production India has more than doubled in the last two decades, poor yield is still a cause for concern compared to competitors such as Vietnam.
According to official estimates, raw cashew output in 2012-13 is around 7.3 lakh tonnes (lt) from an area of over 9.8 lakh hectares. This is against 3.48 lt from 5.65 lakh hectares in 1993-94 and 5 lt from 7.7 lakh hectares in 2002-03. Vietnam at the top
The yield in other global producing nations such as Vietnam is lower, official sources told Business Line. Total raw cashew production in Vietnam in 1993 was 1.86 lt from 69,100 hectares. It shot up to 12.73 lt from a total area of 3.31 lakh hectares in 2011, according to the latest FAO statistics. The yield from a hectare is currently 3.8 tonnes in Vietnam against India’s 772 kg.
Varma, who is currently in Japan to participate in Foodex, said: “Japan has always been a favourable market for Indian cashews and our participation in Foodex Tokyo will further strengthen our ties.”
Vietnam reportedly exported 2,57,000 tonnes of cashew nuts in 2013, up 15.8 per cent year-on-year, presenting the eighth consecutive year the country has topped the world’s cashew nuts exports. On the report of record Vietnamese reports, Sasi Varma said, “the difference is that they do not have any domestic market whereas in India, domestic sale is estimated to be more than double of our exports.”
HANOI, March 5 (Xinhua) -- High import prices of raw material for cashew nut has brought difficulties for Vietnam's companies in production and exports, causing declines in the commodity's trading in the first two months of 2014.
According to a report by Vietnam's Ministry of Agriculture and Rural Development, Vietnam imported some 28,000 tons of raw cashews worth 36 million U.S. dollars in the first two months, down 36.4 percent in volume and 20 percent in value year-on-year.
Meanwhile, Vietnam earned 169 million U.S. dollars from exporting 28,000 cashew nuts in the first two months, down 0.1 percent in volume year-on-year.
The United States, China and the Netherlands remained Vietnam's large cashew nuts importers during the period, accounting for 26, 20 and 9.8 percent of Vietnam's total export revenue of the commodity, said the ministry.
Nguyen Duc Thanh, chairman of Vietnam Cashew Association ( Vinacas), said on Vietnam Industry and Trade Information Center's website on Wednesday that import price for raw cashew stays at over 1,000 U.S. dollars per ton, 150 to 200 U.S. dollars higher than that of 2013.
If Vietnamese companies imported raw materials at that price for export processing, they will suffer from loss, said Thanh, adding that these companies should prioritize on buying domestic raw materials for production demand.
According to Vinacas, in 2014, Vietnam's export revenue of cashew nuts, shell oil and processed cashew nut products is forecast to hit 2.2 billion U.S. dollars.
In order to realize the target, Vietnam must import some 650, 000 tons of raw cashews from West Africa, East Africa and Southeast Asia as domestic cashews output is estimated to be 350, 000 tons.
In 2013, Vietnam imported some 651,000 tons of raw cashews worth 621 million U.S. dollars, up 96 percent in volume and 83 percent in value year-on-year, Vinacas statistics showed.
Vietnam pocketed 1.66 billion U.S. dollars from selling 264,000 tons of cashew nuts to world market, up 13 percent in volume and 19 percent in value year-on-year. If included shell oil, and processed cashew nut products, the total export revenue of Vietnam 's cashew sector hit 1.9 billion U.S. dollars in 2013, said Vinacas.
Tuesday, March 4, 2014
COTONOU, March 4 (Xinhua) -- Benin's government and stakeholders in the cashew nut industry have decided to sell a kg cashew nuts at 200 CFA Francs (30 U. S. cents) during the 2013- 2014 season, an official source said on Monday.
A study conducted recently by the Agriculture Ministry revealed that cashew nuts represent the second agricultural export product.
The study found that the export of cashew nuts from Benin to the international market, especially towards China, Indonesia, Vietnam and the European Union, has increased greatly in the recent years, moving from 19,174 tons in 1997 to 69,357 tons in 2006.
Monday, March 3, 2014
HO CHI MINH CITY, Feb 27 (Bernama) - Vietnam's cashew sector aims to earn US$1.8 billion (RM5.8 billion) from exporting 180,000 tonnes of nuts this year, Vietnam News Agency (VNA) reported.
The Vietnam Cashew Association (VINACAS) estimated that nut shell oil and other processed products would contribute to total export revenue of US$2.2 billion (RM7 billion).
VINACAS has set a target of buying 350,000 tonnes of raw cashew nuts from domestic farmers and import 650,000 tonnes from West African, East African and Southeast Asian countries this year.
VINACAS president Nguyen Duc Thanh said Vietnam's agricultural exports including cashew nuts continue to face barriers from its major importers, such as the Food Safety Modernisation Act of the US Food and Drug Administration.
He proposed that the state design policies to encourage businesses to invest more in cashew processing and produce auxiliary products, and to diversify foodstuffs to serve both domestic and foreign markets.
From January to February this year, Vietnam exported 28,000 tonnes of cashew nuts totalling US$169 million (RM541 million), representing a year-on-year decrease of 0.1 percent in volume and a rise of 2.4 percent in value.
The US, China and Holland are the country's largest importers of nuts.
The Enhanced Integrated Framework (EIF), under the Ministry of Trade, Industry, Regional Integration And Employment, on Wednesday 26th February, 2014, held a day-long workshop on Quality Assurance Framework for Cashew Nuts and Sesame at the National Nutrition Agency (NaNA) in Bakau. The occasion, supported by the International Trade Center, is aimed at ensuring that quality and safety food requirements are met consistently by all stakeholders along the value chain.
It well defined the responsibility and accountably of all stakeholders along the value chain, stating the 5 Cs, Commitment, Competence, Consultation, Coordination and Cooperation.
The Senior Adviser of Quality at the ITC, Mr. Khemraj Ramful, speaking at the forum, said in the framework of a mission to The Gambia, a number of consultations and field visits were arranged and that these consultations and field visits to the farmers/producers, factories and companies of the SMEs had more importantly enabled an in-depth assessment of their levels of knowledge and enforcement of food safety plan.
He said the observations and recommendations to make up for the stakeholders' deficiencies concerned mainly, the situations in the fields and the ability or expertise of the conformity assessment institutions like the food control laboratories to handle their task according to the recommended international standards.
"Food safety is the assurance that food will not cause harm to the consumer when it is prepared and / or eaten according to its intended use and food quality refers to the totality of features and characteristics of a product that bear on its ability to satisfy stated or implied needs.
Food safety is a vital part of food quality and it cannot be compromised since it has an effect on health. While certain quality aspects like size, shape and colour can be visible to the naked eye, the safety ones are not visible.
Food safety should therefore be integrated in a quality assurance national system, which is referred here as the quality assurance framework (QAF)., focusing on the prevention of problems, not simply curing them," he said.
Mr. Seedy Fofana, a Food Scientist of the Food Technology Services of the Department of Agriculture, in his presentation said, adequate, safe and quality food is a vital element for the achievement of good health and acceptable level of health, noting the food safety and quality control systems in Gambia Is aimed at protecting the consumer against unsafe, impure and fraudulently presented food that may be injurious to the health of the consumer and also ensure fair food trade. With the rising liberalization of agro-industrial markets, he said, the assurance of food quality and safety has become a major concern.
Mr. Fofana said the responsibility for food safety and quality control in the country is shared among different ministries and agencies and there are wide variations in the expertise and resources available between the key stakeholders. He said: The Gambia has enacted various laws and regulations over the years to regulate and enhance food safety to preserve the health of the public and facilitate international trade requirements. However, there is no unified policy and a single food law in The Gambia that regulate issues of food safety.
Various ministries and sectors involved in food safety and quality control have their own pieces of legislation that govern their operations according to their area of focus." Mr. Fofana said The Food Safety and Quality Authority is an authority established under The Food Safety and Quality Act, 2011 to control the quality and safety of food and feed placed on the domestic market as well as those meant for export.
This legislation, he added, provides for the setting up of a food safety and quality regime by instituting structures and control mechanisms.
The Quality Enhancement Taskforce later met to discuss the current implementation status of the project relating to quality enhancement and to review the Role and Terms of Reference (TOR) of the Taskforce and Sustainability Mechanisms.
Tuesday, February 25, 2014
KOCHI, FEBRUARY 25:
A temporary squeeze in kernel supplies in the next 2-3 months is likely as several processors in India and Vietnam have cut production since December due to high raw cashew nut (RCN) prices. At the same time, it could also result in some processors moving in a hurry to buy when West African RCN shipments start in mid-March.
The cashew kernel market was steady during December-January moving in the range of $3.75-3.90 for W240 and $3.30-3.40 for W320. Last fortnight, some processors in both the origins sold at lower levels - business reported as low as $3.60 for W240 and $3.20 for W320. These lower levels were offered by very few processors, while others asked 10-20 cents higher.
During last week, the range of offers was W240 from $3.60-3.85, W320 from $3.20-3.40, W450 from $2.95-3.10, SW320 from $3-3.10, SW360 from $2.80-2.90, SSW from $2.45-2.55, splits $2.45-2.55, pieces from $1.65 to $1.80/lb (fob). Prices for brokens have moved up by 10-20 cents in the last couple of months with very little volume being offered from Vietnam.
However, India exports negligible quantities of brokens. Indian market, both for wholes and brokens, has been quiet for the last couple of weeks but there was reasonable activity during December/January. “We expect domestic market to pick up activity after mid-March,” Pankaj N Sampath, a Mumbai-based dealer told Business Line.
SLIP IN RCN PRICES
Tanzania RCN prices have come down from a peak of $1,450 a tonne c&f to $1,300-50 a tonne, but most of the slightly smaller crop was sold at higher levels. Availability from Mozambique is smaller than normal. Outlook for 2014 Northern crop, which constitutes over 75 per cent of world production, is good so far. There is no adverse news from any origin. The only concern, at this time, is the impact of the changes in regulations in Ivory Coast, the biggest producer in Africa. Small quantities have been shipped from Nigeria. Shipments from Benin, Ghana, Ivory Coast will start in second half of March. After some trades for small quantities in January at high levels, offers have come down in the last two weeks and the current range is Nigeria from $900 to $950 a tonne c&f / Ivory Coast from $1,000 to $1,050 a tonne c&f / Benin & Ghana from $1,100 to $1,150 a tonne c&f.
Although RCN prices have come down in the last couple of weeks, there is still a 15-20 cents disparity between current RCN and current kernel prices, he said. Following a reasonable growth in usage in all markets in 2013, there are signs that usage will be good during 2014 as well due to the high prices of other nuts and relative stability of cashew prices at the lower end of range of last few years.
The trade feels that the market may see some volatility between now and May 2014 depending on news about the crop progress and RCN price movements and after that it should stabilise and move in a narrow range for rest of the year. If there is any strong kernel demand from the US and/or EU during March/April, the RCN prices will remain firm.
Cashew has become one of the leading cash crops in the country in recent years. It is normally grown in the tropical countries because the cashew tree is said to be very frost sensitive.
Ghana, by its location, falls within the tropic zone, and with its vast savannah area, it is a safe ground for the cultivation of cashew. It is, therefore, not surprising that tonnes of cashew nuts are almost always carted out of the country every year. The numerous uses of cashew (which is widely cultivated purposely for its nuts) are well known.
Agriculture is said to be Ghana’s most important economic sector, employing more than half the population on formal and informal bases and accounting for almost half of GDP and export earnings.
One crop which now needs government attention for maximum production is the cashew. Over the years, cashew production in the country has been left in the hands of the private sector. This has led to price disparity to the disadvantage of farmers and has subsequently affected the production of the crop.
The season for the cashew industry or business in the country has begun with its accompanying problems, especially pricing.
Cashew farmers from past years have been appealing to the government to set up a body to regulate the pricing of cashew in the country, like other cash crops in the country. But this plea of the cashew farmers is yet to attract government attention.
At the moment, it is the buying agencies-both local and international-that always determine prices of the commodity at the beginning of the season. This they normally do in their favour to the detriment of the farmers. In most cases, the price which is set by these agencies does not consider the world market price or its quantity, but only the profit they will make.
For the past three or more years the price of cashew in the country and the Jaman North District in particular has been falling to as low as GH¢40 or GH¢0.40 per kilogramme. For instance, in the 2013 cashew season, the price per kilo of cashew nut commenced at GH¢1.20, rose to about GH¢1.50 and dropped to GH¢1.00 before it finally came as low as GH¢0.40. All these price changes were influenced by the purchasing agents when the international buyers might have budgeted for GH¢1.50 or more per kilo. The purchasing agents have also made it impossible for the farmers to have any contact with these international buyers and exporters.
Considering the rising prices of farm implements and inputs like weedicides, pesticides and labour, etc., as well as the rise in inflation in the country, cashew prices should have rather gone up or should have been maintained at an appreciable level than the current situation.
This phenomenon is discouraging cashew farmers from putting in efforts to cultivate the crop, considering what they have put in vis-a-vis the price being offered by the buying agencies.
The Ministry of Food and Agriculture (MOFA), as a lead agency and focal point of the Government of Ghana responsible for developing and executing policies and strategies for the agriculture sector, must step up its efforts. With its nicely carved vision and mission statements, it is about time we saw these statements in practical terms and not mere rhetorics.
While it cannot be said that the ministry is not doing anything, we can equally not lose sight of the fact that the ministry needs more action as there is vast room for improvement. It is long overdue for the country to benefit from the cashew potential as an increase in production will bring about more employment while the exports will also bring about additional foreign exchange.”
It is against this backdrop that cashew farmers have been calling for government intervention over the years for improved cashew production and regulated pricing for the benefit of the country and the farmers for that matter.
It is, therefore, the wish of farmers that the government, through the Ministry of Food and Agriculture (MoFA), Ministry of Trade and Industry (MOTI) and other stakeholders like African Cashew Alliance (ACA), would do something to alleviate the cashew farmers’ plight.
Monday, February 24, 2014
Wednesday, February 19, 2014
The National Cashew Association of Nigeria (NCAN) on Wednesday said that Nigeria loses about 50 per cent of its cashew apple produced annually due to lack of processing capacity.
The “cashew apple”, a pseudo-fruit (false fruit) is actually the swollen stalk of the true cashew fruit of Anacardium occidentale (cashew tree) which is fibrous but juicy.
NCAN’s National Publicity Secretary Mr Sotonye Anga said in Lagos that the country produced an average of 1.8 million tonnes of cashew apple annually.
Anga noted that over 900 metric tonnes of cashew apple were wasted, adding that the development had amounted to huge economic loss.
“A huge economic waste. So every year you can imagine over 900 metric tonnes of cashew apple is wasted,’’ he said.
Anga said that cashew apple deteriorated within three days resulting in wastage of the fruits in farms and on the streets.
He called on the Federal Government to support cashew stakeholders in the area of processing infrastructure so as to aid exportation and curb post-harvest losses.
“When you harvest your cashew apple today, if you do not consume it today or tomorrow, by the next day it deteriorates and is wasted, which translates to huge economic loss,” he said. “So, this can be curbed and curbing it simply means that you transform the cashew apple into cashew apple juice.
“It means as a matter of urgency, as a matter of fact, the government needs to support the cashew sector strongly. Support in terms of enabling the sector to migrate from just exporting raw cashew into building processing capacity.
“That will enable it to process cashew nuts into cashew kernel that will be eaten locally.”
“Also, it can be exported because the market for processed cashew kernel is global. We have a population of about 167 million people, meaning a huge market base to consume what we process.
“If we want to go into serious cashew value addition, you have to invest in creating the infrastructure; you have to acquire the technology.’’
He said that cashew processing required a huge investment of between N200 million and N400 million.
Anga said because of this, stakeholders needed a window for long term financing and access to loan with single digit interest rate.
Also commenting, Mr Adebayo Sodiq, Chairman, Oyo State Cashew Farmers Association, said that government could create employment for the youth through cashew processing.
Sodiq said that government should look seriously at processing cashew to beverage that would generate income for cashew farmers.
“Cashew fruit is a revenue generator for any economy and Nigeria produces enough to empower farmers. Government should look into building processing plants for the processing of cashew into beverage. This will create employment and strengthen the economy,’’ he said.
Monday, February 17, 2014
MANGALORE, FEBRUARY 17:
An expert on cashew cultivation has stressed the need to focus on ultra-high density cashew farming to increase production in the country.
Speaking at the ‘cashew field day’, organised by the Agriculture and Horticulture Research Station at Ullal in Mangalore taluk on Saturday, Gangadhar Nayak, Principal Scientist (Horticulture), Directorate of Cashew Research at Puttur in Dakshina Kannada district, said that though the demand for cashew in the country is around 15 lakh tonnes a year, the country produces around 7 lakh tonnes.
Stating that some cashew-producing nations have started processing industries, he said it would lead to further demand for cashew processing units in India.
Considering this, there is a need for intensive cashew cropping pattern in the country. Highlighting the method of ultra-high density cashew farming, he said around 450 plants can be grown in an acre of land.
According to Nayak, in ultra-high density farming, they can plant many trees in an acre compared to the traditional system. in traditional system, farmers plant trees in 8 metres x 8 metres distance. This will help plant around 80 trees an acre.
Sunday, February 16, 2014
The Times of Zambia reported a +100% annual production growth of Zambian cashew nuts.
The production of raw cashew nuts has gone up to 130,000 tons per year and local consumption has gone up to 50,000 tons reports Allan Chinambu, President of the Association of Cashew Growers in Zambia
The cashew nut, which is mainly farmed in the west of Zambia, has the potential, if exploited, to create 10,000 jobs in industry, over 50,000 in agriculture, and to support over 100 small farms.
Whilst recognising this rise in production, the President of the Association pointed out that cashew nut farming has always been held back by many challenges that remain to be met.
''The rise is held back by the weak level of productivity from small scale producers, who are numerous and isolated in rural regions. This is a constraint for the trades people and the processing industry who must meet high transaction costs to maintain their own procurement arrangements, transport and stocking'' he declares. Cashew nut farming is also held back by the lack of quality standards, this undermines the consumers trust in locally farmed cashew nuts with competition from imported ones.