Thursday, August 21, 2014
Vietnam earns over 1 bln USD from cashew nuts exports in 7 months
HANOI, Aug. 21 (Xinhua) -- Vietnam earned some 1.02 billion U.S. dollars from exporting cashew nuts in the first seven months of 2014, up 17.5 percent year-on-year, said Vietnam Customs.
Vietnam Industry and Trade Information Center (VITIC) under Vietnam's Ministry of Industry and Trade on Thursday quoted statistics by Vietnam Customs as saying the country exported some 158,000 tons of cashew nuts in seven-month period, up 15.7 percent year-on-year.
The United States, China and the Netherlands remained three largest markets of Vietnamese cashew nuts during the period, accounting for 31.19 percent, 16.3 percent and 11.09 percent of Vietnam's total export revenue of the item, respectively, reported VITIC.
Vietnam now ranks third globally in the list of major cashew exporters, following India and Ivory Coast, said Vietnam Cashew Association on its website on Wednesday.
Earlier, the association forecast that the Vietnamese cashew sector will pocket some 1.8 billion U.S. dollars from exporting 180,000 tons of nuts in 2014.
The president of the National Cashew Agency (ANCA) in Guinea Bissau, Henrique Mendes, said the country is the fourth-largest producer of cashew nuts after India, Ivory Coast and Vietnam.
Speaking to Portuguese news agency Lusa, Henrique Mendes also said that annual production of cashews in Guinea Bissau was about 220.000 tons, of which between 60,000 and 70,000 are illegally sold through Senegal whilst the rest is sold through official channels to India.
Mendes noted that Guinea Bissau’s cashews are organic, produced in orchards and have no need of pesticides or insecticides, which makes them far more valuable than those that use chemicals in the production process.
He said that the Guinea Bissau’s cashews are the best in the world and noted that they were the only cashews in the world that can be harvested, processed and consumed in the same year.
The president of ANCA also noted the “geographical position” of Guinea-Bissau in relation to Europe, which is the world’s second-largest buyer of cashews after the United States and noted that it should take advantage of this location to increase the product’s international profile. (macauhub/GW)
KOCHI, AUGUST 19:
Demand for cashew kernels of different grades is likely to surge over the next few weeks in the domestic market owing to festivals.
Globally, cashew markets witnessed limited activities in the first fortnight of this month with offers and trades in the range of $3.60 to $3.75 for W240; $3.20 to $3.40 for W320, $3.10 to $3.20 for W450, $3.10 to $3.15 for SW320, $2.95 to $3.00 for SW360, $2.70 to $2.75 for SSW, $2.65 to $2.75 for butts, $2.55 to $2.65 for splits, $2.10 to $2.20 for large pices all per lb (f.o.b).
In the domestic market, there has been regular steady offtake every month. There have been periodic spurts in demand for brokens for short periods, while domestic prices for splits and pieces have been close to the international price for wholes, according to market sources.
For the ensuing Onam festival, demand for splits is expected to pick up while for Diwali, demand for brokens and premium grade kernels would witness an upsurge in the coming days, according to KA Retheesh, Managing Director, Kerala Cashew Development Corporation which processes and markets cashew and cashew products throughout the country.
He said the consumer packs of W-240 grade are sold at ₹700 a kg, while higher grade W180 is marketed at ₹900. There is good demand for the latter in metros. Its demand is also expected to move up in the winter months, he told BusinessLine.
In the overseas markets, there was a fair amount of activity in W320 during June and July with the US and Europe.
Depending on the processor and shipment period, trades have been in the range of $3.20 - $ 3.40 per lb (fob), Pankaj N Sampath, a Mumbai-based dealer said. Some business has been done few cents above the range as well for the fourth quarter of 2014 and early 2015 shipments, he said.
Except for small shortages in some areas, 2014 raw cashew crop in the northern hemisphere has been reasonably good and most of it has been sold to processors but some quantities are still with traders.
During the season, raw cashew prices have gone up by $150-250 a tonne depending on the origin and quality. On an average, raw cashew prices in 2014 have been 15-20 per cent higher than in 2013, despite the fact that kernel prices have been in the same range as of last year, with some premium for forwards. Prices for broken grades have moved up but since the percentage of brokens in total yield is low, the increased realisation does not compensate the higher raw cashew price. Higher RCN price means that shellers’ margins are probably under pressure. Keeping in mind that southern hemisphere contributes less than 25 per cent of the world crop, many shellers may decide to hold on to part of their stocks, either as kernels or as raw cashew for higher prices during the last quarter, Sampath said.
Since the overall availability is comfortable, there may not be a big jump in the market. But, there is an expectation that prices could move up a bit during September or October when the US/EU buyers cover significant part of their requirements for the first half of the next year.
It will be reasonable to expect more interest in cashews because prices have been in the same narrow range for more than two years, giving room for some increase beyond the current range as prices for other nuts are higher than last year’s, sources claimed.
- The Hindu
Tuesday, August 19, 2014
By Pankaj N Sampat
In the first half of August 2014, there has been limited activity in the cashew market. Offers and trades have been in the range of W240 from 3.60 to 3.75, W320 from 3.20 to 3.40, W450 from 3.10 to 3.20, SW320 from 3.10 to 3.15, SW360 from 2.95 to 3.00, SSW from 2.70 to 2.75, Butts from 2.65 to 2.75, Splits from 2.55 to 2.65, Large Pieces from 2.10 to 2.20 FOB.
Cashew prices (FOB origin) in Weeks 32 and 33 :
W240 US$ 3.60 to 3.75
W320 US$ 3.20 to 3.40
W450 US$ 3.10 to 3.20
SW320 US$ 3.10 to 3.15
SW360 US$ 2.95 to 3.00
SSW US$ 2.70 to 2.75
Butts US$ 2.65 to 2.70
Splits US$ 2.55 to 2.65
Large Pieces US$ 2.10 to 2.20
During June & July, there was a fair amount of activity in W320 with USA & Europe - depending on the processor & shipment period, trades have been in the range of 3.20 to 3.40 FOB. Most of the business at lower levels has been for nearbys. Fair amount of business has been done at higher end of
the range for shipment upto Dec 2014. Some business has been done few cents above the range as well for fourth quarter 2014 + early 2015 shipments.
There has not been much activity in W240 - differential has narrowed to about 30-40 cents from the earlier 50-60 cents per lb. Availability of W450 / SW is lower than normal and differential is about 15-25 cents from W320. Prices for Broken grades have moved up sharply - differential is less than 75 cents for Splits & Butts and about 1 dollar for Pieces.
In the Indian domestic market, there has been regular steady offtake every month. There have been periodic spurts in demand for brokens - for short periods, domestic prices for Splits & Pieces have been very close to the international price for Wholes !!Except for small shortages in some areas, 2014 crop in Northern Hemisphere has been reasonably good - most of it has been sold to processors but some quantities are still with traders.
During the season, RCN prices have gone up by 150-250 dollars per mt depending on the origin and quality. On an average, RCN prices in 2014 have been 15-20% higher than 2013, despite the fact that kernel prices have been in the same range as last year (with some premium for forwards). Prices for broken grades have moved up but since percentage of brokens in total yield is low, the increased realisation does not compensate the higher RCN price.
Higher RCN price means that shellers margins are probably under pressure. Keeping in mind that Southern hemisphere contributes less than 25% of the world crop, many shellers may decide to hold on to part of their stocks (either as kernels or RCN) for higher prices during the last quarter.
Since overall availability is comfortable, there may not be a big jump in the market. But, there is an expectation that prices could move up a bit during Sep/Oct when USA / EU buyers cover significant part of their requirements for first half of next year. It would be reasonable to expect more interest in cashews because prices have been in the same narrow range for more than 2 years (giving room for some increase beyond the current range because prices for other nuts are higher than last year).
We would appreciate your comments on market situation, views on trend + likely developments, any special information. and your interest.
Courtesy: Samson Traders, Mumbai
The African Cashew Alliance’s prestigious World Cashew Festival and Expo returns to Ghana for the second year running, with the 4-day event beginning on 11th November 2014 at the Accra International Conference Centre.
A statement signed by the African Cashew Alliance’s Communications Manager, Craig Duncan, to the GNA said over 400 delegates from all over the world and from all levels of the cashew value chain will converge, to forge business deals, share knowledge and discuss the future of the industry, at an event which will bring in over $1 million USD to the Ghanaian economy.
Although Ghana’s cashew industry is relatively small by global standards, cashew processing in Ghana ranks among the most industrialized in Africa, and the country by now has the capacity to process far more cashews than it harvests.
“Ghana is an inspiration to other countries seeking to industrialize their cashew processing sectors, and the conference will attract business people from many other parts of the continent interested in emulating Ghana’s model,” the statement said.
The cashew industry earns Ghana more than $18 million USD in exports every year, with over $6 million of income retained in local communities.
The past year has seen much greater government recognition of the industry, with prominent state participation in the first ever official launch of the cashew season taking place in Wenchi in April 2014, where the Ministry of Trade and Industry pledged to prioritize cashew investment promotion.
Meanwhile, 2014 has also seen calls from Ghanaian farmers asking the government to act to stabilize the market by officially regulating cashew prices in the same way it regulates other cash crops like cocoa.
While Ghana has much to teach other countries on the topic of industrialization of cashew processing, at the same time the country’s cashew farming lags behind many of its fellow producers.
This has become particularly clear in 2014, when new rules prohibiting overland cashew exports were introduced in Côte d’Ivoire, leading to a shortfall in raw cashew nuts for Ghana’s processing factories.
The 2014 Festival therefore also provides an opportunity for the various stakeholders in the Ghanaian industry to interact with other cashew producers around the world, and establish the best practices for the way forward.
This year’s Festival was originally planned for Kenya, but operational difficulties prompted the ACA to return the Festival to its traditional home base in Ghana for 2014.
“We are very much a pan-African organization, so of course we try to move the Festival around the continent as much as possible,” said Craig Duncan. “But at the same time, as an organization incorporated and headquartered in Ghana, when in doubt we bring the Festival back home. This is not just because of our strong membership base among the Ghanaian cashew sector – it’s also because we can be certain of a strong international attendance, on account of Ghana’s reputation as being at the forefront of industrialized cashew processing in Africa.”
The African Cashew Alliance’s World Cashew Festival and Expo 2014 takes place at the Accra International Conference Centre from 11-14 November 2014.
Thursday, August 14, 2014
KOCHI, AUGUST 13:
Export of cashew kernels continued to decline during the current fiscal as a high unit value continued to be a deterrent.
At the same time, imports of kernels from other origins also fell between April and July.
While competition from other nuts coupled with rise in kernel prices are attributed to the decline in exports, a higher import duty is pointed out as the reason for the lower imports of kernels, trade sources said.
“A sharp rise in the imported raw cashew nut prices has resulted in a corresponding increase in kernel prices,” Sasi Varma, Executive Director and Secretary, Cashew Export Promotion Council of India, told BusinessLine.
Industry sources at Kollam said the rise in raw cashew prices has pushed the kernel prices up and a parity price from exports is not available. “We have to import to as the indigenous raw cashew production is below 50 per cent of the industry’s annual requirement,” they said.
Between April and July, total exports stood at 34,917 tonnes valued at ₹1,529.16 crore at an average unit value of ₹437.95 a kg as against 41,502 tonnes valued at ₹1,617.28 crore at the unit value of ₹389.69 in the same period a year ago. Similarly, shipments of roasted and salted cashew dropped to 278 tonnes valued at ₹11.15 crore from 684 tonnes worth ₹24.02 crore last year. There has been a significant rise in the unit value of cashew nut shell liquid and consequently its exports dropped to 2,088 tonnes valued at ₹9.92 crore against 2,752 tonnes worth ₹10.21 crore. The unit value this year was ₹47.52 a kg as against ₹37.10.
Raw cashew import
In contrast, imports of raw cashew increase during the first four months of the current fiscal despite a sharp rise in prices.
Between April and July this year, 4,25,090 tonnes of raw cashew valued at ₹2,767.29 crore were imported at an unit value of ₹65.10 a kg. Imports during the same period last year stood at 3,52,203 tonnes valued at ₹1,931.85 crore at an unit value of ₹54.85 a kg.
According to KA Retheesh, Managing Director, Kerala State Cashew Development Corporation, increased offtake by Vietnam has pushed up the demand for raw cashew.
He said nearly 50 per cent of the raw cashew processed in the country is absorbed by the domestic market.
- The Hindu
PepsiCo will begin incorporating cashew juice into its blended juice products next spring, in a partnership with the Clinton Foundation that aims to encourage sustainable agriculture and improve the livelihoods of smallholder farmers in Maharashtra, India.
Cashew fruit, which typically goes unused by most cashew nut farmers, is high in nutritional value. It is rich in potassium and contains as much as five times the vitamin C of an orange and 50 times the vitamin C of an apple.
The PepsiCo-Clinton Foundation inaugural project was launched in Maharashtra, India with an agriculture initiative to source cashew fruit from smallholder farmers.
The arrangement is expected to create a new ingredient supply for PepsiCo’s local juice business, while simultaneously improving the livelihoods of thousands of cashew growers in the region. Most cashew farmers in this area of India farm on less than one hectare of land and live below the poverty line.
Through the Clinton Foundation’s Clinton Giustra Enterprise Partnership model, founded by President Bill Clinton and philanthropist Frank Giustra, this initiative will apply modern agricultural techniques to improve cashew farming practices, boost yield and productivity, and increase income for local smallholder farmers.
It will also scale up and strengthen India’s cashew supply chain to build the future potential of a domestic and export market, Pepsi says.
The program’s first India cashew harvest is currently underway. The fruit will be sourced from more than 2,000 smallholder farmers in 2014, with plans to scale the opportunity to as many as 15,000 over the next five years.
In another sustainable sourcing initiative, in March Pepsi committed to establishing a third-party audit program based on the social, environmental and human rights standards of its top sugar sourcing country, Brazil, by the end of 2014.
In the first seven months of this year, the provincial cashew export reached 15,200 tonnes, earning US$98.6 million, up 22.5 per cent in volume and 30.6 per cent in value compared to the same period last year. — Photo agritrade.com.vn
DONG NAI (VNS) — The Donafoods Dong Nai has co-operated with Target Co, Ltd of Germany to build a cashew producing area in the southern province of Dong Nai, said Nguyen Thai Hoc, general director of the Donafoods.
The two companies will start studying the cashew area and giving consultation for farmers in the two districts of Xuan Loc and Dinh Quan in September.
In the first seven months of this year, the provincial cashew export reached 15,200 tonnes, earning US$98.6 million, up 22.5 per cent in volume and 30.6 per cent in value compared to the same period last year.
The provincial cashew exporting markets are the US, China, Canada, Russia, the United Kingdom, the Netherlands, Australia and Thailand. — VNS
A typical Indian household is perhaps incomplete with jars of kaju or kaju barfi. The good thing is cashews (and not kaju ki barfi) are full of anti-oxidants, vitamins and minerals essential for the normal functioning of the body. Cashews were first cultivated in Brazil and were brought to India by the Portuguese in the 16th century. You must have had a nagging childhood where mothers and grandmothers would force them down your throat. We tell you why they weren’t very wrong in doing so.
1. Prevents Cancer
Proanthocyanidins are a class of flavonols that fight against tumor cells and stops them to divide further. These Proanthocyanidins and high copper content in cashew nuts help fight against cancerous cells and keeps you away from colon cancer. This is one of the major benefits of cashews.
2. Healthy Heart
Cashews are low on fat when compared to other nuts and that too in the oleic acid form which is very healthy for heart. They are cholesterol-free and the antioxidants present in them keep you safe from heart diseases.
3. Helps Control High Blood Pressure
Cashew nuts are high on magnesium and help you lower your blood pressure.
4. Helps Hair
Your hair is that color because of the mineral copper. Cashews have high copper content and give your hair that amazing lush black color.
5. Healthy Bones
Like calcium, your bones also need magnesium to remain healthy, which is one of the main ingredients of cashews.
6. Helps Weight Loss
Cashews are considered to have fats, but it is good cholesterol you are talking about. So, contrary to the popular belief, if you eat cashews twice a week you tend to gain less weight than the ones who don’t.
7. Helps Digestion
Tuesday, August 5, 2014
China ranks 2nd among importers of Vietnam's cashew nuts
HANOI, Aug. 5 (Xinhua) -- China continued to rank second among importers of Vietnamese cashew nuts after the United States in the first half of 2014, despite the shrinking market, according to statistics released by the Vietnam Customs Tuesday.
Vietnam Industry and Trade Information Center (VITIC) under the Ministry of Industry and Trade on Tuesday quoted the information from Vietnam Customs as saying that during the six-month period, Vietnam exported some 138.73 million U.S. dollars worth of cashew nuts to China, an increase of 31.09 percent year-on-year.
Vietnam has witnessed a decline in market share of cashew export to China in the past few years. Specifically, in 2000, China imported some 11,000 tons of cashew nuts from Vietnam, accounting for 32.6 percent of the market share.
In 2013, the import volume reached 52,000 tons, but the market share fell down to 20 percent. In the first six months of 2014, the figure slipped to over 16.3 percent, said VITIC.
During the six-month period, the United States remained the biggest importer of Vietnamese cashew nuts with over 265.36 million U.S. dollars worth of products, up 23.42 percent year-on- year, accounting for 31.19 percent of the market share.
The Netherlands ranked third in the list with nearly 94.38 million U.S. dollars worth of cashew nuts shipped to the country, up 30.16 percent in value year-on-year, making up 11.09 percent of the market share.
In the first seven months of 2014, Vietnam shipped some 158,000 tons of cashew nuts to the world market, earning 1.02 billion U.S. dollars, up 15.7 percent in volume and 17.5 percent in value year- on-year, said Vietnam's Ministry of Agriculture and Rural Development.
Vietnam remained the biggest cashew nut exporter in the world for eight consecutive years as of 2013. Vietnam's cashew nut has been exported to some 40 countries and regions worldwide.
Monday, August 4, 2014
KOLLAM: The $800-million cashew export industry, which registered a negative growth of 6 per cent in the April-June quarter, is unlikely to recover in the coming quarters despite the optimism by the exporters. The data provided by the Cashew Export Promotion Council of India (CEPCI) shows that the total exports dipped to `1,122 crore in the April-June quarter this fiscal when compared to `1,199 crore reported in the corresponding quarter last year.
The unit value realisation from kernels was down by 12 per cent to $185 (`437) a kg in the export market during the quarter.
The total quantity of the exports also declined 15 per cent to 26,999 metric tones in the same period. The industry exports raw cashew kernels, roasted and salted kernels, cashew nut shell liquid or cadanol etc to different parts of the world with US, UAE and Netherlands remain the top buyers of Indian cashew.
The sector has been affected by the double whammy of global recession which resulted in the lesser demand for the exported kernels and spike in prices for imported raw cashew nuts in the international markets.
India imports close to 7.7 lakh metric tonnes of raw cashew a year with a major share coming from the African markets.
According to experts, the industry is unlikely to recover in the coming quarters. “The cashew industry is going through a cycle and is yet to bottom out. The variables which have been a hindrance to the growth of the industry are very much there,” said executive director of Cashew Export Promotion Council of India, Sasi Verma. The spurt in raw cashew resulted in the closure of many exporting units in the country during the April-May period.
Even the top exporter like Vijayalaxmi Cashew Co had to shut some of its 19 major export units in the state for 45 days in the period. An exporter and vice-chairman of Cashew Export Promotion Council, P Sundaran said that international prices of raw cashew is still going northwards of $1,300 per tonne.
The Kerala State Cashew Development Corporation which operates 30 factories in the state has tendered for the importing 1,000 metric tonnes of raw cashew from Guinea-Bissau at a rate of $1,425 a tonne while the price of 4,500 metric tonnes of cashew came from Ivory Coast on July 27 was priced at $969 per tonnes.
Notwithstanding the problems facing the industry, the exporters are positive about the industry in the medium term.
“There were some trade-related issues that affected the movement of cargo from the African countries and once that is sorted out, the raw cashews bought hedged at lower price will start to come in.
“The port deal with Tuticorin is also a positive,” said Sundaran.
Kollam-Tuticorin port deal
On July 21, the ports of Kollam and Tuticorin finalised a deal to transport cashew cargoes meant for importing and exporting through sea. It is considered to be a major breakthrough for the industry as Tuticorin port receives the maximum number of imported raw cashew in the country and the Kollam being the export hub of cashews with over 400 factories in the district. With this deal, 43,000 truck loads of cashews will take the sea route in the form of 460 ship movements between the ports a year, thereby saving the time and handling charges. One container of cargo if it goes by sea will save `5,000 for the merchant. Thus in the cargo handling alone, the cashew merchants are set to save more than `21 crore a year. The deal is expected to become operational by the end of the second quarter of the current fiscal.
Sunday, August 3, 2014
Regretting lack of support from the government, cashewprocessors in Odisha have sought quick steps for export of their products.
"The Government should provide entrepreneurs with all support to enter the export market like overseas buyer arrangements, port and container facilities and financial support to compete with exporters from other states," President of Odisha Cashew Processors Association (OCPA), Rajendra Sabat said here.
"Odisha is the third largest state in the country in cashew cultivation, production and processing, but we are unable to export a single kilogram to other countries," he said.
"Ironically, cashew processors from states like Kerala and Karnataka are exporting the products of our state and getting huge profits.
"If we export at least 50 per cent of the present products, we'll be able to earn around Rs 500 crore every year," added Sabat.
"Due to lack of supporting policy of the government, we procure raw cashew from other neighbouring states like West Bengal and also from West African countries to run the units," said president OCPA.
The demand for government support by OCPA officials was emphasised at a workshop on 'Awareness programme on Quality Technology Tool (QTT) and Quality Management Standard (QMS) of Ganjam cashew cluster in food processing' here.
Organised by the Odisha Young Entrepreneurs Association (OYEA), the workshop was inaugurated by the state's Micro, Small and Medium Enterprises (MSME) Minister Jogendra Behera.
"The government will look into the matter and try its best to develop the cashew sector in the state," Behera said at the occasion.
Local MLA R Ch Chyaupatnaik urged the minister to provide financial support to the cashew processing units, particularly those in Ganjam district which were damaged in the cyclone Phailin in October last year.
- India Times
Wednesday, July 30, 2014
Cashew processors in the state have urged the government to make necessary arrangements to export their products tooverseas buyers.
"Odisha is the third largest state in the country in cashew cultivation, production and processing but we are unable to export to other countries. The processors from Kerala and Karnataka export the products of our state and earn profits", said Rajendra Sabat, president Odisha Cashew Processors Association (OCPA) here.
Lack of government support has been a dampener for the cashew processors, who are operating on thin margins for being unable to export their products.
"If we can export at least 50 per cent of our production, we can earn around Rs 500 crore every year", he added.
"The government needs to provide all support to enter into the export market like overseas buyer contacts, port and container facilities and financial support to the entrepreneurs to compete with exporters of other states", said Sabat.
The OCPA officials spoke on their constraints at a workshop on 'Awareness Programme on Quality Technology Tool (QTT) and Quality Management Standard (QMS) of Ganjam Cashew Cluster in Food Processing' here. The workshop was organised by Odisha Young Entrepreneurs' Association (OYEA). Jogendra Behera, state minister for micro, small and medium enterprises (MSME) inaugurated the workshop.
"The government will look into the matter and try its best to develop the cashew sector in the state", the minister assured. He also asked the processors to ensure production quality to compete with their counterparts in other states.
MLA (Berhampur) Ramesh Chandra Chyaupatnaik urged the minister to provide financial support to the cashew processing units, particularly in Ganjam district, which suffered major damage from the tropical cyclonic storm Phailin in October last year.
Odisha produces around 100,000 tonne of cashew with an area of 160,000 hectares under cultivation. Around 300 cashew processing units with over 140,000 tonne processing capacity per annum, are functioning in the state.
"Due to lack of supporting policy, we procure raw cashews from other neighboring states like West Bengal and also from West African countries to run our units", said the OCPA president. Ganjam, Gajapati, Puri, Khurda, Cuttack, Dhenkanal, Keonjhar, Koraput and Nabarangpur are the major cashew producing districts in the state.
Efforts by the National Cashew Association of Nigeria (NCAN) to improve the fortunes of its members have received a major boost as the association is in talks with the United States Agency for International Development (USAID)/Nigerian Expanded Trade and Transport (NNEXTT) to strengthen its capacity to provide evidence based advocacy and facilitate access to technical assistance for its membership.
Experts have identified low production yields, low value addition, poor access to finance and high energy costs as some of the challenges facing the Nigerian cashew industry and these have constrained the sector from fulfilling its potentials as one of the main sources of non-oil revenue for the country.
Nigeria is currently ranked as the sixth largest cashew producer in the world, but studies have shown that it can quickly move to number two with the required support of key stakeholders.
NCAN is looking to develop the cashew value chain, improve crop yields through new plantings, introduce better farm management practices, efficient aggregation, storage & logistics as well as attract new investments into processing of both the raw cashew nut and the cashew fruit. These interventions, the association believes, would better harness the potentials of the sector for development.
“Less than 20 percent of what is produced is being processed, which means that we are exporting our jobs. No wonder there is so much unemployment and insecurity in Nigeria. The bane of the cashew sector, over the years, has been weak access to finance which has made the sector to grow inefficiently with resultant export of 80 percent of annual crop as RCN,” the national president of the association, Tola Faseru, said.
According to him, with appropriate incentives, the sector could easily increase annual export earnings fourfold from N25 billion to N200 billion.
“Capital is one problem with farmers. Every other cash crop in Nigeria that is exported enjoys assistance from government, except cashew. Cashew, which is providing significant employment opportunities, has not been given as much attention as other cash crops,” Sotonye Anga, the spokesperson of the association said at the weekend in Abuja.
NEXTT, a project of the USAID, designed to inter alia improve the capacities of Nigerian businesses, is currently partnering with the Nigerian Export Promotion Council (NEPC) to design sector strategies that allow Nigerian branded cashew trade more competitively in global markets.
Monday, July 28, 2014
KOCHI: After a record export of almost Rs 5,000 crore last year, cashew exporters are finding the going tough this year with exports yet to pick up and prices of imported raw cashew ruling high.
Cashew exports have dropped 15% in quantity and 6 % in value for three months ended June 2014 at 25,305 tonne valued at Rs 1,106 crore. India has been out priced by Vietnam in the international market.
This may not be too much of a worry for the exporters right now. What is bothering them is that the during the same three months last year, the raw cashew imports went up 53% to Rs 1,825 crore. In terms of quantity, it was higher by 28% at 2,78,365 tonne.
"Raw cashew nut prices are hovering around $1,300 per tonne. Except for a brief period, the prices of raw nut bought from Ghana and Ivory Coast have remained above $1,000," said Babu Oommen, proprietor of Alphonsa Cashew Industries. At the end of last year, the raw nuts from Tanzania and Mozambique had burned a hole in their pocket at $1,400 per tonne.
The exporters expected the prices to ease when the production from west Africa came into full swing. An export price in the range of $3.50 to 3.75 per pound would justify the high import price, they feel. But the reality is that cur rent Indian prices are around $3.20 per pound.
"Vietnam is selling at $3.10 to $3.15 per pound. Unlike India, which depends mainly on manual labour, Vietnam is more into mechanised processing and is able to keep the cost down," said P Somarajan, proprietor of Kailas Cashew Exports.
Vietnam is less dependent on imports as their domestic production is better than India.
India's cashewnut production De velopment for 2013-14 is estimated at 7,36,000 tonne by Directorate of Cashewnut and Cocoa. The raw nut import came to over 7,50,000 tonne last year.
"The export is almost entirely dependent on imports. The domestic production mainly goes for processing for the local market," Babu Oommen said.
After the holidays in several countries, the export market is expected to pick up.
- India Times