Thursday, May 24, 2012
Vietnam firms to export $200 mln worth of cashews
Vietnamese cashew firms signed more than US$200 million worth of export contracts during an industry conference in Nha Trang on Wednesday, thesaigontimes.vn reported.
The Tanimex Long An Company and the Dongnai Import Export Processing Agricultural Products and Food Company were among the firms which inked contracts at the international customs conference, held by the Vietnam Cashew Association (Vinacas), the news website said.
The firms plan to deliver the nuts between the second and third quarters of 2012, it added.
Vietnam’s cashew exports were quite “quiet” between last October and the first quarter of 2012, according to Vinacas.
During the first four months of the year, cashew prices fell by five percent, as compared to the same period last year, it said.
John Waring, President of the Australian Cashew Association, said that Vietnam hasn't paid enough attention to marketing and promoting the local cashew crop.
Seeing as how Vietnam currently welcomes 3 million tourists and plans to double that figure annually, local firms should display high-quality cashews in places frequented by foreign tourists, the expert said at the two-day event.
He also advised local producers to properly label their products, since Vietnamese cashews have an edge in international markets.
Many countries, he said, are now falsely presenting their products as having originated in Vietnam.
Vietnam: Cashew processors import nuts
Wednesday, May 23, 2012
Vietnam sees high growth in cashew exports in first quarter
Vietnam exported more than 55,000 tonnes of cashew nuts in the first quarter and generated US$380 million in revenue, up 29 per cent in value and 37 per cent in volume, heard at the 7th International Customer Conference organised by the Vietnam Cashew Association on May 22 in Nha Trang City.
The International Customer Conference was attended by more than 150 participants from the US, EU countries, China, Australia, Middle East and Africa.
Vietnam is leading in cashew nut exports in the world, is the second in cashew processing and the third in production.
According to Nguyen Thanh Bien, deputy minister of Industry and Trade, more than 60 per cent of cashew nuts traded in the global market come from Vietnam.
However, Vietnam’s cashew nut production is also facing many challenges. Earnings from cashew remain pretty low for farmers who are considering switching to other high-yield crops. As it is, cashew growing area has already reduced by 77,000 hectares over the last five consecutive years.
At present, productivity remains at about 1 million tonnes per hectare. Processed cashew nuts only account for 3 per cent while domestic consumption is around 5 per cent.
Source: http://www.saigon-gpdaily.com.vn/Business/2012/5/101330/
Tanzania: TIB to finance cashew nut processing plant
Tanzania Investment Bank (TIB) yesterday signed a Memorandum of Understanding (MOU) with the Tandahimba Newala Cooperative Union (TANECU), seeking to enhance processing of raw cashew nuts, adding value to the cash crop and creating wealth to farmers in Mtwara region. TIB Managing Director Peter Noni, speaking at the signing ceremony at the bank's Head Office in Dar es Salaam, said the signed deal will enhance value addition through construction of a processing plant to be built in Mtwara. Mr Noni said the processing plant will have monthly processing capacity of between 30 and 40 tonnes.
"With the processing factory in place, cashew nut farmers will now fetch better prices offered by the readily available market.
"Many banks do not give loans to farmers because they do not have guarantee for a ready market. This can be reflected through the hard times cashew nut farmers have been going through in the past few months," said Mr Noni, assuring that the processed produce would even penetrate to the international markets.
Cashew nut farming has recently been relying on exploitative middlemen, the situation that undermines the crop's total production.
Mr Noni said the bank will finance 80 per cent of the project, with TANECU catering for the remaining 20 per cent of the project scheduled to start in July after completion of a feasibility study and business plan.
TANECU Chairperson Yusuf Nnamla described the agreement as a milestone in cashew nut production, saying this year's cashew production has broken the country's production record, with 157,000 tonnes from the historic record of 142,000 tonnes.
"Cashew nut farmers will now have a readily available market - farmers should brace themselves for better prices that will improve their living standards," he said.
Mtwara Regional Commissioner Joseph Simbakalia said farmers will be in position to fetch better prices with emphasis on value addition, urging farmers to support the project.
"We appreciate T.I.B for having trust in our region - we will continue supporting the project at different levels to ensure that it meets expectations of stakeholders," he said.
Source: http://www.afriquejet.com/bank-tib-to-finance-cashew-nut-processing-plant-2012052238983.html
Vietnam: Farmers lose patience with cashews, switch to rubber
A number of cashew plants in the southern province of Binh Phuoc have been chopped down en mass in a move to switch to rubber, as farmers are losing patience with the repeatedly slipping prices of cashew nuts.
Not only the old trees are cut down now, felling cashew trees has become a trend that has spread through many localities in the province.
Along the street connecting Dong Xoai Town to Phuoc Long District are piles of cashew logs that are more than 3m height. Chopped cashew plants can be spotted everywhere in the country’s largest cashew-growing area.
“Only by replacing the cashew with rubber trees can I hope to make ends meet,” says Ma Van Quang of Dong Phu District, after felling a cashew tree with his electric saw.
“Farmers around here have all destroyed their cashew plants,” he adds.
Quang says he did try to patiently wait for cashew nut prices to rise, but “the more I waited, the lower prices got.”
At a nearby plant, Tran Ngoc Tuan and his family have also been cutting down their cashew trees. Four out of six hectares of cashew have been felled, he says.
“Though I have been growing nothing but cashew over the last ten years, it’s time to stop as income from the tree is even lower than planting cassava,” says Tuan.
Nguyen Thi Quynh Giao, who runs a facility that buy cashew logs in Bu Gia Map District, says she has never witnessed the cutting of so many cashew trees.
“This area will soon have no cashew trees left, given the speed of destruction,” she comments.
No connection with processors
Tran Ngoc Kinh, head of the provincial Plant Protection Agency, says farmers no longer want to grow cashews as cashew nut prices have halved against the same period last year.
“ The average price last year was around VND37,000-40,000 a kg, and peaked at VND45,000 a kg.
“But this year prices are at only VND26,000 a kg,” elaborates Kinh.
One of the reasons for this is the lack of cooperation between businesses and farmers, he adds.
“No businesses in this area, the largest cashew-growing region nationwide, have ever established a connection with farmers to develop the raw material areas.
“Farmers work hard on their plants, but businesses only show up to at harvest time to buy the product.
“And yet some processors neglect domestic cashew nuts but turn to buy from … Africa instead,” he explains.
Monday, May 21, 2012
Cashew market sees subdued activity
KOCHI, MAY 21:
The cashew market saw very little business last week. Most processors were either not offering or were asking 10-15 cents higher per pound. The range of offers widened — for W240, from $4.10 to $4.20; W320,$3.65 to $3.85; W450, $3.50 to $3.65; SW320, $3.55 to $3.70; splits and butts, at around $2.70; and pieces, at around $2.40 per pound (fob).
However, prices in the domestic market were steady at higher levels, with good buying interest especially for broken grades.
RCN MARKET
The raw cashew nut (RCN) market was also quiet. With the kernel market remaining dull over the last two weeks and continuing logistic problems in Africa, shellers were not keen to make additional purchases.
They prefer to wait until they get some of their earlier purchases and/or make some additional kernel sales, Mr Pankaj N. Sampat, a Mumbai-based dealer, told Business Line.
Stray sales (mainly re-sales) of good quality parcels were being done, he said. Prices are more or less unchanged — Benin, from $1,150 to $1,225 a tonne; Ivory Coast (IVC), $1,000 to $1,075; Senegal/Gambia/Bissau, at around $1,500 a tonne.
Shipments from Ghana, IVC and Benin so far have been lower than normal. Shipments from Guinea Bissau have not started yet. “We continue to feel processing and kernel availability during May and June, maybe even July, will be lower than normal,” he claimed.
Talking to delegates at the International Nut Council (INC) Congress in Singapore over the last three days, “we find there is tremendous uncertainty in the minds of people about all factors that can affect the market — RCN supply delays, lower kernel yields, European economic situation, currency volatility, concern about demand trends in the last 2-3 quarters, inability to judge future trends, etc.,” Mr Pankaj said.
All these are making things difficult for everyone — sheller, kernel trader, kernel processor and packer, and retailer — to take any significant position on the sell or buy side.
But the downside will be limited because of tighter kernel availability in May-July coupled with higher cost of RCN replacement. Even if RCN prices come down in the next few weeks, it may not have any major impact on kernel availability in May-July or on kernel prices, because part of the decline will be due to drop in quality and some portion of the decline could be reversed if kernel activity picks up in June-July.
A significant decline in kernel prices is possible only if there is a combination of significantly lower RCN prices and a very slow kernel market in June-July, he predicted.
PRICE TREND
“The trade does not expect any big increase in prices either. But we do expect that prices will settle in the current range for the next few months with the faint possibility of crossing the recent highs, if there is strong demand in the next 4-6 weeks.
“If there is a sudden and quick improvement in flow of RCN or a big decline in RCN prices, the range could move lower, but there seems to be little chance of that happening,” he said.
“Reasonably stable prices for six months will probably bring back some confidence into the market, making long-term planning possible. In the long term, as discussed at the INC, increasing production and reducing the wastage and inefficiencies in the supply chain (caused mainly due to lack of adequate infrastructure in many of the producing countries) are two areas which need attention. This will provide the much needed consistency of supply, stability in prices and sustainability of growth in the cashew sector,” he added.
Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article3442540.ece
India: A weak Rupee weighs on cashew imports
KOCHI: Cashew exporters' hope of making huge export gains with the depreciation of the rupee has come unstuck.
Exporters import raw nuts for processing this time of the year and a weak rupee has made imports expensive while the export market is yet to pick up momentum. Exporters who process the raw nuts are scrambling for more imports as the domestic production has fallen short of expectations.
Of the nearly 14 lakh tonne of raw nuts available for processing, over half the quantity is imported, mostly from African countries.
"The domestic production is expected to be down by 25-30% and imports could therefore go up to 7.5-8 lakh tonne," said K Prakash Rao, managing partner of Kalbari Cashews. The rupee depreciation and increased demand have made raw nuts costlier. Import prices have moved up from $950 per tonne to $1,200 per tonne.
The arrival of Brazil into the import market has made the matters worse. "Brazil has imported 25,000 tonne from Tanzania to make up for a bad crop in the country," Rao said.
In the export market, the slow recovery in the US and the turmoil in Europe have hit the demand. Unfazed by the slowdown in these markets, exporters are diversifying into newer territories. "Cashew nut prices crashed from a high of $4 a pound for the 320 grade variety to $3.30 a pound. Prices have moved up slightly to $3.80 with demand showing some upward movement," said Anu S Pillai, partner of Anu Cashews.
Exporters say production shortfall in several countries is driving up prices. "We have diversified into countries like Turkey and the Middle East bloc in a big way to overcome the losses in traditional markets," Anu S Pillai pointed out.
In 2010-11, over 1.08 lakh tonne worth around Rs 2,600 crore was exported. But exports in 2011-12 could be higher because of a better unit value but official figures are yet to come out.
An increase in domestic consumption has provided relief to exporters frustrated by a sluggish overseas market. The local consumption is reported to be rising by 5% annually while a poor crop has pushed up prices.
The average price of 320-grade nuts went down to Rs 380 per kg post-Diwali but has now improved to Rs 485 and is expected to cross Rs 500 soon. The share of exporters' sales in the domestic market has climbed up from 30% to 50% now.
TANZANIA: TIB to finance cashew nut processing plant
TANZANIA Investment Bank (TIB) yesterday signed a Memorandum of Understanding (MOU) with the Tandahimba Newala Cooperative Union (TANECU), seeking to enhance processing of raw cashew nuts, adding value to the cash crop and creating wealth to farmers in Mtwara region.
TIB Managing Director Peter Noni, speaking at the signing ceremony at the bank's Head Office in Dar es Salaam, said the signed deal will enhance value addition through construction of a processing plant to be built in Mtwara. Mr Noni said the processing plant will have monthly processing capacity of between 30 and 40 tonnes.
"With the processing factory in place, cashew nut farmers will now fetch better prices offered by the readily available market.
"Many banks do not give loans to farmers because they do not have guarantee for a ready market. This can be reflected through the hard times cashew nut farmers have been going through in the past few months," said Mr Noni, assuring that the processed produce would even penetrate to the international markets.
Cashew nut farming has recently been relying on exploitative middlemen, the situation that undermines the crop's total production.
Mr Noni said the bank will finance 80 per cent of the project, with TANECU catering for the remaining 20 per cent of the project scheduled to start in July after completion of a feasibility study and business plan.
TANECU Chairperson Yusuf Nnamla described the agreement as a milestone in cashew nut production, saying this year's cashew production has broken the country's production record, with 157,000 tonnes from the historic record of 142,000 tonnes.
"Cashew nut farmers will now have a readily available market - farmers should brace themselves for better prices that will improve their living standards," he said.
Mtwara Regional Commissioner Joseph Simbakalia said farmers will be in position to fetch better prices with emphasis on value addition, urging farmers to support the project. "We appreciate T.I.B for having trust in our region - we will continue supporting the project at different levels to ensure that it meets expectations of stakeholders," he said.
Source: http://dailynews.co.tz/index.php/biz/5421-tib-to-finance-cashew-nut-processing-plant
Tuesday, May 15, 2012
Cashew market seen buoyant in short term
KOCHI, MAY 14:
The cashew market that has been showing some buoyancy in recent days was quiet last week. With the undertone being firm, prices were steady.
However, offers were a few cents higher than last traded levels. Business was done for W240 from $4.15 to $4.25; W320 from $3.75 to $3.85; W450 at around $3.65; SW320 at around $3.60; Splits and Butts at around $2.80; Pieces from $2.30 to $2.40 a pound (f.o.b.).
The domestic market was active with prices moving up by about 15 per cent in the last two weeks, Mr Pankaj N. Sampat, a Mumbai-based dealer said.
There have been tremendous fluctuations in kernel prices that were down by 10 per cent in March whereas in April it was up by 15 per cent, he said. “Such large price movements are not good for any link in the chain. Apart from the big price fluctuations in the last three years, the industry has seen several bouts of uncertainty on the supply side and sustained uncertainty about demand trends,” he said.
Volatility and uncertainty have an adverse impact on the health and growth of any industry. The impact is aggravated in the case of an industry like cashew which is fragmented on the supply side and consolidated on the demand side.
RCN MARKET FIRM
The raw cashew nut market (RCN) market also continued to be firm. Trades were reported for Tanzania from $1,350 to $1,425 a tonne, for Benin from $1,150 to $1,250, for Ivory Coast (IVC) from $1,050 to $1,125 a tonne (c&f). Segabi RCN is being talked of at around $1,400 a tonne (c&f). There is lot of uncertainty and confusion about West African crops, which is not unusual, he said. Due to the delays in harvesting and consequent slow arrivals coupled with logistics problems, it is quite likely that crops and large shipments will continue for a few weeks or even couple of months longer than normal. So, realistic crop figures may not be available till August or even till September.
A couple of things, he said, are certain, namely, the kernel yields are definitely lower in almost all regions and shipments are much slower than normal due to various logistics issues in each origin. This will mean reduced processing during May/June and maybe even in July. Also, later shipments could mean further reduction in kernel yields.
For the long term, the industry needs to work together to reduce the inefficiencies and improve the working and infrastructure in the production and post-harvesting stages. This will bring down the supply uncertainties besides reducing the deterioration in RCN quality and increase RCN production and kernel availability leading to a smoother, evenly distributed supply, Mr Pankaj said. Consequently, the fluctuation in prices would come down.
On the demand side, the last two quarters have seen significant declines in use in all markets. It is hoped that the current quarter may see some improvement in usage. The third quarter should see a noticeable increase in demand, especially in Asia, provided the prices rise do not rise too high from current levels. At the moment, it seems that there is still some room for price increase based on the higher RCN prices and possibilities of reduced kernel availability in the next 2-3 months.
It also seems that if the prices go up too much, it could have an adverse impact on use in the main importing regions in the medium term. Major retailers (brands and private labels) could soft-pedal a product which sees large price movements in short periods.
For the time being, the market is delicately poised. The supply tightness in the next 2-3 months could lead to some more price increase. The trend for the rest of the year will depend on what happens with RCN prices and movement during May-August, Mr Pankaj said.
Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article3418689.ece
Friday, May 11, 2012
Tanzania: Firm Set to Boost Cashew Nut Processing
EXPORT Trading Group (ETG) has embarked on expansion of local processing of cashew nut that will see the company enhance its capacity from 2,500 to 14,000 tonnes per annum.
The move is part of the company's bid to rescue the cashew nut industry by providing a reliable domestic market and adding value to the crop.This season over 85,000 tonnes of cashew nut worth over 100bn/- stranded in co-operative unions' godowns due to price volatility in the world market.
ETG's in-charge of Korosho Africa Ltd, Mr Sunil Mizar told the 'Daily News' on Thursday that the expansion would begin in July, this year, by increasing processing capacity at its Tunduru factory from 2,500 to 4,000 tonnes."We have secured cutting and peeling machines from India and Vietnam, respectively to boost production at Tunduru," he said.
Mr Mizar said the company had also acquired two processing plants with capacity to process 5,000 tonnes each to be installed in Newala District and Mtwara Municipality.The two plants will start production in October, this year.
Apart from having packing centre for cashew nut in Mtwara, EGT has established a state-of-the-art packaging centre in Dar es Salaam with (International Standard Organization (ISO) certification, he said."We have come-up with consumers' packs of different size from 250 grammes to 50 kilos to suit different needs of our customers," he noted.
He said the expansion and investments would create more jobs to Tanzanians and avoid over reliance on the foreign markets.The Tunduru factory employs 4,000 casual labourers.EGT, according to Mr Mizar, expect to by 60,000 tonnes for export and for local processing this year, up from 48,000 tonnes last season.
Lack of enough processing industries has left the country exporting more than 80 per cent of its raw cashew nut to India.
Since September the Indian market slumped by 40 per cent due to depreciation of its currency, Rupee and influx of cheaper cashew nut from Ivory Coast.
The Chairman of Parliamentary Committee on Public Organisations Accounts Committee (POAC), Mr Zitto Kabwe advised the government to repossess all 10 factories that were privatized in 1980s because the owners failed to honour sales agreements. The factories were built by the government with a World Bank loan of 184 million US dollars in 1970s and 1980s.
Wednesday, May 2, 2012
Cashew prices may rise on concerns over Africa supply
Kochi: Cashew nut market is seen firming up on supply problems of raw cashew from Africa. Africa produces 45% of the world’s total raw cashews but most of the processing takes place in Vietnam and India. Political problems in Guinea Bissau and reports of lower yield in Ivory Coast are the major reason for the price increase, traders said.
“Primary reason for the increase in kernel prices in the last three weeks has been increasing concerns on supply side. Apart from the lower crop in Ivory Coast, possible delays in movement of Guinea Bissau raw nuts is causing concern,” Pankaj Sampat of Samsons Trading said. “During April, kernel prices have moved up by about 10-12% and raw cashew prices have moved up by 12-15%. Most of the increase in kernel prices has been due to concerns of supply and resultant covering of shorts for nearby positions by kernel buyers,” he added.
“If arrivals do not pick up in May, the fears of a big shortage in Ivory Coast will be proved right. This will lead to a further increase in raw nut prices leaving little chance for any decline in kernel prices even if the demand is slow,” Pankaj Sampat said.
Hari Krishnan R Nair, chairman of The Cashew Export Promotion Council of India feels that the market is swayed by reports that production is lower in Africa and Vietnam. “These are initial reports and need not be true. Production estimates for India is good and we expect a resurgence in demand given the fact that kernel prices have declined in the past few months,” he said.
India is the world’s largest consumer of cashew nuts with trade estimates of consumption ranging from 170,000 - 190,000 tonne.
It is also one of the largest processor and exporter of kernels. Data provided by the Cashew Export Promotion Council (CEPC), suggest that Indian exports during the last FY of 2011-12 would be around R3500 crore.
Regarding demand, Pankaj Sampat feels that the market is not sure about the consumer preference for a snack, which has seen extreme volatility in the last 15-18 months.
“US and EU buyers seem to be reluctant to buy for distant positions despite the supply side concerns because they are not sure whether demand will pick up in the second half of 2012, after a 15-20% decline in the last two quarters. Feeling is that if the prices move up further, there could be less interest from retailers,” he added.
Source: http://www.financialexpress.com/news/cashew-prices-may-rise-on-concerns-over-africa-supply/944597/0
Tanzania: Cashew Nut Farmers Start Receiving Money
CASHEW NUT farmers in the country have started receiving their money from cashews they sold on credit since October last year.
Farmers' payment has been made possible after the government extended a guarantee through Bank of Tanzania (BOT) to various cooperative Societies, which owed farmers some 54bn/-.
The Mtwara Regional Cooperative Advisor Mr John Henjewele told the 'Daily News' from Mtwara on tuesday that payments started last Friday through NMB Bank Ltd. "The bank started to release funds since last Friday and farmers are now happy after waiting for a long time," Mr Henjewele said.
He said it may take some few weeks for the exercise to be completed because 54bn/- was a huge amount to disburse. The government announced last month that it would guarantee the banks to pay farmers through Export Guarantee scheme of BOT after some 85,000 tonnes of cashew nuts failed to fetch market, leaving farmers in frantic condition.
Under Warehouse Receipt System some farmers were paid 70 per cent of the value of their cashew nut they submitted at cooperatives and others were not paid a single cent. One kilogramme of the crop was sold at 1200/-. According to Cashew nut Board of Tanzania (CBT) data cooperatives that owed farmers include Tunduru Agricultural Marketing Co-operative Union (TAMCU) 3.1bn/-, Ilulu of Lindi 11.6bn/- and Masasi Mtwara Co-operative Union (MAMCU) 19bn/-.
Others are Tandahimba - Newala Co-operative Union (TANECU) 24.5bn/-, Coast Region Co-operative Union (CORECU) 4bn/-, Dare es Salaam Region Co-operative Union (DARECU) 5.1m/- and TANGA 2.3bn/-. Tanzania registered bumper harvest of 157,000 tonnes of cashew nut this season, exceeding the 1974 record of 145,000 tonnes.
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Tuesday, May 1, 2012
Cashew heads north on buying support
KOCHI, MAY 1:
The cashew market witnessed an upward trend last week with prices climbing up a couple of more rungs in the ladder. The rise was 10-15 cents a kg for different grades.
Business was done for W240 up to $4.05 a lb; W320 up to $3.60; W450 up to $3.40; SW320 up to $3.35; LP up to $2.20/lb (f.o.b.).
Buying interest last week outstripped selling interest. At the end of the week, most shellers withdrew and the few, who were offering were quoting 5-15 cents higher than the last traded levels, Mr Pankaj N. Sampat, a Mumbai-based dealer told Business Line.
Indian domestic market, he said, continued to be quiet but stocks in consuming centres are being used up.
With prices increasing, stockists may soon have to start building inventories before the peak consumption season beginning July, he said.
In fact, during April, kernel prices have moved up by 10-12 per cent, while raw cashew nut (RCN) prices have moved up by 12-15 per cent. Most of the increase in kernel prices has been due to concerns of RCN supply and resultant covering of shorts for nearby positions by kernel buyers, he pointed out.
There does not seem to have been any significant forward business although there have been some enquiries and limited trades for third quarter shipments.
The US and the EU buyers seem to be reluctant to buy for distant positions despite the supply side concerns because they are not sure whether demand will pick up in the second half of 2012, after a 15-20 per cent decline in the last two quarters.
Feeling is that if the prices move up further, there could be less interest from retailers in a product, which has seen extreme volatility in the last 15-18 months. Also, they hope that RCN arrivals will improve in May and prices will ease.
RCN PRICES UP
RCN prices also continued to move up and in fact, the primary reason for the increase in kernel prices in the last three weeks has been raising concerns on supply side. Price movement has been from $1,225-1,250 a tonne to approx $1,350 a tonne for Tanzania, from $1,050 to $1,225-1,250 for Benin and from $875-900 to $1,025-1,050 for Ivory Coast(IVC).
Price increase there has been despite reduction in kernel yields. Apart from the lower crop and yields in IVC, possible delays in movement of Guinea Bissau RCN is also causing concern, he said.
The next six weeks will be crucial, he claimed. Although currently, supply concerns are pushing the market up for both RCN and kernels, things could change if arrivals pick up during May. If that happens, that would be a sobering effect on the market which would then settle around the middle of the current range.
“Our feeling is that there is some room for higher prices if demand picks up. The downside – even from the current increased levels – is limited considering that supplies will be somewhat less than 2011 and there should be some pick up in demand in the second half – at least in Asia, if not in the US and the EU.
If arrivals do not pick up in May, the fears of a big shortage in IVC will be proved right. This will lead to a further increase in RCN prices leaving little chance for any decline in kernel prices even if the demand is slow,” Mr Pankaj said.
Since the market is very delicately poised, prudent course for both shellers as well as buyers would be to take some position for the next few months to avoid being caught with a thin book if market moves against them.
By late May/early June, supply prospects should be clearer and there should be some indication of demand trends. Based on that, he said, people will consider longer cover but unless supply recovers significantly, 6-12 month position taking will be difficult for both sides.
Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article3373837.ece
G.Bissau cashew harvest in jeopardy after coup
Guinea-Bissau was due a bumper cashew harvest this year but prices have halved as money dries up...
Guinea-Bissau was due a bumper cashew harvest this year but prices have halved as money dries up after a coup d'etat, raising anxiety among those who survive off the country's main export.
While plantation owners are struggling to sell their nuts in a near-paralysed market, their lives have been further complicated by the arrival of those who fled the capital fearing violence after the April 12 government overthrow.
Jose Mahalhaes who heads a local NGO in Farim, 110 kilometres (68 miles) north of Bissau, said over one thousand people have landed on their relatives' doorsteps in this village, in the heart of cashew land.
"Some families of about a dozen now count about 40 people and don't have enough to feed themselves," he told AFP.
Mamadi Camara has been an agricultural technician for 20 years in Farim, but with his salary barely lasting a week, it is the money he earns from his cashew plantation which allows this father of 12 to get by.
"Luckily I have my cashew plantation which allows me to make ends meet, especially when the harvest is good," he said bitterly, pointing out his bustling family as they prepare to go to harvest.
Under a scorching sun, the whole Camara clan sets to work as in an assembly line in a factory.
Buckets in hand the children gather cashew apples which the wind blows to the ground. The women separate the nut from the apple which is pressed for its juice.
"The harvest will be excellent," says Camara.
But he still needs to sell the nuts, and with banks and money transfer agencies closed since the coup d'etat, buyers are rare and the marketing of the precious nuts is in serious jeopardy.
Three kilometres (two miles) from Farim, in a village called Kapa 3, a group of Mauritanian traders lament the situation over a cup of tea, listening to a Nouakchott radio station.
"We have been here for nearly a month, look at our stock, not even three tonnes. Whereas usually, after a month I have passed 50 tonnes," says Mohamed Assane.
No banks means no money which means, no cashews.
"We don't want to keep money on us because the country is not stable. There is a coup d'etat and money is afraid of the sound of weapons," the trader explains.
"We buy small quantities, up to 10kg in cash. When it is 100kg or more we prefer to barter. Rice, or zinc or any other product for the nuts."
At the beginning of April the state fixed a preferential price for producers at 250 CFA francs (30 euro cents) per kilo. Ten days after the coup, this price is no longer respected and a kilo goes for between 100 and 150 CFA.
Bartering has gone the same way.
If rice and cashews were exchanged at the same weight before the putsch, now you need two kilos of cashews to get a kilo of rice.
"We don't have a choice, I have a family who need to eat," says a farmer who came to offer Mohamed Assane 50kg of cashews.
While the west African nation is better known as a failed state crippled by cocaine trafficking to Europe, its unprocessed cashews are its main earner, most of them exported to bolster the world's top producer of the nut, India.
In the nation of 1.6 million people, the industry employs 250,000 families, according to official figures.
Exports hit a high of 170,000 tonnes in 2011, earning the government $100 million (75 million euros).
