‘Nigeria loses $40m to poor quality cashew’

Nigeria loses $40 million (about N6 billion) annually to rejected poor quality cashew nut meant for export, the President, National Cashew Association of Nigeria (NCAN), Mr. Tola Faseru said.

Faseru told our correspondent that as a result of poor quality, the prices of Nigerian cashew nuts in the export market are discounted by between 20 per cent and 30 per cent causing exporters to receive low prices from buyers from India and Vietnam, which are the world major buyers of the commodity.

He said that because some Indians go to local markets in the country and buy directly from the source (local farmers), the nuts reaching the exporters or processors are often un-dried and un-graded. This development, he said, leads to an increase in the cost of drying, cleaning, removal of spoilt, void, damaged or immature nuts in the warehouses.

In some situations, Fasure said part of the consignment may be regarded as unsuitable for export, after having been transported to Lagos. He noted that since the nuts are bought on the basis of weight (80Kg bags), some farmers don’t dry the nuts before selling in order to obtain a higher weight. This practice has greatly affected quality of nuts supplied.

According to Fasure, the normal moisture content of the nuts should be less than 20 per cent to be fit for trade, but most of the moisture content of supplies arriving Lagos from the producing areas is reported to be above 20 per cent.

Besides, Fasure also noted that the variety of the cashew nut can also be a factor that determines the price of a cashew nut. In some situations,

Fasure said that the association is taking steps to address the problem in order to make Nigerian exporters maximise their revenues from exporting the commodities. He said one of the steps is to regulate the market and stop the Indians from going into the villages to buy directly from the farmers. This development, he noted, would enable the association to ensure that the farmers allow the nuts reduce their moisture levels through drying before bringing them for sale.

Source: http://www.thenationonlineng.net/2011/index.php/business/34699-%E2%80%98nigeria-loses-$40m-to-poor-quality-cashew%E2%80%99.html