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How to Make Money Processing and Exporting Cashew Nuts

Nigeria is one of the top ten producers of cashew in the world. Cashew is a smallholder crop and supplements the incomes of many thousands of farmers across 18 states of the federation. Nigeria’s production of cashew amounts to 60, 660 tonnes out of which 30, 510 tonnes are exported at a value of US$22.27 million. With the present emphasis by the Nigerian Government on non-oil export programmes, the cashew industry is experiencing a major turn around.

There are three main cashew products traded in the International market; raw nuts, cashew kernels and cashew nut shell liquid (CNSL). A fourth product, the cashew apple is generally processed and consumed locally. Market openings exist for cashew kernels in the world market, especially for low cost suppliers. Nigerians, with low labor cost and producer of raw cashew nuts, should cash in on these opportunities. By far, the U.S is the largest buyer of cashew kernels followed by the Netherlands.

Cashew nuts are dried in the sun for two reasons:

  • To reduce the moisture content of the nut
  • To mature the seed in the infrared and ultra violet rays of the sun

Storage: Technical requirements for storage are dependent on weather conditions. As cashew nuts are usually produced in climates with a long dry season, simple buildings with concrete floors and walls and roofs of corrugated metals, should provide adequate storage.

Processing: Cashew processing in the manual method is carried out in five basic steps which include roasting, shelling, drying, peeling of husk and manual grading.

  • Roasting: Roasting is done in a hand rotated drum. Fire is set underneath the drum and after half an hour, raw nuts are introduced into the drum through a small opening. Then fire is ignited inside the drum to burn the introduced raw nuts. After visual inspection, when the nuts are well burnt, a small door of the drum is opened and the burning nuts are extinguished using water, followed by sprinkling of ash in order to dry the cash nut shell liquid. Roasting capacity could be up to four tones per day.
  • Shelling: shelling is done by hand. The processors are required to produce 6 kilograms of kernel per day on a normal floor.
  • Drying: Drying is done in specially constructed ovens in drying sheds. Fire is lit below the oven by the use of firewood and inside the oven. Normally eight hours is required for adequate drying of the nuts. In the drying process, nuts on top are exchanged with those below to balance the whole process.
  • Peeling of Husk: Peeling of husk is also done by hand. Whole kernels are separated from the broken ones. By using hands, husks are removed. For difficult husks, small knives are used to peel after additional short time drying.
  • Manual Grading: Kernels are manually graded into their appropriate grades. The kernels are packed according to their grades into respective tins of 11.34kgs (25 lb) each. The tins are vacuumed, followed by introduction of carbon dioxide (CO2) before they are sealed by soldering. Sealed tins are observed for 24 hours so as to detect any leakage of gas. Finally, two tins are packed in a carton ready for export.

Where to Find Buyers

Buying agents are generally known as LBAs – Local Buying Agents. They comprise of:

  1. Licensed Buying Agents who are generally large buyers and independent individual agents.
  2. Agents employed by the exporters and processors. Some work on commission basis.
  3. Village Merchants/Buying agents who generally work for large LBAs.

These categories of the LBAs are the closet to the farmers in the chain. Individual buying agents or small agents usually move from one village to the other to procure nuts from farmers, which they can later sell to big agents or licensed buying agents or to agents at the market place.

LBAs perform some important role in the market chains like:

  • Providing a ready market for the farmers produce due to their proximity to farmers
  • Rendering financial advances to farmers for the crop
  • Supplying to the exporters/processors large quantities of the commodity collected
  • Engaging in inputs supplies and other goods that villagers need

Some of these buying agents are registered companies. The yare involved in large scale purchasing of cashew through other LBAs or directly through employed agents. Generally there are a number of LBAs operating as licensed traders working with village agents.

The organization of associations in the cashew sector is expanding. The following are the major categories of associations:

  1. NCAN – National Cashew Association of Nigeria – consisting of exporters, processors and large LBAs
  2. Cashew Farmers Associations at state levels. They are active in states and there is an increasing tendency for farmers to form themselves into producers associations
  3. LBAs are active in some states like Oyo, Kogi, etc. amongst others.
  4. Nigerian Cashew Processors Network (NCPN) – a network providing opportunities for exchange of information and contacts amongst processors.

How to Locate Production Centers

Cashew grows successfully in all agro-ecological zones in Nigeria, from the old western and eastern regions to the middle belt and up to the north. However, production is concentrated heavily around the middle belt and northern parts of the southwest. Prominent cashew producing states are Kogi, Kwara, Oyo, Ekiti, Osun, Ondo, Edo, Anambra, Abia, Enugu, Ebonyi, Cross River, Benue, Nassarawa, Taraba, Plateau, FCT, Niger and Kaduna.

Sources of Cashew Nuts

To export cashew nuts, you have to source for the products first. More importantly, in the supply, you start with the local market which is higly profitable. The market includes the supermarkets, cashew nut packaging outfits and roadside sellers. You don’t need to belong to any association to start buying and selling cashew in the local market. The export market will need large volume of supplies. TT Associates are involved in the sourcing of cashew nuts for local buyers and exporters, both in small and large volumes. You can contact them on 07057746231 and 08099779670.

Pricing

Currently, the price of local cashew nuts ranges between N70, 000 – N74, 000 per tonne, while the local buyers buy at N75, 000 – N80, 000 per tonne.

Your blueprint to wealth might be lying in this lucrative investment of cashew processing and exportation.

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23 comments to How to Make Money Processing and Exporting Cashew Nuts

  • Wavatar Mr. Elvis Opara.

    Dear Sir,

    We have very much interested in develop a long and serious business relationship with your company to supply you with high quality of our products and competitive prices from Nigeria.

    We export Bamboo bench,Cassava Flour,Palm Oil,Palm Kennel cake/meal For Animal Feeds,cashew nut, Ginger,Garlic,Sesame Seeds,charcoal,Yellow Corn or any, Etc. So let us know the products you want from us, so we are looking for sell/distributors agent that will like to work with us in-partnership and as to enable us sent to you our price/Details and specifications to them.

    Extending our deep-rooted interest and confidence that we will sure be your reliable business partners, we remain here with many thanks and very best regards.

    THANK YOU SO MUCH AS WE LOOK FORWARD TO A LONG

    Yours in service,

    Mr. Elvis Opara.
    Elvytex Global Links Limited.
    Phone: +234 806 874 8865.
    Location: Nigeria.
    E-mail:elvytexgloballinksltd_exporter@yahoo.com
    Privet e-mail: elvis_opara@yahoo.com

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  • Wavatar Philip (Enugu)

    We have one of the biggest and finest cashew plantations in Enugu State and is sourcing for big time buyers of this product as am currently venturing into this lucrative business now. if you are interested, just get me @ 08066762291 or reachphil4u@yahoo.com

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  • Wavatar Seye

    Likes to start as a local seller, how do i make profit?

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  • Wavatar Kenneth Munonye

    Please we need Roasted Cashew Nuts in Commercial quantity. (Nigerian Agents only) 00420776354197 (kendada@seznam.cz)

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  • Wavatar Nigeria integrated graduate association

    This is notify whoever is concern that nigeria integrated graduate association of nigeria, a profit oriented organisation in nigeria has re-engineered her commitment in making sure that nigeria reduce her high rate of over dependence on oil. Therefore interested company can partner with the organization on suppy of raw cashew nut and other nuts. Please contact us on 08066856639.

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  • Wavatar Diabuah Rhoda

    Please I need Cashew nuts in commercial quantity(Nigeria agents only). Contact onrhodiay2k@yahoo.com or call 07028637750

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  • Wavatar Samuel Johnson

    Presently, I have one thousand nine hundred twenty cashews signs on nursery.I will soon be joining the business.

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  • Wavatar omidiji

    We have cashew nuts in commercial quantity, if you are interested,kindly contact us on omidiji_4real@yahoo.com

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  • Wavatar onyeze

    We are interested buyers of cashew nuts and we are ready to buy in large qauntities from any dealer who can meet up with our demand.
    Please reach us on onyezeking@gmail.com or call +2348065839674.

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  • Wavatar Amadi

    We have cashew nuts in commercial quantities. Interested buyers should contact us on pamadi426@gmail.com or call +2348037772663.
    Our company is dedicated to serving you to your satisfaction.
    Thank you in advance.

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  • Wavatar Ademola

    pls mail me about this info am just setting up agriculcural business firm….. foadinvestmentltd@yahoo.com

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  • Wavatar Ademola

    How can i be part of this..?

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  • Wavatar Femi Fadiora

    We have processed -shelled, de husked dried cashew nuts in commercial quantities. Interested importers should call 234 803416 5222 or 234 819 170 3879

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  • This is a great business idea. Instead of wandering around the cities looking for white collar jobs, unemployed graduates can pull resources together and venture into this. Thanks for sharing.
    Nigerian Entrepreneur recently posted..Why Nigerians Suffer As Unemployed Internet Surfers

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  • Wavatar SG FOOD TECHNOLOGIES

    We are the India’s 1st Successful Automatic cashew shell cutting And Peeling machines by Sg food technologies,Hyderabad in India.If you have any Requirements please Contact .07396460204.

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  • Wavatar Mike

    I heard that cashew nuts from specifically Kwara state is the best.I dont know how true.Does anyone have any idea?

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  • Wavatar saheed

    i have cashew nut in stock at 80,000 per tonne
    contact address-08169252759,iseyin,oyo state

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    • Wavatar MALLESU

      I want to purchase cashew nuts please contact me. contact address:K.Mallesu. India, Phone:9109030026537

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      • Wavatar Tony

        I am seeking appointment as an agent for sourcing agricultural products for export from Nigeria. I am honest aand require only honest fellows/organizations that can pay for my services. Interested local buyers of especially cashew, snails,seesame and assorted crops can send in their proposals and requests. or call (6am-10pm)on 234+8036693300

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        • Wavatar Small Business NG

          @Tony

          I hope some interested buyers will contact you. And before any transaction please, perform your due diligence first.

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  • Wavatar STEVEN

    LOTS OF INFO TO SHARE

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  • Wavatar STEVEN

    Sure i will to know more of dis business

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  • Terrific work! This is the type of information that should be shared around the web. Shame on the search engines for not positioning this post higher!

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