All You Need to know about Cashew Business
One of the Export commodity that can easily turn into cash cow for suppliers / exporter is cashew nut.
A business man or a trader culd only fit into 2 of d mentioned categories. Its either you are a supplier (supplying to cashew nuts export companies in Nigeria), basically Lagos who in turn export it abroad, most of these companies are owned by Indians, India is one of d largest importers and exporters of cashew nuts!!! It would be interesting to know that India produce cashew nuts but they are one of the largest Importers and exporters of cashew nuts in the world. This is possible because India have a free trade agreement with most Asian countries thus it is better for those countries to import from India rather than import from Africa or any other country because of the import duty tariff.
Going into cashew business is not an easy task for a new beginner cos a lot of things have to be put into consideration example
1. Do u want to be a supplier (supplying to export companies in Lagos)
2. Do u want to export yourself (selling to overseas buyers)
3. Capital requirement (how much are u willing to invest Considering the above two options, an exporter requires more capital)
What u need to know about cashew business / terms.
1. Cashew nuts are sold per ton.
2.13 bags make a ton. 30 tons make a truck / long trailer.
3. Grading or scaling : u need to know how it is measured, weighed and packaged in bags, if not you
will be cheated by local agents or distributors, they will cheat u in your presence.
4. Quality or KOR : cashew nuts in Nigeria are priced and negotiated based on the quality
the quality of Nigeria cashew nuts is between 42 - 54 KOR. There is a way this test is carried out by exporters, d test is physical and u could monitor it yourself but u need to have an idea/knowledge about it or else u will be cheated by these Indian exporters.
5. Price ; cashew nuts price fluctuate almost every week, so u need to know d current price at every point in time.
6. Packaging: cashew nuts could be packaged in two bags only namely jute or polythene, this also determines d final price u buy from local sellers and d price Ʊ sell to exporters. Cashew nuts in jute bags are more expensive than polythene bags. Most exporters prefer it in jute bags.
7. Haulage or trucking : u need to know d price u will transport your cashew nuts from one destination to the other, this also affects d price in a way.
8. Exporters of cashew nuts in Nigeria: they are mainly in Lagos and mostly Indian companies.
9. Where to get cashew nuts in Nigeria: u need to know d source of your business.
10. If u are exporting, u need to know d export duty, fob price, cnf price and freight price.
Advise : first timers, u have to be very careful about this business, some people are using this business to defraud unsuspecting traders. Most people organize seminars and will only tell u how to make money in cashew business but they will never tell u how risky, vulnerable it is. Most of these seminar organize have never been to any of d villages that produce cashew nuts, they've never been to d farms, meet with d local farmers, local distributors, do not know that the quality determines d price, etc.
Please note that cashew is profitable if you have everything under your control that is, good quality, right people working for you, capital (very important cos you could buy in large qty and store for a higher price later, you will also have an edge over your competitors), entering d biz at d right time, at an early period, especially now, February, price is still low now, but it will go higher by next month, march.
I could go on and on talking about this business.
Research is very necessary, do your own little research before u venture into this biz (u either succeed or fail) it depends on how best u manage every situation u encounter during d course of d biz.
I wish u all good luck.
I have just shared with u what u would have normally paid for. it might not be detailed enough but I guess it would help some folks out there who have been trying to go into cashew business but don't know where to start from.
This is just the theory aspect, the main work is physical, u have to be present wherever u are buying from, don't just sit down in Lagos or wherever and expect your consignment to get to u without stories, even those who have been in d game for long still monitor it physically sometimes), let your level of trust be minimal. I know a lot of people that have lost money in this business, I was a victim also when I started!! But as they say experience is the best teacher
i do hope this article help anyway. feel free to join in conversation with us.
