The demand for cashew nuts is on an increase daily making it a lucrative venture a private or public player can invest in.
The demand is so high that Nigeria is one of the sixth-largest producers of it globally. And for many years, the business has been a major source of food and income generation for many homes and corporate ventures and yet, it has not been maximised fully.
The country exports more than 80 per cent of its raw cashews and this contributes about N24 billion (about US$58 million) to the Nigerian economy annually, creating employment for more than 600,000 people.
The global cashew market is projected to register a compound annual growth rate of 4.6% during the forecast period of 2021-2026 further proving that the cashew business is good. Over time it has become an economically important commodity for countries such as India, Nigeria, and Vietnam.
According to information on the Nigerian Export Promotion Council (NEPC) website, the cashew sector is undergoing rapid development by replacing trees with new high-quality varieties, this will provide better post-harvest handling geared towards solving the old problem of difficult peeling.
Health Benefits
Cashew nuts can be consumed by anyone and everyone. According to authorities in the health sector, one of the major advantages of cashew nuts is their high-calorie value. Other health values are derived from cashew nut soluble dietary fibre, vitamins, minerals and numerous health-promoting phytochemicals that help protect from diseases.
What this means is that a handful of cashew nuts a day in the diet would provide enough of these minerals and prevent deficiency diseases. You can also make out jam, cooking oil, biscuits, bread, bio-gas, jet fuel, hydraulic, brake fluid, paints and even shoe polish. om the cashew.
Profit
According to stakeholders in the cashew business sector, it is one venture that is profitable. According to him, a state in the country can invest N1bn in cashew and get about N3bn yearly turnover.
Similarly, an individual can invest N3million and get an annual income of N1million.
Requirement / Regulatory
To play in the cashew export sector, you must have a business name duly registered with the Corporate Affairs Commission (CAC). You also need to register with the Nigerian Export Promotion Council (NEPC), the body responsible for oversea export affairs in Nigeria and part of what they will provide you with are: registration, documentation and product inspection to conform with international export standards.
Training
For you to succeed in cashew export, you will have to understudy someone who is in the business already, because you need first-hand knowledge of the export process which is also necessary for the overall success of your business adventure.
Sourcing For Cashew Nut
Cashew nut is of different types and comes in different sizes which affects the market price. When you buy a low-demand type at an exorbitant price, it will affect the chance of making a profit. You can get cashew from farmers or a local supplier who did not want to bother himself from the export in major states like Abia, Kogi, Enugu, Imo, Oyo, Niger, Kaduna, and Abuja.
Challenges
Some of the challenges faced by exporters are the rejection of goods from international countries and this is a result of poor handling of the processes which affected the product. For instance, the United States has high regulations set by the American Food Standard. Also, lack of good storage facility is another issue faced and also lack domestic market.
