Post by Trade facilitator on Jan 11, 2022 9:40:14 GMT 1
BRIEF HISTORY
Cashew is a seasonal fruit! The cashew apple or drupes is an edible fruit eaten across Nigeria. It can be eaten directly, used to make juice or distilled to make an alcoholic drink. It is a source of energy, rich in vitamin C, antioxidants, minerals, and sugars. However, Nigerian cashew producers are less interested in cashew fruits, with only 6% of cashew apples produced in the country exported.
Cashew Nut Processing Business started in the late 60s, which became a major producing crop after the production of tea and coffee, processed cashew nut are consumed directly or in various form of food.
Acording to This Day News, Cashew was introduced to Nigeria by the Portuguese in the 16th century. Its value was initially limited to the cashew apple as no commercial value was attached to the nuts. However, cashew’s commercial attractiveness commenced with the first commercial planting in mid-1950s by the defunct Eastern Nigerian Development Corporation (ENDC) and the Western Nigerian Development Corporation (WNDC).
Cashew grows in almost all states of Nigeria; however, most production is concentrated in the Eastern, Western, and Middle Belt areas with Anambra, Oyo, Enugu, Osun, and Kogi having the largest production.
The president of Cashew Farmers Aggregators and Processors of Nigeria, Unekwuojo Edime, said a major factor impeding the production of cashew in the country is the lack of a domestic market.
He said Nigeria’s cashew has low patronage at home and high demand abroad. He said the crop’s consumption at home is not big enough to compensate farmers for their investment, because the quality specification of the cashew in Nigeria does not meet the export requirement.
USES OF CASHEW NUT
Cashew is used for jam, cooking oil, biscuits, bread, bio-gas, jet fuel, hydraulic, brake fluid, paints, shoe polish, and more.
Cashew is produced for various purposes including medicinal, industrial and household uses. An estimated 60% of cashew kernels are consumed in form of snacks while 40% are used in the confectionery industry.
The cashew kernel used as a snack can either be roasted, salted, or flavored. It contains a rich source of oil, Vitamin K, protein, thiamin, minerals, and dietary fibers. One of the health benefits of cashew nut is that its calorie content is 16% lower than what is stated in other food labels.
Cashew nuts shell when crushed release a liquid known as Cashew Nut Shell Liquid (CNSL) which is highly sought in industrial processes to develop antioxidants, fungicides, lubricants, and drugs, etc. The cashew nutshell also contains Cashew Nut Kernel Oil (CNKO) while the pressed kernel cake from CNKO extraction can be used in feeds for both Man and animal.
CASHEW NUT DEMAND VERSUS PRODUCTION
Cashew nuts have gained popularity in Nigeria, North America and Europe not only for their flavour but also for health benefits and industrial uses as well. Thus, the demand for cashew has increased.
Global consumption of cashew has increased dramatically over the years, reaching over 700,000 metric tons in 2018. According to the FAO, Nigeria is the 8th largest producer of cashew in Africa with about 5% of the continent’s production and 15th worldwide, with a global market share of about 2% in 2018.
Cashew is one of the most profitable long-term agricultural investments, but inadequate processing capacity has remained a stumbling block to the vibrancy of the industry. Nigeria processes only an estimated 10% of the total cashew nuts produced. The remaining 90% are sold at low prices in the global market, with China, Vietnam and India topping the sales chart. These countries process 85% of the global raw cashew nuts.
PROCESSING OF CASHEW NUT
Cashew Nut Processing Unit can be initiated at any location by considering the raw material availability. Cashew Nut Processing Unit is a small-scale profitable business.
Immediately after harvest, raw cashews nuts are processed, which is fundamental to maintain their quality and properties. Farmers separate the drupe from the cashew apple to put them into sun-drying. These raw products are traded and then processed to obtain the cashew nut kernel.
Product packaging is fundamental to maintain its quality, specially to avoid product damage, deterioration or contamination. Appropriate packaging ensures a better quality and higher product value.
Further packaging, maintaining controller optimal storage conditions is essential to maintain the product properties.
Generally the processing of raw cashew nuts into edible cashew kernel takes the following steps traditional method: roasting, shelling drying, peeling, grading, quality controls, fumigation and packaging. All these steps have to be conducted with care to obtain good quality and good grade kernels.
In order to ensure the quality requirements and avoid contamination of the cashew nuts, preparation takes place under clean, hygienic, and ideal conditions. The following aspects are cleaned regularly: equipment (tubes, knives, etc.), working and drying surfaces (racks, mats, etc.), personnel clothes, and preparing storage rooms.
PACKAGING
Bulk Packaging
Cashew kernels must be packed in such a way so as to protect the product properly. The materials used inside the package must be clean and of a quality such as to avoid causing any external or internal damage to the product. Cashew kernels must be packed in hermetically sealed containers. The use of materials, particularly paper or stamps bearing trade specifications, is allowed, provided the printing or labelling has been done with non-toxic ink or glue.
Transport Packaging
Transport packaging should be strong enough to protect the contents against damage by outside pressure.
The packaging is dimensioned to allow contents to be held firmly, but not too tight. The dimensions should be compatible with standard pallet and container dimensions.
STORAGE
Storage of Cashew Nut Shell
After harvesting, cashew nuts are immediately place out in the sun to dry and are continuously mixed until the nuts in their shells get to around 8 to 10% rest moisture. Cashews inshell and kernel are stored in dry (<65% relative humidity), dark cool (<10 ºC/50ºF) and well-ventilated conditions.
Storage of Cashew Kernels
Cashew moisture should be maintained at 5% or less, exposure to strong odors should be avoided, and storage conditions should protect them from insects and pests.
It is prohibited to carry out chemical storage measures (e.g. gassing with methyl bromide) in mixed storage spaces. Wherever possible, storing both organic and conventional products together in the same warehouse should be avoided.
Some people use methyl bromide in fumgating Cashews. But as a matter of fact, methyl bromide should never be used to fumigate cashews, as it causes chemical reaction in the nuts that results in a terrible sour milk-like off-flavor. It would be useful to include a cautionary statement in the storage section warning against fumigation of cashew drupes or kernels with methyl bromide, under any circumstances.
QUALITY REQUIREMENTS
To ensure the safety of cashews, international growers and processors are setting a wide range of good practices. Cashews are produced with consideration for quality control and food safety international standards. Careful practices have been stablished to control the chemical, microbiological, pesticide and contaminant content.
Currently, 75 per cent to 80 per cent of cashew nuts produced in Nigeria are exported, as only very few companies are involved in the local processing of the produce. The industry is also a vibrant employer, providing about 600,000 jobs and an annual trade worth N24 billion. The cashew industry is a major contributor to the nation’s non-oil GDP.
Nigeria’s Commodity Exchange recently commissioned cashew nuts processing and warehousing facilities at Egume/Ochaja, Dekina Local Government Area of Kogi State to minimise losses incurred as a result of delayed export of the crop.
The facilities are to serve as the point for stacking, weighing, and evacuation of cashew nuts from Niger, Edo, Benue, Kwara, and Kogi States for export.
Globally, Nigeria ranks among the top countries for sourcing cashew
CHALLENGES OF CASHEW PRODUCTION
Shipping delays are a key challenge to the Nigerian cashew industry. Other challenges include:
The presence of smallholder farming in the cashew farming segment impedes productivity. There are over 25,000 smallholder farmers (SHFs) engaged in cashew farming in Nigeria
Inadequate capital for farmers to upgrade and set up processing plants.
•High post-harvest losses have caused huge income losses to cashew farmers and investors. Post-harvest losses are attributable to several factors including poor storage and distribution facilities and unnecessary delays at the ports.
In conclusion, Nigeria can become the king of cashew in Sub-Saharan Africa through concerted efforts by cashew stakeholders including the government, relevant associations of farmers, financiers, etc. This can be done by formulating programmes and policies that will enhance the entire value chain of the crop while collaborating with farmers to ameliorate the challenges they face before, during, and after farming.
CASHEW NUT EXPORT
Currently, Nigeria process less than 5 percent of its total cashew exported, causing an annual estimated loss of N1.5 billion to the country. There are numerous opportunities to take advantage of in the cashew sector.
Globally, Nigeria ranks among the top countries for sourcing cashew. Cashew is a crop with high export potentials especially when processed.
Cashew is Nigeria’s third-largest agricultural export accounting for about 16% of total exports in the last three years.
Our total export of N61.8 billion in 2018 was more than 2.8 times its value in 2017. By 2019, Nigeria’s cashew export had declined by 39% to N39 billion. Cumulatively, Nigeria’s total cashew export from 2017 to 2019 stands at over N122 billion.
According to a report by NEPC, cashew export may fall by US$60 million because of the Vietnam Cashew Association’s caution to its local enterprises to carefully consider before importing raw cashew especially from West Africa as a result of the pandemic. NBS trade data as of 2020 shows that cashew export declined by 18% y-o-y from N5.4 billion in 2019 to N4.5 billion in 2020.
Cashew Nut is a great opportunities for cashew farmers and investors.
The diverse uses of cashew across industries and households have spurred global demand, unlocking opportunities for Nigerian farmers and investors. The NEPC has identified ten countries that offer the largest untapped potential for cashew exports, with opportunities that could unlock about US$3.4 million in revenue.
Opportunities also exist for investors to set up processing plants. The need to tap into the processing and marketing of cashew is driven by the growing appetite for cashew as a key industrial input as well as for household consumption purposes.
Cashew is a crop with high export potentials especially when processed.
Cashew Nut Processing Business started in the late 60s, which became a major producing crop after the production of tea and coffee, processed cashew nut are consumed directly or in various form of food.
Acording to This Day News, Cashew was introduced to Nigeria by the Portuguese in the 16th century. Its value was initially limited to the cashew apple as no commercial value was attached to the nuts. However, cashew’s commercial attractiveness commenced with the first commercial planting in mid-1950s by the defunct Eastern Nigerian Development Corporation (ENDC) and the Western Nigerian Development Corporation (WNDC).
Cashew grows in almost all states of Nigeria; however, most production is concentrated in the Eastern, Western, and Middle Belt areas with Anambra, Oyo, Enugu, Osun, and Kogi having the largest production.
The president of Cashew Farmers Aggregators and Processors of Nigeria, Unekwuojo Edime, said a major factor impeding the production of cashew in the country is the lack of a domestic market.
He said Nigeria’s cashew has low patronage at home and high demand abroad. He said the crop’s consumption at home is not big enough to compensate farmers for their investment, because the quality specification of the cashew in Nigeria does not meet the export requirement.
USES OF CASHEW NUT
Cashew is used for jam, cooking oil, biscuits, bread, bio-gas, jet fuel, hydraulic, brake fluid, paints, shoe polish, and more.
Cashew is produced for various purposes including medicinal, industrial and household uses. An estimated 60% of cashew kernels are consumed in form of snacks while 40% are used in the confectionery industry.
The cashew kernel used as a snack can either be roasted, salted, or flavored. It contains a rich source of oil, Vitamin K, protein, thiamin, minerals, and dietary fibers. One of the health benefits of cashew nut is that its calorie content is 16% lower than what is stated in other food labels.
Cashew nuts shell when crushed release a liquid known as Cashew Nut Shell Liquid (CNSL) which is highly sought in industrial processes to develop antioxidants, fungicides, lubricants, and drugs, etc. The cashew nutshell also contains Cashew Nut Kernel Oil (CNKO) while the pressed kernel cake from CNKO extraction can be used in feeds for both Man and animal.
CASHEW NUT DEMAND VERSUS PRODUCTION
Cashew nuts have gained popularity in Nigeria, North America and Europe not only for their flavour but also for health benefits and industrial uses as well. Thus, the demand for cashew has increased.
Global consumption of cashew has increased dramatically over the years, reaching over 700,000 metric tons in 2018. According to the FAO, Nigeria is the 8th largest producer of cashew in Africa with about 5% of the continent’s production and 15th worldwide, with a global market share of about 2% in 2018.
Cashew is one of the most profitable long-term agricultural investments, but inadequate processing capacity has remained a stumbling block to the vibrancy of the industry. Nigeria processes only an estimated 10% of the total cashew nuts produced. The remaining 90% are sold at low prices in the global market, with China, Vietnam and India topping the sales chart. These countries process 85% of the global raw cashew nuts.
PROCESSING OF CASHEW NUT
Cashew Nut Processing Unit can be initiated at any location by considering the raw material availability. Cashew Nut Processing Unit is a small-scale profitable business.
Immediately after harvest, raw cashews nuts are processed, which is fundamental to maintain their quality and properties. Farmers separate the drupe from the cashew apple to put them into sun-drying. These raw products are traded and then processed to obtain the cashew nut kernel.
Product packaging is fundamental to maintain its quality, specially to avoid product damage, deterioration or contamination. Appropriate packaging ensures a better quality and higher product value.
Further packaging, maintaining controller optimal storage conditions is essential to maintain the product properties.
Generally the processing of raw cashew nuts into edible cashew kernel takes the following steps traditional method: roasting, shelling drying, peeling, grading, quality controls, fumigation and packaging. All these steps have to be conducted with care to obtain good quality and good grade kernels.
In order to ensure the quality requirements and avoid contamination of the cashew nuts, preparation takes place under clean, hygienic, and ideal conditions. The following aspects are cleaned regularly: equipment (tubes, knives, etc.), working and drying surfaces (racks, mats, etc.), personnel clothes, and preparing storage rooms.
PACKAGING
Bulk Packaging
Cashew kernels must be packed in such a way so as to protect the product properly. The materials used inside the package must be clean and of a quality such as to avoid causing any external or internal damage to the product. Cashew kernels must be packed in hermetically sealed containers. The use of materials, particularly paper or stamps bearing trade specifications, is allowed, provided the printing or labelling has been done with non-toxic ink or glue.
Transport Packaging
Transport packaging should be strong enough to protect the contents against damage by outside pressure.
The packaging is dimensioned to allow contents to be held firmly, but not too tight. The dimensions should be compatible with standard pallet and container dimensions.
STORAGE
Storage of Cashew Nut Shell
After harvesting, cashew nuts are immediately place out in the sun to dry and are continuously mixed until the nuts in their shells get to around 8 to 10% rest moisture. Cashews inshell and kernel are stored in dry (<65% relative humidity), dark cool (<10 ºC/50ºF) and well-ventilated conditions.
Storage of Cashew Kernels
Cashew moisture should be maintained at 5% or less, exposure to strong odors should be avoided, and storage conditions should protect them from insects and pests.
It is prohibited to carry out chemical storage measures (e.g. gassing with methyl bromide) in mixed storage spaces. Wherever possible, storing both organic and conventional products together in the same warehouse should be avoided.
Some people use methyl bromide in fumgating Cashews. But as a matter of fact, methyl bromide should never be used to fumigate cashews, as it causes chemical reaction in the nuts that results in a terrible sour milk-like off-flavor. It would be useful to include a cautionary statement in the storage section warning against fumigation of cashew drupes or kernels with methyl bromide, under any circumstances.
QUALITY REQUIREMENTS
To ensure the safety of cashews, international growers and processors are setting a wide range of good practices. Cashews are produced with consideration for quality control and food safety international standards. Careful practices have been stablished to control the chemical, microbiological, pesticide and contaminant content.
Currently, 75 per cent to 80 per cent of cashew nuts produced in Nigeria are exported, as only very few companies are involved in the local processing of the produce. The industry is also a vibrant employer, providing about 600,000 jobs and an annual trade worth N24 billion. The cashew industry is a major contributor to the nation’s non-oil GDP.
Nigeria’s Commodity Exchange recently commissioned cashew nuts processing and warehousing facilities at Egume/Ochaja, Dekina Local Government Area of Kogi State to minimise losses incurred as a result of delayed export of the crop.
The facilities are to serve as the point for stacking, weighing, and evacuation of cashew nuts from Niger, Edo, Benue, Kwara, and Kogi States for export.
Globally, Nigeria ranks among the top countries for sourcing cashew
CHALLENGES OF CASHEW PRODUCTION
Shipping delays are a key challenge to the Nigerian cashew industry. Other challenges include:
The presence of smallholder farming in the cashew farming segment impedes productivity. There are over 25,000 smallholder farmers (SHFs) engaged in cashew farming in Nigeria
Inadequate capital for farmers to upgrade and set up processing plants.
•High post-harvest losses have caused huge income losses to cashew farmers and investors. Post-harvest losses are attributable to several factors including poor storage and distribution facilities and unnecessary delays at the ports.
In conclusion, Nigeria can become the king of cashew in Sub-Saharan Africa through concerted efforts by cashew stakeholders including the government, relevant associations of farmers, financiers, etc. This can be done by formulating programmes and policies that will enhance the entire value chain of the crop while collaborating with farmers to ameliorate the challenges they face before, during, and after farming.
CASHEW NUT EXPORT
Currently, Nigeria process less than 5 percent of its total cashew exported, causing an annual estimated loss of N1.5 billion to the country. There are numerous opportunities to take advantage of in the cashew sector.
Globally, Nigeria ranks among the top countries for sourcing cashew. Cashew is a crop with high export potentials especially when processed.
Cashew is Nigeria’s third-largest agricultural export accounting for about 16% of total exports in the last three years.
Our total export of N61.8 billion in 2018 was more than 2.8 times its value in 2017. By 2019, Nigeria’s cashew export had declined by 39% to N39 billion. Cumulatively, Nigeria’s total cashew export from 2017 to 2019 stands at over N122 billion.
According to a report by NEPC, cashew export may fall by US$60 million because of the Vietnam Cashew Association’s caution to its local enterprises to carefully consider before importing raw cashew especially from West Africa as a result of the pandemic. NBS trade data as of 2020 shows that cashew export declined by 18% y-o-y from N5.4 billion in 2019 to N4.5 billion in 2020.
Cashew Nut is a great opportunities for cashew farmers and investors.
The diverse uses of cashew across industries and households have spurred global demand, unlocking opportunities for Nigerian farmers and investors. The NEPC has identified ten countries that offer the largest untapped potential for cashew exports, with opportunities that could unlock about US$3.4 million in revenue.
Opportunities also exist for investors to set up processing plants. The need to tap into the processing and marketing of cashew is driven by the growing appetite for cashew as a key industrial input as well as for household consumption purposes.
Cashew is a crop with high export potentials especially when processed.
