We are in another season of cashew n :outs business. It is time for local farmers, local agents/distributors, suppliers and exporters to make money.
A business man or a trader culd only fit into 2 of d mentioned categories. Its either u 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 d largest importes and exporters of cashew nuts in d 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 d 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 eg,
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 u 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 d quality. D 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 ur 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 abt 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.

Pls note that cashew is profitable if u have everything under your control I.e good quality, right people working for u, capital (very important cos u could buy in large qty and store for a higher price later, u 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.

This is just my own piece of contribution to nairaland. I have gained a lot on this wonderful site. am proud to be a nairalander!!

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 d best teacher, I have gained a lot of experience ever since.

I think I have to stop here. I wish u guys best of luck.

Drop

@Lomzy1: I'll love to chat with you.

Nice post. I will to have a chat with you. Which of the chat device do you are you comfortable with?

.

Hello sir, pls I need ur advise. I am presently discusing with a prospective foreign buyer in india. He is quoting a price offer per ton for $750. Is dis a good deal sir? I av not responded to his mail yet. He promised to come down to nigeria if I agree to his terms.

babaagba1: Hello sir, pls I need ur advise. I am presently discusing with a prospective foreign buyer in india. He is quoting a price offer per ton for $750. Is dis a good deal sir? I av not responded to his mail yet. He promised to come down to nigeria if I agree to his terms.

My brother.. That deal isn't good for you. $750 is abt N120,000 ($1 - N160). I have few questions for you though.
Is the contract based on F.O.B or C.I.F?
What is the term of payment?
The price of raw cashew nut is on the high side this season and the competition is very stiff. At the moment, price of well sun dried cashew nuts is btw 95k - N110k. You may be lucky to get the ones that are already packaged in jute bags and all you would need do is to get it to Lagos.
Assuming you get the nuts at the rate of N100k from kogi (already bagged in jute bags) pls note that d price is just an assumption and doesn't reflect d real price you might buy when u want to procure.. Other logistic cost should be considered:

1.Loading - you have to pay those who will load d nuts into the truck, there's usually a fixed price for this.. It is often charged per bag.

2. Papers fees (such as produce fee, association fees etc) - if you know your way, you may not necesarily pay for this but it is often required by local buyers if you are selling locally and its also necesary for you to have it cos you may need it to show produce agents @ ogere and berger.

3. Transportation - from kogi to lagos.

4. Freight fee to the destination

5. SGS cert

6. Other shipping charges

7. THC

8. Documentation

And lots more.
You will need to add up all these cost to your buying cost in order to be able to arrive at your final price per ton before you could fix your own selling price. Add your own profit margin and let your prospective foreign buyer negotiate with you.

You will get more info/details and total breakdown in my book.. A COMPREHENSIVE TEXTBOOK ON CASHEW NUTS TRADING. A whole chapter is dedicated to EXPORT in the book.. With logical analysis and breakdown of prices.a sample of an actual quotation of cashew nuts for export is also available in d book.
Click my signature below to see d content of d book.

@lomzy1. God bless u so much.

Notice to local sellers: most of the buying companies in Lagos are not procuring cashew nuts at the moment. Some of them have stopped buying.
It is advisable to source for individual exporter or businessmen.
Some of the companies are still buying though, but its rare.
So don't just bring your goods to lagos without securing a conttact first.
I've been receiving calls from several people begging me to link them up with buyers in lagos after they have brought their consignment to lagos without having a solid conttact At hand.

cashew nut is almost out of season but trading is still on going. the price of cashew nut is low at the moment... the quality has also dropped. it is advisable to go for export trade rather than local. but terms and conditions must be agreed by both parties before the transaction.
local trade may not give good returns on investment now.. the ROI on export trade may also be minimal but it all depends on your prospective buyer.

Peeps.. Start preparing for next season. Next season kicks of by feb or marxh 2014.
Start making researches and also try to learn more about the trade. Knowledge is power. Supplying locally is not advisable now.. Most buying companies are not buying at the moment, but you could still be lucky to get individual exporters who have export contract to service.. They are your best bet now. Otherwise you export by yourself.

Peeps.. Start preparing for next season. Next season kicks of by feb or march 2014.
Start making researches and also try to learn more about the trade. Knowledge is power. Supplying locally is not advisable now.. Most buying companies are not buying at the moment, but you could still be lucky to get individual exporters who have export contract to service.. They are your best bet now. Otherwise you export by yourself..

My new bb pin: 22B52F4E

My new bb pin: 22B52F4E

https://www.nairaland.com/1090576/comprehensive-textbook-cashew-nuts-trading..2000

07064821943

Peeps.. Start preparing for next season. Next season kicks of by feb or march 2014.
Start making researches and also try to learn more about the trade. Knowledge is power. Supplying locally is not advisable now.. Most buying companies are not buying at the moment, but you could still be lucky to get individual exporters who have export contract to service.. They are your best bet now. Otherwise you export by yourself..

@OP you are doing a nice job, am following with great interest. Cheers

wonderiyke: @Lomzy1: I'll love to chat with you.

U can reach me on 07064821943.
Bb pin: 22B52F4E

leverage12: @OP you are doing a nice job, am following with great interest. Cheers

Thanks.. Keep following.

lomzy1: We are in another season of cashew nuts business. It is time for local farmers, local agents/distributors, suppliers and exporters to make money.
A business man or a trader culd only fit into 2 of d mentioned categories. Its either u 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 d largest importes and exporters of cashew nuts in d 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 d 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 eg,
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 u 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 d quality. D 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 ur 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 abt 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.

Pls note that cashew is profitable if u have everything under your control I.e good quality, right people working for u, capital (very important cos u could buy in large qty and store for a higher price later, u 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.

This is just my own piece of contribution to nairaland. I have gained a lot on this wonderful site. am proud to be a nairalander!!

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 d best teacher, I have gained a lot of experience ever since.

I think I have to stop here. I wish u guys best of luck.

For advise, assistance, consultancy and partnership, pls contact 07064821943, 08023881557

@op: Thanks for the eye opener.

In a ddition to what the op has mentioned, the issue of moisture is a killer. There is a maximum threshold for your cashew moisture. That is the reason raw cashew nut is sun dried. The drying party starts from the point of harvesting up to the point of grading and purchase by merchants.

See http://www.multipathpro.com/photos.htm

I am an agro produce and solid minerals export trainer. As a matter of fact, the largest source of Raw Cashew Nuts in Ogun State is my village in Yewa North. I currently consult for a cooperative of Licensed Buying Agents (LBAs) of raw cashew nuts and Cocoa Beans in my villa, but i am based in Lagos. In all the states where cashew is grown, you would always need Licensed Buyng Agents, you cant do without them, they will make or mar you at the point of purchase. So its important to work from inside.

Like someone said earlier, the next season is in February -May 2014 and this is the best time to position. It would be a lot easier if all of us work as a team.

If this is somethingnp that catches our fancy, we should be looking at setting up a meeting.

Wish us all the best.

kingagropro1:

@op: Thanks for the eye opener.

In a ddition to what the op has mentioned, the issue of moisture is a killer. There is a maximum threshold for your cashew moisture. That is the reason raw cashew nut is sun dried. The drying party starts from the point of harvesting up to the point of grading and purchase by merchants.

See http://www.multipathpro.com/photos.htm

I am an agro produce and solid minerals export trainer. As a matter of fact, the largest source of Raw Cashew Nuts in Ogun State is my village in Yewa North. I currently consult for a cooperative of Licensed Buying Agents (LBAs) of raw cashew nuts and Cocoa Beans in my villa, but i am based in Lagos. In all the states where cashew is grown, you would always need Licensed Buyng Agents, you cant do without them, they will make or mar you at the point of purchase. So its important to work from inside.

Like someone said earlier, the next season is in February -May 2014 and this is the best time to position. It would be a lot easier if all of us work as a team.

If this is somethingnp that catches our fancy, we should be looking at setting up a meeting.

Wish us all the best.

Nice contribution.. Ur analysis is flawless.

lomzy1:
Nice contribution.. Ur analysis is flawless.

Thanks lomzy1. 10 tuaile for u baba. Please keep me in the loop as the arrangement goes on for this coming season. At least i have control over the LBAs from my villa.

My details 08033028598, multipathprojects@gmail.com

kingagropro1:

Thanks lomzy1. 10 tuaile for u baba. Please keep me in the loop as the arrangement goes on for this coming season. At least i have control over the LBAs from my villa.

My details 08033028598, multipathprojects@gmail.com

Will give u a call.

.

CASHEW NUTS TRADING.. WHAT YOU NEED TO KNOW.

CASHEW NUT is a commodity and agro export crops. Though active to South America, it is cultivated in some parts of West, Middlebelt and Eastern Nigeria. Areas like Ogbomosho, Ilorin, Oyo, Anyigba, Enugu, Lafia, Keffi etc.
The cashew nut tree is mostly cultivated for its nuts: the raw cashew nut is gray in color with about 3mm thick shell, inside this shell is the edible kernel covered by a light brown skin. It is either exported as raw cashew nut, i.e. in-shell or as processed cashew nut kernel in special packaging.
Most raw cashew nut is exported to India and Vietnam while the processed cashew kernel is exported to Europe and America being the largest consumer in the world.
The crop season in Nigeria is from February - May.

HANDLING.
A raw cashew nut that looks good on the outside may have bad kernel inside. The yield of the kernels, percentage of defective, average size of the nuts and moisture content are used to determine the quality of the nuts, which usually determines the price a buyer may offer for any raw cashew nut.
Hence effort should be made to improve or conserve the expected good quality derived from proper handling.

THE FOLLOWING GOOD PRACTISE CAN HELP TO IMPROVE QUALITY OF CASHEW NUTS.
Do not harvest or pluck unripe cashew nuts because the kernel may be shriveled or immature. Hence, only mature and ripe cashew nuts should be harvested and this be done daily.
Do not let the nuts remain on the ground for more than a day before gathering to avoid long contact with soil moisture, sprouting and deterioration e.g. decay.
Sundry the harvested nuts as soon as possible for two or three days depending on the intensity of the sun.
Sundry on a clean surface and should be lightly spread (not higher than 3 inches) and turned regularly to allow uniform dryness.
Do not expose dry cashew nuts to moisture. This is a major requirement for agricultural commodities.
Use only jute bags to bag raw cashew nuts.
Do not heap it un-bagged or in plastic containers to avoid deterioration especially if not properly dried.
Do not bag it in poly-propylene bags.

QUALITY STANDARD.
Cashew nuts meant for export must be thoroughly dry and reasonably free from extraneous matter such as sticks, stalks and other vegetable matter other than cashew nuts. It must also be free from stones.
Total impurities (stones, sticks, stalks and other vegetable matter) shall not exceed 0.5% of 1kg sample analyzed.

NUT COUNTS:
170 – 180 ……………….. EXCELLENT
181 – 190 ……………….. VERY GOOD
191 – 200 ……………….. GOOD
201 – 210 ……………….. MIDDLE
211 – 220 ………………. LOW MIDDLE
221 – 230 ………………. LIMIT ACCEPTABLE
ABOVE 230 ………………. POOR.

Note: 170 – 210 nut count is usually the benchmark for exporting raw cashew nuts. But some importers may not be willing to buy RCN that is above 200 nut counts.
In Nigeria, the nut count per 1kg sample varies from zone to zone. While zones like Ogbomosho has between 170 and 180/185, kogi – 190 to 205/210, ondo – 190 to 205/210, Ilorin – 190 to 205, lafia/keffi – 200 to 210, etc.

MOISTURE.
Exportable quality shall not be more than 10%. You have to make sure the raw cashew nuts are properly sundried and the moisture content must be properly analyzed.

KERNEL OUT-TURN RATION (KOR)
It is the quality of good nut we get from 80kg of raw cashew nuts. The count is in pound per 80kg.

KOR REMARK
48 – 55 EXCELLENT
45 – 47 GOOD
40 – 44 AVERAGE
BELOW 40 LOW/POOR

DEFECTIVES
Diseased or mouldy – shall include all nuts which when cut reveal the presence of fungi growth or a milky patch or a spread of brown or black spot on the split kernel.
This is often caused by high moisture for several days prior to proper dryings, wrong packing and improper storage.

BROWN RANCID ROTTEN (BRR) – shall include all brown, rancid, rotten and discolored kernels which are light yellowish in color. This is caused by similar factors listed above.

VOID – these are nuts which show absence of kernel, emptiness or absence of a kernel of useful size. This is probably caused by natural malformation.

IMMATURE/SHRIVELED – shall include all nuts which when cut contain space between the kernel and the shell, shrink or contain kernel that is not fully developed. This is caused by harvesting immature nuts.

SPOTTED – shall include all nuts which show the presence of a black or brown spot on the kernel. This is caused by insect bite at the early stages of the development of the nuts.

INSECT DAMAGE (WEEVILLED) – shall include all cashew nuts which when cut show a state of insect attack or weevilled or presence of bead-like or powdery particles. Poor storage condition is responsible for this.

CHECK TEST FOR QUALITY
Carrying out a quality check test on cashew nuts like every other agricultural export produce begins with proper sampling. Samples shall be drawn from not less than 30% of consignment, sample shall be properly mixed, reduced and from which 1kg sample is drawn for analysis which include moisture, nut count, defectives and finally KOR.

QUALITY IMPROVEMENT METHODS:
The quality of a bad cashew nut consignment can be improved by hand picking.

HAND PICKING – means picking or removing all suspected cashew nuts such as very small nuts, light weight nuts apparently rotten, broken or wounded nuts out of the consignment.

Specifications of processed cashew kernels.

White Wholes
W180
W210
W240
W320
W450
W500 

Scorched Wholes
SW
SW180
SW210
SW240
SW320
SW450
SW500

Dessert Wholes
SSW (Scorched wholes seconds)
DW  ( Dessert wholes)

 Brokens
White pieces
B (Butts)

S (Splits)
LWP(Large white pieces)
SWP(Small white pieces)

BB   (Baby Bits)

Scorched small pieces
SB (Scorched butts)
SS (Scorched splits)
SP (Scorched pieces)
SSP(Scorched small pieces 

Dessert pieces
SPS (Scorched pieces seconds)
DP (Dessert pieces)

What you can do before the season begins:

1. Buy jute bags: price of jute bags is usually low now. You can start buying jute bags and keep till the season begins. The price shoots up during the season.

2. Travel to your source: if you have a particular place you want to buy from, try and visit the place before the season takes off, familarize yourself with the town, meet your suppliers and try to run a thorough background check on them discreetly.

3. If you have trustworthy suppliers, you may advance some fund to them, so you could get good buying rate at the beginning of the season. Most farmers need money to take care of their plantation between now and february, this period is a very crucial periiod for farmers especially those who don't have money to run things. So they often look for people to advance money to them or they sell their plantation to investor at a very good rate.

4. Link up with foreign buyers: you can start looking for export deals now.

5. Try and get at least 3 local buyers (exporters) of raw cashew nuts in Nigeria: if you will be selling locally, you need to have at least 3 good buyers of cashew nuts in nigeria, most of these buyers are indian companies and are located in lagos. Although there are also individual exporters who have export contracts to service, so you may need to start linking up with prospective buyers now. Visit their offices and tell them you intend to supply them when the season takes off.

6. Start calling your uncles, aunts in the village to enquire about cashew especially if you are from any of the producing states: a lot of youth sit down in lagos doing nothing nowadays and they will be saying they are jobless, while there's treasure in the villages they left behind. There's an adage in yoruba language that says "igbe l'owo wa" (money is in the bush. Connect with them and let them know you have an interest.

7. Research: knowledge is power and nobody knows it all. Get online and do research on cashew nuts, learn from people who have knowledge about it. Read books, visit plantations, explore.

8. Start raising fund: capital is essential, if you have all d experience necessary and you don't have fund to execute it, it may affect you. Raise enough fund for the business.