Over the past three years, the price of Raw Cashew Nut (RCN), the prominent cashew export in Nigeria, has been on a consistent decline.
I became curious and decided to take out time to research and understudy the global cashew market, and the findings are astonishing.
Do you know 9 out of 10 unit of Cashew nut produced in Nigeria are exported as Raw Cashew Nut (RCN) to India, Vietnam and China?
India, for example, is the highest importer of Raw Cashew Nut (RCN), and the highest exporter of processed cashew nut to the USA and European Union.
What is the implication?
They import a high-quality cashew nut from Nigeria at a discounted price, add value to it, and export the processed nut at premium prices. Currently, there is cashew glut in Nigeria, as there are now several African countries in the market supplying the RCN at discounted prices, thereby forcing a decline in the price of the nut at the detriment of Nigerian cashew producers due to excess supply.
The way out:
This low prices of cashew nut are projected to last for an appreciable period of time unless something is done urgently, and that will be to develop a vibrant Cashew processing industry in Nigeria.
With a well-developed cashew processing industry, the competitiveness for the RCN will increase, and thereby cause an appreciable increase in the price of the nut.
In addition, the availability of high quality and export-grade cashew kernel will open up the market for Nigeria in the USA and European Union, thereby encouraging and driving forex into the country.
This is a call for a public-private partnership for a win-win game. There exists a high growth potential in this market.