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.
CHECK OUT MY EBOOK ON CASHEW :

1. A COMPREHENSIVE TEXTBOOK ON CASHEW NUTS TRADING = #2500 (TWO THOUSAND FIVE HUNDRED NAIRA ONLY)

2. BUSINESS PLAN AND PROPOSAL ON CASHEW NUTS TRADING FOR LOCAL TRADERS, IMPORTERS & EXPORTERS = #4000 (FOUR THOUSAND NAIRA ONLY)

CALL 07064821943 (WHATSAPP)
08023881557

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

When was the last season?

jamace: When was the last season?

Last season has ended. It was february - may. But commercial activities are still on-going.
Some traders usually store goods even till november.

lomzy1:
Last season has ended. It was february - may. But commercial activities are still on-going.
Some traders usually store goods even till november.

So this season will last from when to when?

jamace: So this season will last from when to when?

it will start February and end by May 2015.

Ok.

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.

MORE TO COME.. KEEP FOLLOWING.

lomzy1:
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.

MORE TO COME.. KEEP FOLLOWING.

Thank for the info, what is price for export standard cashew nut now, and can someone get it in large quantity?

akinvest:
Thank for the info, what is price for export standard cashew nut now, and can someone get it in large quantity?

You cannot get cashew nuts in large quantity now.. It is very scarce in the country at the moment. The season ended around May.. Few people still have though. But the quality you can get now is also low..
Due to the scarcity, the price is very expensive. I cannot give a definite price for export now..

lomzy1:

You cannot get cashew nuts in large quantity now.. It is very scarce in the country at the moment. The season ended around May.. Few people still have though. But the quality you can get now is also low..
Due to the scarcity, the price is very expensive. I cannot give a definite price for export now..

Ok. "ll give u a call soon.

akinvest:
Ok. "ll give u a call soon.

Ok.

Waiting for the next post sir.

thappy78:
Waiting for the next post sir.

Coming soon..

Pls how do I meet you sir.

davida5:
Pls how do I meet you sir.

Call 08023881557, 07064821943

EXCERPT FROM MY E BOOK (A COMPREHENSIVE TEXTBOOK ON CASHEW NUTS TRADING).

PART 3 (SAMPLES AND QUOTATIONS)

CHAPTER 1

SAMPLE OF QUOTATION FOR CASHEW NUTS (FROM KWARA STATE DELIVERED TO LAGOS)

QUANTITY SUPPLIED 30 TONS

1. CASHEW NUTS @N80, 000/TON: 80,000 X 30 TONS.……………….………….. 2,400.000
2. BAGS (JUTE) @ N350/BAG X 13= N4500/TON: 4500 X 30 …………………. 136,500
3. LOADING @ N50/BAG X 13 = N650/TON: 650 X 30 ……………………………… 19,500
4. LABOUR: (sewing, grading etc) ……………………………………………………………. 10,000
5. PAPERS (from the point of procurement include; association paper… 30,000
Way bill, gate pass, produce fee etc.
6. PRODUCE FEE @ OGERE, OGUN STATE & BERGER, LAGOS STATE …………… 20,000
7. TRANSPORT (from kwara to Lagos) ………………………………………………………… 150,000
TOTAL …………….. 2,763,000

TOTAL COST OF A TRAILER LOAD (30 TONS) OF CASHEW NUTS IS TWO MILILION, SEVEN HUNDRED AND SIXTY THREE THOUSAND NAIRA.
Thus the final price per ton will be: 2,763,000 divided by 30 tons = N92, 100 (NINETY TWO THOUSAND AND ONE HUNDRED NAIRA).
Note that the actual price of cashew nuts per ton is now N92,100. It is now left for you to fix a suitable price for your consignment bearing in mind the actual cost of cashew nuts which is now N92,100 (ninety two thousand, one hundred naira). The profit margin when selling locally is not really attractive due to the competition, but the turnover is quite good. No matter the quantity you want to supply, buyers are always willing to purchase and pay you as soon as possible. There is always a standby buyer wishing to buy as many quantity you can supply at every point in time. There are local buyers/exporters that can buy up to 30 trailers in a day as long as you have goods to supply. They don’t owe suppliers money.
It is advisable to fix your profit margin between 8–15% when selling locally. (20% may be possible though but it is rare,most likely if you are supplying an individual who has an export contract or a private firm but definitely not those indian buying companies in lagos).
let's assume your profit marin is 10%, your sales price will be N101.310…. (9,210 + 92,100 =N101.310). Hence profit margin on a ton will be selling price subtracted by actual cost price: 101,310 – 92,100 = N9,210 Thus profit on a trailer load of cashew nuts (3o tons) will be 9210 x 30 = N276,300
Thus on a two million seven hundred and sixty three thousand investment, you will make two
hundred and seventy six thousand returns which is approximately 10% of your initial investment.
Now let’s assume you are supplying only twice a week, you will be making 276,300 x 2 = N552,600 (five hundred and fifty two thousand, six hundred naira) every week (supplying twice a week may not be possible for every seller,it depends on the supply capabilty of your source and also the availability of capital/fund).
Please note that the above quotation reflects the real cost of a transaction prepared by the author for a client at a particular time. The quotation was based on local transaction for a client from kwara state to buyer’s warehouse in Lagos.
The price of cashew nuts fluctuates almost on weekly basis, so the price of N80, 000 quoted may not be applicable or obtainable always. Price of cashew nuts fluctuated between N68, 000 – N90,000 this 2012 season. Also note that whenever the price of nuts rises, the selling price also rises accordingly.
also note that cost of transportation, produce fee @ ogere and berger can be negotiated. you may get a better bargain from transporters.. N80,000 naira - N100,000 cost could be achieved from ilorin to lagos.
some truck drivers also know how to avoid the fee colectors @ ogere and berger therefore you may end up not paying but you will have to settle the drivers. you also need an escort (not an officer) to follow the truck if you cant travel with the truck. they are usually paid between N5,000 - N10,000.

To order the book and read other free reports pls follow these links (see the table of content also):

https://www.nairaland.com/1090563/comprehensive-textbook-cashew-nuts-trading..now

https://www.nairaland.com/883892/free-report-cashew-nuts-biz

08023881557
07064821943.
bb pin: 30D4CD77

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)

2016 season loading...

Just to confirm, the cashew season starts in Feb and ends in May, right? I have never traded in cashew before, however I have researched the cashew business thoroughly so I am looking to trade now. I even have an idea of what kind of ROI I am targeting. How can I get started? Thanks!

na wa ohhhh, so someone must have 2.7million to be able to trade in cashew.
am very sure this post is not for struggling Nigerians.

endy231:
na wa ohhhh, so someone must have 2.7million to be able to trade in cashew.
am very sure this post is not for struggling Nigerians.

You can be in the business without money. You can link buyers and sellers together and get paid on commission basis.

T1000:
Just to confirm, the cashew season starts in Feb and ends in May, right? I have never traded in cashew before, however I have researched the cashew business thoroughly so I am looking to trade now. I even have an idea of what kind of ROI I am targeting. How can I get started? Thanks!

Yes sir, the season starts from February to may/june.
But the season is late this year, so full commercial activities should start in march.
The crop is coming out gradually but not yet available in large commercial quantity.

The National flag off for 2016 Cashew season has been scheduled to hold on the 29th of february, in ilorin, at the kwara state banquet hall.
Time: 9 am prompt.
It has been postponed from 15th.

lomzy1:

Yes sir, the season starts from February to may/june.
But the season is late this year, so full commercial activities should start in march.
The crop is coming out gradually but not yet available in large commercial quantity.

Thank you Sir this helps a lot. What will be the price range per ton of cashew in March? And how many transactions can be done in a two week span? (Taking into consideration logistics and other unforeseen challenges).

lomzy1:
The National flag off for 2016 Cashew season has been scheduled to hold on the 29th of february, in ilorin, at the kwara state banquet hall.
Time: 9 am prompt.
It has been postponed from 15th.

Can you please check your email

invinzible1:

Can you please check your email

Ok.i will

I need cashew nuts in stock only!...load and pay basis only!!...call 08026225888

.....

HSA exports and distributes tropical hardwood charcoal i.e Ayin and its fingers, neem or acacia, and cashew nuts. Our firm is one of well known charcoal and cashew nuts producer and supplier that deal with them in large quantity in Nigeria. More so, consignments packaging are usually determined by the buyer either to have it in bulk packaged or to have it packed in variant kilograms of 5kg, 10kg, 20kg, etc. for inquiry, email; hsacharcoal@gmail.com or whatsapp; 08177517800. Call; 08067522299