How To Make millions from cashew Nuts export In Nigeria (Step By Step Guides)

For the few Nigerians who export cashews, the business has been of instant success. Driven by the rise in demand from China, India, and other fast-growing economies, the global cashew boom has generated profits at most trading houses. Together, some cashew; exporters are worth millions of dollars in annual revenue.

We are in another season of the cashew nuts business. It is time for local farmers, local agents/distributors, suppliers, and exporters to make money.

A businessman or a trader could only fit into two of the mentioned categories  Supplier or Exporter. 

Supplier: Supplying to cashew nuts export companies in Nigeria, basically in Lagos who in turn export it abroad, though most of these companies are owned by Indians, India is one of the largest importers and exporters of cashew nuts,  This is possible because India has a free trade agreement with most Asian countries thus those countries should import from India rather than import from Africa or any other country because of the import duty tariff.  

It would be interesting to know that India produces cashew nuts also, but they are one of the largest importers of cashew nuts in the world. Or you are an Exporter buying from a local supplier and exporting it yourself.

Things To Put Into Consideration

Going into the cashew business is not an easy task for a new beginner Because a lot of things have to be put into consideration example,

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: you need to know how it is measured, weighed, and packaged in bags, if not you 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 the quality. the quality of  Nigeria cashew nuts is between 42 - 54 KOR. There is a way this test is carried out by exporters, the test is physical and you could monitor it yourself but you need to have an idea/knowledge about it or else you will be cheated by exporters. 

5. Price: cashew nuts prices fluctuate almost every week, so you need to know the 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 the final price you buy from local sellers and the price you 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: you need to know the price you will transport your cashew nuts from one destination to the other, this also affects the 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: you need to know the source of your business. 

10. If you are exporting, you need to know the export duty, FOB price, CNF price, and freight price.

An Advise:

First timers, you have to be very careful about this business, some people are using this business to defraud unsuspecting traders. Most people organize seminars and will only tell you how to make money in the cashew business but they will never tell you how risky it is. 

 Most of these seminar organizers have never been to any of the villages that produce cashew nuts, they've never been to the farms, meet with the local farmers, and local distributors, they do not know that the quality determines the price, etc.

Please note that cashew is profitable if you have everything under your control I.e good quality, the right people working for you, and capital (very important because you could buy in large quantities and store it for a higher price later, you will also have an edge over your competitors), entering the business at the right time, at an early period, especially the time, price is still low. I could go on and on talking about this business.

Research is very necessary, do your own little research before you venture into this business (you either succeed or fail) it depends on how best you manage every situation you encounter during the business. wishing you all good luck.