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April 11, 2020

How to start profitable cashew nut export business in Nigeria

Cashew nut export

Cashew nut export – Addressing Nigeria’s insignificant contributions to Export earnings, with special emphasis on cashew Value Chain Development and Exportation, it was revealed that Nigeria has the potential of generating N71bn annually from cashew nuts export.

This revelation was made in a one day National Cashew Stakeholders/Export Summit organized by the LEADERSHIP Newspapers in collaboration with the Association of Cashew Farmers, Aggregation and Processors of Nigeria (ACFTAP) in Abuja in January 2020.

To this end it will be sad enough to turn a blind eye to the opportunity that abounds in this industry, having seen that, it becomes necessary to guide you into actionable steps you should take should you have a knack for cashew nut export business in Nigeria.

If by any means this is the type of information you’ve been looking for, do not be in a hurry to hit the exit button, I promise to make every seconds you spend on this web page worth the while.

Your recent search on this topic may include any of the following;

  • Where is cashew nut grown in Nigeria
  • Current price of cashew nut in Nigeria
  • Cashew nut buyers in Europe
  • Cashew nut buyers in Nigeria
  • Cashew nut buyers in the U.S.A

I promise to do honest justice to them all, even much more, what next? Just relax and get informed.

To venture into this business, you will need to put a good number of factors in proper perspective, fixing them right will ensure you a level of success without having your fingers burnt one bit.

Understanding the concept Cashew nuts

Cashew nuts are a kind of seed which owes its origin from Cashew apples and are known for their high nutritional value and health benefits.

Most of the health benefits connected to them are down to the healthy antioxidants and fatty acids contain in them. Cashew nuts are rich in copper, magnesium, iron, phosphorus, and selenium. According to (nutspick.co.uk).

Cashew nut export

Sounding primarily because of newbies, this is the practice where one buys cashew nuts from local seller/farmers, in turn sell them to buyers outside Nigeria for a huge profit.

By exporting abroad you’re targeting the international market which is most profitable factoring the possibility that you’ll earn foreign/hard currency in return as settlement, that does the clarity I suppose.

Actionable steps involved in cashew nut export

Step 1. Business Registration with the Corporate Affairs Commission (CAC)

To commence export business of any category in Nigeria, it’s demanding on you to get a business name duly registered with the Corporate Affairs Commission (CAC), note however that your registration category Must fall under “Limited Liability Company.”

This is legally the only category permitted and acceptable for export of cashew nuts and its likes.

Business registration in Nigeria does not come with herculean task anymore like the practice use to be few years back.

Just in case you need a resource to guide you on this, read; How to register a business name in Nigeria.

Step 2. Register with Nigeria Export Promotion Council (NEPC)

Nigeria Export Promotion Council is a body that’s saddled with the responsibility to oversee export affairs in Nigeria on behalf of the federal government of Nigeria.

The NEPC helps you with the following;

  • Registration
  • Documentation and
  • Product inspection to conform with International  export standard.

That being said, you may commence your registration with NEPC on the e-registration portal.

Step 3. Get requisite training on cashew nut export

It shouldn’t come as a surprise that a first-hand knowledge of the export process is necessary for an over-all success of your business adventure.

Read also: All you need to know about export documents

To every business, theirs is underlying secrete that assure either success or failure, you then should not learn the trade the hard way, do not learn from your own mistakes, rather avail yourself the opportunity of going through the tutelage of predominant experts in this business, that way, your success is almost guaranteed before you set out in earnest.

It will cost you a fortune to find and attain cashew nut export trainings in your location, believe me it sure worth every penny that part ways with your pocket.

You not only learn about the business, you’ll get to meet experienced exporters who’ll be willing to help out with challenges you may be facing in business.

People throw up their concerns and challenges in trainings like this, follow carefully and avoid their pitfalls when they come presenting themselves in your case.

Step 4. Understand the different types of cashew nuts

Now here is the silver linings, cashew nuts are of different types, sizes etc. This invariably affects the market price, it becomes pertinent to get yourself acquainted with this underlying fact.

Buying a low demand type at high price will sure affect your chances of making profits, since you’re expected to sell at certain uniform market price and all that.

This forms the more reason you should get so routed with trainings and more relevant information.

However, the Nigeria Export Promotion Council provides assistance in this area should you get them involved. There lies the point number 4.

Step 5. Product sourcing

It depends on how you wish to venture into the market, whichever dimension you find relevant, it remains a duty to source your product.

However, you may decide to source from local sellers/farm then sell to exporters or export yourself, the good news is that whichever angle you deem fit, there’s profit to be made.

For the record, you can find good and quality cashew nuts in the following states;

  • Abia
  • Kogi
  • Enugu
  • Imo
  • Oyo
  • Niger
  • Kaduna
  • Abuja

Step 6. Find international buyers of cashew nuts from Nigeria

Having sourced your cashew nuts, it’s time to find buyers from oversees who would patronize you.

Read also: Key facts every exporter should know about “Nigeria Export Promotion Council

You may find these buyers in a number of ways;

  • You could attend trade exhibition to meet suppliers and buyers alike
  • You could use local or foreign agents, this is good but very risky if you’re dealing with the wrong people.
  • As much as you want to meet buyers, you should also be seen, by this standard it pays to create a business website, with a good experience of Search Engine Optimization (SEO), when buyers are looking for cashew nuts suppliers in Nigeria, they’ll find you on Google search engine, that way they’ll contact you for enquiry.
  • You may as well register on www.alibaba.com or www.exporterindia.com

Step 7. Export your cashew nuts

It’s a matter of necessity to do your due diligence on the international buyer, get an irrevocable Corporate Purchase Order (ICPO), Signed contract, receive a Letter of Credit, you can proceed to ship the cashew nuts.

However, the shipment could happen in two ways;

  • Cost, Insurance and Freight (CIF) or
  • Free on Board (FOB)

CIF suggests you will have to cover the cost of everything including Insurance and transporting the goods to the buyer’s port of destination.

While FOB means you cover the cost of goods and every other thing till its arrival at the shipping point.

Conclusion

Frequently asked question

Where is cashew nuts grown in Nigeria?

Recall, answer to this has been given in the product sourcing step above;

For the record, you can find good and quality cashew nuts in the following states;

  • Abia
  • Kogi
  • Enugu
  • Imo
  • Oyo
  • Niger
  • Kaduna
  • Abuja

Current price of cashew nuts in Nigeria

Depending on the outturn, Cashew nuts can sell around $1,200/mt to $1,500/mt.

Cashew nut buyers in Europe

You may find buyers in Europe by attending exhibition sales, linking up with genuine agents, creating a business website, write SEO content targeting cashew nut buyers in Europe, this way you can easily make a giant leap.

Cashew nut buyers in Nigeria

You probably have a cashew farm or a local supplier that didn’t want to bother yourself with cashew nut export, you may seek out local buyers who have the ability to export abroad.

You may supply your cashew nuts to the following companies;

  • Almond Global LLC
  • Spark Foods Limited
  • AEON AGRO LIMITED
  • Hue Synergy Limited
  • Alolanitag Ventures Limited
  • Tebrad etc

All these and many more are cashew nuts buyers in Nigeria you can sell to.

Cashew nut buyers in the U.S.A

The following are buyers from the sates;

  • Kumativor Ltd
  • AK Traders
  • Jayra Exports
  • Authentic Cashew
  • Kacas Enterprises
  • African and American Associate Unlimited Nuts
  • Josannah etc.

Cashew nut export can be so rewarding if and only you follow the recommended steps religiously.

Do not forget, we’re major suppliers and exporters of hardwood charcoal from Nigeria to any part of the world, we are just a call away from you, contact us today let’s commence the arrangement and ship to your preferred destination without delay.

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