7 Reasons Why Cashew Export is a Lucrative Business Opportunity
Cashew nuts are one of the most popular and versatile nuts in the world. They are used as snacks, ingredients, and even as a source of oil and butter. But did you know that cashew export is also a lucrative business opportunity for many developing countries? Here are seven reasons why:
1. Cashew nuts are in high demand
According to the UNCTAD, the global consumption of cashew nuts increased by 53% from 2000 to 2018, reaching 3.9 million tonnes. The main markets for cashew nuts are the United States, the European Union, India, China, and Japan. These markets have a growing appetite for healthy, natural, and convenient foods, which cashew nuts can offer.
2. Cashew nuts are profitable
The average export price of shelled cashew nuts was $6,216 per tonne in 2022, according to the World’s Top Exports. This is higher than the average export price of other nuts, such as almonds ($4,798), pistachios ($4,674), or walnuts ($3,722). Cashew nuts also have a long shelf life and can be stored for up to two years without losing their quality.
3. Cashew nuts are resilient
Cashew trees can grow in various climatic and soil conditions, and are resistant to drought and pests. They can also withstand high temperatures and salinity. Cashew trees can produce nuts for up to 30 years, and can also provide other benefits, such as firewood, fodder, and soil conservation.
4. Cashew nuts are sustainable
Cashew production can contribute to environmental and social sustainability. Cashew trees can help reduce greenhouse gas emissions by sequestering carbon dioxide and releasing oxygen. Cashew production can also create employment opportunities and income for rural communities, especially for women and youth.
5. Cashew nuts are versatile
Cashew nuts can be processed into various products, such as roasted or salted snacks, cashew butter, cashew milk, cashew cheese, cashew oil, and cashew flour. These products can cater to different consumer preferences and dietary needs, such as vegan, gluten-free, or organic.
6. Cashew nuts are innovative
Cashew processing can involve various technologies and techniques, such as steam cooking, mechanical shelling, drying, grading, peeling, roasting, packaging, and quality control. These technologies can improve the efficiency, quality, and safety of cashew products.
7. Cashew nuts are competitive
Cashew production and export can enhance the competitiveness of developing countries in the global market. By investing in cashew value addition, diversification, branding, certification, and marketing, cashew exporters can increase their market share and profitability.
Cashew export is a lucrative business opportunity that can benefit many developing countries. By producing and exporting high-quality cashew products, these countries can meet the growing demand of consumers around the world and generate economic growth and social development.
Cashew Export: A Global Overview
Cashew nuts are one of the most popular edible nuts in the world, valued for their rich flavor and nutritional benefits. They are also an important source of income for many developing countries, especially in Africa and Asia, where they are grown and processed. In this blog post, we will look at some of the key statistics and trends of the global cashew export industry, based on the latest available data.
Top Cashew Exporters in 2022
According to Statista, the leading cashew nut exporting countries worldwide in 2022, based on export value, were Tanzania, India, Vietnam, Côte d’Ivoire and Brazil . These five countries accounted for about 75% of the total export value of cashew nuts (in shell) in 2022, which was estimated at $6.3 billion . Tanzania was the top exporter, with exports amounting to a value of over $226.9 million, followed by India with $214.5 million, Vietnam with $201.4 million, Côte d’Ivoire with $198.7 million and Brazil with $191.4 million .
The top cashew exporters in 2022 were not necessarily the top cashew producers in the same year. According to UNCTAD, the leading cashew nut producing countries in 2022 were India, Côte d’Ivoire, Vietnam, Nigeria and Guinea-Bissau . These five countries accounted for about 70% of the global production of cashew nuts (in shell) in 2022, which was estimated at 4.1 million tons . India was the top producer, with a production of 1.1 million tons, followed by Côte d’Ivoire with 0.8 million tons, Vietnam with 0.6 million tons, Nigeria with 0.5 million tons and Guinea-Bissau with 0.2 million tons .
The discrepancy between the top exporters and producers of cashew nuts can be explained by several factors, such as domestic consumption, processing capacity, trade policies and market dynamics. For instance, India is the largest producer and consumer of cashew nuts in the world, but it also imports raw cashew nuts (RCN) from Africa to meet its processing demand and exports processed cashew kernels to other markets . Vietnam is also a major importer of RCN from Africa and a major exporter of processed cashew kernels, especially to China and the United States . Côte d’Ivoire is the largest exporter of RCN in Africa, but it also has a growing domestic processing industry that aims to increase its value addition and export earnings .
Top Cashew Importers in 2022
According to Statista, the leading cashew nut importing countries worldwide in 2022, based on import value, were Vietnam, India, China, United States and Brazil . These five countries accounted for about 77% of the total import value of cashew nuts (in shell) in 2022, which was estimated at $6.3 billion . Vietnam was the top importer, with imports amounting to a value of over $1.8 billion, followed by India with $1.4 billion, China with $0.9 billion, United States with $0.7 billion and Brazil with $0.4 billion .
The top cashew importers in 2022 were mainly driven by their processing and consumption demand for cashew nuts. As mentioned earlier, Vietnam and India are both major importers of RCN from Africa and major exporters of processed cashew kernels to other markets . China is also a large importer of processed cashew kernels from Vietnam and India, as well as a growing consumer market for cashew nuts . The United States is the largest consumer market for cashew nuts in the world, importing mainly processed cashew kernels from Vietnam and India . Brazil is both a producer and an importer of cashew nuts, mainly for domestic consumption .
Cashew Export Trends and Outlook
The global cashew export industry has experienced significant growth and volatility in recent years, due to various factors such as weather conditions, pest outbreaks, supply chain disruptions, price fluctuations, demand shifts and policy changes . According to UNCTAD, the global export volume of cashew nuts (in shell) increased from 1.6 million tons in 2018 to 2 million tons in 2019, but declined to 1.8 million tons in 2020 due to the impact of the COVID-19 pandemic . The global export value of cashew nuts (in shell) also increased from $4.8 billion in 2018 to $5.9 billion in 2019, but declined to $5.3 billion in 2020 .
The outlook for the global cashew export industry is cautiously optimistic, as the demand for cashew nuts is expected to recover and grow in the post-pandemic period, especially in emerging markets such as China and India . However, there are also several challenges and uncertainties that may affect the industry, such as climate change, pest and disease outbreaks, quality and safety standards, trade barriers, price volatility and market concentration . Therefore, it is important for the cashew exporting countries to enhance their production, processing and marketing capacities, diversify their export destinations, improve their value addition and quality, and strengthen their cooperation and coordination with other stakeholders in the cashew value chain .
References:
https://www.eolss.net/Sample-Chapters/C10/E1-05A-45.pdf
http://www.fao.org/3/a-ac306e.pdf
https://www.statista.com/statistics/967557/global-leading-exporters-of-cashew/
https://unctad.org/system/files/official-document/ditccom2020d1_en.pdf
https://www.statista.com/statistics/967558/global-leading-importers-of-cashew/
https://www.statista.com/statistics/1297203/cashew-nut-exports-from-africa-by-country/
https://www.ibef.org/exports/cashew-industry-india
https://unctad.org/system/files/official-document/ditccom2020d1_en.pdf
https://www.cbi.eu/market-information/processed-fruit-vegetables-edible-nuts/cashew-nuts/market-entry
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