Cashew is the common name for a tropical and subtropical evergreen tree, Anacardium occidentale L., in the flowering plant family Anacardiaceae.
It is also the name for the commercially important kidney-shaped, nut like seed of this plant, which is edible when roasted or cooked (New World Encyclopaedia, 2008). The plant is a native of Tropical Central and South America, notably North Eastern Brazil, from where the Portuguese explorers introduced it into Nigeria in the 15th/16th century.
The product is at the centre of the contract because that is what the buyer wants and they need it in certain Quality /Quantity which ultimately affects the price. For the purpose of this write-up, the international standard specification of cashew nuts is given below
CASHEW NUTS SPECIFICATION
Outturns: 45-47 lbs Minimum
Nuts Count: 180 -200/Kg
Admixture: 0.5% Max
Float Rate: 18% Max
Foreign Matter: 0%-0.5% Max
In Nigeria, Cashew nuts are produced in 28 states of the Federation and the Federal Capital Territory (FCT). The raw cashew nut industry yields N23billion annually from the production of 120,000 metric tons of cashew putting the sector to possibly another revenue spinner for the federal government.
The industry is said to provide livelihood for over 300,000 families and has created over 600,000 jobs. Eighty percent of raw cashew nuts from Nigeria is exported to India, Vietnam and other countries.
Nigeria is home to 15 cashew processing factories but their combined production capacity is not enough to meet even the local demand.
Nigeria is the 6th largest producer of cashew in the world after India, Brazil, Vietnam, Guinea Bissau and Tanzania. Like most African producers, most of Nigeria’s production are exported in raw form to India and Vietnam for processing and export with added value and benefits to those economies. Vietnam, for example entered the field of cashew production for export in the early 80’s about the same time Nigerians became aware of the commercial significance of cashew.
Because of these qualities, the nuts are in great demand and at Foraminifera Market Research we seek to expose the opportunity available in the supply of the commodity to local industries in Nigeria through this report.