How To Start The Lucrative Export Of Cashew Nuts From Nigeria To International Buyers
Nigeria is one of the largest producers of raw cashew nuts in shells worldwide with a yearly export volume of at least $167 million US dollars and untapped yearly potentials of over $115.8 million US dollars. In 2017 alone, cashew nuts exporters in Nigeria exported over 220,000 tonnes of Cashew Nuts. This figure is smaller than the 2018 export estimate of which over 37,000 tonnes of cashew nuts remain unsold, with new harvests trickling in at the start of February.
The abundance and high profitability derived from the export of cashew nuts in Nigeria makes it a lucrative venture for exporters to start up, and as such, there has being a rise in the number of cashew nuts exporters in Nigeria over the years. This increased number has subsequently led to high price competition, which helps bring down the international price of the commodity for international buyers looking to purchase either raw cashew nuts or cashew kernels from cashew nuts exporters in Nigeria.
The vast worldwide demand for cashew nuts in Nigeria by international buyers makes venturing into the export of Cashew Nuts from Nigeria to several countries around the world a lucrative export business to start up.
If you’re looking to become one of the most successful cashew nuts exporters in Nigeria or are an international buyer looking for how to buy cashew nuts in Nigeria from cashew nuts suppliers in Nigeria without losing your money, you should read on.
First, What Are Cashew Nuts?
Cashew nuts are fruits that grow on tropical evergreen cashew trees. The cashew nut is usually processed into cashew kernels, cashew cheese or cashew butter.
So What Is Cashew Nuts Export About?
Cashew Nuts export is the export of either Raw Cashew Nuts or Cashew Kernels from Nigeria to international buyers located in various parts of the world. It is exported based on the specifications agreed by both cashew nuts exporters in Nigeria and international buyers on a case by case basis.
Facts About Cashew Nuts Export
- Nigeria is the 4th largest producer of cashew nuts in the world.
- Nigeria majorly exports Raw Cashew Nuts.
- Cashew Nuts are grown in at least 19 states in Nigeria
- Ogbomosho in Oyo state produces the best cashew nuts in Nigeria with an average outturn of over 50 KOR (Kernel Outturn Ratio).
- The average outturn ratio of cashew nuts international buyers can buy from Nigeria is 47 outturns.
- Depending on the outturn, Cashew nuts can sell for anywhere between $1,200/mt to $1,500/mt.
- Growing Cashew Nuts can create a great source of employment.
- Cashew Nuts are actually a fruit.
- The profit margins on the sale of Cashew Nuts to international buyers can be anywhere from 15% to 45% depending on what agreement you have with the international buyer.
- As a broker, you can venture into this business with $0.
- With Vietnam being the largest buyer, India & China are one of the largest importers of Cashew Nuts from Cashew Nuts exporters in Nigeria.
Types Of Cashew Nuts Exported From Nigeria
1). Raw Cashew Nuts:
Raw cashew nuts are the nuts that are freshly harvested. They’re usually a shell enclosing that covers the nuts inside of it.
when international buyers want to buy raw cashew nuts from cashew nuts exporters in Nigeria, they usually have specifications they want the seller to stick to. Depending on what outturn the internation buyer may want, the specifications could be something like this below:
- Outturn: A figure between 38 to 53
- Nut Count: 170 to 200 per kilogram
- Moisture: Maximum of 10%
Depending on what is agreed by the cashew nuts seller and the international buyer, it can vary along these specifications mentioned above.
2). Cashew Kernels:
Cashew kernels are roasted cashew nuts. Depending on how they’re roasted, they have varying classes and in some cases can cost as high as $10,000 per metric tonne.
The different types of cashew kernels are:
- W180 – This is the most expensive cashew kernels. They’re the largest in size and are called the King of Cashew
- W210 – These cashew kernels are a bit smaller than the W180. They are called the jumbo nuts.
- W240 – The W240 is smaller and cheaper than the W210, but is larger than the W320.
- W320 – This is the most popular cashew kernel on the market. They’re easier to source and are cheaper than the W240, W210, and W180.
- W450 – This is the smallest type of cashew kernel. They’re also the cheapest.
While cashew kernels are the most common processed state of raw cashew nuts, most cashew nuts exporters in Nigeria do not process and export cashew kernels. While this is slowly fading away, cashew kernels can still be bought from some cashew nuts exporters in Nigeria.
Business Opportunities In Cashew Nuts Export
1). Cashew Nuts & Cashew Kernels Export:
Cashew Nuts and Cashew Kernels are usually sold at varying amounts at the farms, local markets, or processing centres, and are then further resold to international buyers at varying prices per metric tonne depending on the specification, the seller’s connection to the farms, the trade process, and the final negotiations with the buyer.
In all, your profit margin from the export of Cashew Nuts from Nigeria can be anywhere from 15% to 45%.
2). Cashew Nuts Brokerage:
Most people have zero cash to start a cashew nuts export business, and as such, start by venturing into cashew nuts brokerage. Most of these brokers can be found in India, Vietnam, China, and China. They source cashew nuts buyers and sellers and try to make a deal happen in exchange for a commission on the trade.
You could venture into the Cashew Nuts and Cashew Kernels brokerage business by linking a buyer to a seller, and in the process, earning a commission on every successful trade you close.
Setting Up Your Cashew Nuts Export Business In Nigeria
1). Register Your Cashew Nuts Export Business:
The first step is to register a legal limited liability company for your cashew nuts export business in Nigeria. Cashew nuts exporters in Nigeria cannot export cashew nuts without a limited liability company. Mere enterprise registrations are disallowed, and as a result, the Nigerian Export Promotion Council and any local associations regulating the purchase and sale of Cashew Nuts will only give a licence to organisations that are registered limited liability companies with the Corporate Affairs Commission in the Federal Republic of Nigeria.
For international investors, you can also start up your own cashew nuts export business fro scratch from first visiting the Nigerian Investment Promotion Council (NIPC) or invest in a local cashew nuts exporter in Nigeria to be able to get cashew nuts at a far lower price than others would have gotten.
2). Find The Direct Farms and Sources For Exports:
While this can be done anytime before, during, or after your cashew nuts export company has been registered with the appropriate bodies depending on if you’re a local company or a foreign investor, the next step is to source for the direct farms, processing centres, and buying centres that you can procure cashew nuts from at the lowest costs for your international buyers.
Successful cashew nuts exporters in Nigeria always have direct access to either the farmers, buying centres, or processing centres, so they can always get cashew nuts and cashew kernels at the best possible price.
International buyers can also take advantage of this knowledge by partnering with local companies who have access to this information to purchase very large volumes of cashew nuts at low prices.
3). Setup A Proper Business Structure, Trade Process, & Branding:
To make international buyers trust you enough to want to buy cashew nuts from you or even invest in your cashew nuts export business, you need to set up a company that looks internationally reputable. This involves registering with the Corporate Affairs Commission (CAC) of Nigeria, building a global standard website that displays what you do, have a registered office address (co-working hubs are great options), create a corporate profile and brochure of your products, and set up a corporate email that has your website domain at its extension and read something like “firstname.lastname@example.org”.
When you set up and organise your company in a professional way like this, international buyers would feel very confident about your business and would tend to choose your business as their preferred partner.
Successful cashew nuts exporters in Nigeria organise their businesses like this.
4). Source For International Buyers:
The next thing is to source for international buyers for your products. You can do this by registering on websites like:
And several others.
You can also build an influential social account on LinkedIn and market your Cashew Nuts to a unique business audience you’d build over time.
In the article title How To Find International Buyers For Your Import/Export Business, we talk about many ways cashew nuts exporters in Nigeria and several other commodity exporters anywhere around the world can find international buyes for their commodity trading business. You can read all about it here.
5). Export Your Products:
After you have done your due diligence on the international buyer, gotten an Irrevocable Corporate Purchase Order (ICPO), Signed a contract, received a Letter of Credit, and more, you can then proceed to ship the Cashew Nuts.
The shipment could be done on either Free On Board (FOB) or Cost, Insurance and Freight (CIF) basis. Where FOB means you cover the cost of the goods and every other thing till its arrival at the shipping point, and CIF means that you cover the cost of everything including insurance and transporting the goods to the buyer’s port of destination.
How International Buyers Of Cashew Nuts Can Find Cashew Nuts Exporters In Nigeria
- Use LinkedIn to your advantage
- Find brokers who represent selling companies
- Attend trade fairs
- Contact the Chamber of Commerce
- Sign Up on International Trade Platforms
- Use search engines
- Hire local agents on a commission basis
- Contact Globexia – Globexia is one of the top cashew nuts exporters in Nigeria and is a premier fast-growing commodity trading company in Nigeria with the ability to export agricultural products ranging from cashew nuts to sesame seeds, dry split ginger, and much more. You can visit the website here.
For a more in-depth explanation of these points on how to source commodities like cashew nuts and cashew kernels from Nigeria, you can read this article we previously published.
Challenges Of The Cashew Nuts Export Business
1). Inexperience can cause cashew nuts exporters in Nigeria to either export the wrong specifications, underprice or overprice their cashew nuts, and much more.
2). Your Cashew Nuts en route a warehouse can get stolen or seized by government officials before its arrival.
3). Too many fake buyers waste exporters time with fake inquiries that will go nowhere.
4). Most cashew nuts exporters in Nigeria have little to no access to enough finance to export cashew nuts to international buyers.
5). Most Cashew Nuts sellers have poorly managed supply chains and may sometimes be unable to deliver.
6). Cashew nuts exporters in Nigeria could waste so much time as a result of long-term conversations with Cashew Nuts buyers who have no real money to pay.
7). Many fake Cashew Nuts suppliers in Nigeria makes it difficult for Cashew Nuts buyers to trust new entrants.
The Cashew Nuts export business can be lucrative for new and existing cashew nuts exporters in Nigeria. Depending on the quantity the cashew nuts buyer needs, the cashew nut seller’s profit margins could be between 15% to 45%.
Starting an agricultural export business in Nigeria with an initial focus on Cashew Nuts is a way to not just only get into the industry, but a great start to building a long-term business that could someday employ thousands of people directly and indirectly. As a result, joining the growing pool of cashew nuts suppliers in Nigeria is a great way to start up a cashew nuts export business in Nigeria.
An Important Point
Trying to buy Cashew Nuts from Nigeria through genuine sellers can lead to a lot of wasted time and efforts on the part of the Cashew Nuts buyers. They spend a lot of time vetting sellers in Nigeria, doubting their results even if positive, and going back and forth too many times than they can count, only to end up either cancelling their decision to buy or making a purchase after months or years have passed.
Finding real Cashew Nuts suppliers in Nigeria can be a problem. To make this possible for Cashew Nuts buyers, Startup Tips Daily Media, through her sister company, Globexia, can export Cashew Nuts to genuine buyers from Nigeria or anywhere in the world.
Whatever will help buyers close genuine Cashew Nuts export-based transactions fast, transparently, and easier, we can make the process as stress-free as possible.
Our Cashew Nuts export business is completely transparent, and as a result, we will not deal with a buyer who intends to cut corners or outsmart any party in the course of the transaction.
In addition to our Cashew Nuts export business in Nigeria, we’re also Sesame Seeds Exporters In Nigeria and can export Sesame Seeds to buyers around the world.
If you’re a genuine Cashew Nuts buyer, you can reach out to us through the contact form below. If you’d like us also to help you export most of your Cashew Nuts, we’d be glad to do so with mutually agreed terms.
If you’re only a scam, don’t waste your time, as the conversation wouldn’t last too long after a few questions and demands to prove your authenticity have been made from our end.
Our Cashew Nuts Trade Specifications are listed below:
Product Type: Cashew Nuts
Quantity: Based On Buyer’s Specification
Price: Starting from $1,200/mt
Trade Process: FOB/CFR
Payment Method: 100% irrevocable L/C at sight from a top 50 prime bank
Shipping Time: 15 to 25 days after confirmation of L/C
Loading Port: Nigeria
Outturn: between 38 to 53
Nut Count: 170 to 200 per kilogram
Moisture: Maximum of 10%
We look forward to hearing from you.