Despite smuggling and unfavourable weather, exporters are expected to earn N792 billion ($480 million) from Vietnam and India this year from 400,000 tonnes of cashew nuts produced in Nigeria. Additional key markets for Cashew exports from the country are United States, United Arab Emirates, Belgium, China, Turkey and Norfolk Islands. It was learnt that high quality and yield had placed Nigeria nuts as the best in West African countries, leading to a price of between $1,200 and $1,300 per tonne.

However, in Benin and Cote d’Ivoire, the nut price is $825 per tonne and $497 per tonne respectively. Also, it was revealed that more than 50 per cent of Nigerian cashew nuts were being smuggled to Benin, Togo and Cote d’Ivoire as prices have spiked upwards in Vietnam for raw cashew nuts. In 2023, Nigeria produced an estimated 300,000 tonnes of raw cashew nuts (RCN), however, this year, the country has seen significant growth in cashew production by 25 per cent, becoming the second largest producer in West Africa after Cote d’ Ivoire with low quality varieties.

According to African Cashew Alliance (ACA), development partners’ investment in the Nigerian cashew sector has also been significant, especially in seedlings distribution, capacity building and policy development by government, saying there seems to be high optimism that production will continue to grow. It was revealed that in Cote d’Ivoire production estimates range from 900,000 – 1,1 million for 2024, saying that it seems almost certain that the crop would be lower than 2023 with a record of 1.35 million tonnes.

It said: “The estimates indicate that, this year, due to unfavourable weather conditions affecting flowering, production could be in a range of 8 -15 per cent either side. Unfavourable weather conditions are making drying difficult, affecting quality in the last few weeks.” But in Nigeria, ACA explained that farm gate price for raw cashew nuts ranges between N850 and N900/kg or $571 and $605 USD/tonne.

According to ACA, price started to increase in the last two week of May 2024 to N950 and N1,000/ kg or $624 and $656.82 per tonne for raw cashew nuts in some states as farm gate is causing demand to exceed supply, leading to increase in price. Meanwhile, shipment for export ranges between $1,150 to $1,300 tonne. It said: “Though there are fewer crops at the farm gate, our analysts in Nigeria are anticipating more raw cashew nuts trading in warehouses in the coming weeks.”

According to Volza’s data obtained by New Telegraph, 369 Nigerian exporters made 4,056 shipments of cashew between March 2023 and February 2024 to 380 buyers, marking a growth rate of 21 per cent compared to the preceding twelve months. It noted: “Within this period, in February 2024 alone, 122 cashew export shipments were made from Nigeria.

This marks a year-on-year growth of 408 per cent compared to February 2023 and a -20 per cent sequential growth from January 2024. Most of the cashew exports from Nigeria go to the Vietnam and India. “Cashew is exported globally to over 203 countries from Nigeria. We have detailed information on over 40,662 active global Cashew buyers, with 1,109 buyers importing from Nigeria.”

Recall that lack of processing equipment had made Nigeria to lose N3.18 trillion ($1.98 billion) in the global cashew market in 2023 from its 300,000 tonnes. It was learnt that Vietnam with processing machines, earned $2.1 billion from the same quantity, when compared with Nigeria exports. According to the country’s General Department of Customs, in the first 11 months of 2023, Vietnam’s cashew nut exports, estimated at 582,000 tonnes worth $3.31 billion, up 23.1 per cent in volume and 17.4 per cent in value compared to the same period in 2022.

Also, data from the Vietnam Cashew Association (VINACAS) revealed that Nigeria exported 273,143 tonnes of raw cashew nuts to Vietnam in the first 10 months of 2023, compared to 124,044 tonnes exported in the same period in 2022, while India imported 80,000 tonne from Nigeria in the period. Nigeria is a leading exporter of premium quality raw cashew nuts, with an average 48 kernel yield out-turn but late shipment at the port and smuggling to neighbouring countries have also denied the country the desired revenue.

However, in a move to boost Africa’s cashew production, the African Cashew Alliance (ACA) has partnered with Cambodia on cashew growth and development across the continent. The President of the association, Tola Faseru, who led a delegation to sign a Memorandum of Understanding (MoU) with the Cashew nut Association of Cambodia in February 2024 for collaboration and cooperation on Cashew growth and development, covering areas of research, science and technology sharing and transfer, training and exchange of scientists said that the step taken was to enable Africa to double its production and productivity in five years.

According to him, Africa produces about 60 per cent of the world’s total raw cashew output currently, noting that the African production figure stands at 2.8 million metric tonnes with Ivory Coast taking the lead with 1.2 million tonnes, followed by Nigeria with 370,000 tonnes and Tanzania in the third position with a production of 270,000 tonnes.

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