Nigeria is one of the largest producers and exporters of cashew nuts in the world, exporting to more than 54 countries around the globe.
Many cashew nuts dealers opt for the nuts from Nigeria because of the quality and many others are looking for information on how to buy cashew nuts in Nigeria.
In some of African countries, buying cashew nuts by dealers can be very difficult and stressful as the government is responsible for the sale of cashew nuts. Countries such as Tanzania.
That is not the case in Nigeria, local companies have the freedom to buy and sell cashew nuts, cashew kernel, and other produce. This makes buying of cashew nuts and how to go about the trading easy compared to other countries for international buyers and dealers.
In the last few years, there has been an increased count of buyers from countries like Vietnam, India, China, and many other countries.
Basic Information About Cashew Nuts
More than 19 states in Nigeria are producers of cashew nut with an average of 40 to 51 produce yield. This shows that the cashew nut production is averagely distributed among the states involved. Nevertheless, some areas have high-quality outturns of cashew nuts which can range from 47 to 53 at the start of the harvest period. One of the areas that produce the highest outturns in Nigeria is Ogbomosho in Oyo State.
Ogbomosho’s weather favors the thriving of cashews in its season, with this there is a very high probability of getting high-quality outturns.
Oyo State has many other areas that produce cashew nuts, but it is important to note that Ogbomosho has the highest harvest of cashew nuts over the years. This is not to belittle other areas of the states that produce good cashew to nut but to establish the frequency fact.
Aside from Oyo state, one of the high cashew nuts producing states that produce up to 50 outturns of the harvest is Kogi State.
How To Safely Source for Your Cashew Produce
If you find the right export company, buying directly from them can make the purchase process easy and stress-free, when compared with doing the sourcing on your own.
That said, there are few things to note when dealing with an export company in Nigeria or Africa. The specific requirements for Nigeria are listed below, but they mostly apply to other African countries:
The exporting company must be registered with the Corporate Affairs Commission (CAC) to make sure the company is registered and permitted to carry out business operations.
The export company must also be registered with the Nigerian Export Promotion Council (NEPC).
The company must possess a domiciliary account to accept international payments.
The company should get all necessary export-related documentation done before the shipment leaves the port of origin. Some of the documents are:
Certificate of origin
Bill of lading
Inspection Certificate (SGS, Cotecna, Bureau Veritas, Intertek, etc)
Phytosanitary certificate
Fumigation certificate
Steps To Start A Cashew Nuts Export Business
Here we discuss how to start a cashew export business and keep up with the ever-expanding market, raking in the profits you always wanted to see!
1. Knowledge is Everything!
In any aspect of our everyday life, knowledge is everything. Whatever we do, we plan, we think, we have to have knowledge of that subject. Speaking of business, especially an expensive one as cashew nut business and export, knowing the trade properly is inevitable. You need to know the various species and types of cashew, their area or country of origin, and the qualities they contain because the value of the nuts depends on the type and the market demand.
Also, gathering information about the competition- the other cashew nut exporters and their strength of grip on the market is essential- as it gives you a certain insight into your route to success.
2. Judge the Market
After getting to know the cashew business’s ways and rules, you need to survey the market. Knowing the market demands will always give you a better edge at the business opportunity. For budding export business, surveying the market is extremely crucial. In the survey, you have to gather information about the local supply and demand for all the market locations and both the local suppliers and the other exporters competing in the same market. For a beginner, contacting an experienced exporter might also help to know the cashew export procedure in the worldwide market.
3. Select your Target Market
Deciding on the target market is essential because that will be your operational base. Selecting a target market depends on various factors. You must choose your target market where the demand for cashew is high, meaning no or very little cashew production. Though spreading the resource, in the beginning, is a bit troublesome for management, and hence try to start with targeting the markets of one or two countries, and with the level of demand rising you can spread to other markets worldwide. This procedure will minimize the amount of overall loss and ensure the probability of cumulative profit.
Targeting a country with a lead exporter or targeting a country that is already a running market of a lead exporter is preferably avoidable- because usually, in those cases, the business becomes monopolized; unless you are confident of successfully competing against those companies. For instance, cashew nut exporters in Ghana have a leading grip in the raw, high-quality cashew nuts export market. Targeting those markets that exporters already capture is both hard and highly competitive.
4. Finding a good Local Supplier and Shipping
A business works smoothly if all the levels work properly. A vital part of the cashew export procedure is to find an excellent and trustworthy local supplier. The function of keeping up with both the quality and quantity of the cashews and reaching them to the consumer market depends solely on the local suppliers. Hence in order of the growth of the markets, local suppliers must ensure the customers’ satisfaction as it would directly magnify the demand of the market.
Also, shipping has to be efficient, regular, and smooth to meet up with the market demands and keep the quality of the cashews good while and at the end of shipping as it has a head-on impact on the cashew business.
5. Customer’s Satisfaction
Keeping the customer happy is the quickest way to grow a business, and the cashew nut business is no stranger to that. A good response to and from the customer base always positively impacts the market, driving the demand higher. And hence to keep your business flourishing, you must keep up with the expectations of the customer, and at the same time, maintaining both the quality and quantity of the cashews you provide.
The beginning of any business is tough, and the cashew export business is no stranger to that. But having diligence, awareness, keeping your eyes open, and a little bit of luck- and your business becomes successful.
