Cashew Kernel Price Today

Cashew Kernel Price Today...

Temporarily suspended for constructions

Thứ Sáu, 28 tháng 2, 2014

Processors cut output on high raw cashew prices

Tue Feb 25, 2014

A temporary squeeze in kernel supplies in the next 2-3 months is likely as several processors in India and Vietnam have cut production since December due to high raw cashew nut (RCN) prices. At the same time, it could also result in some processors moving in a hurry to buy when West African RCN shipments start in mid-March.

The cashew kernel market was steady during December-January moving in the range of $3.75-3.90 for W240 and $3.30-3.40 for W320. Last fortnight, some processors in both the origins sold at lower levels - business reported as low as $3.60 for W240 and $3.20 for W320. These lower levels were offered by very few processors, while others asked 10-20 cents higher.

During last week, the range of offers was W240 from $3.60-3.85, W320 from $3.20-3.40, W450 from $2.95-3.10, SW320 from $3-3.10, SW360 from $2.80-2.90, SSW from $2.45-2.55, splits $2.45-2.55, pieces from $1.65 to $1.80/lb (fob). Prices for brokens have moved up by 10-20 cents in the last couple of months with very little volume being offered from Vietnam. However, India exports negligible quantities of brokens. Indian market, both for wholes and brokens, has been quiet for the last couple of weeks but there was reasonable activity during December/January. “We expect domestic market to pick up activity after mid-March,” Pankaj N Sampath, a Mumbai-based dealer told Business Line.


Tanzania RCN prices have come down from a peak of $1,450 a ton c&f to $1,300-50 a ton, but most of the slightly smaller crop was sold at higher levels. Availability from Mozambique is smaller than normal. Outlook for 2014 Northern crop, which constitutes over 75 per cent of world production, is good so far. There is no adverse news from any origin. The only concern, at this time, is the impact of the changes in regulations in Ivory Coast, the biggest producer in Africa. Small quantities have been shipped from Nigeria. Shipments from Benin, Ghana, Ivory Coast will start in second half of March. After some trades for small quantities in January at high levels, offers have come down in the last two weeks and the current range is Nigeria from $900 to $950 a ton c&f / Ivory Coast from $1,000 to $1,050 a ton c&f / Benin & Ghana from $1,100 to $1,150 a ton c&f.

Although RCN prices have come down in the last couple of weeks, there is still a 15-20 cents disparity between current RCN and current kernel prices, he said. Following a reasonable growth in usage in all markets in 2013, there are signs that usage will be good during 2014 as well due to the high prices of other nuts and relative stability of cashew prices at the lower end of range of last few years.

The trade feels that the market may see some volatility between now and May 2014 depending on news about the crop progress and RCN price movements and after that it should stabilise and move in a narrow range for rest of the year. If there is any strong kernel demand from the US and/or EU during March/April, the RCN prices will remain firm.


Ghana: Cashew farmers call for regulatory price body

Tuesday, February 25, 2014

Cashew has become one of the leading cash crops in the country in recent years. It is normally grown in the tropical countries because the cashew tree is said to be very frost sensitive. Ghana, by its location, falls within the tropic zone, and with its vast savannah area, it is a safe ground for the cultivation of cashew. It is, therefore, not surprising that tonnes of cashew nuts are almost always carted out of the country every year. The numerous uses of cashew (which is widely cultivated purposely for its nuts) are well known.

Agriculture is said to be Ghana’s most important economic sector, employing more than half the population on formal and informal bases and accounting for almost half of GDP and export earnings. One crop which now needs government attention for maximum production is the cashew. Over the years, cashew production in the country has been left in the hands of the private sector. This has led to price disparity to the disadvantage of farmers and has subsequently affected the production of the crop.

The season for the cashew industry or business in the country has begun with its accompanying problems, especially pricing. Cashew farmers from past years have been appealing to the government to set up a body to regulate the pricing of cashew in the country, like other cash crops in the country. But this plea of the cashew farmers is yet to attract government attention.

At the moment, it is the buying agencies-both local and international-that always determine prices of the commodity at the beginning of the season. This they normally do in their favour to the detriment of the farmers. In most cases, the price which is set by these agencies does not consider the world market price or its quantity, but only the profit they will make.

For the past three or more years the price of cashew in the country and the Jaman North District in particular has been falling to as low as GH¢40 or GH¢0.40 per kilogramme. For instance, in the 2013 cashew season, the price per kilo of cashew nut commenced at GH¢1.20, rose to about GH¢1.50 and dropped to GH¢1.00 before it finally came as low as GH¢0.40. All these price changes were influenced by the purchasing agents when the international buyers might have budgeted for GH¢1.50 or more per kilo. The purchasing agents have also made it impossible for the farmers to have any contact with these international buyers and exporters.

Considering the rising prices of farm implements and inputs like weedicides, pesticides and labour, etc., as well as the rise in inflation in the country, cashew prices should have rather gone up or should have been maintained at an appreciable level than the current situation.

This phenomenon is discouraging cashew farmers from putting in efforts to cultivate the crop, considering what they have put in vis-a-vis the price being offered by the buying agencies.

The Ministry of Food and Agriculture (MOFA), as a lead agency and focal point of the Government of Ghana responsible for developing and executing policies and strategies for the agriculture sector, must step up its efforts. With its nicely carved vision and mission statements, it is about time we saw these statements in practical terms and not mere rhetorics.

While it cannot be said that the ministry is not doing anything, we can equally not lose sight of the fact that the ministry needs more action as there is vast room for improvement. It is long overdue for the country to benefit from the cashew potential as an increase in production will bring about more employment while the exports will also bring about additional foreign exchange.”

It is against this backdrop that cashew farmers have been calling for government intervention over the years for improved cashew production and regulated pricing for the benefit of the country and the farmers for that matter. It is, therefore, the wish of farmers that the government, through the Ministry of Food and Agriculture (MoFA), Ministry of Trade and Industry (MOTI) and other stakeholders like African Cashew Alliance (ACA), would do something to alleviate the cashew farmers’ plight.


Cashew imports dry up due to low production in west African countries

Tue Feb 25, 2014

Raw cashew nut imports have fallen sharply due to a low production in west African countries. A detailed look at the figures:


Chủ Nhật, 23 tháng 2, 2014


FEB 22, 2014

FOB prices in Week 08  :

W240          US$ 3.60 to 3.85
W320          US$ 3.20 to 3.40
W450          US$ 2.95 to 3.10
SW320        US$ 3.00 to 3.10
SW360        US$ 2.80 to 2.90
SSW           US$ 2.45 to 2.55
Butts          US$ 2.50 to 2.60
Splits                  US$ 2.45 to 2.55
Large PiecesUS$ 1.65 to 1.80

Cashew market was very steady during Dec & Jan moving in the range of 3.75 to 3.90 for W240 and 3.30 to 3.40 for W320.   In the last two weeks, some processors (in both origins) have sold at lower levels - business reported as low as 3.60 for W240 and 3.20 for W320.  These lower levels are offered by very few processors – others are asking 10-20 cents higher.

During week 8, range of offers was W240 from 3.60 to 3.85,  W320 from 3.20  to 3.40,  W450 from 2.95 to 3.10,   SW320 from 3.00 to 3.10,  SW360 from 2.80 to 2.90,  SSW from 2.45 to 2.55, Splits from 2.45 to 2.55, Pieces from 1.65 to 1.80 FOB.

In the last couple of months, prices for brokens  have moved up by 10-20 cents a lb with very little volume being offered from Vietnam (in any case, India exports very very small quantities of brokens).  Indian domestic market – for wholes and brokens – has been quiet for the last couple of weeks but there was reasonable activity during Dec/Jan. We expect domestic market to pick up activity after mid March.

Tanzania RCN has come down from a peak of 1450 C&F to 1300-1350 C&F but most of the slightly smaller crop was sold at higher levels.  Availability from Mozambique is smaller than normal.  Outlook for 2014 Northern crop (over 75% of World production) is good so far. There is no adverse news from any origin.  The only concern – at this time – is the impact of the changes in regulations in IVC (the biggest producer in Africa).  Small quantities have been shipped from Nigeria. Shipments from Benin, Ghana, IVC will start second half of March.  After some trades for small quantities in Jan at high levels, offers have come down in the last two weeks – current range is Nigeria from 900 to 950 C&F / IVC from 1000 to 1050 C&F / Benin & Ghana from 1100 to 1150 C&F.

Some points to be kept in mind :

1) Several processors in India & Vietnmam reduced production from Dec due to high prices of RCN.  This could lead to a temporary squeeze in kernel supplies in the next 2-3 months.   And it could also lead to some processors being in a hurry to to buy when WA RCN shipments start in mid March.

2) Despite the high RCN prices and limited offers for kernels from reliable processors,  there has not been any big buying interest from the major markets (USA & EU) although regular business is being done to other markets.

3) On the other hand, despite the lack of any big buying interest, large processors are not showing interest to reduce offers to get some sales before the new crops start  because there is uncertainty about the RCN prices

4)  Although RCN prices have come down  in the last couple of weeks, there is still a 15 to 20 cents disparity between current RCN and current kernel prices.

5)  Following a reasonable growth in usage in all markets in 2013,  there are signs that usage will be good during 2014 as well due to the high prices of other nuts and relative stability of cashew prices at the lower end of range of last few years.

Our feeling is that the market may see some volatility between now & May 2014 depending on new (and rumours!) about the crop progress and RCN price movements - after that it should stabilise and move in a narrow range for rest of the year - that range will depend on what prices are paid for West African RCN during Mar/Apr/May.

If the RCN prices come down a bit, kernel prices will remain in the current range - if RCN prices come down significantly, kernel prices could come down a bit from the current range.

If there is any strong kernel demand from USA and / or EU during Mar/Apr, the RCN prices will not come down and will remain firm.

Chances of RCN prices coming down significantly are limited and processors will not take the risk of selling forwards at lower levels in the hope of that happening.

We can reasonably expect the next 2-3 months to be interesting in the sense that we will see surges of activity and spikes / dips in prices  but overall, there is nothing on the horizon to warrant big movements (on either side). The periodic  dips and spikes will ensure that nobody becomes complacent !!

Pankaj N. Sampat | SAMSONS TRADERS

Thứ Sáu, 21 tháng 2, 2014

Guinea Bissau risks having poor season of cashew nuts sale: exporters

Friday, February 21, 2014

The sale of cashew nuts, Guinea Bissau's key export product, could be a failure this year, the president of the West African country's Exporters and Importers Association, Mamadou Iero Embalo, has warned. "If the political and administrative conditions are not reviewed, the 2014 season will be catastrophic," he said during an interview with Xinhua on Thursday.

According to Guinea Bissau's Ministry of Trade, in 2013, more than 130,000 tons of cashew nuts were exported and 60,000 tons left the country by land along the border with neighbouring Senegal. "To avert the possibility of smuggling of cashew nuts through terrestrial means, it is necessary to suspend the tax of 50 Francs for each kilogram of cashew nuts that is exported," Embalo said.

An evaluation mission from the International Monetary Fund (IMF) that visited the country last week also called for the suspension of the tax, he said. In 2013, the tax brought the Guinea Bissau government a total of 6 billion CFA Francs (12.5 million U.S. dollars), up from the 5 billion CFA Francs in 2012.

"The tax which was instituted to stimulate industrialization and promotion of local products, is a serious threat to the national economy," Embalo warned.He also urged the government not to fix the buying price of cashew nuts from the producers, arguing that this was "incompatible with the rules of international markets." Commercialization of cashew nuts in Guinea Bissau begins in March until July each year.


Nigeria loses 50 per cent of cashew produced annually

February 19, 2014

The National Cashew Association of Nigeria (NCAN) on Wednesday said that Nigeria loses about 50 per cent of its cashew apple produced annually due to lack of processing capacity. The “cashew apple”, a pseudo-fruit (false fruit) is actually the swollen stalk of the true cashew fruit of Anacardium occidentale (cashew tree) which is fibrous but juicy. NCAN’s National Publicity Secretary Mr Sotonye Anga said in Lagos that the country produced an average of 1.8 million tonnes of cashew apple annually.

Anga noted that over 900 metric tonnes of cashew apple were wasted, adding that the development had amounted to huge economic loss. “A huge economic waste. So every year you can imagine over 900 metric tonnes of cashew apple is wasted,’’ he said. Anga said that cashew apple deteriorated within three days resulting in wastage of the fruits in farms and on the streets.

He called on the Federal Government to support cashew stakeholders in the area of processing infrastructure so as to aid exportation and curb post-harvest losses. “When you harvest your cashew apple today, if you do not consume it today or tomorrow, by the next day it deteriorates and is wasted, which translates to huge economic loss,” he said.  “So, this can be curbed and curbing it simply means that you transform the cashew apple into cashew apple juice.Cashew

“It means as a matter of urgency, as a matter of fact, the government needs to support the cashew sector strongly. Support in terms of enabling the sector to migrate from just exporting raw cashew into building processing capacity. “That will enable it to process cashew nuts into cashew kernel that will be eaten locally.”

“Also, it can be exported because the market for processed cashew kernel is global. We have a population of about 167 million people, meaning a huge market base to consume what we process. “If we want to go into serious cashew value addition, you have to invest in creating the infrastructure; you have to acquire the technology.’’

He said that cashew processing required a huge investment of between N200 million and N400 million. Anga said because of this, stakeholders needed a window for long term financing and access to loan with single digit interest rate.

Also commenting, Mr Adebayo Sodiq, Chairman, Oyo State Cashew Farmers Association, said that government could create employment for the youth through cashew processing.

Sodiq said that government should look seriously at processing cashew to beverage that would generate income for cashew farmers. “Cashew fruit is a revenue generator for any economy and Nigeria produces enough to empower farmers. Government should look into building processing plants for the processing of cashew into beverage. This will create employment and strengthen the economy,’’ he said.

Brazil invests in cashew nut expansion

February 18, 2014

Brazil's Votorantim Institute and federal development bank BNDES have invested more than BRL1 million (USD416,134) in a new project to expand cashew nut production and processing in Itabaiana municipality, in the north-eastern state of Sergipe.

The funds were used to support the Itacastanha project that helped to set up a new Coobec cashew nut processing cooperative in Carrilho and to modernise an existing cashew nut processing plant by purchasing cold chambers, new ovens and other processing equipment. The new cooperative and reformed processing unit were officially launched on 8 February.


Thứ Tư, 19 tháng 2, 2014

Political crisis, struggling cashew sector hits Bissau growth –IMF

Tue Feb 18, 2014

Political uncertainty following a military coup in 2012 and a struggling cashew nut sector have hampered Guinea-Bissau's economic growth, the International Monetary Fund said on Tuesday. The West African nation was plunged into its latest crisis after soldiers seized power days before the second round of a presidential poll. Elections intended to set it back on a democratic path have been postponed several times since. The United Nations and regional powers have been pressuring the interim government to hold the election now planned for mid-March. "Economic activity has been severely affected by the enduring economic and political consequences of the 2012 coup," the IMF mission to the country said in the statement.

"After having contracted by 1.5 percent in 2012, the economy has yet to recover. The mission is estimating a GDP growth rate of 0.3 percent for 2013," it said, adding that given the context of weak domestic demand, inflation has remained subdued in the past two years. Guinea-Bissau, one of the world's poorest countries, has gained notoriety in recent years as a transit point in the smuggling of South American cocaine into Europe. U.N. officials say, however, that smuggling has tailed off this past years.
Cashew production, most of which is shipped to India, accounts for around 90 percent of Guinea-Bissau export revenues and employs some 80 percent of the 1.6 million people in the former Portuguese colony. The IMF mission said recovery in cashew export volumes was offset by a sharp decline in farm-gate prices.

"Growth and fiscal prospects for 2014 hinge on the success of the cashew campaign and external support," the IMF said, adding that "lower fiscal revenue and weak international financial support have led to an accumulation of salary arrears in recent months". The European Union, one of Guinea Bissau's biggest donor, suspended cooperation and a five-year aid programme worth some 110 million euros ($151.26 million) after another military mutiny in 2011.

The mission is part of a regular review the IMF carries out in several countries to measure economic progress and raise an alert if there are any systemic problems. ($1 = 0.7272 euros)


Take up ultra-high density cashew farming to boost output’

Mon Feb 17, 2014

An expert on cashew cultivation has stressed the need to focus on ultra-high density cashew farming to increase production in the country. Speaking at the ‘cashew field day’, organised by the Agriculture and Horticulture Research Station at Ullal in Mangalore taluk on Saturday, Gangadhar Nayak, Principal Scientist (Horticulture), Directorate of Cashew Research at Puttur in Dakshina Kannada district, said that though the demand for cashew in the country is around 15 lakh tons a year, the country produces around 7 lakh tons.

Stating that some cashew-producing nations have started processing industries, he said it would lead to further demand for cashew processing units in India.

Considering this, there is a need for intensive cashew cropping pattern in the country. Highlighting the method of ultra-high density cashew farming, he said around 450 plants can be grown in an acre of land. According to Nayak, in ultra-high density farming, they can plant many trees in an acre compared to the traditional system. in traditional system, farmers plant trees in 8 metres x 8 metres distance. This will help plant around 80 trees an acre.

Source: Hindu business line.

Farmers, traders in region await bumper cashew yield

Venkatesh Bayya,TNN | Feb 17, 2014

VISAKHAPATNAM: The truant south west monsoon and the delayed yet abundant north east monsoon may have finally given mango and cashew farmers as well as traders of the three North Coastal Districts of Vizianagaram, Srikakulam and Visakhapatnam finally something to smile about.

With last year's monsoon conditions favouring cashew crops in the region, they are hoping to reap a bumper harvest this year. While the mango crop has already gone past the flowering stage, visible in most places, the cashew plantations too have come good with most flowering profusely.cashew plantations in the three districts account for more than 1.5 lakh hectares and a bumper crop on such a scale would also mean a breather for the consumer, who has been battling rising prices. According to sources, while the average yield per annum in the region is per annum of 30,000 tonnes of cashew (raw product including the kernel), this year the yield could be higher by 20-40% depending on the local conditions.

Korada Appala Naidu, a trader who has taken a 100-acre farm on lease in Makkavaripalem Mandal, grudgingly admitted, "The prospects look good. However, for me to reap a bumper crop, I will have to keep my fingers crossed for anything going wrong locally. What if there is a hail storm or the temperatures suddenly shoot up. Till I get the crop in my hands I will not comment any more."

Speaking on the reasons for the potentially good crop this year, G Prabhakar Rao, assistant director, horticulture department, Visakhapatnam, said, "One of the reasons the crop has come good is that in the case of cashew there have been two dry spells, one before the wet phase and one after. More importantly, the temperatures so far have been mild. Usually, on the east coast, the temperatures touch 35 degrees Celsius by this time of the year. But this has not been the case on the coastal belt this year. This factor, coupled with enough humidity will ensure good nut growth inside the kernel. We are definitely looking forward to a good cashew crop." On the mango front, he said the high moisture in the soil was mainly responsible for the mango blossom, while the lack of fog had helped things.

When asked if the heavy inundation caused by recent cyclones had caused any major damage to the cashew crop, sources in the horticulture department said. "One of the main reasons why cashew cannot be damaged easily is because it is a tree that cannot be completed uprooted. More importantly, cashew and mango plantations are found in drier, upland areas on the east coast where most of the water is either drained out or sucked into the underground aquifers. In such a scenario it is not easy for long-term damage to happen to cashew plantations."

However, many of the farmers have been left high and dry as it is mainly the wholesale merchants that are slated to take home all the moolah this year as they gave their farms on lease to the traders at lower rates because of the terrible crop in 2013.Challa Pydi Naidu, of Kasimkota Mandal, who leased out his 3-acre mixed cashew and mango plantation said, "I leased out my garden for a pittance at Rs 12,000. The merchant will take away all the profits this time. I had to cut down on my price this year as the merchant suffered losses last year. Both ways, the farmer loses as he never gets a chance to make a profit."


Zambian cashew nut production strongly growing

Fri Feb 14, 2014

The Times of Zambia reported a +100%  annual production growth of Zambian cashew nuts. 

The production of raw cashew nuts has gone up to 130,000 tons per year and local consumption has gone up to 50,000 tons reports Allan Chinambu, President of the Association of Cashew Growers in Zambia

The cashew nut, which is mainly farmed in the west of Zambia, has the potential, if exploited,  to create 10,000 jobs in industry, over 50,000 in agriculture, and to support over 100 small farms.

Whilst recognising this rise in production, the President of the Association pointed out that cashew nut farming has always been held back by many challenges that remain to be met.

''The rise is held back by the weak level of productivity from small scale producers, who are numerous and isolated in rural regions.  This is a constraint for the trades people and the processing industry who must meet high transaction costs to maintain their own procurement arrangements, transport and stocking'' he declares. Cashew nut farming is also held back by the lack of quality standards, this undermines the consumers trust in locally farmed cashew nuts with competition from imported ones. 


Thứ Năm, 13 tháng 2, 2014

India: Cashew exports up 25% in first quarter

Publication date: 1/15/2014

Cashew kernel exports are likely to be higher during the current financial year with shipments in the first half increasing 18 per cent in volume and 25 per cent in value.

Exports increased as world cashew usage grew, alongside prices which were lower than other tree nuts, according to sources. Sasi Varma, Executive Director and Secretary, Cashew Export Promotion Council of India (CEPCI) told Business Line that during April-November 2013, total shipments were 80,196 tonnes valued at Rs 3,346.14 crore at a unit value of Rs 417.24 a kg. ($6,752.25 USD per tonne)

Exports during the same period a year ago were 67,771 tonnes valued at Rs 2,673.39 crore at the unit value of Rs 394.47 a kg.

He said that imports of raw nuts during April-November this fiscal year, were lower at 6,28,224 tonnes valued at Rs 3,439.79 crore at the unit value of Rs 54.75 a kg. 

Due to the a dull market for kernel in the last two months, and high raw cashew nut prices (about 10 per cent higher than the kernel parity), many processors have run out of stocks or cut processing so that stocks last longer.

Lower raw cashew buying in the last two months could also result in a rush to buy the 2014 crop, especially if there is any large kernel buying in the next few weeks. This could lead to continued high prices.

Range of offers were $1,000-1,200 a tonne for West Africa (2013 crop); $1,250-1,350 for Indonesia; $1,200-1,300 for Mozambique and $1,425-1,450 for Tanzania.

The Northern crop, which constitutes over 75 per cent of the world production, is good this year.


Cashew producers lament foreigners’ intrusion

February 11, 2014

WorldStage Newsonline - the National Cashew Association of Nigeria (NCAN) on Tuesday lament allege intrusion of some foreigners into the sector to sabotage Nigeria's economy, calling on government at all levels to go into cashew production. Speaking at the flag off of 2014 cashew season in Akure, the Ondo state Chairman of the association, Mr. Gbemi Lukman, said there was the need to invest heavily in the commudity to further boost the nation’s foreign earnings.

Lukman noted that the kind of attention being given to cocoa by governments should be extended to cashew, saying the country had capacity to produce higher than the present production volume. According to him, there was the need for government to diversify the economy of the country and desist from making it a monolithic one. The secretary of the association, Kola Balogun, accused foreigners from India of sabotaging cashew sector with their activities.

He lamented that the Indian traders had formed themselves into cartel to dictate the price at which the product would be sold. Balogun noted that the foreigners no longer wait for the produce at their warehouse or stores but now go to farm gate, where he alleged that innocent farmers were being short-changed. He observed that instead of them going through the Local Buying Agents (LBA), they now moved into the farm gate, which according such development was not allowed anywhere in the world.


Cambodia: Cashew Sector Poised for Bumper Crop

February 12, 2014

Cashew farmers and traders expect a bumper crop this year as the harvest season begins, following favorable weather conditions that have resulted in high yields at plantations in Ratanakkiri and Kompong Cham provinces.

Nguon Vannak, a cashew trader who sells his unprocessed cashews to Vietnam, said farmers in Kompong Cham have started harvesting 1 to 2 percent of their crop, and the harvest will get fully underway in about 10 days.Mr. Vannak predicts yields will increase 20 to 30 percent on last year as a result of the cool weather towards the end of the year, which has left the soil moist and trees noticeably fuller.“When I visited the plantations in Kompong Cham the trees were full of fruit,” he said.According to the latest figures from the Ministry of Commerce, Cambodia exported 1,234 tons of cashews worth $547,141 in 2013, an 84 percent drop from the same period the year before.

Noch Chamroeun, a cashew nut trader in Ratanakkiri province, said the reason for the lowered output in 2013 was a lack of adequate rainfall in 2012.“Cambodia’s cashew sector relies on rainfall, and not an irrigation system which is why sometimes, depending on the rainfall, the yield may be low.”The vast majority of cashews grown in Cambodia are shipped in their shells over the border to Vietnam, the world’s largest cashew exporter, where they are shelled and roasted and exported to international markets.

In Ratanakkiri province, Kachanh commune chief Sun Pov said, farmers last year had harvested 700 to 800 kg on average per hectare with the price per kilogram at about $0.85. This year he expects the yield to be higher due to the more favorable weather conditions, with the price increasing to about 3,500 riel, or about $0.88.Mr. Vannak said the price of unpeeled Kompong Cham cashews is higher than Ratanakkiri’s due to the flowers of the former producing larger fruit and better quality nuts.


Cashew rejuvenation scheme in DK gets lukewarm response

Mon Feb 10, 2014

Only 50 hectare covered as against the target of 700 hectare in 2013-14.

The cashew rejuvenation programme implemented by the Central government under National Horticulture Mission (NHM) to achieve self-sufficiency in the cashewnut production in the country has received lukewarm response in Dakshina Kannada district. The area under cashew cultivation in the district is 31,119 hectares.

According to the available statistics from Horticulture Department, the programme aimed at implementing cashew rejuvenation scheme in atleast 700 hectare of orchards. However, the department has covered only 50 hectare of orchards during the year. “Lack of interest among farmers is the main reason behind poor progress in work,” the official said.

The Central government had released Rs 1.05 crore for cashew rejuvenation programme in the district during 2013-14. The farmer is entitled for subsidy if he takes up any one of the following work—pruning of trees, maintaining water and sand, catching pits, using pesticides to protect cashew trees, using micro nutrients or other inputs, gap filling by planting saplings, buying instruments for secateur, pruning and sawing.

The government also provides subsidy for post-harvest management like processing of cashewnuts. If the project cost (cost of the infrastructure) is below Rs 24 lakh, farmers can avail a subsidy upto 40 per cent from the government under NHM. If the project cost is above Rs 50 lakh, subsidy amount will be upto 25 per cent of the investment. 

Reasons for failure

Speaking to Deccan Herald, Horticulture Department Headquarter Assistant Praveen said that compared to other crops like areca, the price of raw cashewnut is not encouraging. Citing an example he said in one acre land, maximum of 200 cashew saplings can be planted, but income is quite less when compared to arecanut. There is huge difference between the price of raw cashewnuts and processed cashewnuts. The price of raw cashew varies between Rs 40 to Rs 60, but processed cashewnut is priced between Rs 800 to Rs 1,000, depending on the grade. According to Praveen, pilferage is a headache for the cashew farmers.

“Most of the traditional cashew farmers have their orchards away from home which don’t have any protection wall. Naturally, they don’t want to lose their fruit of hard work. Shortage of labourers to pluck and process cashewnut is another challenge faced by the growers. The department had organised various district-level programmes, invited farmers and also conducted training programmes to create awareness,” he added.

No dearth of funds

Horticulture department Assistant Director Pradeep D’Souza said “there was no dearth of funds. The funds meant for cashew rejuvenation programme is being utilised for other programme owing to lukewarm response from the farmers. The role of cashew industries is also important in developing interest among farmers towards cashew farming. They can train farmers on cashewnut processing and new possibilities in the area.”


Chủ Nhật, 9 tháng 2, 2014

Cashew demand viewed as slow again in Europe and US

Friday February 07 2014

Cashew trading appears to have hit another slow patch in Europe of late after recent spells of purchasing. In a January 30 market report Dutch edible nuts brokerage Global Trading & Agency observed that interest for cashew nut kernels was picking up and buyers were showing more interest in covering for the second quarter of 2014 and onwards.


Vietnam tops world's cashew nut exports for 8 consecutive years

Friday, February 07, 2014

Vietnam exported 257,000 tons of cashew nuts in 2013, up 15.8 percent year-on-year, presenting the eighth consecutive year the country has topped the world's cashew nuts exports. In 2013, Vietnam earned 1.63 billion U.S. dollars from selling cashew nuts to overseas markets, up 9.7 percent year-on-year, said a report by Vietnam's Ministry of Agriculture and Rural Development on Friday. Together with exports of extra products from cashew nuts such as cashew nut shell oil, Vietnam's cashew export revenue in 2013 hit 2 billion U.S. dollars, said the report.

According to the ministry, major markets for Vietnam's cashew nuts include the United States, China and the Netherlands, accounting for 33.09, 17.72 and 9.66 percent of the country's total cashew nut export revenue in 2013 respectively. Accomplishments of Vietnam's cashew nut export in 2013 were attributed for great efforts by Vietnamese processing and exporting companies, amid gloomy world economy and decreasing purchasing power in world market, assessed the report. E-portal of Vietnamese government quoted Vietnam Cashew Association on Friday as saying that in 2014, the association set the target of maintaining cashew nuts export volume and increasing the product's export price to pocket some 2 billion U.S. dollars from shipping cashew nuts to world markets.


Thứ Tư, 5 tháng 2, 2014

With Ivorian Ban Cashew Industry Will Be Hurt

Wednesday, February 05, 2014

With the cashew season drawing closer, cashew processors and buyers who import the raw material from Côte d’Ivoire say they are confronting hard times due to the Ivorian authorities’ ban on movement of the commodity through the land borders. Ghana trades [processing and export] between 200-400 thousand metric tonnes of cashew per year. A greater portion of the raw cashew processed in the country is imported from Côte d’Iviore through the land borders to supplement local production, estimated at between 30-40 thousand metric tonnes.

But shipment is now the only approved route for buyers importing the commodity from Côte d’Ivoire. This is a major source of worry for the buyers, who have described the ban as “suicidal and unfriendly” to their operations, as almost all of them have their installations in the Brong Ahafo Region which is to closer to the Ivorian border than to the ports.

All the 12 cashew-processing plants in the country are located in the Brong Ahafo Region, and the buying companies also have their depots situated there. Complying with the ban will therefore raise their production costs, they say. The government of Côte d’Ivoire late last year imposed the ban to improve monitoring the trade and help it maximise tax revenue from export of the commodity.

Unhappy with the situation, the Ghana Cashew Industry Association has petitioned government through the Trade and Industry Minister, Haruna Iddrisu, for intervention to mitigate hardship the ban will cause. Mr. Winfred Osei-Owusu, acting president of the association, said the ban will severely affect the local economy at the border town of Sampa and surrounding communities. Cashew trade is the lifeblood of residents along that stretch of the border, he added.

The association wants the Ivorian government to allow at least 100,000 metric tonnes of the commodity to be imported through the border. It has proposed the establishment of a trading post along the border, where the Ivorian government can collect whatever duties are due it — rather than maintain the ban. “Ghanaian cashew traders are prepared to pay any revenue due the Ivorian government at the border. La Côte d’Ivoire must recognise Ghana as a market for the commodity because we are a net-importer of cashew. It’s therefore important to make things easier for us as their reliable customers. This is a win-win deal as the majority of Ivorian farmers have their farms close to the border and they find it more convenient to trade with us there,” Mr. Osei-Owusu said.

Trade Minister HarunaI ddrisu meanwhile says government will take advantage of the “harmonious” diplomatic ties between the two countries to resolve the matter amicably.

Mr. Osei-Owusu said the development rekindles the need for various agricultural stakeholders to step up their efforts to boost production of cashew to meet growing demand. “Over the years, efforts and support to enhance cashew production in the country have not been consistent. There is so much potential in the sector; in the form of rural transformation, export benefits among others. Government must now commit more resources to the enhancement of cashew production.”


Cashew is king as farmers gang up against traders

Wednesday, February 05, 2014

UNDER the darkness of midnight in Seketia, a farming village in western Ghana, cashew traders and middlemen go knocking from door to door looking for supplies of harvested nuts. "During the peak harvest, they visit us late at night, trying to get us to sell," says David Enkamah, a cashew farmer. Worldwide demand for cashew has grown about 7% a year over the past decade on healthy snacking habits. The tree nut, along with sesame seeds — favoured especially by the Japanese, South Koreans and Chinese — and pigeon peas, a common ingredient in Indian kitchens, are among a number of crops where the balance of power has tilted a little towards African farmers.

Growers of cashew, buoyed by demand from India and China as well as resurgent consumption in Europe and North America, are among those defying the stereotype of smallholder farmers in developing countries rendered powerless by the might of multinational companies and market forces. During the harvest season starting in January, 30 to 40 agents and traders looking for supplies for processors and exporters descend on Seketia. During the peak months of April and May, West Africa, the world’s leading producer, is the scene of a scramble for farmer loyalty. As a handful of growers in Seketia gathers to discuss the current crop and prices, Mr Enkamah notes: "Even now, somebody might be contacting some of the farmers."

Far from accepting the first bid, Seketia farmers wield cellphones to contact growers in other communities, pitching offers against each other to get the best price. Buyers are also finding they need to offer longer-term incentives. About a third of the farmers in Seketia work closely with Olam International, an agricultural trader in Singapore, which is the world’s largest cashew dealer and processor. Olam is looking to improve long-term relationships with the growers by providing them with zero-interest loans and training.

"They need to see there is a possibility of a livelihood in farming, and they can educate their children," says Samir Kumar, head of cashew for Olam Ghana. In spite of strong demand, farmers cannot suddenly command high prices for their cashews, which compete with other tree nuts. Annual income for many African cashew-farming households still total less than $1,000.

About a third comes directly from the tree nut, according to the African Cashew Initiative, which is backed by the German government and co-ordinates public and private partnerships. Much of Africa’s raw cashews are processed in India and Vietnam, but Olam is raising its African processing capacity. The company, which operates processing plants in Co te d’Ivoire, Tanzania and Mozambique, believes that local processing encourages loyalty among farmers who can see a ready market for their crop. It also says the operations generate revenues for the wider community, especially female factory workers.

To keep growers interested in supplying cashews, buyers need to offer a balanced portion of the profit margins, says Rita Weidinger, executive director of the cashew initiative. "Leaving the concept of fairness aside, from a business model point of view, it’s just not sustainable," she says. But for all their efforts to nurture long-term relations with the growers, Olam executives are quick to acknowledge that price is king when negotiating with the cellphone-wielding farmers during the harvest. "Of course, you need to match the highest bidder," says Mr Kumar. "You’ll be fooling yourself if you think you can get away with offering lower prices than your competitors."

Source:Financial Times

Cashew association pleads for govt intervention

February 4 2014

The Ghana Cashew Industry Association has petitioned the Ministry of Trade and Industry to initiate talks with the government of Cote d’ Ivoire to pave way for the resumption of cashew importation from that country through the borders than the ports.The petition had become necessary because cashew processing companies in the country have complained about the impact the ban on cashew imports from the ports alone was having on the cost of their operations.The association said almost all the factories that processed cashew have been sited in the Brong Ahafo Region which was closer to the border between Ghana and Cote d’ Ivoire and noted that with the ban, they were forced to use the ports and then transport the products by road.The Acting President of the Association, Mr Winfred Osei Owusu said players in the industry were prepared to negotiate with Cote d’Ivoire to permit importation of the nuts through the country’s borders.

Industry in Ghana

Currently, Ghana produces about 50,000 tons of cashews per year which was far less than the industry’s demand of about 200,000 metric ton per year.As such, industries in Ghana depended on producers in Cote d’ Ivoire to supplement the industry’s demand for processing and export.With its solid infrastructure and business environment, the industry has the potential of attracting more investors into its fold.However, players feared the ban on boarder trading of the nuts from Cote d’Ivoire would have a toll on it activities since Ghana was not in the position to feed the industry in the short-term.

Ban on imports

Late last year, the government of Cote d’Ivoire announced a ban on the export of Raw Cashew Nuts (RCN) and cotton through its border posts.The ban had already been announced in 2012. However, some cashew processing companies in Ghana were given some concessions to import through the borders. The Ivorian government had through the announcement stated its resolve to carry on with the ban without any privileges of which Ghana would be affected.According to the association, the notice of the ban cited by GCIA indicated that imports could only be done either through the sea ports of

Abidjan and of San Pedro

It is not clear what might have necessitated the ban but some analysts have described it as a retaliatory measure by the government of Cote d’ Ivoire.Ghana earlier had stopped the importation of rice through the borders, limiting such imports from Cote d’ Ivoire through the ports of Tema and Takoraid to check smuggling among other things.Ghana had since lifted the ban and it was expected that Cote d’ Ivoire would reciprocate the gesture to open up the borders for the cashew importers to explore instead of the ports which was becoming too expensive.

Effect of the ban

Speaking to the Graphic Business after a meeting with the Minister of Trade and Industry, Mr Haruna Iddrisu, Mr Osei Owusu said the situation would lead to the collapse of the industry if the issue was not solved.“The situation would be worsen because investors will not invests because there is no raw materials and the country will also lose foreign exchange”.The Executive Secretary of the association, Ms Yayra Amedzro said the cashew industry would be heavily affected because they depended solely on Cote d’Ivoire to augment export and processing.

She indicated that it was key for industry to move the nuts through the boarders since all the processing centres were in the Brong Ahafo Region, adding “The directive to export the nuts through the port is not comfortable and cost effective for us”.Ms Amedzro hoped that the country and Cote d’ Ivoire could come to an agreement on some trade modalities that would benefits both countries.

Ghana as a hub

Ghana is fast becoming a hub for cashew processing in West Africa as large processing firms have set up in the Brong Ahafo Region and other companies have plans to set up in the region.

Presently, there are over 12 large and small scale processing companies in the country with over 27,000 mt processing capacity. Early next year, the largest processor in Brazil will open its 35,000mt plant, bringing the total processing capacity to more than 60,000mt.This means installed processing capacity will exceed the current production levels of Raw Cashew Nuts (RCN) in Ghana which stands between 40,000mt and 50,000mt according to MoFA. Ghana also exports an average of 150,000mt of RCN annually.

The cashew industry in Ghana thus relies heavily on RCN imports from Cote d’Ivoire, Burkina Faso and Togo to supplement its processing and export volumes with Cote d’Ivoire being the largest import source.It was not clear if the investors were capitalising on a number of factors to choose Ghana as a hub, chief among them being the relative stability and conducive business environment, as well as the enormous potential for the crop production in the country.It is expected that the pledge made by the sector minister to intervene will receive immediate action to the benefit of the country and the association.