Price of Nigerian cashew nuts jumps up 188% in international market

The price of cashew nuts from Nigeria has recorded a 188.8 per cent increase in the international market, the  President, National Cashew Association of Nigeria (NCAN), Mr Olatunji Owoeye, has said

At the flag off of this year’s cashew trading season in Anyingba in Kogi on Tuesday Owoeye said that the price jumped from N45,000 per tonne to N130,000 per tonne.
Cashew producing states in the country are Kogi, Kwara, Oyo, Niger, Imo, Enugu, Abia, Kaduna and Federal Capital Territory.
Owoeye said the current price of cashew nuts, which is determined by market forces, was a good omen for the country’s economy.
He said that cashew nuts from Nigeria were now the toast of buyers in the international market.
He attributed the development to improvement in quality and packaging and adherence to international standards.
He said members of the association were made up of cashew exporters, processors, cashew farmers, licensed buying agents, as well as owners of warehouses.
He said that the association had commenced negotiations with some foreign investors to establish cashew processing plants in the country.
Owoeye said that the problems of storage, multiple taxation and influx of quacks into the industry were being handled at the appropriate quarters and warned stakeholders not to indulge in sharp practices.
He thanked the Federal Government for encouraging the production and marketing of cashew nuts, adding that there was the need for the government to check smuggling of the product into neighbouring countries.
He also urged the government to assist the association in the regeneration of cashew plantations across the country and appealed to Nigerians to increase consumption of cashew products.
In his address, Alhaji Ichapi Mohammed, the Vice President of the association, stressed the need for Nigeria to increase its participation in the global cashew nut market.
He said the situation where the country only sold raw cashew nuts and kernel out of the 99 by-products derivable from the commodity called for a concern.
He appealed to banks to show more interest in the sector by assisting farmers with credit facility to boost production and develop the country’s potential of becoming the leading exporter of cashew products in Africa
Mohammed also appealed to the federal and state governments to extend agricultural loans to cashew farmers to enable them expand their farms and replace aged cashew trees.
“This will increase the income of the farmers and create employment opportunities for people living in the rural areas of the country,” he said.  (NAN)
(Source: http://www.vanguardngr.com/2011/02/price-of-nigerian-cashew-nuts-jumps-up-188-in-international-market/)

Cashew trade threatened by political crisis in Ivory Coast

Delay and uncertainty in the supply of raw cashew nuts from Ivory Coast due to political unrest is causing major concerns for the cashew trade.

Ivory Coast is major supplier of quality raw cashew to India and produces nearly 4 lakh tonne of raw nuts annually. The situation is compounded by the delay in arrival of raw nuts in India and Vietnam due to erratic rains.

Indian cashew production, which accounts for more than a fifth of the global production, is slated to come down during 2010-11 due to atypical rains and erratic temperature in the producing region, officials of the Kochi-based Directorate of Cashew and Cocoa Development (DACCD) said.

The cashew crop for 2011 is likely to b delayed by more than a month due to slower and fewer flowering, DACCD sources said. “Normally the Kerala crop comes to the market by February. So far we have not seen any arrivals of Kerala crop,” Pratap Nair of Vijayalakshmi Cashews said.

According to the data provided by the agency, Indian production during 2009-10 stood at 6.13 lakh tonne. During 2008-09 it was around 6.95 lakh tonne and 6.6 lakh tonne in 2007-08. India has to import more than half of its requirement of raw cashew due to the poor production.

“Unseasonal rains in Vietnam are also causing concerns. Drying is a problem and this will affect kernel yield. Crop size may also be lower if rains do not stop,” Pankaj Sampat of Samsons Trading told FE and added that it this could lead to squeeze in kernel supplies in the second quarter. India and Vietnam account for more than 50 % of the global cashew production.

“Political unrest in Ivory Coast is a major problem for India as it sources a large chunk of its requirement from the country,” Pratap Nair said. “Banks and borders are closed in Ivory Coast. Ships are not docking in the ports,”he said.

Raw cashew nuts pipeline is empty and until the gap is bridged, raw nut prices are unlikely to ease, Pankaj said.

“Shipments from Nigeria and Benin have started. Ghana and Ivory Coast shipments are expected to start soon. Shellers hope that shipments will pick up in April and provide relief from the tight supply,” he added.

Pratap feels that the demand is still robust and not affected by problems in Japan. “There is some disruption in West Asia .The effects of increased raw kernel prices in US and Europe will only be known after March,” he added.

(Source: http://www.financialexpress.com/news/cashew-trade-threatened-by-political-crisis-in-ivory-coast/768547/0)