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How
To Start The Lucrative Export Of Cashew Nuts From Nigeria
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.
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.
Worldwide, trade in cashews exceeds US$2 billion and demand is
increasing. Of the total world supply, 110 000 tonnes are traded
on international markets. There is great investment opportunity
for the processing and export of the commodity in Nigeria.
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.
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 “yourname@yourcompanywebsite.com”.
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.
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.
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.
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.
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 naira.
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.
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.
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.
Don’t miss this opportunity to get started on your dreams! Take
the first step towards making money and living the life you
want. Existing small business owners who want to expand into new
markets can also benefit from this lucrative Cashew
export business opportunity
Get our Practical Guide to start Cashew export business in
Nigeria.. Our full mentorship guide will allow you to start
Cashew exportation immediately as we have trusted and reliable
buyers that can give you Cashew
contract immediately.
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