Cashew Nut Kernel Insights – Cashew Nuts and Cashew Kernel Industry.

Whether you’re a seasoned cashew nut kernel investor or just starting out, you’ll find that gaining an understanding of the nuts and their markets is a valuable asset. In this article, you’ll learn about some of the factors that are driving growth in the cashew nut industry, including regulatory changes in emerging countries, demand in Europe and India, and the potential for processing facilities in Africa

Cashew Nut Kernel Insights

Demand in Europe

The demand for cashew nut kernels is also driven by the increasing number of primary processing units in Africa. These units are aimed at developing the processing industry. Some European companies are also investing in cashew nut production sites in developing countries.

Cashew nut kernels are used in a number of food products, including spreads and confectionaries. The kernels are also used in the cosmetic industry. Cashew nuts are promoted as a source of vitamin K and iron. However, health benefits are not substantiated.

The demand for cashew varies from country to country. While Germany and Netherlands are major consumers, Spain is the sixth largest importer in Europe. The demand is also driven by the healthy snacking trend in Europe. Spain has seen an increase in imports in recent years.

Imports of cashew nut kernels into Europe have increased by more than 8% over the past five year period. This increased demand has boosted the value of imports.

Cashew nut kernels have become more popular in Europe as they are used as ingredients in snack bars and spreads. Cashew nuts are roasted before they are eaten. The retail price of cashews has also increased in Europe. A growing number of consumers are also aware of the health benefits of nuts.

Cashew Kernels

Market in India

Various government schemes and initiatives have been put in place to boost cashew nut production in India. The Ministry of Agriculture has also established a Directorate of Cashew Nut Development. The cashew nut processing industry in India is highly fragmented. It mainly depends on imported raw nuts.

The biggest cashew nut processor is Kerala with a 20% share. Other states that top the ladder board are Tamil Nadu, Andhra Pradesh, Karnataka, Gujarat, Odisha, West Bengal and Bihar.

Cashew nut kernels are considered to be a premium snack. These are a good source of protein and are rich in oil. The cashew nut industry in India has a big future. But its prospects are hampered by a heightened competition.

A cashew nut is an edible kidney shaped nut. It is harvested in South and South-East Asia. The cashew nut is then processed into various forms. The processing process includes roasting, cutting, shelling and grading. The process of grading is usually done manually.

The market size of the cashew nut is huge in India. The market is expected to grow by an impressive 1 million tons this year. This is due to an increasing demand for flavored cashews in the country.

A cashew nut processor can be started as an individual or a partnership firm. The premises should be spacious enough to accommodate the machinery and equipment. It should also be accessible to transportation. It should have sufficient water availability. The premises should also be safe for workers.

The cashew nut processing business in India can be started as a proprietary concern or a partnership firm. It should be registered with the Ministry of Corporate Affairs.

Processing facilities in Africa

Despite its potential, Western Africa lacks processing facilities. Instead, small scale industries process the raw cashew nuts. These cashews are then exported to Asian countries. Vietnam, Thailand and India are the three countries that are the major importers of African raw cashew nuts.

The Ivory Coast produces the world’s largest crop of raw cashew nuts. However, only eight of its 20 processing plants are operational. These processing facilities struggle to compete with Asian competitors. They have to overcome obstacles such as outdated technology and inadequate market linkage. Cote d’Ivoire is now working to improve the sector. It has implemented a series of measures to increase its processing capacity. It offers tax exemptions, subsidies and credit guarantees.

The US government’s Prosper Africa initiative is designed to improve agricultural productivity and create more two-way trade between the United States and Africa. It is working to build a new cashew processing industry in West Africa. It is partnering with Virginia-based Red River Foods, a global supplier of plant-based food.

Red River Foods will provide a training program for 11,000 farmers in West Africa. This will help farmers boost their cashew production. It will also build a cashew processing facility in Cote d’Ivoire. This facility will increase the region’s cashew processing capacity. Red River Foods is planning to invest $47 million in the project. It will create 500 new jobs in the region.

The USAID-funded West Africa Trade & Investment Hub awarded Red River Foods a $3 million grant. This will help the company establish exports of cashews to West Africa. It will also provide trainings to local processors. The project will benefit 11,000 cashew farmers and processors in West Africa.

Regulatory environment in emerging countries

Regulatory environment for cashew nut kernel in emerging countries has been evolving. As more and more African countries become aware of the unusual nature of the cashew value chain, more emphasis is being placed on the production of cashews and on local cashew processing.

The Ivory Coast is the world’s largest producer of in-shell raw cashew nuts. Despite its double-digit growth, it still does not have the necessary shelling capacity. Therefore, most of its cashews are exported as in-shell nuts to Vietnam.

In the meantime, the government is supporting various initiatives to promote cashew processing in the country. One of the initiatives is the Sustainable Nuts Initiative, which is a group of European companies working towards a more sustainable nut supply chain.

Another initiative is the African Cashew Initiative. This is a partnership between the government and private sector in the Ivory Coast. The initiative aims to improve the quality of production, protect workers and ensure food safety for the country’s cashew nut producers.

Alassane Ouattara, the new president of the country, has been a strong advocate for the initiative. He has led the country to economic growth of over 9 percent over the past two years.

In addition, the government has set a guaranteed minimum price for cashew farmers this season. This is 250 CFA francs per kilo of raw nuts. In addition, it has streamlined payments to farmers by introducing the Warehouse Receipt System. This system is used to facilitate competitive buying and selling by processors.

In addition, the government has introduced various subsidies to encourage investment in processing. This includes exempting cashew nut processors from customs duties for equipment purchased in the next five years.

Uncertainty in the cashew nut market

Several factors are affecting the cashew nut market. Among them are high imports from India, high inflation, and the covid situation in China.

However, the government is taking steps to improve the industry. It is investing in a US-backed project that aims to strengthen existing processing facilities and promote local processing. The Prosper Cashew project is scheduled to launch in October 2020. It will also establish a fund to support processing in Ghana.

The project is backed by the United States and will invest $60 million to improve processing in West Africa. In addition, it will provide a mechanism to help develop capacity in Ghana and Nigeria.

However, cashew nut imports will remain volatile throughout the year, and will depend on the harvest and price situation. The bulk of Nigeria’s cashews are exported to Europe. However, there are developing country suppliers, including the Ivory Coast, Brazil, and Burkina Faso.

The price of raw cashew nuts ranged between US$750-900 in the 2010/11 season. The highest prices were recorded in Cacheu, Gabu, and Bafata.

The raw cashew market is an oligopolistic system, with 40% of the supply being monopolized by private dealers. This has created an uncompetitive pricing structure.

The government’s intervention in the 2011/2012 season included rescission threats to licenses of recalcitrant buyers. But it failed to prosecute the warehouse operator for a loss of 600 tons of cashews.

Despite the intervention, the cashew nut industry remains affected by market exchange failures. These failures are always associated with price disagreements between buyers and producers.

Cashew nut prices have been falling in Senegal and Gambia. Traders have also reduced deliveries in Bissau. However, the prices have increased slightly in Cacheu, Gabu, and Quinara.

Frequently Asked Questions

Get answer to your queries.

Cashew Nut Kernel Insights

In 2021, global imports of cashew nut reached a peak. The volume of imports from Vietnam has increased by 25% annually. However, India stands out as the preferred supplier in the medium term. The Indian cashew market is expected to grow at a rate of 10-12 percent.
During the past five years, European imports of raw cashew nut kernels have increased by 47 thousand tonnes. However, the import of shelled cashew nuts to Europe is insignificant. This trade accounts for only 28% of all imports. It consists of simple re-exporting of imported raw cashew nut kernels.
Cote d’Ivoire is the largest producer of cashew in Africa. Its production grew at a rate of 10-12 percent in the last five years. It is expected that its production will reach 240,000 MT by 2021. The country’s regulatory environment is undergoing changes.
The Indian cashew market has high demand for broken cashews. However, the country’s processing capacity is limited. In addition, the processing cost is very high. The government provides minimal incentives for cashew processing companies.

Global Cashew Kernel Market

Increasing demand for healthy snacks and increasing awareness about the health benefits of cashews are expected to drive the global cashew kernel market during the forecast period. During the period from 2022 to 2029, the global cashew kernel market is projected to increase at a CAGR of 5.2%.
Increased demand for whole white cashew kernels is expected to drive the market during the forecast period. White whole cashew kernels are mainly consumed as a snack. They are also used as a confectionary ingredient in desserts.
Despite their numerous nutritional benefits, cashew kernels are consumed in very small quantities. Therefore, the market restraints include weather-related uncertainties, food safety issues, and the existence of small-scale central processing infrastructure. In addition, cashew farmers receive only a small portion of the final retail price.

Nutritious Cashew Nuts and Seeds

Known for their high nutritional value, cashews are a tropical fruit and nut. They are also known as drupes. They are produced by cashew trees, which are native to Brazil.
Cashews are cultivated in warm humid climates around the world. They are highly nutritious and have a rich taste. They are used in a variety of dishes. They taste good with fresh basil in pesto. They are also great for making salsa. They can last up to six months in a refrigerator.
Cashews are also used in marzipan. They can be added to curries and salsa. They are also used in other foods such as ice cream. They have a satisfying crunch. They are also high in fatty acids and protein. They are a good addition to most diets. They are also high in vitamin K.
The cashew fruit, also called a drupe, is a kidney-shaped structure. It is about three times the size of a true fruit. The seed is inside the fruit. It is surrounded by a hard shell. The outer shell of the drupe is smooth and olive green. It becomes pale brown when it ripens.
Cashew nuts contain 19 mg of vitamin K per two ounces. Cashews have a high level of protein, as well as fatty acids and antioxidants. They are also high in calcium and magnesium. The protein in cashews helps strengthen the immune system and prevents chronic disease. They are also rich in minerals and vitamin B.

Important Terms:

raw cashew nut exporting countries
cashew exportation
cashew price index
top cashew exporting countries
cashew nut yield per acre

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