Merry Christmas & Happy New Year

We as DONAFOODS CO. are sending our warm wishes to your company team and families
wishing all of you a prosperous New Year 2015 with full of Health & Joy and Happiness .
We thank you for your support during past years & wishing to have your same in New Year

Best regards,

Nguyen Thai Hoc

Nguyen Trong Tri & Tran Trong Oai

Tran Mai Hong

 & All DONAFOODS ‘ Staffs

With competing nuts ruling higher, raw cashew price may not fall

KOCHI, NOVEMBER 18: 

The cashew market, which showed some buoyancy from mid-August till mid-October, is witnessing subdued activity. During the last three weeks, prices have slipped by a few cents from large processors and more from the small and medium processors.

According to trade sources, cashew continues to be the most reasonably priced nut moving in a relatively narrow range compared with other nuts.

Therefore “it would be reasonable to expect prices to remain in this range and maybe even move up a bit – depending on buyer behaviour,” Pankaj Sampat, a Mumbai-based dealer, told BusinessLine.Highest levels traded were W240 at $4.05-4.15 and W320 $3.60-3.70 per lb (fob). Offers/trades during the last fortnight were in the range of W240 $3.75-3.95, W320 $3.40-3.55, W450 $3.30-3.45, SW320 $3.35-3.45, butts $3.10-3.25, splits $2.95-3.05 and pieces $2.85-2.95 per lb (fob).

However, for the time being, many buyers seem to be waiting to see how market moves in coming weeks. But, some are still buying part of their requirements from reliable processors (even at higher levels).

RCN prices up

Raw Cashew Nut (RCN) market moved up between August and mid-October, with prices for West Africa RCN moving up from $1,150-1,250 to $1,350-1,550 a tonne range. Tanzania RCN traded at around $1,600 c&f. During the last 2-3 weeks, this has come down to $1,425-50.

“If processors are not able to sell kernels at higher prices, they may be slow in buying RCN which in turn might lead to some reduction in prices, but reduction will not be much since availability is limited due to a fall in Southern crop output, estimated to be less than 25 per cent of world production,” Pankaj said.

“Although we cannot be sure how market will move, especially in an uncertain situation like we face at present, our feeling is that cashew kernel market will remain in the range of $3.40-3.70 for next 3-4 months and maybe more,” he said.

- The Hindu

Source: http://cashewnews.blogspot.com

Cashew News

Cashew market started moving up slowly from mid Aug and moved up sharply during
Sept. There was good demand from all markets till early Oct. Highest levels traded were W240 at 4.05 to 4.15 and W320 at 3.60 to 3.70 FOB. Market has been quiet since middle of Oct. In the last 3 weeks, prices came down a few cents from the large processors and more from the small / medium processors.

In Weeks 45 & 46, offers / trades were in the range of W240 from 3.75 to 3.95, W320 from 3.40 to 3.55, W450 from 3.30 to 3.45, SW320 from 3.35 to 3.45, Butts from 3.10 to 3.25, Splits from 2.95 to 3.05 and Pieces from 2.85 to 2.95 FOB.

RCN market moved up between Aug to mid Oct. In 2 months, prices for West Africa RCN (harvested from Mar/Apr to Jun/Jul) moved up from 1150-1250 range to 1350-1550 range. Tanzania RCN (harvest from Oct to Dec/Jan) started trading around US$ 1600 C&F. In the last 2-3 weeks, this has come down to US$ 1425-1450 C&F. Even at this lower level, there is a disparity of 15-20 cents per lb. If processors are not able to sell kernels at higher prices, they may be slow in buying RCN – this might lead to some reduction in RCN prices but reduction will not be much since availability is limited because the Southern crop is small in quantity (less than 25% of world production).

Cashew continues to be the most reasonably priced nut moving in a relatively narrow range (compared to other nuts). It would be reasonable to expect prices to remain in this range and maybe even move up a bit – depending on buyer behavior. Will they continue to buy in small tranches which will keep market steady ? Will they buy larger volumes or longer spreads which will push market up a bit ??

For the time being, many buyers seem to be waiting to see how market moves in coming weeks before buying more since they have bought some quantities during Aug/Sep and because prices have slipped from the peak. But, some are still buying part of their requirements from reliable processors (even at higher levels).

Although we cannot be sure how market will move, specially in an uncertain situation like we have now, our feeling is that cashew kernel market will remain in range of 3.40 to 3.70 for next 3-4 months (maybe more). Prices may even move up a bit more during this period. There are very little chances of any significant decline unless the next Northern Hemishpere (India, Vietnam, West Africa) crops which contribute 75% of World Production are all very good. Even then, prices may not come down until there is a smooth flow of RCN from West Africa to India and Vietnam. It is quite possible that in 2015 we will see a different range compared to the 3.25-3.50 range that we have seen for more than 2 years now.

Would appreciate your comments on market situation, views and forecast of trend for coming months and any news / information / observations on supply and demand side…. And your interest !!

Source: https://www.facebook.com/cashewnews?fref=nf

CASHEW AND BUTTERNUT SQUASH CURRY

Ingredients:

3 lbs peeled, 1 1/2-inch chunks butternut squash, pumpkin or other winter squash
2 tablespoons olive oil
1 teaspoon sea salt
1 onion, halved and cut into half-moons
1-2 red or green Serrano chilies, seeds removed and finely chopped
1 cinnamon stick
20 fresh curry leaves or 6 dried bay leaves
1 teaspoon turmeric
2 teaspoon cumin seeds
1 can (14.5 ounces) lite coconut milk
1/2 cup reduced sodium vegetable or chicken broth
1/2 cup salted roasted cashews
1 tablespoon lemon juice
4 cups cooked barley

Directions:
1. Sprinkle squash with salt. Heat 1 tablespoon oil in large non-stick sauté pan over medium-high heat. Brown the squash in oil, turning 2-3 times, every 3 minutes; reduce heat continue to cook the squash for another 5 minutes (may need to add 1 tablespoon water if pan gets too dry). Remove squash to large bowl and set aside.
2. Heat 1/2 of the remaining 1 tablespoon oil in the large sauté pan over medium-low heat, sauté onion, stirring occasionally, until deep golden, 6-8 minutes.
3. Remove onion mixture to the bowl with the browned squash and set aside.
4. Add the remaining 1/2 tablespoon of olive oil to the pan, add chilies, cinnamon, and curry leaves to the pan. Cook until curry leaves are fragrant, about 2 minutes.
5. Add turmeric, cumin, and remaining 1/2 teaspoon salt and cook, stirring, until spices are fragrant, about 1 minute.
6. Add the squash and onions, coconut milk, and broth. Bring to a boil over high heat, then cover, reduce heat, and simmer until squash is tender, 5-10 minutes.
7. Stir in cashews and lemon juice, season with salt to taste.
8. To serve: spoon butternut curry over 1 cup of brown rice, barley, or any other
ancient grain.

xx, The FabFitFun Team

Source: http://www.fabfitfun.com/

Mozambique to sell 80,000 tons of cashews this year

This current cashew campaign in Mozambique is expected to see production of 80,000 tons for sale, 17,000 tonnes more than in the previous campaign, said Filomena Maiopué, Director General of the National Cashew Institute (Incaju).

Maiopué also told Mozambican daily newspaper Notícias that of the 80,000 tons of cashew nuts available for sale, around half were produced in Nampula province, in the north of the country.

The weather conditions were more favourable this year than in 2013, and a better sale price is also expected compared to the previous campaign, which led producers to retain their crops, said the director general of Incaju, noting that smuggling cashew nuts to neighbouring countries was still a concern.

Mozambique was one of the world’s leading producers of cashew nuts until the end of the 1970s, when it produced about 200,000 tons per year. (macauhub/MZ).

Source: http://www.macauhub.com.mo/

SAMSON'S CASHEW MARKET REPORT - NOV 15, 2014

FOB prices in Weeks 46 :

W240          US$ 3.75 to 3.95
W320          US$ 3.40 to 3.55
W450          US$ 3.25 to 3.40
SW320        US$ 3.35 to 3.45
SW360        US$ 3.20 to 3.30
SSW           US$ 3.10 to 3.20
Butts          US$ 3.10 to 3.25
Splits     US$ 2.95 to 3.05
Large Pieces US$ 2.85 to 2.95

Cashew market started moving up slowly from mid Aug and moved up sharply during Sept.  There was good demand from all markets till early Oct.  Highest levels traded were W240 at 4.05 to 4.15 and W320 at 3.60 to 3.70 FOB.   Market has been quiet since middle of Oct. In the last 3 weeks, prices came down a few cents from the large processors and more from the small / medium processors.

In Weeks 45 & 46, offers / trades were in the range of W240 from 3.75 to 3.95, W320 from 3.40 to 3.55, W450 from 3.30 to 3.45, SW320 from 3.35 to 3.45, Butts from 3.10 to 3.25, Splits from 2.95 to 3.05 and Pieces from 2.85 to 2.95 FOB

RCN market moved up between Aug to mid Oct.  In 2 months, prices for West Africa RCN (harvested from Mar/Apr to Jun/Jul) moved up from 1150-1250 range to 1350-1550 range. Tanzania RCN (harvest from Oct to Dec/Jan) started trading around US$ 1600 C&F. In the last 2-3 weeks, this has come down to US$ 1425-1450 C&F.  Even at this lower level, there is a disparity of 15-20 cents per lb.    If processors are not able to sell kernels at higher prices, they may be slow in buying RCN -  this might lead to some reduction in RCN prices but reduction will not be much since availability is limited because the Southern crop is small in quantity (less than 25% of world production).

Cashew continues to be the most reasonably priced nut moving in a relatively narrow range (compared to other nuts).  It would be reasonable to expect prices to remain in this range and maybe even move up a bit – depending on buyer behavior.  Will they continue to buy in small tranches which will keep market steady ? Will they buy larger volumes or longer spreads which will push market up a bit ??

For the time being, many buyers seem to be waiting to see how market moves in coming weeks before buying more since they have bought some quantities during Aug/Sep and because prices have slipped from the peak.   But, some are still buying part of their requirements from reliable processors (even at higher levels).

Although we cannot be sure how market will move, specially in an uncertain situation like we have now, our feeling is that cashew kernel  market will remain in range of 3.40 to 3.70  for next 3-4 months (maybe more).  Prices may even move up a bit more during this period. There are very little chances of any significant decline unless the next Northern Hemishpere (India, Vietnam, West Africa) crops which contribute 75% of World Production are all very good.  Even then, prices may not come down until there is a smooth flow of RCN from West Africa to India and Vietnam. It is quite possible that in 2015 we will see a different range compared to the 3.25-3.50 range that we have seen for more than 2 years now.

Pankaj N. Sampat | SAMSONS TRADERS 

India: Farmers meet discuss natural resources management

Farmers, most of whom have dedicated themselves to the soil for over four decades, discussed 'Natural Resources Management in Farming' and model village training at a 3-day meet organized by the Sri Sri Institute of Agricultural Sciences & Technology Trust (SSIAST).

While inaugurating the meet, Sri Sri Ravi Shankar, founder of The Art of Living, said, "We need to make 'kisan sangh' (farmers' meet) in every village. More and more farmers need to adopt and implement the techniques of Natural Farming. Our earth has plenty for everyone. We only have to manage its resources well. Chemical-free farming is a new hope to the farmers in India and we will work with vigor to spread this knowledge."

Held at The Art of Living International Center, the meet focused on the importance of saving indigenous cows, using natural ways of farming and chemical-free farming.

Simple and easy-to-practice tips like use of cow dung for manure, urine as pesticide were also given by experts. "Our philosophy is to promote farming techniques that are beneficial to the farmer, the consumer and the land. Natural farming or chemical-free farming can achieve these objectives. Along with the skills and knowledge we impart, here they can share leanings and challenges with each other too. We are creating a 'Kisan Sangh', an association to also market this organic produce," shared Dr. Muley, Chairman, SSIAST.

The meet provided a platform for experts to come and share their experiences with the farmers. Chandrashekhar Bachelor, Agriculture Trainer with SSIAST from Chattisgarh shared his success story of converting infertile land into fertile by mixed cropping on a small scale with different crops, like, mango, papaya, and Kaju (cashew nuts). "We have stopped the production of alcohol from mahuwa flowers in Koi village, Korba, Chhattisgarh which is heavily grown in the state. Instead we now make laddus (sweets) out of it. This is very popular now. We are working on 18 more villages and have empowered many farmers to grow organically."

Vouching for the benefits of organic farming, Kehsav Vyas, a farmer from Madhya Pradesh said," We are spending very less and earning much more. In modern farming, production reduces every year, while production increases with organic farming. I also grow sugarcane and make jaggery (gur) from the organic produce."

Sruthy Susan Ullas,TNN 
Source: The Times of India

Dong Nai (Vietnam): Increase in export of cashew by 40% in first 10 months of 2014

According to the Department of Trade and Industry, Dong Nai Province exported 26,000 tonnes of cashew kernels  with a turnover of USD 171 million in the first 10 months of 2014. The cashew exports increased by 30% in volume and 40% in value as compared to last year over the same period.The main export markets include the US, China, Canada, Australia and Russia, Britain, the Netherlands. Currently the demand is increasing, but most traders are not able to supply sufficient stock to meet market demand.

According to the Vietnam Cashew Association (Vinacas) in 2015, processing and exporting cashew kernels will continue to grow. Known cashew export volume of the country  in 10 months was 257,000 tonnes with a turnover of $ 1.68 billion which is increase by 20% in volume and nearly 25% in value over the same period in the last year. United States, China, the Netherlands were the country's largest export markets.

SOURCE: VINACAS

Vietnam Cashew Nut Industry – Part 2

VIETRADE - In May 2014, VINACAS signed the MOU with The Cotton and Cashew Council of Cote D’Ivoire. The objective of the MOU is to help Cote D’Ivoire as followed:

- Supporting in consulting and training producers of cashew in Cote D’Ivoire on cultivation technical and post-cultivation steps;

- Exchanging information of the industry;

- Protecting the trade exchange between the two countries; and

- Supporting technical device.

Trends on supply and demand of cashew in Vietnam

Vietnam is among the biggest producers of cashew in the world, only after India and Cote D’Ivoire. However, in order to meet the demand of the local processing industry, Vietnam has to import a large quantity of cashew from the Africa and Cambodia. Import of raw cashew has stably increased for over 13 years. The increasing rate of quantity and value of imports is 45.45% and 32.99% from 2000 to 2013. The main suppliers of raw cashew are African countries and Cambodia. In 2013, Vietnam imported 643,380 tons of raw cashew, valued at US$ 604,590 thousand.

Export of cashew kernels of Vietnam

Export of cashew kernels of Vietnam has continuously increased since the establishment of Vietnam Cashew Association in 1990. Since 2006, Vietnam has become the biggest exporter of cashew kernel in the world. Export of cashew kernel in 2000 has increased by 17.7% in volume and 22.6% in value.

Vietnam mainly exports cashew kernels to Middle East countries, the European Union, China, Australia and New Zealand. Vietnam accounts for 92% of the market share of the Australia market and 90% of the New Zealand market. Vietnam’s strengths include high productivity of raw cashew, meeting requirements of food safety and lower price than that of India. In 2013, Vietnam exported 264.86 thousand tons of raw cashew, valued at US$1,655.45 million. In August 2014, the export quantity of Vietnam was 33,267 tons, amounting to US$219 million, contributing to the exports of the first 8 months of 198,743 tons, amounting to US$ 1.285 billion, up 21.5% comparing with the same period in 2013. Especially, the export value increases in all main markets by 10.29%, 45% and 10.4% to the US, the Netherlands and Canada, respectively.

India is the main importer of broken cashew of Vietnam with the increasing rate of 61.73% in 7 years (from 2007 to 2013). In 2013, India imported 4,265.80 tons of broken cashew from Vietnam, valued at US$14.61 million.

In 2014, it is estimated that the export value would be 270 thousand tons of cashew kernels with the export value of US$1.8 billion (in comparison to US$1.66 billion in 2013). If we count all other by-products, the export value of the cashew industry can reach US$2.2 billion, increasing by US$0.4 billion in comparison to that of 2013.

Table: Trends on supply and demand of cashew in Vietnam

	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	CAGR
Volume (thousand ton)	205	240	312	309	292	311	309	298	265	252	1.46
Import (thousand ton)	17	26	21	200	250	250	350	395	333	643	50.00
Ratio of main suppliers of raw cashew in the total imports
Cambodia	25.8	22.1	25.7	15.8	3.3	2.1	3.4	3.3	19.0	9.6	28.8
Cote D’Ivoire	11.1	14.6	8.9	14.9	7.1	4.5	8.5	6.0	29.4	4.1	42.9
Nigeria	24.0	34.0	23.9	18.5	3.1	1.5	3.2	3.7	20.2	0.0	22.3
Indonesia	25.1	18.3	31.8	23.8	2.3	1.8	6.4	1.0	5.7	4.1	13.7
Ghana	1.2	1.2	1.9	6.3	1.8	1.0	1.1	4.7	9.9	-	80.9
Guinea Bissau	-	-	-	-	2.2	0.5	0.6	1.6	5.1	-	46.2
Others	12.8	9.8	7.7	20.7	80.2	88.5	76.9	79.9	10.7	82.2	83.6
Medium import price	3.26	3.26	3.26	0.65	0.88	0.62	0.79	1.41	1.00	0.94	-12.42
Total supply (thousand ton)	222	266	333	509	542	561	659	693	598	895
Production of cashew kernel(thousand ton)*	56	67	83	127	136	140	165	173	150	224	14.68
Export of cashew kernel  (thousand ton)	87	103	115	142	161	176	190	174	218	265	11.73
Ratio of main markets in the total exports
US	40.28	31.25	32.28	31.75	28.31	29.48	31.59	26.83	27.39	30.67	8.89
China	16.49	20.01	20.88	18.43	19.12	22.46	17.35	21.75	21.78	19.68	13.37
Netherlands	10.82	12.13	10.88	15.28	17.35	13.83	13.08	15.42	11.13	8.85	10.83
Australia	10.70	10.91	11.09	8.11	7.11	6.77	7.24	6.65	6.56	5.32	3.42
UK	5.49	5.46	4.70	5.61	5.24	3.97	3.87	3.25	3.39	3.18	4.25
Canada	4.32	3.71	2.69	2.91	3.36	2.22	2.60	2.30	2.66	3.26	7.51
UAE	0.38	0.48	0.39	0.57	0.74	1.19	1.60	1.53	1.16	1.20	31.62
Russia	1.06	2.45	3.76	3.59	4.15	2.37	3.39	3.67	3.79	3.44	20.77
Others	10.46	13.60	13.32	13.74	14.61	17.71	19.28	18.59	22.14	24.40	21.58
Medium export price of cashew kernel (USD/lb. FOB)	2.22	2.22	1.80	1.94	2.49	2.15	2.65	3.76	3.00	2.83	5.45

Note: CAGR: Compounded Annual Growth rate; Lb.: 0.45359237 kg

Source: Ministry of Agriculture and Rural Development of Vietnam, Vietnam Customs

http://www.vietrade.gov.vn

 

Vietnam Cashew Nut Industry – Part 1

VIETRADE - Vietnam is among the biggest manufacturers and exporters of cashew nut in the world. Since 1990, Vietnam has emerged as a main producer of cashew nut in the Asia. During 1980s, Vietnam started growing cashew as a high-economic plant. In 1990s, the area of land to grow has been expanded to rural areas. Vietnam Cashew Association (VINACAS) was established in 1990 to facilitate the development of Vietnam cashew industry.

Cashew was mainly grown in provinces such as Dak Nong, Daklak, Binh Duong, Binh Phuoc, Tay Ninh, Long An, Kien Giang, Kon Tum, Gia Lai, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Lam Dong, Binh Thuan and Dong Nai. In which Binh Phuoc accounts for 50% of the total cashew production of the whole country.

Vietnam Raw Cashew sector

Cashew is grown in 300,000ha in Vietnam with the average productivity of 1,000kg/ha. The seeds are selected and germinated on mountains, choosing proper seasons for seeding and harvesting and using Integrated Pest Management (IPM). Vietnam has set a target to increase the productivity from 1,700kgs to 2,000kgs per ha. However, Vietnam gets the main difficulty of not being able to allocate more land to grow cashew. Therefore, Vietnam has chosen to improve the productivity. In 2013, Vietnam had an excellent crop of 400,000 tons. The target for 2014 is set at 425,000 tons.

Vietnam Cashew Kernel Market

Vietnam’s cashew processing industry has started since 1990s. During last three decades, Vietnam has raised itself into being the second largest processor of raw cashew and the largest exporter of cashew kernel (for the eight consecutive years since 2006).

In 2013, Vietnam exported 257,000 tons of cashew kernel valued at US$1.8 billion, imported raw cashew worth US$0.52 billion and achieved a total export turnover of US$ 2.2 billion from cashew kernel and by-products. In 2014, Vietnam targets to export US$ 2.2 billion. In 2013, Vietnam exported around 90,000 tons of cashew kernel to the US, 55,000 tons to China, 50,000 tons to the European Union, 50,000 tons to the Middle East countries and 14,000 tons to Australia. Vietnam accounts for 92% market share of cashew kernel in Australia market, estimated at 15,058 tons and 90% market share of cashew kernel in the New Zealand, estimated at 2,536 tons. Currently, Vietnam has exported cashew kernel to more than 90 countries and regions.

Vietnam cashew processing industry

Vietnam’s current processing capacity exceeds 1.2 million tons. There are about 500 large and medium scale processing sites and 500 small scale ones. All large scale sites have gained GMP, ISO and HACCP certificates. Vietnam has also developed processing capability to add value of roasted, salted roasted and coated with honey or chocolate cashew. Factories are designed to make use of human resource and machinery capabilities to maximize the profit for professors. Cost of financing is about 5% to 7% for the large processors and 10% to 12% for medium scale processors.

Challenges for Vietnam’s cashew processing industry

Vietnam is trying to control the costs, commit to customers and cooperate with suppliers to ensure the sustainable development of the cashew industry. In the last year, VINACAS has coordinated with The Cotton and Cashew Council of Cote D’Ivoire to strike a win-win partnership. The two countries have signed a Memorandum of Understanding (MOU), in which Cote D’Ivoire would provide high quality raw cashew nuts to Vietnam. In contrast, Vietnam would let Cote D’Ivoire process about 20-30% of its raw cashew nuts through transfer of technology of processors and other related assistance. Both countries have agreed on resolving issues on mutual benefits. Vietnam is also helping the neighboring Cambodia to increase productivity to ensure the continuity supply of raw materials.

The machinery manufacturers are researching to decrease the number of laborers, reduce cost and improve product consistency. In 2013, Vietnam has sent a business delegation to Australia and expanding business opportunities in this market. Vietnam is also trying to build the relationship with the Middle East countries. At the same time, Vietnam has also identified the importance of the local demand and is keen on improving the domestic demand of cashew kernels.

The annual growth rate of Vietnam cashew industry is 15.31% for over a decade (from 2001 to 2010). However, in the last five years, the productivity decreases. From 2009 to 2013, the area and productivity of raw cashew nut has correspondingly decreased at 3.51% and 5.56%. The comparison between profit of cashew with that of other trees such as rubber, pepper, etc. has led to reducing the growing area of cashew in Vietnam. In order to increase the supply of raw cashew nut for processing, in the Cashew Festival in Binh Phuoc, Vietnam has launched the program to develop growing land of cashew in Cambodia and Laos. By this way, Vietnam is trying to increase the supply of raw cashew from neighboring countries to meet the demands of development of the local processing industry.

Source: Viettrade

Côte d’Ivoire, where money does grow on (cashew) trees

Forty years ago, Henri Kouakou was struggling to support his family farming a small plot outside Bondoukou, a dusty town in northeastern Côte d’Ivoire, when he first learned that money did, in fact, grow on trees – cashew trees.

“I was raising yams back then and wasn’t earning enough. I heard people talking about a new tree you could make money growing,” he said, strolling through his plantation beneath a canopy of cashew tree branches.

By his own reckoning, Kouakou, among the earliest pioneers of the Ivorian cashew sector, is nearly 100 years old. He has seen the nuts, initially planted in the 1970s to combat desertification, emerge as an important cash crop for the West African nation’s impoverished north.

And with output growing by over 10 percent annually – attracting the attention of a government desperate to jump-start its economy after a decade of war and political chaos – he will likely live to see his country dominate the world market.

Henri Kouakou at his cashew plantation in Bondoukou. (Pic: Reuters)

Even a decade ago, Côte d’Ivoire was a middling producer, growing around 80 000 tonnes of raw cashews per year. By last season, however, as demand for the nuts has grown, output had jumped to around a half million tonnes, making it the world’s top exporter and second to India in overall production.

Astounding growthIn the north of the country, cotton and cashews are the only cash crops, so as some cashew growers have started to do well, others have piled in. Output has increased because new plantations planted in recent years are coming into production.

“The growth is more than impressive. It’s astounding,” said Jim Fitzpatrick, a cashew expert. “We’ve never seen a country grow its production in the way Côte d’Ivoire has over the past decade.”

This season, for the first time, the government set a guaranteed minimum price for cashew farmers, fixing it at 250 CFA francs ($0.48) per kilo of raw nuts. According to Malamine Sanogo, managing director of the sector’s marketing board, the Cotton and Cashew Council (CCA), Côte d’Ivoire has hardly scratched the surface of the enormous potential.

Ninety-five percent of Ivorian output is exported raw to India and Vietnam for processing. Sanogo says that work should be done in Côte d’Ivoire by Ivorian workers.

“We think that with processing we will create many jobs and we will create lots of added value for the country,” he said.

Within the next five years, the CCA wants 35 percent of Côte d’Ivoire’s raw cashew output processed locally. Sanogo said bringing processors closer to producers will allow Côte d’Ivoire to cut out some of the intermediaries in the supply chain, boost prices for farmers, and above all create jobs.

Having doubled production over the past decade, Africa’s two million cashew farmers produce nearly half of the world’s supply of raw nuts, according to the African Cashew Alliance. Many, including growers in top African producers Guinea-Bissau, Nigeria and Mozambique, are watching closely Côte d’Ivoire’s efforts to become a major player in a global market valued at up to $7.8 billion.

War and revivalIn 2002, a failed coup attempt plunged Côte d’Ivoire into a civil war that split the world’s top cocoa producer in two. Once a model of stability and prosperity in a troubled region,Côte d’Ivoire would remain divided between rebels in the north and southern government loyalists for almost a decade.

Having emerged as the country’s new president following a civil war in 2011, Alassane Ouattara, a former senior International Monetary Fund official, has ushered in economic growth of over 9 percent in past two years.

But little of that growth – fuelled largely by billion-dollar investments in large infrastructure projects – has trickled down to the nearly half of Ivorians living on less than $2 per day. That’s where the government hopes cashews can help.

Some 600 000 farmers already grow the nuts, according to the CCA. But the creation of a domestic processing industry would mean more jobs in the sector.

Workers handle cashew nuts at a processing plant in Bouake. (Pic: Reuters)

Advocates of the plan point to the giant cottage industry in India where a typical unit processes around 10 tonnes of cashews a day with a workforce of 1 000.

According to a study carried out by the CCA, every 100 000 tonnes of processing capacity Côte d’Ivoire develops will create 12 300 factory jobs and another 10 000 elsewhere in the sector.

On the spotless campus of the large processing factory run by Singapore-based soft commodities trader Olam International in the central city of Bouake, uniformed employees queue up every morning for work.

The plant and a second, smaller facility, employ around 3 500 workers with capacity to process 40 000 tonnes.

“You can imagine if we can process 10 times this number how much employment can be created. And that is only direct employment,” Issa Konate, Olam’s head of procurement for the facilities, told Reuters.

Panacea for unemploymentIf it can pull it off, Côte d’Ivoire would be the first African nation to build a large-scale cashew nut processing sector as a panacea for unemployment, a problem plaguing countries across the continent.

The African Cashew Alliance estimates that a 25 percent increase in raw cashew nut processing in Africa would generate more than $100 million in household income.

But Ouattara’s government has an additional, even more pressing, concern: creating gainful employment for the 74,000 ex-combatants it is seeking to demobilise in the coming year.

“That’s what happened in Vietnam,” Yao Appia Koffi, vice-president of Côte d’Ivoire’s Cashew Exporters Association. “When they were emerging from their war in the 1980s they developed that industry and it allowed a lot of ex-fighters to find work.”

The broken nut conundrumNot everyone is so starry-eyed, however. “Processing? I’m not sure what the government can do … It’s foolishness,” one Côte d’Ivoire-based cashew exporter said, asking not to be named. Côte d’Ivoire indeed faces some daunting obstacles.

In addition to competing with processing sectors in India and Vietnam, it must convince private sector partners that political stability will last. It also needs major investments in machinery and must train tens of thousands of new workers.

But its biggest challenge will be what to do about nuts damaged in processing – what the industry calls brokens – which typically constitute 30 to 40 percent of output.

In India, the world’s largest cashew producer and also the biggest consumer, brokens are absorbed by the domestic market. The same is true in Brazil, the number three processor. Vietnam has traditionally sold much of its brokens in India and has another big market for damaged nuts, China, next door.

Côte d’Ivoire, with only infinitesimal domestic consumption, has none of these options, and its less skilled workforce means that the portion of brokens is even higher there.

Promoting cashew consumption in Côte d’Ivoire and neighbouring countries is one possibility. But even supporters of this strategy admit it will take time with no guarantee of success.

Côte d’Ivoire’s cashew sector may just have come of age at the perfect time. Experts say investors, worried by the dominance of India and Vietnam, are showing interest in diversifying supply and Africa is a logical choice for new processing facilities.

From just 35 000 tonnes in 2006, Africa processed a total of 114 600 tonnes of raw cashew nuts in 2012.

At the same time, manufacturers say technological advances in processing equipment will reduce the number of brokens to between 10 and 20 percent. Even the definition of what constitutes an exportable nut appears to be changing.

Only last year, the difference in the price of a pound of export quality, whole kernel cashews and large brokens was around $2. That difference is now less than a dollar.

“If that trend persists it will create a big change in the economics of processing,” said Fitzpatrick, who works with the African Cashew Initiative, United Nations, European governments and private investors to develop cashew processing in Africa.

Demand for edible nuts is growing, but the supply of pristine nuts is not. So it appears that buyers are willing to buy more, and pay more for, brokens.

Back in Bondoukou, Henri Kouakou is cautiously optimistic. He’s long been at the mercy of volatile, unregulated prices. Not far from his plantation stands a sprawling compound he started building for his family but has never been able to finish.

“If the government could raise the price to 400 or 450 CFA francs I would retire right now. I would be at home with enough money to eat and feed my entire family.” (1 US dollar = 517.9300 CFA franc)

Source:http://voicesofafrica.co.za/

DONAFOODS 'S Specification of refined Cashew Nut Shell Liquid

Contact: Ms. Mai Hong- Manager of Marketing & Planning Dept
Cell phone: 0084 1299192888
Email: donafoodsvietnam@gmail.com 

Order	Specification	Unit	Donafoods’ Standard
1	Gravity at 25 degrees C		0.95 – 0.96
2	Viscosity at 25o C	pas	200 – 300
3	Foreign matter (max)	%	0.6
4	Ash (max)	%	0.9
5	Moisture (max)	%	0.3
6	GEL time with DES	min	9 – 11
7	Iodine value WIJ’s method		270 min