What is Raw Cashew Nut? Why Buy It?
The Raw Cashew Nut, scientifically known as Anacardium occidentale, is a tropical evergreen tree that produces kidney-shaped seeds, commonly known as cashews. Native to northeastern Brazil, the cashew tree has spread to many parts of the world due to its versatility and economic importance. The nut itself is rich in healthy fats, protein, vitamins, and minerals, making it a popular choice in both culinary and health-conscious markets.
Cashews are a high-energy snack and are commonly used in a wide range of food products, from salads and granola to sauces, curries, and even vegan cheeses. In addition to being a staple in many diets, Raw Cashew nuts are also used in various industrial applications such as the production of cashew oil, which is prized for its mild flavor and use in cosmetics.
Buying Raw Cashew nuts offers a variety of benefits. They are a great source of antioxidants and healthy fats that support heart health and weight management. Their versatility in cooking and snacking, along with their long shelf life, make them a valuable commodity in the global market.
Top Producing/Exporting Countries of Raw Cashew Nut
Raw Cashew Nut production is concentrated in a few key regions of the world, with India, Vietnam, and Côte d’Ivoire being the largest producers and exporters.
- India: India is both the largest producer and exporter of Raw Cashew nuts. The country benefits from favorable climates, particularly in states like Kerala, Andhra Pradesh, and Tamil Nadu. India is also a major processor of cashews, which enhances its export value.
- Vietnam: Vietnam ranks as the second-largest producer and exporter of cashews globally. Its well-developed cashew processing industry and efficient supply chain make it a major player in the global market, particularly for exports to the U.S. and Europe.
- Côte d’Ivoire (Ivory Coast): As the largest producer in Africa, Côte d’Ivoire has seen significant growth in cashew production. The country has been expanding its cashew processing capacity, which helps increase its export potential.
- Nigeria: Nigeria is also a notable producer of Raw Cashew nuts. The country’s production primarily serves domestic markets, but it has been expanding its export reach, particularly to Asia and Europe.
- Brazil: Brazil is a key player in cashew production, especially in its northeastern regions. The country exports a large portion of its cashew output to international markets, including the U.S. and Europe.
Top Importing Countries of Raw Cashew Nut
Raw Cashew nuts are highly sought after around the world for their culinary uses and health benefits. The top importing countries include the United States, Germany, India, the Netherlands, and the United Kingdom.
- United States: The U.S. is the largest importer of Raw Cashew nuts, driven by the demand for snacks, baking ingredients, and plant-based products. Vietnam and India are the primary suppliers to the U.S.
- Germany: As the largest importer of cashews in Europe, Germany serves as a hub for the distribution of cashews throughout the continent. Its demand is largely driven by the snack food industry.
- India: Despite being the largest producer of Raw Cashew nuts, India also imports a significant quantity, particularly raw cashews for processing. This makes India a key player in both the supply and demand sides of the global cashew market.
- Netherlands: The Netherlands acts as a major importer and re-exporter of cashews to other European countries. Its efficient logistics infrastructure and high demand for Raw Cashew nuts make it a key player in the market.
- United Kingdom: The UK is a large consumer of cashews, particularly for the snack food and health food sectors. Imports come primarily from Vietnam, India, and Africa.
International Price of Raw Cashew Nut Per Metric Ton
The unit price ($ per kg) of Raw Cashew Nut in the international market depends on a host of different factors including:
- The grade of the produce (usually the more the processing, the higher the price)
- The price of the raw material
- Age of the seeds (this can affect the price)
- Production levels in producing countries
- Economic conditions and the exchange rates between the currencies of the producing and importing countries.
- The quantity ordered (the greater the quantity, the cheaper you can get it per ton)
- Harvest season (it is more costly when it is out of harvest season).
- Weather conditions (some commodities are sensitive to weather conditions).
- Freight & haulage cost
- Percentage of markup
- Import duties, trade tariffs and trade agreements between countries
- Distance from the country of origin
- Technology/Infrastructure available in country of origin
- Relationship between the buyer and seller
That said, as at December 2024, Raw Cashew Nut costs between $3,500 and $7,000 per metric ton (1,000 kilograms) in the international market (i.e. $3.5/kg to $7.0/kg).
How To Safely Source for Your Raw Cashew Nut Produce
If you find the right export company, buying directly from them can make the purchase process easy and stress-free, when compared with doing the sourcing on your own. That said, there are few things to note when dealing with an export company in Nigeria or Africa. The specific requirements for Nigeria are listed below, but they mostly apply to other African countries:
- The exporting company must be registered with the Corporate Affairs Commission (CAC) to make sure the company is registered and permitted to carry out business operations.
- The export company must also be registered with the Nigerian Export Promotion Council (NEPC).
- The company must possess a domiciliary account to accept international payments.
The company should get all necessary export-related documentation done before the shipment leaves the port of origin. Some of the documents are:
- Certificate of origin
- Bill of lading
- Inspection Certificate (SGS, Cotecna, Bureau Veritas, Intertek, etc)
- Phytosanitary certificate
- Fumigation certificate
Where To Find Reliable Exporters
An important question that still needs to be answered is how to find Raw Cashew Nut exporters in Nigeria. You can use any of the methods listed below:
- Attend trade fairs
- Use search engines like Google, Yahoo, etc.
- Search for agents on Linkedln
- Sign up on trade platforms (e.g. Alibaba, Tradeford, Go4WorldBusiness)
- Neogric – Neogric is one of the reliable Raw Cashew Nut exporters in Nigeria. Neogric is rated among the best in the exporting business in Nigeria. The company is not limited to the exportation of Raw Cashew Nut alone but can export other agricultural produce ranging from perishables to dry seeds.
How To Pay For Your Raw Cashew Nut Produce
You can pay for Raw Cashew Nut using different methods, but three of the popular ways of paying for your agric produce are:
- Bank (T/T) Payment
- Advance Payment
- Letter of Credit (LC)
Bank Payment (T/T)
Bank payment is also known as T/T, “Telegraphic Transfer” or “Telex Transfer” In other words, it is an international wire of funds from the buyer’s bank to the seller’s bank.
A T/T is technically not the same as a wire transfer, which is often done through the SWIFT network. However, when a seller or supplier asks for a T/T payment, a wire transfer is what they are really asking for.
The wire transfer based on the SWIFT system is the most common payment method in international trade. Typically, it takes 1-5 working days to clear, and generally costs between 25 and 50 USD, depending on your agreement with the commercial department in your bank.
Advance Payment
There are sellers that will demand anywhere from 30% to 50% advance payment, and for good reason. If both parties have done deals in the past, sellers can ask for a percentage of the sales (about 30%) before they ship the produce and they can request for the remaining amount after a scanned copy of the Bill of Lading has been sent to the buyer.
It is the safest option for exporters and it also guarantees that they will have some funds to help with sourcing. It is popular among manufacturers on B2B marketplaces like Alibaba and also with commodity traders.
However, advance payment carries considerable risk for the importer (buyer) because the exporter (seller) might not be under as much pressure to ensure quality checks compared with a stricter form of payment. Some might even disappear entirely.
Having said that, advance payment is very useful and is widely used. For instance, the seller might need to secure the commodity in the face of increased competition. It can also be used when the exporter needs some money for sourcing the produce or for processing raw materials.
The most important thing is for both importer and exporter to build mutual trust by having a track record of successful deals with each other or other known companies.
Letter of Credit
Letter of Credit is an agreement generated by the bank of the buyer, guaranteeing payment once certain conditions are met. It is one of the safest types of payment available to both buyer and seller.
Some of the types of Letter of credit are:
- Commercial Letter of Credit,
- Sight Letter of Credit
- Transferrable or Non-Transferable Letter of Credit
- Standby Letter of Credit (SBLC)
- Usance or Deferred Payment Letter of Credit
- Revocable or Irrevocable Letter of Credit
- Confirmed or Unconfirmed Letter of Credit
- Revolving Letter of Credit
- Green Clause Letter of Credit
- Red Clause Letter of Credit
L/Cs are not totally safe (for either buyer or seller) too. For instance, sellers can ship substandard products or those that are different from the ones agreed upon. In this case, the seller gets paid and the buyer receives goods he cannot use.
And speaking of the dangers of L/Cs for the exporter, the conditions in the Letter of credit might be practically impossible to fulfil; if an exporter agrees to such, he might be unable to receive payment. A report stated that of the letters of credit received in the UK, 50% are unworkable while 70% are rejected by the banks for payment.
Shipping & Delivery Terms
When shipping your products, it is important to take note of a few factors:
Order Quantity
For smaller shipments, airfreight is often the preferred option but as the order volume increases, sea freight could become significantly cheaper. Usually when the order is close to a full container load (20 ft), sea freight is used. Although the Covid-19 pandemic caused an increase in cost of delivery of products, prices have stabilised.
Cost of Delivery
When the order is of a large volume, sea freight often turns out cheaper than air freight. In fact, air freight could be up to 6 times more costly than sea freight if the volume is large enough.
Time of Delivery
Sometimes, time will be more important to the buyer than the cost of delivering the product. In this case, air freight will be the logical option (as stated above, the cost will be more). But if you have more time as a buyer, you should strongly consider using sea freight.
Incoterms
Incoterms refer to generally accepted shipping and payments terms. For example, buyers that have representatives in the source country or that can negotiate with the freight company can use the Free of Board (FOB) terms, since it gives them more control and can save them some money.
However, if the shipment is small or the buyer doesn’t have an extensive network to effectively handle payment for freight, insurance and port charges, he will be better off choosing the Cost-Insurance-Freight (CIF) payment option.
Neogric: Top Exporters and Suppliers of Raw Cashew Nut
We invite you to place your order for high-quality Raw Cashew Nut with us at Neogric. We are a trusted global commodity sourcing and trade solution provider with deep expertise in the Raw Cashew nut industry. Whether you’re a small business or a large corporation, our wide range of products and technology powered, end-to-end supply chain make the export of quality Raw Cashew nut easy, quick and safe. Whichever region of the world you are, be it Europe, Asia, USA, Canada, Other North/Central American countries, Africa, South America or Oceania, you can reliably order your agricultural produce and we will ensure it is successfully delivered to you, on time.
Why Buy Raw Cashew Nut From Neogric?
Choosing Neogric as your Raw Cashew nut supplier offers several advantages:
- Quality Assurance: We maintain strict quality control standards, ensuring our Raw Cashew nut and other products are of the highest quality.
- Wide Product Range: We offer a diverse selection of products, catering to various needs.
- Reliable Supply Chain: Our efficient technology-powered end-to-end supply chain ensures timely delivery of your orders.
- Expertise and Support: Our team of experts provides valuable insights and support, making your purchasing process smooth and hassle-free.
Our Raw Cashew Nut Trade Specifications
- Origin: Nigeria
- Product Name: Raw Cashew Nut
- Physical Specification: Based On Buyer’s Specification
- Quantity: Based On Buyer’s Specification
- MOQ: 10 Metric Tonnes
- Trade Process: Ex Works/FOB/CIF
- Admixture/Impurities: Based On Buyer’s Specification
- Inspection: SGS/Cotecna/Intertek/Bureau Veritas
- Packaging: Based On Buyer’s Specification
- Payment Method: TT (Bank Transfer) or L/C
- Shipping Time: 15 to 25 Days After Confirmation of TT or L/C
- Loading Port: Lagos, Nigeria
Expected Shipping Documents
- Bill of Lading
- Certificate of Origin
- SGS Inspection Certificate
- Phytosanitary Certificate
- Fumigation Certificate
- Commercial Invoice
- Packing List
Place Your Raw Cashew Nut Order With Neogric
Contact us today to place your order for high-quality Raw Cashew Nut. Our team is ready to assist you with all your procurement needs.
- Tel: +2348147860157
- Email: neo@neogric.com
- WhatsApp: Chat With Us