Nigeria is one of the largest producers of cashew nuts in the world, second only to India. Cashew production in Nigeria has been on the rise in recent years, and the country has the potential to become a major player in the global cashew market. 

Cashew was introduced to Nigeria in the 15th century by Portuguese traders who brought it from Brazil. It was initially grown for its fruit, which is used to make a popular local drink called “cashew juice”.

However, it was not until the 1960s that cashew became a major crop in Nigeria. At that time, the government of Nigeria, in collaboration with the World Bank, launched a program to promote cashew production as a way to diversify the country’s agricultural sector.

The program was a success, and by the 1970s, Nigeria had become one of the largest exporters of cashew nuts in the world. However, the industry faced a decline in the 1980s due to a number of factors, including poor infrastructure, lack of investment, and competition from other crops such as oil palm and cocoa.

In recent years, however, there has been renewed interest in cashew production in Nigeria, and the industry is once again on the rise. The government has launched a number of initiatives to support cashew farmers, and private sector investment in the industry is also increasing.

By 2030, we will produce three hundred thousand (300,000) metric tons of cashew. We have a relatively long cashew producing season – December to June. Nigeria can process twenty-five thousand to thrity-five thousand (25,000 – 35,000) tons of cashew every year but is currently only utilising about one third of the capacity. 

Nigeria has a very favorable climate for the production of cashew nuts, and the demand for the nuts has been increasing steadily in recent years. This presents an opportunity for individuals and businesses to start supplying cashew nuts to local industries in Nigeria.

If you are interested in starting a cashew nut supply business in Nigeria, there are several things you need to do to get started. In this article, we will provide a step-by-step guide on how to start supplying cashew nuts to local industries in Nigeria.

Step 1: Conduct Market Research

Before starting any business, it is important to conduct market research to understand the demand for your product. This will help you to determine if there is a market for your product and what the competition is like.

In the case of cashew nuts, you will need to research the local industries that use cashew nuts as a raw material, such as food processing, confectionery, and cosmetic industries.

You can conduct market research by talking to potential customers, reading industry reports, and analyzing data on the cashew nut market in Nigeria. You can also attend industry conferences and trade shows to network with potential customers and suppliers.

Step 2: Develop a Business Plan

Once you have conducted market research and determined that there is a demand for your product, you will need to develop a business plan. A business plan will help you to define your business objectives, target market, pricing strategy, and marketing plan.

Your business plan should also include financial projections, such as your expected revenue and expenses, cash flow projections, and break-even analysis. This will help you to determine if your business is viable and if you will be able to make a profit.

Step 3: Source Cashew Nuts

The next step is to source cashew nuts. You can source cashew nuts directly from farmers or through middlemen. It is important to ensure that the cashew nuts you source are of high quality and meet the standards required by your customers.

You will need to establish relationships with suppliers and negotiate prices and delivery terms. It is important to work with reliable suppliers who can deliver cashew nuts on time and in the quantities you need.

Step 4: Set up Your Supply Chain

Once you have sourced cashew nuts, you will need to set up your supply chain. This will involve establishing a logistics system to transport cashew nuts from the farms to your warehouse and then to your customers.

You will need to hire transportation and logistics providers, such as trucking companies and freight forwarders, to transport your cashew nuts. You will also need to establish a warehouse to store your cashew nuts and manage your inventory.

Step 5: Obtain Necessary Licenses and Permits

To start supplying cashew nuts to local industries in Nigeria, you will need to obtain the necessary licenses and permits. These may include business registration, tax registration, and permits from regulatory agencies.

It is important to research the specific licenses and permits required for your business and ensure that you comply with all regulatory requirements. This will help you to avoid legal issues and ensure that your business operates legally and ethically.

Step 6: Develop a Marketing Strategy

Once you have set up your supply chain and obtained the necessary licenses and permits, you will need to develop a marketing strategy to promote your business and attract customers.

Your marketing strategy should include identifying your target customers, developing a branding strategy, creating a website and social media presence, and developing promotional materials such as brochures and flyers.

Step 7: Start Supplying Cashew Nuts to Local Industries

Once you have completed all the previous steps, you are ready to start supplying cashew nuts to local industries in Nigeria.

Challenges Facing the Cashew Industry in Nigeria

Despite the potential of the cashew industry in Nigeria, there are a number of challenges that the industry faces. These include:

Limited infrastructure: The lack of good roads, storage facilities, and processing plants makes it difficult for cashew farmers to get their produce to market. This results in high transportation costs and reduces the profitability of the industry.

Lack of access to finance: Many cashew farmers in Nigeria do not have access to financing, which makes it difficult for them to invest in their farms and increase their production.

Poor quality control: The quality of Nigerian cashews is often lower than that of cashews from other countries due to poor post-harvest handling and processing.

Lack of training: Many cashew farmers in Nigeria lack the knowledge and skills needed to maximize their yields and increase the quality of their produce.

Opportunities in the Cashew Industry in Nigeria

Despite these challenges, there are also many opportunities in the cashew industry in Nigeria. These include:

Growing global demand: The global demand for cashews is increasing, and Nigeria has the potential to become a major supplier to the global market.

Diversification: Cashew production offers a way for Nigerian farmers to diversify their incomes and reduce their dependence on other crops.

Job creation: The cashew industry has the potential to create many jobs in rural areas, where unemployment rates are often high.

Export earnings: The export of cashews can generate foreign exchange earnings for the Nigerian economy, which can help to boost the country’s overall economic growth.

Cashew nuts is an important industrial raw material and there is large, growing and sustainable market for the product. Supplying cashew nuts to local industries in Nigeria is a very lucrative business that would generate a lot of revenue for the investors.