Nigeria is currently the 6th largest producer of cashew nut in the world. This alone speaks volumes. There is so much potential within the cashew industry. However, with the potential comes the need for a good understanding on how the industry works. This product comes from cashew fruits.
Cashew is a perennial crop that grows seasonally. Unlike other fruits, its seeds are externally attached to the cashew fruit. A lot of extensive research has been done on cashew by the Cocoa Research Institute of Nigeria (CRIN).
The CRIN body conducted a series of research on Cashew, which led to the introduction of improved seedlings. Today, the results of this research have resulted in improved cashew yield.
Starting cashew business in Nigeria requires the right knowledge. Here are some things you should know about the cashew nut and cashew nut business.
First Obtain Guidance
To start well, it is important to get guidance from the right sources. The Cocoa Research Institute of Nigeria (CRIN) Ibadan is a good place to start from. By doing this, you will have significantly lowered the chances of failure in your intended business.
CRIN has carried out a lot of research in this regard; hence, it is the right body to approach. An important aspect of the research conducted by CRIN is that you get to know the sources of demand (both domestic and foreign).
This makes exporting of these cashew nuts easier.
The Relevance of Cashew Nuts
The effort committed to improved cashew cultivation shows its relevance to the economy. Hence the acceptance it has gotten among farmers. Due to its high nutritional value, demand currently outweighs supply. This is therefore good news for investors.
An interesting feature of this crop is its wide demand. By wide demand, we mean global demand for cashew. Currently Nigeria is unable to meet up export demands. Cashew nut has significantly contributed to Nigeria’s revenue generation.
The cashew value chain engages a lot of participants. This implies a lot of opportunities for investments. However, to benefit from this, knowledge is key. This is where this article comes handy.
This is the point where it all starts. Starting a cashew plantation is serious work. However, this is financially rewarding at the end. Starting a cashew plantation requires a lot of time (usually several years) before it starts producing cashew.
Here, a nursery is provided where the seeds grow to young trees. By transplanting these to their permanent location, a gradual process of growth commences. These trees need care until they are mature to grow without watering.
It is however necessary to note that not everyone wishing to start this business needs to grow a cashew plantation.
Choosing Where to Focus On
Cashew nut business requires you to decide the area you would be most impact effective.
Cashew nut business has an attractive value chain where you can focus your attention on. You may want to process your cashew nuts before selling, or just selling them directly. Whatever the case, knowing the right strategy that will yield the highest financial reward is important.
Processing these nuts significantly increases the market value. However, striking a balance between cost and profit is important.
Register Your Business
Starting a cashew nut business of worth requires you to register your business. However, registration depends on your scale of operation (scale of operation will be further explained below). Gaining official approval enables the business to function at a much bigger capacity.
Registered agro-allied businesses stand to benefit from a lot of incentives. You may want to take this serious as a new start-up will require all the breaks it can get to enable it stabilize. Domestic and foreign supply requires you to have a license obtained through registration. To register your business, locate the CAC (Corporate Affairs Commission) office nearest to you.
Scale of Operation
Your scale of operation is determined by your financial strength. It is therefore important that you consider your financial strength and pattern your business according to available resources.
By doing so you are planning for the future of your business because without that, the cashew nut business will likely fall on hard times (financial) in the nearest future. Having an under-funded business is not what you should wish for as it has the ability to cripple business activities.
Knowing all of this, you can move on to starting your cashew nut business because you have built up enough capacity to start but as you go on there will also be need for you to get updated with how the business is going and as you journey, you will gain more knowledge. Good luck to you.