International Trade in Cashew Nut

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  • The cashew nut therefore first enters international trade as a whole raw nut bought directly of indirectly for processing. From the early part of this century, an industry based on the manual shelling of cashew nuts developed in the major cashew nut producing state of kerala in Southern India.

  • Cashew nut is an important export crop for Tanzania, accounting for more than USD 100 million in foreign currency earnings.

  • World raw cashew production is projected at 2.468 million kgs in 2010, somewhat below the 2.548 million kgs estimated for 2009.

  • Cambodia has the potential to become a supplier of processed cashews in its own right and not just a seller of unshelled nuts to Vietnam and India for processing. Cambodia grows enough cashews to establish its own successful processing industry which could earn $30-40 million more each year for the cashew industry.

  • Cashew production takes place mainly in the Central and South American Zone, Asia and Oceanic Zone and African Zones.

  • In the global trade, only 24% of the total raw nut produced is exported in the form of cashew kernel, while 76% consists if unprocessed raw nut for export or for processing and consumption with the producing countries.

  • The export market for raw cashew nuts is fraught with challenges and Tanzania faces stiff competition with upcoming production improvements in new producer countries such as Vietnam, which may destabilize the Indian export market and affect the gains made since liberalization.

  • Consumption estimates, it is observed that the American Zone consisting of USA and Canada is the major consumer importing over 50% of the total cashew consumed in the world.

  • Producing as much as 90,000 to 100,000 tons of cashews in a year, only seventeen percent of the country's production is processed to add value in Tanzania. The rest is sold in raw form, to be processed and re-exported by India, the world's dominant cashew processor and exporter.

  • Cashew nut is one of the most valuable processed nuts on global commodity markets, it is also an important cash crop for farmers and has the potential to generate employment thought processing and export revenue for developing countries. The world's largest producers are currently India, Vietnam and Brazil with many countries in Africa producing small quantities and global markets are expanding.

  • Vinacas is an association that imports raw cashew nuts and exports cashew kernels. Vinacas revealed that Vietnam needs to import 450,000 tons of raw cashew to offset the demand in 2011.

  •  Thus, this association would be a potential buyers of RCN from Indicashew due to its geographically close proximity and high demand of RCN.

  • Cambodia currently produces about 60,000 tonnes of in-shell cashews a year or 3 percent of the world's supply, making it the 10th largest producer. The average quality of Cambodian cashews in the 2009 and 2010 seasons are ranked fifth out of the world's top eleven producers.

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