Cashew

Cashew kernels are the key product market. Our cashew kernels are produced through secure food processes. Our collaboration with local producers and supply chain actors reflects our commitment to providing responsible products to our customers. These cashew kernels are naturally rich in fibre, beneficial fats, and sterols, which play a crucial role in reducing the risk of heart disease in individuals with diabetes. Additionally, they are perfect as a healthy snack, being a quality source of protein, and can also be used as an active ingredient in various sauce-based dishes. 

1. Rejected Kernels: 

Cashew kernels that do not meet commercial standards are systematically excluded from the process. These kernels are carefully sorted into two distinct categories: oily grains and other non-conforming grains. Oil extracted from these grains can be obtained through mechanical processes, with the most common method involving pressing the grains mixed with other dry and edible materials. This oil is then used as livestock feed. It is important to note that this operation is economically advantageous, and we strongly encourage local businesses to explore this opportunity. 

2. Peeling Powder: 

Peeling powder is a by-product of the cashew shelling process and is a high-quality ingredient for animal feed. In a context marked by continuous research for improved feed formulations, cashew peeling powder stands out as a significant and innovative source of protein, suitable for poultry, aquaculture, and general livestock feed. 

3. Peels or Testa:

Testa is a by-product generated during the peeling process of shelled cashew nuts. Due to its chemical composition, which includes polyphenols such as catechin, it is a valued vegetable tanning agent in the leather industry. Additionally, it has applications in pharmaceuticals and as an additive in the production of tea bags. Testa is also a significant source of minerals, particularly potassium, making it a valuable addition to enrich organic substrates. It can be used as dry matter in compost mixes, as a colouring agent, as a substrate for poultry farming, and even as livestock feed. 

1. Shelling Residues  

Shelling dust results from the breaking of raw cashew nuts and has flammable and volatile characteristics due to its high CNSL content, a naturally occurring corrosive substance in the nutshell. With a considerable calorific value, this dust is effectively used as fuel, helping to reduce energy consumption for small businesses. 

2. Boiler Ash  

The residues produced from combustion in our boilers generate high-quality organic ash. After sieving and proper preservation, this ash proves to be a valuable resource as an organic fertiliser for various horticultural crops, such as tomatoes, peppers, and pineapples. We are committed to supporting the farming communities in Zè and Allada by demonstrating the benefits of using this ash in their farms, particularly in pineapple cultivation, where its utility is especially significant. 

3. Cashew Nut Shell Liquid (CNSL) 

CNSL, obtained from shell extraction, is a significant by-product in the cashew industry. This compound has numerous applications in polymer-related industries, including the manufacture of friction linings, paints and varnishes, lamination resins, rubber compounds, specific cashew cements, polyurethane-based polymers, surfactants, epoxy resins, foundry chemicals, and intermediates for the chemical industry. One of its direct uses is as a fuel. Treated CNSL can be blended with diesel or other conventional fuels, offering a calorific value of 37 MJ/kg. In a context where electricity costs are high, CNSL is an attractive alternative for local energy production. 

4. Activated Charcoal and Shell Cakes 

After extracting CNSL oil from cashew nut shells, their calorific value is approximately 90 to 95% of that of wood. This resource can be efficiently used in both the cashew processing unit and other processing facilities. The resulting shell cakes can be compressed into briquettes for easier handling or directly fed into the boiler using an automatic feeder. Due to their significantly lower oil content compared to raw shells, the shell cakes produce fewer smoke emissions during combustion, thus reducing carbon emissions into the atmosphere.

Processing, including shelling, roasting, and packaging, offers high-profit margins. However, opportunities also exist in raw cashew production, logistics, and distribution.

The current price of raw cashews typically ranges between $1,200 to $1,800 per ton, depending on the quality and origin. Processed cashew kernels are priced higher, ranging from $6,000 to $9,000 per ton. Prices have been volatile due to varying harvests, fluctuating demand, and global economic conditions.

Cashew prices are influenced by several factors, including:
Supply: Seasonal production variations and weather conditions in major producing countries like Vietnam, India, and Ivory Coast.
Demand: Rising consumption in key markets like the US, Europe, and emerging markets.
Currency Fluctuations: Exchange rate variations between producing and consuming countries.
Global Economic Conditions: Economic slowdowns or growth in major economies, trade policies, and global inflation rates.

Raw cashews are significantly cheaper than processed cashew products. The cost of raw cashews can be 5 to 7 times lower than processed kernels. Processing adds value by removing the shell, grading, roasting, and packaging, leading to higher prices for the final product.

Profit margins vary across the cashew value chain:
Raw Cashew Production: Margins are generally low, around 10-15%, due to high production and logistics costs.
Processing: Profit margins can range from 25-40%, depending on efficiency, quality, and scale of operations.
Retail: Retailers often enjoy higher margins, ranging from 30-50%, especially in niche markets like organic or premium cashews.

The top importing countries include:
United States: The largest importer, with a growing demand for healthy snacks.
European Union: Significant consumption in countries like Germany, the Netherlands, and the UK, where demand for organic and ethically sourced cashews is increasing.
India: Although a major producer, India imports raw cashews for processing and domestic consumption.
China: Rising demand due to increasing health consciousness and expanding middle class.

These markets are characterized by high demand for both whole kernels and value-added cashew products.

Key trends include:
Organic Cashews: Increasing consumer preference for organic and non-GMO cashews, particularly in North America and Europe.
Sustainability: Growing importance of sustainably sourced cashews, with certifications like Fair Trade and Rainforest Alliance gaining traction.
Snacking & Convenience: Rising demand for ready-to-eat cashew products, including flavored and mixed nuts.
Health Consciousness: Cashews are increasingly marketed as a health food, driving demand in health-focused segments.

Africa is emerging as a strong competitor in the global cashew market:
Production: Africa, particularly West African countries like Ivory Coast and Nigeria, is a leading producer of raw cashews, accounting for over 50% of global supply.
Processing: Although traditionally a supplier of raw cashews, Africa is investing in processing capabilities to capture more value locally.
Cost Advantages: Lower labor and production costs give African producers a competitive edge over Asian counterparts.
However, challenges like limited infrastructure, processing capacity, and market access need to be addressed to fully realize Africa's potential in the global market.

Africa is the world's largest producer of raw cashews, but most processing occurs outside the continent. There's significant potential for value addition through processing and export of finished products.

Rising global demand for cashews, increasing health consciousness, and government support for the sector are key drivers. Additionally, the potential for value addition and export-oriented growth offers significant opportunities.
 

Challenges include low productivity, lack of processing infrastructure, price volatility, and limited access to finance. However, this is a benefit for investors as they have the first-mover advantage for doing Cashew business in Africa. Many African countries offer tax incentives, export subsidies, and land concessions to attract investors in the cashew sector.