Thursday 9 May 2019

GLOBAL PRICE DECLINE BY 34% THREATENS CASHEW NUTS EXPORTS

The 2018 crash of commodity prices in the global market has had a huge impact on the Nigerian cashew sector. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html It has forced many exporters to hold excess stocks of raw cashew nuts bought at a time when prices were more favourable.

Price of raw cashew nuts fell by 50 per cent from N600, 000 ($1,666) per metric tonne in April 2018 to about N300, 000 ($833) in July of the same year. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html Currently, cashew sells for $1,100 per MT, signalling 34 per cent drop in price from last year.

While speaking during a cashew investment and exhibition forum in Lagos on Wednesday, the Executive Director and Chief Executive Officer, Nigerian Export Promotion Council, Olusegun Awolowo, noted that the programme was informed by the persistent downward prices of RCN that had, in turn, resulted in supply glut in producing countries including Nigeria.

Hmmm!!! Folks, let us say the truth and shame the devil. Many Nigerian non-oil products exporters have been defrauded of huge amount of money in the process of exporting agricultural commodities and solid minerals to foreign countries. Do you know why? They were not trained on export operations, management, documentations and the best methods of payment in export trade. This is terrible!!! Nigerians cannot continue to lose money to foreigners in the course of export business. Exporters, would you like to keep on being scammed? Why don’t you get a practical manual that explains the stages of export trade from processing and packaging of commodities to receipt of payment by the foreign buyers? It explains export operations, export management, export documentations and methods of payment in export trade? Yes, it is a contemporary step-by-step guide to export trade. It tells all the contemporary dynamics in export trade. To get it, click on the link below:
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Awolowo, who was represented by the Director, Product Development department of the agency, William Ezeagu, stressed the need to increase investment in cashew processing to add value to the cashew value chain.

The forum brought together cashew processors, intending processors and exporting companies planning to venture into cashew processing as well as the relevant government ministries, departments and agencies that have a role to play in the cashew value chain.

Also, development financial institutions were invited to lend support to willing investors in the cashew processing business. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html

Awolowo noted that Nigeria was currently one of the major exporters of raw cashew nuts in the world but lacked processors. He said, “It is important to invest in processing. Cashew kernel export is a major opportunity for Nigeria. Nigeria exports RCN whereas 50 per cent processing will create 9,000 jobs with a chain of economic multiplier effects. Cashew processing in Africa is not prominent as raw cashew nuts/cashew kernels dominate exports.”

The Managing Director, African Cashew Alliance, Ernest Mintah, said although Africa produced 55 per cent of RCN globally, only five per cent processing was happening on the continent. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html By so doing, jobs meant to be created in Africa were being taken to countries where the processing was being done, he said.

He lamented the lack of investment and interest from financial institutions in the sector which he described as capital intensive, adding that at least $2m was required to start a cashew processing business and most banks in Africa were not ready to give out a huge amount of money on a long term basis.

Fellow Nigerians, are you aware that our crude oil will soon become useless? Yes, it will, in no distant time, become valueless owing to the fact that the countries that rely on it as their only source of energy are developing more affordable alternative sources of energy. When this finally happens, what will we do? How are we currently preparing for this imminent economic doom? Which other sector will continue to stabilize our economy? Nigerians, the only solution is developing the agricultural sector. In fact, this is the only solution. Very soon, the major source of revenue will become agriculture and agro-exports. How are you positioning yourself to play big in agro-export business? Why don’t you get a practical manual that explains the stages of export trade from processing and packaging of commodities to receipt of payment by the foreign buyers? Yes, arm yourself with the contemporary trends in export trade. This manual explains export operations, export management, export documentations and methods of payment in export trade? Yes, it is a contemporary step-by-step guide to export trade. It tells all the contemporary dynamics in export trade. To get it, click on the link below:

The Vice Chairman, National Cashew Association of Nigeria, Garba kontagora, said sensitisation was needed to enlighten operators and farmers about good agricultural practices in the sector, saying that some farmers removed cashews from trees before they were ripened and even used carbide to force them to ripen.

A cashew processor and Managing Director, Foodpro, Ayo Olajiga, said the cashew processing industry in Nigeria was fraught with challenges ranging from infrastructure to poor quality cashew nuts and lack of local market for processed cashew. (Punch)

Are you an exporter? Do you like to master the contemporary dynamics of non-oil export trade and avoid getting defrauded by the foreign buyers of your exportable products? Click on the link below:
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