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 flesh of the cashew fruit. A lot of extensive research has been done on cashew by the Cocoa Research Institute of Nigeria (CRIN)
You may be lost by the mention of CRIN, but don’t be. This 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.
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 nuts has significantly contributed to Nigeria’s revenue generation. Starting cashew business in Nigeria requires the right knowledge.
The cashew value chain engages alot of participants. This implies alot 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 alot 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
As previously stated, starting a cashew nut business requires you to decide the area you would make the most impact on. By impact, we mean being 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.
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 businss. 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.
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 more 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 break 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 financial strength determines your scale of operation. It is therefore important that you consider your financial strength and pattern your business according to available resources. Without this, 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.