Cashew Nut Processing Business Plan In Nigeria

Cashew Nut Processing Business Plan In Nigeria

Our Sample Cashew nut processing business plan in Nigeria and feasibility study is up to date and can be used for grants, access bank loans and proposal writing. Furthermore,this article will be answer the following questions for you:

Also Read: Rice Farming & Processing Business Plan in Nigeria

• How to start cashew nut farming in Nigeria.
• Where is cashew nuts grown in Nigeria.

To get your sample Cashew Nut Processing Business Plan In Nigeria, pay N10,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, text your full name, email address and title (cashew nut processing business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Read On!

Prior to the discovery of oil, the mainstay of Nigeria’s economy was agriculture as we were predominantly farmers even before the arrival of the colonialists on our shores. A major cash crop then was cashew and it was much sought after because of the nuts, which have been described as most people to have more business potential than the fruit itself. If we were to trace back the origin of cashew farming in Nigeria, we would have to go as far back as the fifteenth century where cashew farming was used as a measure of curbing erosion in the eastern states of the country. At this point it was cultivated strictly as an erosion control measure and not a cash crop to yield profits.

Commercial farming of cashew in Nigeria which involved the cultivation of large plantations began officially in the 1950s and it was majorly in two parts of the country, the Eastern Nigeria by the Eastern Nigeria Development Corporation (ENDC) and Western Nigeria by the Western Nigeria Development Commission (WNDC). With continuous research, the cultivation of the crop spread to other parts of the country, around the Middle belt and up North. By 1971, the Cocoa Research Institute of Nigeria (CRIN) had begun researching on cashew, how to improve the crop production and harness it for maximum profit. This led to the introduction of the Brazilian specie of cashew which was seen to be more suited for our climate than what was previously introduced to us by the Portuguese. This saw this specie spread to different parts of the country and as it gained popularity it was cultivated commercially.

Cashew is a fruit that is loaded in several nutrients, as a matter of fact it is one of the few fruits which has all the amino acids required by the human body complete. It also contains considerable amounts of vitamins and minerals a sufficient amount of calories required by the human body for daily processes. If you were wondering why cashew nuts are so much in demand, you just got it, the presence of the numerous nutrients embedded in the fruit. Currently Nigeria is recognized as one of the top producers of cashew nuts in the world, ranking sixth on the list. There is so much profit potential in this business and when an entrepreneur gets involved you know you are not planning to do local business, you will definitely be looking at doing some export at the end of the day. The industry is one that requires you to fully understand it before jumping as a simple mistake can cause you huge losses to your investment. This article promises to provide you with relevant information about cashew nut business in Nigeria, the relevance of the crop and what you need to set in order before setting out.

Relevance of cashew nuts

The importance of cashew nuts to the economy of Nigeria cannot be overemphasized as it has been processed into different forms for human consumption and use. The most popular are stated below:

1. It has been processed as cashew butter and cheese.
2. It has been distilled to produce liquor and fruit drinks.
3. The shell of the nuts can be used in paints and lubricants.

When you consider the nutritional contents of cashew nuts you will realize that they are quite important for the following:

1. Control and reduction of heart related diseases and complications.
2. Optimal bone development.
3. Managing the body weight.

Without doubt all this makes you see that cashew is a very important crop and the demand for its products is far higher than the supply the world over. The truth remains that on a yearly basis the production of cashew continually increases and measures are taken to ensure that the demand is met but it seems that as the supply increases there is a corresponding increase in demand. For example the rate of production and export of cashew nuts considerably increased by over 463% in the first two quarters of 2017, one would have thought this will suffice to meet the demand at that time. Well, there is more demand presently and there is a search for more people who are interested in investing in this sector. This is good news for you, that is if you are interested, because you are sure of getting bountiful profit at the end of the day.

Cashew farming

This is actually the onset of all that is related to the cashew business. Being involved with cashew farming and production requires a lot of input in terms of time, cash and effort, without this the business might even crash before you get your first harvest. Cashew is not a crop that you plant and expect your yields in the same year, it is a perennial crops, this means it take a couple of years to bloom and yield and thus requires lots of pruning and maintenance. To ensure optimal growth and production of your cashew crop, it is advised to firstly grow them in a nursery before transplanting them to the main farm. The cultivation process of cashews take quite a lot of effort and some bit of expertise. The first thing to consider when planning a cashew farm is the climate of the area where you are considering as the farm base, cashew requires a warm and humid climate with average rainfall of about 600mm yearly. If you were to consider the temperature of the country, cashew will thrive almost anywhere in Nigeria but for the rainfall and humidity issue, so it is best grown from the middle belt area down to the rest of the southern part of the country.

Also Read: Groundnut Oil Production Business Plan in Nigeria

Strangely the best soils for cashew growth is well drained sandy or loamy soil, the soil should be deep enough to house the roots and should be well nourished with the nutrients required for optimal growth. There are several ways of propagating cashew, some of them include grafting, budding, layering and the use of seeds. It has been noticed however over the years that the use of vegetative methods causes faster growth and yield. The trees grow very fast in the first three years of planting and then slow down, you should start to reap fruits by the fifth year after planting.

Pests and diseases that affect cashew

Every plant has its own pests and diseases that are peculiar to it, cashew is not different. Below is a list of pests that affect cashew:

1. Stem girdler (Analeptes trifasciata)
2. Red-banded thrips (Selenothrips rubrocinctus)
3. Fruit scrapper  (Pachnoda cordata )
4. Root borer (Plocaecderus ferrugineus )

These insects have the ability to destroy yield by at least 50% to 75% if they are not properly dealt with. Below is a list of the diseases that plague the cashew crop:

1. Floral shoot die-back (caused by Lasiodiplodia theobromae). This can reduce nut yield by about 38% to 70%.
2. Twig die-back (caused by theobromae). This causes over 50% of the death of vegetative shoot cashew.
3. Root rot of cashew seedlings (caused by Pythium ultimum). This affects the cashew roots in the nursery, causing about 10% to 15% loss.

Harvesting the cashew

The process of harvesting and processing of cashew is quite labor intensive. After producing clusters of flowers, cashews produce the edible apple, and also a nut encased in a heavy shell, which is the true cashew fruit. It takes two to three months for the flowers to fully bud and another two months for the fruits to fully develop after the budding.

It is advised that for best results, the cashew apples to be used in the processing of juice and jam should be plucked off the tree once they are ripe, before they fall to the ground. The reason for this is the apples are likely to get broken or damaged when they fall to the ground and thus get fermented faster. Once the fruit is fermented it cannot be used for juice or jam as it will yield sour products which is a far cry from the original intention. The riper the apple gets the sweeter it will be, for this singular reason the farmer has to continually check the fruits and once he notices it is about to drop, he plucks them off. At this point, the nut is also fully developed and ready for harvest.

Cashew nuts have a shelf life of about 12 months, to ensure this you must make sure that the moisture content of the nut is reduced to about 8% or less. The nuts should be packaged in sealed nylons or containers and kept in a cool, dry place.

Tips on starting your cashew nut business

1. Study the industry and get guidance. As stated earlier, before delving into this industry you need to gain a lot of knowledge, without some bit of expertise you will just throw away all your investment. One of the best places to gain knowledge about cashew farming is the Cocoa Research Institute of Nigeria (CRIN), they will provide you all you need to know with respect to cashew farming in the country. They will also furnish you with information on how best to package and market your products both domestically and on the foreign market.
2. Decide the branch of the business you want to specialize on. The value chain in cashew farming is quite long and every part is important. Depending on your capacity, you might decide to just stay with one aspect or link up with other aspects. You can decide to just farm and sell your products without processing, you can just buy and process from farmers. You can also decide to be a middle man and just connect buyers to the farmers for some commission and you can decide to combine all together if you have the capacity. Remember that for any part you choose, there is still lots of profit to be made.
3. Business registration. This will depend largely on the level at which you plan to operate, but whichever part you plan to it is advised that you get some form of registration. This gives you an edge in the market over non-registered individuals and business as it broods confidence in the minds of your potential customers. There also a lot of incentives you can get from the government simply from being a registered agro allied company like loans, grants and other great benefits.

In conclusion, the cashew nut business is highly profitable and lucrative but the challenge is that there are several risks involved. Risks that can make you lose all of your investment at the bat of an eyelid, you need to gain sufficient knowledge and seek help as soon as you realize you are stuck. You should also endeavor to work with a business plan, especially when you are going into full-fledged production, processing and exports, it will be of great advantage to the business.

Get your sample Cashew Nut Processing Business Plan In Nigeria today. To order the business plan, pay N10, 000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

OR

BANK NAME: FIRST BANK PLC

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, send your full name, email address and topic (i.e. cashew nut processing business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

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