In recent times, there has been a steady increase in Nigeria’s annual cashew nut production from 466,000 MT in the year 2000 to 836,500 MT in year 2012. The production figure of 2012 for Nigeria worth 45% of cashew nuts produced in Africa.

1. Cashew Nut Production
In recent times, there has been a steady increase in Nigeria’s annual cashew nut production from
466,000 MT in the year 2000 to 836,500 MT in year 2012. The production figure of 2012 for Nigeria
worth 45% of cashew nuts produced in Africa.
Market Potential
The demand for cashew nut is gradually increasing, whereas its supply is limited. Nigeria being one of
the leading producers of cashew nuts in the world. It is positioning itself to become one of the important
agricultural commodities exported from Nigeria to many countries in the world. The market potential
of cashew nut is described as under:
Export Market:
The export market of processed cashew nut has not really been tapped into, Nigeria exports raw cashew
nuts to Vietnam, where it’s been processed and then resold to major markets but with the growing
interest of Walmart looking to spend 7 billion USD to purchase processed cashew nuts from Nigeria, I
believe Investors should take advantage of this opportunity and position themselves to set up a
processing plant to assist the country to reach this goal, we already have access to cashew farms so what
is needed is setting up a state-of-the-art cashew processing plant in the country to cater for demands
mostly from Walmart. The goal is to capture about 30% of Walmart demands from Nigeria in the first
year.

2. Manufacturing Process
The process of manufacture is well-established. Raw cashew nuts are dried in sun and stored
in gunny bags. The stored raw cashews are boiled by using steam in a boiler. There are
manufacturers of small-scale boilers available for boiling of cashew nut in most of the cashew
processing areas. The boiling helps in softening of cashew shell. It becomes easy to remove nut
inside cashew seed after boiling. The shell of steamed cashew nut is removed by skilled laborer’s
by using cashew cutting hand operated equipment. The cashew shell is used to extract cashew
nut shell liquid (CNSL), which is an important by-product of cashew industry. The cashew
kernels obtained are dried in a cabinet dryer. The outer reddish skin known as Testa, is
removed to obtain cashew nut after drying. Actual recovery of cashew nut is around 30 per
cent, whereas 50 per cent account for shell and remaining 20 per cent is process loss. Cashew
nut is graded on the basis of the color and on how the kernel is broken.

3. A) Fixed Capital:
(i) Land, Building and storage area: $60,000
Build up area include, processing area, storage area, administrative offices, etc.
(ii) Machinery & Equipment:
S. No. Particulars of Machines Qty Amount (USD)
1 Cashew Nut Grinding Machine 3 21,000
2 Cashew Nut Steaming machine 4 40,000
3 Cashew Nut Shelling Machine 5 30,000
4 Cashew Kernel Separating Shaker 4 25,000
5 Cashew Kernel Peeling Machine 4 30,000
6 Air Compressor 4 50,000
7 Cashew Kernel Roasting Machine 4 35,000
8 Weighing machine 3 12,000
9 Sealing Machine 3 15,000
10 Food grade Plastic tubs, buckets, crate, bowls LS 25,000
11 Diesel Generator Set 2 180,000
Total $463,000
(iii) Mechanical & Electrical works 46,300
@10%
(iv) Office Furniture and Equipment 30,000
(v) Pre-operative Expenses 70,000
Total Fixed Investment (ii to v) 146,300

4. (B) Working Capital (Per Month):
(i) Personnel (Salary & Wages):
S.No. Designation No. Rate Total (USD)
1 Manager 1 250 250.00
2 Assistant Manager 1 200 200.00
3 Admin. Staff 4 600.00
4 Store Keeper 2 100 200.00
5 Skilled Workers 20 150 3000.00
6 Unskilled Workers 4000.00
Total $8,250
Prerequisites @ 30% 3,045.00
Total $11,295.00
Raw Materials:
S. No. Item Qty (tons). Rate (USD) Value (USD)
1 Raw Cashew
nuts
12 1200 288,000
Total $288,000
Utilities:
Other Contingent Expenses (P.M.):
(i) Working Capital: Total Recurring Expenditure (P.M.):
1 Salary & Wages 11,295.00
2 Raw Materials 288,000.00
3 Utilities 50,000.00
4 Other Contingent Expenses 30,000.00
Total: 379,295.00
Total working capital for ten months: total *10 = 3,792,950.00 USD
TOTAL CAPITAL INVESTMENT: USD
I. Fixed Capital 609,300.00
11 Working Capital for 10 months 3,792,950.00
Total: 4,402,250.00
FINANCIAL ANALYSIS:
Cost of Production (Per annum)
S.No. Particulars Value (USD)
1 Total Recurring Expenditure/Cost 379,295.00
2 Depreciation on machinery and
equipment @10%
46,300.00
3 Depreciation on Furniture @ 20% 6,000.00
Total 431,595.00

5. Turnover (Per Annum)
U.S. dollars
Proceeded cashew nuts @ $3000 per ton (2320. 1 tons per year) 6,960,000.00
Total estimated operating cost 6,960,000.00 -
4,402,250.00
Net Profit. 2,557,750.00
In summary, although, Nigeria has a cashew cultivation history of more than four centuries, research
and development into its production, processing and marketing started some forty years ago. Over those
years, there have been intensified efforts to boost cashew research for improved production. Increasing
demand for cashew nuts as raw materials in the confectionery and industrial trade in Europe and
America, has stimulated cashew exportation from Nigeria.
Investors should take advantage of this goldmine to invest now and smile later.