This document provides an overview of the global cashew trade. It discusses how cashew producing countries in West Africa export raw cashew nuts to processing countries like India and Vietnam due to a lack of domestic processing capacity. It then examines cashew production, trade, and consumption trends in India, Benin, and globally. Key points include India being the world's largest producer and exporter of cashew kernels, while Vietnam is the second largest exporter. The US, EU, and Middle East are major importers and consumers of cashew kernels.

1. 1. Executive Summary
This project report on “International Cashew Trade” is made on the basis of summer internship
done at Fludor Benin SA, Cotonou.
The objective of the proposed study is to identify the benefits derived if the cashew producing
country is equipped with the capacity of processing the nut. The methodological approach to
this study is descriptive as we attempt to identify and explain various scenarios’ practiced in the
existing cashew trade.
This report explains the trends in the global cashew sector and about some of the major
producing countries such as West African countries, East Africa, Vietnam etc., India, Brazil and
Vietnam are the major cashew processing countries in which the RCN (Raw Cashew Nut) is
processed and the final goods are exported to consumption countries such as US, EU, Middle
East etc., African nations either have very less processing capacity or no processing units set up
in their respective nations due to lack of infrastructure, financial problems and many other
factors. The produce from such countries is exported to processing countries mainly India and
Vietnam as these countries have technologically advanced processing units through which the
cashew is further processed. Cashew nut is a product that has a complex supply chain and thus
needs to be managed with ease as any disruption in the flow will have a great impact on the
price of the commodity. By-products of cashew such as Cashew Nut Shell Oil, Cashew apple etc
are being introduced in various new markets starting India.

2. 2.1 INDUSTRY OVERVIEW
History of CashewTree
The Cashew tree is originally native to northeastern Brazil, in the area between the Atlantic rain
forest and the Amazon rainforest centered in the provinces known today as Ceara, Piaui and Rio
Grande do Norte. Cashew’s English name derives from the Portuguese name given to the fruit
of the cashew tree, caju, which in turn derives the name acajou given it by the indigenous
Brazilian tribe called the Tupi. The Cashew tree was reportedly discovered in Brazil by the
Portuguese colonists in 1578 and as the Portuguese colonization spread to Africa and India, the
Portuguese brought the cashew tree to Mozambique, Africa and then India in the 16th century.
It was initially planted by the Portuguese in these countries to reduce coastal erosion, not for
fruit or nut production. The cashew tree flourishes in the sand of open beaches. Cashews
spread out across the world following the path of Portugal’s spice trade outposts, from Africa to
Indonesia. Cashew trees can thrive in hot humid regions and hence are distributed in countries
near the equatorial region with most of the cashew producing countries found in those areas.
Cashew trees grow between the latitudes of 25 degrees north and south of the equator.
The cashew is a tree in the family Anacardiaceae and is a close relative of mangos, pistachios,
poison ivy and poison oak. It is a short, stocky, low-spreading, evergreen tropical tree that
usually grows about 40 feet high. The branches spread very wide in an umbrella shape, and the
tree's width may equal or exceed its height. In some trees, the branches may become too heavy
and touch the ground, putting out secondary roots at the points where they contact the
ground.
Cashew nut Output
Originally spread from Brazil by the Portuguese, the cashew tree is now cultivated in all regions
with a sufficiently warm and humid climate. Cashew is produced in around 32 countries of the
world. The world production figures of cashew crop, published by the UN’s Food and
Agriculture Organization (FAO), were around 3.1 million tons per annum. . World’s total area
under the cultivation of cashew is around 33,900 km². India ranks first in area utilized for
cashew.
The world’s average yield is 817 pounds per acre (916 kg/hectare) of land Collectively, Vietnam,
Nigeria, India and Brazil account for more than 90% of all cashew kernel exports. Some varieties
of cashews come from Kollam or Quilon in Kerala, Southern India which alone produces 4,000

3. tons of cashews per annum. The major trading centers of cashew in India are Palasa, Kollam or
Quilon Mangalore and Kochi.
World's Largest Cashew Tree
There is a cashew tree in the Brazilian city of Parnamirim in the state of Rio Grande do Norte
that has spread itself in this method and is recorded as the largest Cashew tree in the world. It
was planted in 1888 on the sandy beach of Parnamirim by a fisherman named Luiz Inácio de
Oliveira and as of the year 2009 covers an area of 8,970 square yards or 80,729 square feet
(7,500sq.meters).
The world’s largest cashew tree produces an estimated 80,000 cashew apples a year!
The region in which the Cashew crop is cultivated

4. INDIAN CASHEW STATISTICS
India is the largest producer of cashew nut in the world with 1.01 million ha area under
cultivation and 0.75 million tons production in 2013. There area under RCN has been increasing
consistently year after year. From 1961, cashew cultivation area in India has increased at a
growth rate of 3.04 percent (CAGR).
Decadal Area and growth of RCN in India
Though the area under cultivation is increasing, the growth rate for area is declining over the
decades. In 60’s and 70’s, the CAGR was nearly about 4 percent which declined to 1.44 percent
in 80’s. In 90’s, the growth rate increased again to 3.54 percent, but was lower than the
previous echelons. In the last decade, the area has grown by only 2.88 percent which was again
lower than its previous decade. Indian cashew nut production has also grown steadily in past
five decades at a rate of 4.44 percent ( from 1961 to 2013 ). Over the past years cashew nut
production in India has been increasing with the release of new high yielding grafts and
adoption of good agronomical practices. Recently many farmers in India started to adopt High
Density Planting (HDP) which accommodates 625 plants in hectare with spacing of 4m*4m
which definitely reflects on production in near future. Kerala, Goa and Karnataka states are the
traditional RCN producers and processors for a long time in India. Later the RCN production
expanded to other states like Maharashtra, Andhra Pradesh, Odisha and Tamil Nadu.
Commencement of National Horticulture Mission (NHM) Schemes in India during 2005-06 has
become a boon for development of cashew sector. NHM is a centrally sponsored scheme in
which has been launched to promote holistic growth of the horticulture sector through
strategies like ensuring an end-to-end holistic approach covering production, post-harvest
management, processing and marketing of horticulture produce. Before the introduction of

5. NHM, INR 100 or 150 million (about 2 to 3 million USD) in a year were allocated for cashew
development by the government. But after 2005-06 India is spending about INR 600 to 700
million (about 10 to 12 million USD) a year for the development of cashew sector. About
145,000 ha of new cashew plantation and 68,000 ha replantation of senile plantation with high
yielding varieties were brought under cashew plantation after 2005-06. Soft-wood grafting
technique has revolutionized the availability of elite planting material of cashew in the country.
There are about 100 regional cashew nurseries under public and private sector catering to the
needs of graft requirement in additional to large number of small to medium cashew nurseries.
At present, RCN production is gaining momentum across the country. From bring south centric,
RCN production and processing is now expanding to the central India and is further expected to
expand to other parts of the country. The recent non-traditional entrants into RCN production
include Assam, West Bengal, Tripura, Gujarat, Jharkhand, Andaman Nicobar, Chhattisgarh etc.
On the other hand the production and area of cashew cultivation is being decreased at a rate of
0.95 and 2.03 percent respectively since 2001. Kerala farmers are replacing cashew plantation
with rubber. Kerala was the largest producer of cashew nut in India during 90’s with a share of
27.56 percent followed by Tamil Nadu, Andhra Pradesh, Maharashtra etc. Since last decade the
scenario of raw cashew nut cultivation has changed in India. Maharashtra overtook Kerala and
became the largest producer of cashew nut in India. Currently Maharashtra, Andhra Pradesh,
Odisha, Kerala, Karnataka and Tamil Nadu are the major producers of cashew nut with a share
of 32.03%,13.26%,11.32%,10.97%,10.64% and 8.90% respectively (2013). The non-traditional
RCN area like Gujarat, West Bengal, Chhattisgarh, Meghalaya, Tripura, Manipur, Nagaland,
Jharkhand etc., good potential to grown RCN. In all new regions, cashew is cultivated as
commercial crop.
State wise growth rate in area and Production
of RCN India (2001-02 to 2013-14).
State wise % share to the total RCN
production in 2013.

6. PROCESSING PROCEDURE
1. Calibrationof nuts
This is the first stage in the process in which the nuts are graded into batches
based on the nut size. A calibrator of nut is required to segregate the cashew
nuts accordingly. This process helps the producer to gain maximum profit
from the raw material available as the price of cashew is based on the quality
and the size of the nut.
2. Steaming
In this phase of production the raw nuts are steamed under high pressure as
this will make the extraction of cashew from the shell much easier and more
efficient i.e., minimizing the damage to the cashew. Boiler and cooker are
used in this process.
3. Air Drying
In this process the steamed cashew nut are dried to make the shell
brittle and easy to crack.

7. 4. Shelling
Nuts are cracked (shelled), to free the kernel. Manual scooping to remove the
cashew from the kernel is also done at this stage of production the equipment
required to complete this process is Mechanized deshelter.
5. Oven Drying
Kernels are dried in an oven in this process; this facilitates easy removal of the
layer on the kernel. This improves the taste and quality of the cashew.
6. Peeling
Kernels are peeled in this process via mechanized peelers, manual recovery
and other processes based on the size of the operational unit and the amount
of raw material being processed. Peeling machines, tables are other means to
remove the peel.
7. Sorting
This is a vital step in the production process. All the kernels are carefully
sorted and graded based on size of the nut, wholes, butts, whites,
scorched
8. Packaging
In this final stage Kernels are treated for any foreign elements such as dust,
metal etc and are eliminated from the lot. After this kernels are Co2 flushed
and vacuumpacked in 25 lbs. bags. This process is known as fermentation and
the kernels can only be consumed after 2 days after the completion of this
process.

8. BENIN CASHEW STATISTICS
Cashew is one of the major crops extensively grown in West Africa.it is presumed that
cashew was introduced in Africa by Portuguese in 15 to 16th century mainly for
afforestation programme. Thus West African Nations emerged as a major /important
source of RCN for cashew processing countries like India, Vietnam and Brazil. West Africa is
extremely wet and humid area with high temperature all year round. The major cashew
growing areas in the central and northern regions of the country. Collines, Zou, Borgu,
Donga, Atacora are the major cashew producing countries in Benin.
Benin is the world’s 9th largest producer of cashew in the world, but the country is still
underrepresented on the global cashew market. The Benin exporter’s association, the
National Council of Benin Cashew Exporters (CONEC) is working to change this, and has
made significant progress toward gaining international recognition and attracting business
through the website for their organization, launched in January. The creation of this new
website will help outsiders recognize the potential for economic development that lies
within the cashew value chain, highlighting the progress made and opportunity that lies in
Benin. In today’s competitive global village, it is imperative for industry members to
collaborate in order to advance cashew business. CONEC, a brainchild of Beninese cashew
traders, exporters, and the Beninese Government, was inaugurated on September 6, 2012
under the leadership of former Minister of Trade, Ms. Madina Sephou. With a
headquarters in the district Sègbèya (Cotonou), CONEC is made up of 9 members. The
association in itself is also testament to the growth taking place within the African cashew
industry.
Benin has joined with three other cotton-producing countries in the region – Burkina Faso,
Chad and Mali (known as the Cotton-4 countries) – to lobby in the World Trade
Organization for fewer subsidies to cotton producers in competing countries. Growth in
real output has averaged around four percent in the past three years, but rapid population
growth has offset much of this increase. The country’s population is approximately 8.8
million, with a majority of its labor force dedicated to agriculture. Other agricultural
products in Benin include maize, cassava, yams, beans, palm oil, peanuts and cashews. The
North and West Africa Division is responsible for IFDC activities in Benin. In cashew world,
Benin is known for the quality of its raw product. Benin’s cashew nut is very well priced for
its quality on the international market. In the agriculture sector, cashew constitutes Benin’s
second largest source of revenue after cotton. It is produced in the central and northern
regions of the country. Since 2001, the area and production of cashew nut in Benin has
increased at an annual growth rate of 3.39 and 6.58 percent respectively. Cashew quality

9. has been improved over the decade due to the efforts of NGO’s and farmer cooperatives,
Thousands of new farmers are planting new cashew trees.
Demand and supply trend of cashew in Benin
2009 2010 2011 2012 2013 CAGR
Production
(thousand tons)
90 70 90 80 90 7.64
RCN Export (thousand ton) 115 84 125 171 103 12.36
Avg.Export price (USD/kg) 0.85 0.99 1.53 1.05 1.00 5.50
Percent share of major markets in total RCN export
India 98.81 98.13 95.66 91.99 98.99
Vietnam 0.76 1.81 2.91 5.62 0.00
Others 0.06 0.06 1.43 2.40 1.01
Trend in area and production of RCN in Benin

10. Consumption Trend of Cashew
World demand for cashew is growing and projected continues to grow. Demand in US and
Europe accounts for 40 per cent of demand. India has emerged as a largest market for cashew
where the demand of cashew for consumption has been steadily increasing over the years. On
an average 150 to 160 thousand tonnes of kernels produced in India were get absorbed in
Indian markets itself. The cashew supply chain has a number of players including the raw
cashew nut producers and traders, cashew processors, cashew kernel traders and retailers or
traders supplying to the end users.
On the export front, India is the second largest exporter of cashew kernels followed by
Vietnam. During 2012-13 India exported 104,015 tons of kernels to consumption
countries. Vietnam exported 280,000 tons of kernels during 2012-13. The United States,
UAE, UK, Japan, Netherlands, China, etc. are the major buyers of cashew kernels from
India. The major importers of cashew kernels in the world are the United States of
America, European Union, China, United Arab Emirates, Japan and Saudi Arabia. The
corresponding growth rate of consumption (exponential) over the last 25 years is worth
notice the growth rate of India stands at 14.4% against the major consumers of US at 5.1%
and Europe at 8.8%. Though the Middle East region has registered a growth rate of 15.6%,
that is higher than India, the volume of consumption is more than double the US
consumption, the second largest in the world. decade especially on the back of growing

11. GLOBAL TRENDS IN CASHEW SECTOR
Trend in Africa
Africa produces 42% of the estimates 2.6 million tonnes of raw cashews every year. Of
this, it exports 90% to the rest of the world, retaining the rest for domestic produce. In
recent past, while most of the efforts aimed at improving farm level productivity through
seed programmes, replantation and rejuvenation, training and capacity building on farm
management practises etc., a lot has also been done on reforming markets and revitalizing
institutional infrastructure too.
- Tanzania, through the cashew Board of Tanzania, has put in place robust
warehouse receipt based auction system to ensure quality buts gets fair price
and small holder farmers are not discriminated against.
- Cashew Board of Tanzania is going ahead with the establishment of three public-
private partnership model with involvement of producer cooperative and
government.
- Cote d’Ivoire is largely replicating its successful model of coca in cashew, it fixed a
minimum price of raw cashew for 2014 season and ensured farmers do not sell
below it.
- Organisations such as ACI and ACA along with its partners are enabling and
hastening this transition.
Africa undoubtedly is the most happening place for cashew and rightfully, this decade
belongs to Africa cashew industry.
Trend in Vietnam
Vietnam became the largest cashew kernel exporter in 2006 and has been successfully
holding on to its position for eight consecutive years. It is indeed remarkable with over
250000 tonnes of annual kernel exports; Vietnam is way ahead of India, the second largest
kernel exporter. To begin with Vietnam increasingly invested in improving productivity of
its farms way back in the 90’s. High density planting, commercial farming and seed
programmes ensured the yield levels are one of the highest in the world. Secondly it
invested heavily in mechanizing the entire cashew processing to save on labor, bring in
consistency and cost competitiveness. Vietnam has been investing significantly in
developing its relationships with the end consumers too. Vinacas trade delegation to
Australia in 2013 is a case in point. In the last 8 years, Vietnam has increased its presence
to over 85 countries. It is the largest supplier of kernel to USA, China, Australia, Canada

12. and New Zealand today. To ensure raw material security, Vietnam has tied up with Cote
d’Ivoire. Thus, Vietnam has grown from strength to strength over the years and has
consolidated their position in the last 8 years. It is expected that Vietnam would dominate
the global cashew sector for the foreseeable future.
Trend in Brazil
Though cashew originated from North Eastern part of Brazil, it was not cultivated as
commercial crop in Brazil until 80’s. The commercial cultivation was started from 1990 and
shown as enormous growth area wise. Area and production of cashew nut in Brazil has
significantly grown from 1961 onwards at annual rate of 5.35 percent respectively up to 2013.
With the expansion of area, production has increased steadily over the years. However, from
past 10 years (from 2004 onwards), Brazilian cashew production has started declining at a rate
of 4.96 percent due to adverse climatic conditions (mainly continuous drought year and scarcity
of farm labor). The area in this period has also grown very slowly at a rate of just 0.97 percent.
Brazilian government enacted a law on the set up of a Support Fund for Cashew Cultivation
(FUNCAJU). A national Cashew Development Program is being elaborated in this framework,
directed to financing the modernization of the sector, the increase of crop productivity and
processing performance, strengthening exports and reviving and development on cashew.
Importers Value (USD
million)
Share in
the world
imports %
Quantity
(1000 tons)
Unit value
(USD/ton)
Growth
rate %
Cashew
Nuts
Without
Shell
World 1,982 100 362 5,476 7
EU 673 34.0 116 5,817 -
United States 651 32.8 112 5,788 -2
Netherlands 226 11.4 40 5,660 13
Germany 109 5.5 19 5,702 20
United
Kingdom
101 5.1 19 5,260 7
Australia 87 4.4 15 5,905 6

13. DEMAND AND SUPPLY IN INDIA
2010 2011 2012 2013 CAGR
Production 675 725 753 757 3.40
Import 565 798 822 830 6.04
Percent share of major sources in total RCN import
Cote d’Ivoire 34 22 30 31 5.95
Guinea Bissau 9 16 11 18 3.96
Benin 14 15 19 14 11.69
Ghana 9 16 10 13 15.20
Nigeria 1 1 3 2 -3.96
Tanzania 17 12 15 16 14.14
Mozambique 5 4 1 2 -11.89
Indonesia 5 4 5 3 -7.89
Others 5 10 7 0.5 -8.60
Avg.Import price (USD/kg) 1.02 1.43 1.12 0.98 5.05
Total Supply 1239 1523 1575 1587 4.71
Implied kernel Production
(thousand tons)
310 381 394 397 4.71
KernelExport(thousandtons) 113 133 102 126 0.01
Percent share of major markets in total kernel export
USA 28 37 33 29 -4.06
Saudi Arabia 10 9 9 9 -6.01
Netherlands 17 10 11 16 9.58
France 3 3 3 2 -8.61
Japan 6 5 6 6 6.20
Spain 3 3 3 3 8.83
UK 4 3 6 5 0.44
UAE 3 3 3 3 2.72
Germany 1 2 2 2 5.00
Others 25 24 26 25 4.24
Avg.Kernel Export price
(USD per lb. FOB)
2.25 3.04 3.41 3.30 6.00
Kernel import 5.50 2.82 4.35 6.69 28.72
Avg.Kernel import value
(USD/lb.)
0.61 1.56 1.38 1.23 15.02
DDC 203 251 296 278 7.76

15. GLOBAL CASHEW PRODUCTION
Global
Crop Mts
of RCN
%
Processing
Capacity in
Mts
%
Imports
&
Exports
Own
Process
Vs
Crop
ASIA
India 600,000 25.7 1,300,000 55.6 (700,000) 216%
Vietnam 300,000 12.8 570,000 24.4 (270,000) 190%
Cambodia 50,000 2.1 2,000 0.1 48,000 4%
Indonesia 60,000 2.6 10,000 0.4 50,000 17%
1,010,000 43.2 1,882,000 80.5 (872,000) 186%
WEST AFRICA
Nigeria 80,000 3.4 30,000 1.3 50,000 60%
Benin 75,000 3.2 2,000 0.1 73,000 3%
Ghana 50,000 2.1 10,000 0.4 40,000 20%
IvoryCoast 400,000 17.1 40,000 1.7 360,000 10%
GuineaBissau 160,000 6.8 3,000 0.1 157,000 2%
Senegal+Gambia 60,000 2.6 - - 60,000 0%
825,000 35.3 85,000 3.6 740,000 10%
EAST AFRICA
Mozambique 55,000 2.4 25,000 1.1 30,000 45%
Tanzania 150,000 6.4 20,000 0.9 130,000 13%
Madagascar 2,500 0.1 - - 2,500 0%
Kenya 10,000 0.4 5000 0.2 5000 50%
217,000 9.3 50,000 2.1 167,500 23%
LATIN
AMERICA
Brazil 275,000 11.8 320,500 13.7 (45,500) 117%
Others 10,000 0.4 - - 10,000 -
2,337,500 100 2,337,500 100 - -
I
m
p
o
r
t
s
IMPORTS

16. 2.2 COMPANY OVERVIEW
TGI is an international investments and holdings company headquartered in Ireland, with
operations in Nigeria, Ghana, Republic of Benin and diversified interests across industries, from
oil, chemicals and pharma to poultry farming, fisheries and manufacturing. Over the past three
decades, we at TGI have been paving the way for a healthier tomorrow, with products that
bring home the bounty of nature. And has been a conscious and constant attempt to share this
with stakeholders, investors, end consumers and indeed everyone we come in contact with. We
have a strategic partnership with Vink & Co. Tostedt, Germany who collaborate with us in the
procurement of raw materials, spare parts, plant & machinery and project execution as well as
provide a gateway for our wide range of products in the international market
The Group's business interests cover:
 Poultry and Fish farming
 Processing and Marketing of Frozen Foods.
 Manufacturing of Fruit Juices, Dairy beverages and vegetable cooking oil.
 Cotton ginning
 Fish trawling and Specialized oil field services,
 Importation and Distribution of Industrial & Agro chemicals and Tractors and
Implements.
VISION
The group has been endeavoring to create wealth and well-being - with opportunities for
growth and development.
TGI Group's vision is to invest in emerging economies with a view to adding value to the locally
available resources - targeting an end product both for local consumption and world market.
MISSION
Our Mission is to grow our market share in a sustainable, responsible and profitable manner so
that we can fulfill our consumers' needs through innovative means today and in the future.

17. FLUDOR COMPANY
FLUDOR BENIN SA is a limited company being sponsor by the TGI Group.
The company FLUDOR BENIN SA was created to
expand the group's interests in francophone
Africa, particularly in the food industry and trade
of tropical products. The company started
commercial production of its oil and De-oil Cake
(DOC), with cottonseed as its raw material in May
2000. The plant has an installed capacity of 300
tons of cottonseed and can grind other
commodities like soybeans, palm nuts, shea nut
and sunflower. Its extraction unit is equipped
with a Solvent system of miscella refining and Refinery equipment which was supplied by De
Smet Belgium. Other amenities that complement the plant are supplied by leading companies
in their respective fields.
FACILITY
Facility for Miscella refining is amongst the latest and the best worldwide .Where innovation
and sophistication come together.
Fludor has a 6 hectare facility for production of Cottonseed Oil, a part of its 20 hectare farm
base. Here, the company’s principal activity is the production and sale of cottonseed oil and
pellets, extracted from cotton seeds. It have a processing capacity of 100,000 tonnes of cotton
seeds per year to produce 10,000 to 12,000 tonnes of oil and 24,000 to 34,000 tonnes of
pellets. Our factory is a highly sophisticated refinery and packaging plant, with state-of-the-art
infrastructure. Currently we produce cottonseed oil as well as pellets which is highly nutritious
for animal and fish feeds. Facilities at the factory includes high end plants for decortication,
preparation, extraction and refinery plants besides a pellet mill, raw material warehouses, a
pellet warehouse as well as storage tanks for oil. Our facility for Miscella refining is amongst the
latest and the best worldwide .The main equipment’s are sourced from EXTRACTION DE SMET
S.A., the Belgium based worldwide specialist in edible oil processing.

18. CASHEW UNIT
In Fludor’s diversification strategy they have started Cashew nuts trading few years ago and
realize the processing potential of cashew nuts locally. Their business plan is the primary step in
realizing this great potential, processing nuts locally for local and international markets. Local
processing is less than 9% and Fludor is focusing to explore this potential. Initially the plan is to
set up to 10 ton per day processing unit which can be expandable to a maximum capacity of 30
tons per day in area covering 5 hectares. The total investment is expected to be $10 million.
Construction of the cashew unit has started
The Core Technology
The core of the business is a simple but effective manual cashew processing technology known
as the steam roasting manual de-shelling process. This technology is used by other similar units
which have been established with the support of TechnoServe in other parts of Africa
(Mozambique, Tanzania, Kenya, South Africa, Benin, Benin and Burkina Faso). Mozambique, for
instance, started in 2001 with almost negligible capacity and today processes 80% of its local
raw cashew nuts production employing 8950 employees. The process is based on
methodologies and a technology currently used in India and Brazil, the world leaders in cashew
processing, but has been specifically adapted here to Beninese conditions.
Proposedproductionunitplanof Fludor-Benin, SA.
Expecteddate of completion of project end of July
2015.

19. SWOT ANALYSIS
STRENGTH
• Only Consistent Oil processing Unit in
Benin
• Strong technical team with proven
record
• Ensuring constant and regular supply
of quality products
• One destination throughout the year
for local suppliers of Soya, Shea and
Cashew
• Strong presence in the country with
good Public Relations with
Government/various agencies
• Practicing good systems and
procedures
WEAKNESS
• High cost of transportation and
logistics to be controlled by efficient
operational planning
• High fixed cost structure to channelize
into optimum utilization
• High processing cost especially power
to set up own power generation plant
to meet the requirements
• Carry high inventory of spares & other
consumables due to non availability
locally to be compensated by regional
availability
• Comparatively small domestic
consumption- to look out for regional
markets
• No market differentiation among
customers for oil- Build a refined
cotton seed oil premium brand
OPPORTUNITIES
- Regional monitoring of cotton
- Setting up of cotton ginning plants
- Setting up Bio massed based power
generation unit to meet existing and future
requirement
- Scalability in Shea Butter operations by
adding additional expellers and independent
Solvent extraction plant
THREATS
-Nigerian buyers compete for raw material-
mainly soya bean
- Lower priced imported oil from Ghana, Togo
and Malaysia
- New Oil refineries coming up in Nigeria with
higher production capacities

21. Mr.Roland Riboux
(CEO)
Mr.Ganesh Iyer
(Director Administration
& Finance)
Marius Faustin
AGBAHUNGBA
(FinanceAccounting
Manager)
Iréné AHOSSI
(Audit and
Management Control
Division Chief)
Unnikrishnan
KAITHOT
(Trading Director)
Mr.SaikatBhowmick
(CommercialDirector)
Serge PRINCE
AGBODJAN
(Secretary General
and Quality
Manager)
Ganiou ISSIAKOU
(Sales Customer
Relations Manager )
Mr.Narayana Swamy
(Maintenenace Director)
Engineering
Supervisor
Inventory incharge
Mr.Rama Krishna
(Director Factory)
Mr.Guru Prasad
(Production
Director)
ORGANIZATIONSTRUCTURE

22. 3. PROJECT PROFILE
3.1 OBJECTIVES OF THE STUDY
- The primary objective is to understand the Global Cashew Trade and the complex supply
chain involved.
- To understand the role of Benin in the International Cashew market and the importance
of cashew trade to the economy of the nation.
- Steps to be considered by an African nation to transform itself from a mere producing
country to processing country.
- Acknowledge the involvement of Non Profit Organizations and government agencies in
fueling the growth of cashew cultivation in the West African region.
- Review the policies of Benin government favoring the growth of cashew trade and
export of the product to other countries.
- Analyze the process flow of procurement of RCN (Raw Cashew Nut) from the farmers in
the country and the drawbacks in the process.
- Work force complications haunting the cashew sector in the country.

23. 3.2 METHODOLOGY
The methodological approach to this study is descriptive as we attempt to identify and explain
various scenarios are practiced in the existing cashew trade.
Primary Data
Interacted with the local farmers of Benin and learned the farming techniques adopted by them
and also understood the ground level problems faced by the farmers which include the
middlemen who lure a major chunk of profits in the supplying RCN to the buyers.
Questionnaire has been prepared to understand about the company in detail which has helped
me preparing the SWOT analysis. The questionnaire has been given to all levels of management
in the company to get understanding of the organization on a whole.
Secondary Data
Information to make this report has been collected from various websites mainly from ACA
website which is African Cashew Alliance, online gateway to connect buyers throughout the
world to the suppliers of African region. Company information has been collected from the
company website.Data from cashew handbook 2014 of www.cashewinfo.com was used in
report

24. 4. OBSERVATION & ANALYSIS
 Cashew is one of the unique products as it only can thrive in hot humid regions , hence
are distributed in countries near the equatorial region with most of the cashew
producing countries found in those areas. Hence making non equatorial regions
depended on these cashew growing regions to meet their local demand. The processing
countries are different from that of the producing countries which makes the RCN
producers to export their produce to countries such as India, Vietnam and Brazil for
further process. After the goods are processed and ready to enter the market they are
sold to countries like US, EU, UK etc. through major buying houses such as OLAM,
General Foods. Indian domestic demand has witnessed a drastic increase in demand
from the last decade which has benefited the Vietnamese cashew exports due to
competitive pricing.
 Agriculture is a major source of income for Benin’s economy; it constitutes 32 % of the
total countries Gross Domestic Product. Hence making agricultural exports backbone to
the economy and development of the country. Cotton, cashewnut, Shea butter, palm
products are some of the major agricultural products that are being exported from the
country. Major export partners of Benin are China, India, Nigeria. . In cashew world,
Benin is known for the quality of its raw product. Benin’s cashew nut is very well priced
for its quality on the international market. In the agriculture sector, cashew constitutes
Benin’s second largest source of revenue after cotton. It is produced in the central and
northern regions of the country. Since 2001, the area and production of cashew nut in
Benin has increased at an annual growth rate of 3.39 and 6.58 percent respectively.
Cashew quality has been improved over the decade due to the efforts of NGO’s and
farmer cooperatives, Thousands of new farmers are planting new cashew trees.
 Benin has joined with three other cotton-producing countries in the region – Burkina
Faso, Chad and Mali (known as the Cotton-4 countries) – to lobby in the World Trade
Organization for fewer subsidies to cotton producers in competing countries. Growth in
real output has averaged around four percent in the past three years, but rapid
population growth has offset much of this increase. The country’s population is
approximately 8.8 million, with a majority of its labor force dedicated to agriculture.
Also set up a online web portal that connects the local producers of cashew to traders
from throughout the world. This leads to decrease in gap between the buyer and seller
which gives a better understanding about the market.

25.  Cashew within the Benin is collected by the local agents from the farmers and then sold
to traders in Cotonou. The price is fixed with the agents through forward contracts but
no guarantee delivery of the goods as the agents may turn to a better deal if stuck
within the delivery time.
 CONEC, a brainchild of Beninese cashew traders, exporters, and the Beninese
Government, was inaugurated on September 6, 2012 under the leadership of former
Minister of Trade, Ms. Madina Sephou. With a headquarters in the district Sègbèya
(Cotonou), CONEC is made up of 9 members. The association in itself is also testament
to the growth taking place within the African cashew industry.
 African nations produce some of the best quality cashew in the world but lack the
infrastructure to process the nut further which makes the producing countries prone to
the market forces and a less profit share. For an African nation like Benin to become a
processing country.
o Primarily the country needs to adopt latest farming techiniques in the cashew
field to increase the productivity as it is a small nation which makes land a
scare resource.
o Lure the foreign investors to pool their investments into the country by changing
the policies to favour the cashew industry in the region. Currently Benin
government has “Zero percent” duty on all types of cashew related activites as
such construction of processing unit.
o Improve the infrastructure of the country so the transportation of the goods can
be faster and secure.

26. 5. FINDINGS
 Benin government is putting effort to lure the foreign investors by exempting duties on
cashew processing unit and also on RCN to encourage the exports to processing
countries.
 Non-Government Organizations play a prominent role in the improvement of livelihood
of famers in the country and also educate them about the latest farming trend which
helps the farmers to cut costs and retain more disposable income.
 Creation of an online web portal has helped both the parties i.e., buyers and sellers to
come closer and have a mutual understanding which helps keep track on the key
information within the market such as price, quality in demand etc.
 Cross border trade has affected the availability of the raw material in the market in a
positive manner. The cashew grown in border West African nations is pumped into the
Benin market as demand for the Benin cashew in the international market is high, so as
they a premium price for their produce.
 Improvement in the country’s infrastructure facilities to facilitate the increasing cashew
trade. Building of new berth in the existing port to increase the port efficiency in
handling cargo and also a national highway between Bohicon and Cotonou is being
refurbished to improve the inter region connectivity.

27. 6. RECOMMENDATIONS
- Countries with producing capacity should also consider setting up processing units as to
revive their economy and provide employment opportunities to the people and improve
the standard of living.
- Major processing units can look into to set up their operations in Africa as availability of
raw materials in abundant and cheap labor, land other facilities are available in Africa.
- 45 % of the world cashew is now produced in Africa and governments of many
countries are providing all support to promote the cashew industry. Hence foreign
investors should exploit this opportunity.
- Setting up units would cut the distance between the consumption countries and
processing countries thereby cutting on costs.
- African Cashew Alliance should concentrate more on the core problems facing the
region like cross border trade rather than only focusing on improving the trade between
countries.
- Global NGO organizations strategically with the help of government should educate the
farmers about the farming techniques and construct a system which makes sure the
farmers are always updated.

28. 7. LEARNING OUTCOME
I came to know how the Global cashew Trade happens and the role of Benin in the global trade.
Acknowledged the importance of India in the cashew sector and the potential India has as a
nation in this sector of business.
o Witnessed how trading takes place in West African Cashew growing region.
o Learned to work with multi-cultural people in office and witnessed the corporate world
upfront.
o Filling of export documentation required to clear the goods from immigration.
Understood Benin’s policies help for the upliftment of the cashew industry in the country and
want to make it the destination for the investors. Came to understand that NGO’s actually are
striving hard for the regional growth of Africa and improving the quality of people’s life.

29. CONCLUSION
In the international cashew trade scenario Africa plays a greater role in providing RCN to the
processing countries. The nations of Africa want to collectively evolve from a mere producer of
cashew nut to a processor in the future by emphasizing more on the developmental activities
and also policies that favour thriving of cashew business in the continent. Organizations such as
African Cashew Alliance (ACA), CoNEC and other such organizations are examples for Africa
becoming the future hub for cashew supplying and processing throughout the world.
 Advent of cashew nut has lead to sustainable development in countries which are one
of the poorest in the world.
 Many people have surpassed the line of poverty through creation of employment in the
cashew sector.
 The area of green land cover has increased as cashew was introduced to combat
deforestation in the African region which eventually leads to timely monsoons in the
region.
I would say cashew nut to Benin is like Oil to Saudi Arabia. Hence the country can build itself
sustainably if it maintains the same policies and implement many more schemes to lure the
investors, thus adding to the growth of the economy and the country as a whole.

30. ANNEXURE
Questionnaire
(InternalEnvironment)
1.List down which you think is the company’s strength.
2. What changes would you incorporate to make this organization
more efficient?
(External Environment)
3.Mention in brief the threats that organization is facing at present.
4.What are the opportunities that organization can bank upon?

31. REFERENCES
- African Cashew Alliance handbook 2014.
- www.fludorbenin.com
- www.cashewindia.org
- www.ACA.com