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Exporting cashew

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Business opportunities in Cashew

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Exporting cashew

  1. 1. M.SundaraRajan www.primaryinfo.com Exporting Cashew
  2. 2. About Cashew  Cashew nut kernels are produced by shelling raw cashew nuts (RCN), which grow at the end of cashew apples.  Cashew nut kernels are primarily judged on their size, colour and moisture content.  Whole cashew nut kernels are the standard, as broken kernels are seen as a quality deterioration. These characteristics form the basis of cashew nut kernel grades.  Whole kernels of an ivory colour represent the highest quality grade and the larger the kernels, the higher the price
  3. 3. Cashew Trade @ a glance
  4. 4. Cashew Cultivation in India  India is one of the leading producers, processors and exporters of cashews in the world  Currently, India has approximately 0.97 million hectares under cashew cultivation with productivity of 770 kilograms per hectare.  Maharashtra, Kerala and Karnataka are the primary producers of cashew along the western coast of the country, while Andhra Pradesh (AP), Odisha, Tamil Nadu (TN) and West Bengal (WB) are primary producers along the eastern coast  In addition, cashew is also grown in Chhattisgarh, Goa, Gujarat and the Andaman and Nicobar Islands
  5. 5. Key Markets and Export Destinations  India accounts for about 65 per cent of the world's total exports  India exports kernels to more than 60 countries across the world  In 2013-14, India's exports of cashew and cashew- based products were worth US$ 0.82 billion  In 2013-14, India exported 113,620 metric tonnes of cashew shipments which also constituted 9226 metric tonnes of cashew nut shell liquid (CNSL), Generating revenues US$ 825.89 million and US$ 6.18 million respectively
  6. 6. The Cashew Export Promotion Council of India (CEPC)  The Council provides the necessary liaison for bringing together foreign importers with member exporters of cashew kernels. The enquiries received from the foreign importers are circulated amongst Council members  The Council also extends its good offices in settling complaints amicably in the matter of exports/imports either on account of quality and /or variation in fulfilment of contractual obligations  Publish Cashew Bulletin  Membership in the Council is required  Publicity and Promotion Abroad, Participation in Exhibitions,
  7. 7.  The schemes are : 1. Process Mechanization and automation of Cashew Processing units 2. Quality up gradation and Food Safety Certifications  Grants are provided  Funds Released  KAJU INDIA 2015 KAJU INDIA 2015, International Buyer Seller Meet – check with CEPC
  8. 8. EXPORT OF CASHEW KERNELS FROM INDIA DURING 2010-2011 TO 2011-2012 2010-2011 2011-2012 Countries QTY VALUE QTY VALUE (M.T) (Rs.Crs) (M.T) (Rs.Crs) U.S.A 35236 911.31 47611 1470.47 U.A.E 12295 393.31 14173 606.11 Netherlands 11178 289.02 11517 365.57 Japan 5944 159.16 7054 237.45 Saudi Arabia 3386 107.53 5136 207.01 U.K 2798 71.76 3717 109.45 France 3623 90.12 3461 109.10 Spain 2634 69.14 3397 111.45 Germany 1739 41.54 2813 90.39 Belgium 2986 72.47 2463 85.25 Singapore 1692 41.31 1892 57.51 Italy 1194 29.11 1771 55.76 Greece 1311 35.36 1496 50.91 Thailand 733 21.57 1477 46.93 Australia 1356 32.70 1408 44.98 Russia 484 13.53 1378 40.88 Canada 678 16.53 1226 35.88 Kuwait 1001 31.19 1147 50.26 Egypt 1184 37.72 1137 50.60 Algeria 221 6.33 1055 42.15 Turkey 1346 36.56 1051 28.84 Korea Rep. 717 20.25 992 34.92 Jordan 1093 31.07 867 36.71 Norway 727 19.09 844 26.04 Syrian Arab Rep 850 25.87 822 33.84 HongKong 530 15.14 823 26.07
  9. 9. Analysis of Imports of raw cashew nut  India imported raw cashew nut worth USD 1,182,735,980 with total quantity of 1,135,306,473. Cote D Ivoire is the largest supplier of raw cashew nut accounting for imports worth USD 340,657,348 followed by Tanzania and Guinea Bissau which exported raw cashew nut worth USD 233,971,273 and USD 204,067,124 respectively.  Tuticorin Sea accounted for 52.8% of imports followed by Cochin Sea and Mangalore Sea which account for 31.3% and 10.1% of imports respectively.  Average price of raw cashew nut per unit is USD 1.04 and average value per shipment is 118,487  During Jan2013 till March2015
  10. 10. 08013100 : In shell Description Duty Basic Duty 30.00 Education Cess 2.00 Secondary Hiigher Education Cess 1.00 Contravailing Duty (CVD) 0.00 Additional Contravailing Duty 0.00 Additional Cess 0.00 National Calamity Contigent Duty (NCCD) 0.00 Abatement 0.00 Total Duty 30.90 Customs Import Duty of raw cashew nut under HS Code 08013100
  11. 11. Classification codes for cashew nut kernels  Harmonised System (HS) codes: within the EU / EFTA, the following HS codes for cashews exist:  0801.31: Fresh or dried cashew nuts, in shell (RCN)  0801.32: Fresh or dried cashew nuts, shelled (cashew nut kernel)
  12. 12. International grading standards  Various grading standards exist for classifying cashew nut kernels. Additionally, buyers have their own specifications. International grading standards include:  Association of Food Industries (AFI)  United Nations Economic Commission for Europe (UNECE)  Cashew Export Promotion Council of India (CEPC)  Refer to African Cashew Alliance (ACA) Cashew Grades document for more details and photos of the various cashew nut kernel grades.
  13. 13. Buyer Requirement  Buyer requirements are all the requirements you can expect from your potential European buyer(s).  They can be divided into two groups: legislative and additional non-legislative requirements.  Legally, contamination in cashew nut kernels is the main issue and exporters need to take extra care in preventing it.  Non-legislative requirements allow exporters to add value to their product and/or access specific market segments.
  14. 14. Legislative requirements When it comes to food products such as cashew nut kernels, the main focus of European legislation is food safety. The EU has introduced legal requirements that focus on hygiene and traceability, emphasizing that players can guarantee hygiene throughout the chain – from farm to fork.  At the international level, the Codex Alimentarius adopted a Code of Hygienic Practice for Tree Nuts in 1972 (CAC/RCP 6-1972). This code applies specifically to almonds and walnuts, but is generally applicable to cashews as well.  The European Food Safety Authority
  15. 15. Non-legislative requirements  Main issues are contract fidelity, buyer quality specifications, packing and shelf life of cashew nut kernels.  Buyers are looking at product quality but also placing emphasis on quality management and transparency along the chain.  Certifications on general quality and food safety management systems from recognised and trustworthy sources demonstrate the supplier’s commitment to high and consistent quality and safety.  Reliable delivery (in terms of time and quantity).  Exporters must make sure to provide type samples, i.e. samples which represent the grade, quality and packaging material of the product which will be delivered.  Buyers will usually require the supplier to replace the non-compliant delivery with products corresponding to contract specifications
  16. 16. Markets - Europe  The Netherlands is the largest European importer of cashew nut kernels, accounting for around 43% of imports in 2013 (36 thousand tonnes).  The UK, accounted for 14% of European imports (11 thousand tonnes)  Germany, the third largest importer of cashew nut kernels in Europe (10% of imports: 8.5 thousand tonnes)  France is the fourth largest importer of cashew nut kernels in Europe,
  17. 17. Suppliers of cashews to Europe  The main DC suppliers of cashew nut kernels to Europe are Vietnam and India, followed by Brazil.  These three largest suppliers accounted for 93% of supplies in 2013 (77 thousand tonnes).  The rest of DC supplies stemmed from other countries in Africa and Asia
  18. 18. The Netherlands  As the largest importer and re-exporter in Europe, the Netherlands is a highly relevant market for cashew processors in West Africa. The country is the main distribution centre for cashew nut kernels in Europe and has the highest share of imports sourced directly (93% in 2013).
  19. 19. Competition in the Market  The European market for cashew nut kernels relies heavily on supplies from Vietnam and India. The cashew processing industries in these countries are developed and have gone through years of consolidation  Quality of processing of RCN is pivotal in determining quality of cashew nut kernels. This is also where Vietnam and India are ahead of West African countries  Vietnam has obtained its competitive position over India with the help of mechanised processing.
  20. 20. Marketing Strategy  Follow a market-oriented pricing strategy, whereby they closely follow global market developments and establish a solid price information system within their company. Such a system will allow them to make an educated decision when negotiating prices with their buyers.  ITC Market Insider provides market information on cashew markets which might be useful in terms of price information  Sources for price information are The Cashew Export Promotion Council of India (CEPCI), Cashew World and Cashew Week. Moreover, by joining the Cashew Club, you subscribe to a monthly market report on cashews.
  21. 21. Marketing & Promotion  Promotion is an important step for exporters to access the cashew nut kernel market  The goal of promotion is to gain exposure for the product, bring seller into contact with potential buyers and convince them of seller capabilities and quality.  Personal selling increases the chances to create strong relationships with buyers, and can be supported by promotional material  Participating in the Trade Fairs
  22. 22. Exporter’s Web Site Well-defined products  Trade names / grade designation (international standard)  Colour / product characteristics  Count / lbs size description  Max moisture %  Broken max %  NLSG (Next Lower Size Grade), NLG (Next Lower Grade) max %  Microbiological & Mycotoxin properties  Certification  Uses  Availability  Packaging Strengths of your company:  Certificates: mention the year of certification and explain how it contributes to sound products and services.  Certificates can be related to quality management (BRC, ISO 22000, IFS, etc) or ecological/social aspects (e.g. organic, fair trade).  In terms of social responsibility, certificates such as BSCI and OHSAS should also be displayed clearly.  Other sustainability certificates, such as the ACA Quality and Sustainability Seal, should also be highlighted.
  23. 23. Trade Structure & Channels ..  In the most common market structure raw cashew nuts (RCN) from West Africa are shipped to India and Vietnam for shelling and further processing, without local value addition.  Raw cashews are sold to either local traders or buying agents of Indian/Vietnamese companies, and then transported by sea to the facilities of Asian processors.  In these facilities, raw cashew nuts are shelled (and sometimes roasted), packaged and shipped to international markets such as North America and Europe, or are consumed locally.  The domestic market in India is much larger than the one in Vietnam, where the cashew industry is mostly export-oriented.
  24. 24. Trade Structure & Channels … Trade channels  The main point of entry of cashew nut kernels into Europe is the Netherlands (via the port of Rotterdam), which is a trading hub for cashew nut kernels and other edible nuts. Other important ports for the European cashew trade are Hamburg (Germany) and Felixstowe (the UK). Importers  Cashew nut kernels are often imported directly by large European snack companies such as Intersnack, without the intermediate role of traders  The cashew market has one large multinational, Olam, which is involved in multiple steps of the value chain  Agents and brokers , Roaster/packer , Wholesalers , Food manufacturers ,  Retail – AHold @ Netherlands, Metro @Germany , Tesco @ U.K
  25. 25. Trade Portals: Trade Leads  Trade India  Global Online Buyers  India Trade Zone  Trade Turkey  British Buyers  Australia Trade  Global Net
  26. 26. Trade Links ….  3F Group Global Trading Head Office 7/2 Pycrofts Garden Road, Nungambakkam Chennai 600006, India Ph +91 44 28281777 Email – cashew@3fg.co  St. John Freight Systems Limited C-98, Sipcot Industrial Complex, Harbour Express Road, Tuticorin - 628 008. INDIA Phone: 0461-2342500 Fax: 0461-2340311 Email: stjohn@stjohngroup.net  Vink Corporation Middle East (FZC) P.O.Box 120707, SAIF Zone Sharjah, UAE Phone: +971-4- 3370440 email: vink.corporation@etisalat.net.ae
  27. 27. Trade Link ….  Foretell Business Solutions Private Limited #146, 1st & 2nd Floor, Gopal Towers, Ramaiah Street, HAL Airport Road, Kodihalli, Bangalore - 560 008. India Tel : +91 80 2527 6152/53, Fax : +91 80 2527 6154 Email: info@cashewinfo.com  International Nut and Dried Fruit Council Carrer de la Fruita Seca, 4 Polígon Tecnoparc - 43204 REUS Spain : +34 977 331 416- inc@nutfruit.org
  28. 28. •http://www.primaryinfo.com/cashew.htm •http://www.primaryinfo.com/industry/cashew-trade.htm •http://www.primaryinfo.com/projects/cardanol.htm •http://www.primaryinfo.com/industry/cashew-apple-ethanol.htm •http://www.primaryinfo.com/scope/phenalakamine.htm •http://www.primaryinfo.com/cashew-nut-shell-liquid.htm •http://www.primaryinfo.com/scope/cashew-husk.htm Links to Data bases on Cashew
  29. 29. Further questions mailto:primaryinfo@gmail.com Thank you

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