Cashew Nut Financing
Cashew transport and logistics
There are many debates around how cashews should be transported. Cashew nut kernals should be preserved in an area that is dry, cool and clean. One should make sure that any storage is kept away from foreign smells and all potential elements that could lead to impurities.
Due to the brittle nature of the product; it is important that loading is carried out with care. Transportation should be done in the same way as outlined above.
Cashew Kernel Standards
There has been much talk of fraud over the years in relation to cashew nut trading from Africa. Therefore it is important to note the boards that govern quality and practice issues:
- CENTA
- AFI (Association of Food Industries of New York)
- Grade Specification for Indian cashew nut kernels
- TCVN 4850 1998 – Vietnam Cashew Nuts Kernel and Technical Request
What is the demand?
We have seen the demand for cashew nuts increasing. It is claimed amongst various sources that Việt Nam is expected to export over 360,000 tonnes of cashews this year with a value north of US$3 billion this year. This will show an over 3% increase in volume and over 5% increase in value. This is all according to the Việt Nam Cashew Association (Vinacas). It is widely thought that this trend will continue due to the perceived health benefits of nuts.
It has been widely reported that domestic cashew processors did not have the required product to keep up with orders. We have seen an over 10 percent year on year rise in relation to cashew nuts being exported from Africa.
As well as the strong demand from Việt Nam; in recent years we have seen increasing demand from America, China and the Netherlands.
Demand for cashew nuts
There are fears that sale pricing is being increased in America and authorities in China are tightening their grip on the commodity by raising hygiene and safety standards.
We see that the market is moving to a safer place; where there may be greater standards expected of exporters but this will only push out the smaller unprofessional players.
The US has been the largest import market; taking over a third of the exported cashew nuts from Vietnam. Demand is then roughly split (around 50 percent) between the EU and China with the rest of the world picking up the remaining.
Vietnam makes up almost half of all cashew nuts exported globally. We see this trend continuing and demand growing.
- Raw nuts
- Unpaid Invoices
- Cashew Nut Purchase Orders
Culled from /www.tradefinanceglobal.com/
