How to Start Cashew Nut Business in Nigeria.
Starting a cashew nut business in Nigeria is one of the most lucrative investments you can make. The reason is not far-fetched. Nigeria is one of the largest producers of cashew in the world. It implies that you already have access to the essential commodity to start up.
In addition to this, the cashew industry has a high potential for growth. There is money to be made if you start cashew nut business in Nigeria and you are about to learn how.
Cashew Nut in Nigeria
Cashew is a fruit that grows seasonally on a perennial tree whose seed is attached to the flesh. The primary producing states in Nigeria include Abia, Kaduna, Kwara, Enugu, and Niger. Cocoa Research Institute of Nigeria is the body tasked with the further development of Cashew. Their extensive research has led to improved seedling, consequently better cashew yield.
The Relevance of Cashew Nut in Nigeria
The relevance of cashew in Nigeria is evident by the amount of effort dedicated to its development. It has numerous uses such as;
- It can be processed as cashew butter and cheese.
- Its pulp can be distilled into liquor or fruit drink.
- Its shell can be used for lubricants and paints.
Asides from this, it has a high nutritional value which makes it useful for
- Weight management
- Bone development
- Reduction of heart disease
All these and more have contributed to the general acceptance of Cashew by farmers in Nigeria. What’s more, the global demand for cashew nut surpasses its supply. In spite of the increase in Export by 463 percent between Q1 and Q2 of 2017, Nigeria is currently unable to meet its export demands. This is good news for folks interested in investing in cashew nut business in Nigeria.
However, you need a lot of knowledge to know exactly how to make money from this business. Cashew nut has a value chain that engages a large number of participants. Knowing where you fit in is the key to starting a successful cashew nut business in Nigeria.
Cashew Nut Business in Nigeria; An Overview
Before starting up any business, you need a general picture of what you would be getting into. Investing in cashew nut is not an exception.
This is how it all begins. If you are considering going into cashew farming, then you already know that it requires a lot of money, time, and effort.
It takes several years for a cashew plantation to start yielding fruits. Hence, you’ll need a nursery where the seeds can grow into young trees. These are then transplanted to a permanent location before growth can commence. There is also the tremendous amount of effort that goes into caring for the trees till they are matured enough.
You don’t have to be a farmer to make money from cashew nut business in Nigeria.
How to Choose Your Focus on The Value-Chain.
As said earlier, cashew nut’s value chain provides a lot of opportunities for investors. Therefore, you have different options to pick from when starting your business. It all depends on your interest. You have the choice of processing the cashew nuts before selling, thereby increasing their market value. A second option is to sell directly to clients without processing. This saves cost.
Whichever part of the value chain you pick, your focus should be on the part that generates the highest financial reward for you.
It is imperative that you get proper guidance before starting this business. This helps you avoid mistakes, subsequently reducing your chances of failure in whichever part of the value chain you eventually pick.
Start with Cocoa Research Institute of Nigeria. They have years of research work just waiting to be consumed. Most importantly, they can provide you with information concerning the foreign and local sources of demand. This will make exporting cashew more comfortable for you.
Register Your Business
The first thing to do if you want to start a cashew nut business in Nigeria is registration with Corporate Affairs Commission. This will allow you to function in a bigger capacity. You’ll have access to loans and government incentives. Moreover, you need a license to do the foreign and domestic supply of cashew nut.
The Scale of Operation
This depends on how much you are willing to invest in the business. When drafting your plan, consider your financial strength and build your business based on the available resources. That’s one of the ways to avoid failure as a start-up.
Cashew nut business in Nigeria is profitable. However, like other businesses, it has its risks. Arming yourself with the necessary knowledge will help you navigate till you know your way around.
Visit the Cocoa Research Institute to find out more about cashew business in Nigeria. This should give you an idea of how to start.