exporting cashew
TRANSCRIPT
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
Cashew Trade @ a glance
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
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
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,
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
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
Rep850 25.87 822 33.84
HongKong 530 15.14 823 26.07
Others 8819 220.71 11032 336.16
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
08013100 : In shell
Description Duty
Basic Duty 30.00
Education Cess 2.00
Secondary Hiigher
Education Cess1.00
Contravailing Duty (CVD) 0.00
Additional Contravailing
Duty0.00
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
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)
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.
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.
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
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
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,
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
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).
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.
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.
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
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 & Mycotoxinproperties
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.
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.
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
Trade Portals: Trade Leads
Trade India
Global Online
Buyers
India Trade
Zone
Trade Turkey
British Buyers
Australia Trade
Global Net
Trade Links …. 3F Group Global Trading
Head Office 7/2 Pycrofts Garden Road, Nungambakkam Chennai 600006, India Ph +91 44 28281777 Email – [email protected]
St. John Freight Systems Limited
C-98, Sipcot Industrial Complex,
Harbour Express Road,
Tuticorin - 628 008.
INDIA
Phone: 0461-2342500
Fax: 0461-2340311
Email: [email protected]
Vink Corporation Middle East (FZC)P.O.Box 120707, SAIF ZoneSharjah,UAEPhone: +971-4- 3370440email: [email protected]
Trade Link …. Foretell Business
Solutions Private Limited#146, 1st & 2nd Floor, Gopal Towers, RamaiahStreet,HAL Airport Road, Kodihalli, Bangalore -560 008. IndiaTel : +91 80 2527 6152/53, Fax : +91 80 2527 6154Email: [email protected]
International Nut and Dried Fruit Council
Carrer de la Fruita Seca, 4 Polígon Tecnoparc -43204 REUS
Spain
: +34 977 331 [email protected]
•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
