How Nigeria can grow cashew Kernel Export Earnings by $3.4m in 2yrs
Data from the Nigeria Export Promotion Council (NEPC) show that Vietnam is currently the largest export destination for Nigerian cashew kernels with average yearly export of N1.27 billion ($3.4 million).
Vietnam is also Nigeria’s largest competitor on a global scale according to the NEPC, but Nigeria stands the chance of earning extra $2.47m by exporting raw cashew kernels to Germany, Netherlands, United Kingdom, Poland and France in the next two years.NEPC data show that Nigeria can earn $858,300 from Germany, $640,500 from Netherlands, $454,000 from United Kingdom, $300,200 from Poland and $222,500 from France through export of cashew kernels from now to 2021.
Data analysis shows that through cashew kernel exports, Nigeria earned $1.28m from Germany, Netherlands, United Kingdom and Poland from 2012 to 2016, and that value can be ramped up to $3.4m from now to 2021 if exporters explore untapped potentials in the countries, including France.
From 2012 to 2016, export of cashew kernels to Germany earned Nigeria a total of $98,500; to Netherlands, $840,700; to United Kingdom, $336,900 and to Poland, $7,200. These exports values can be skyrocketed if Nigeria diversified from exporting mainly to Vietnam and India, exploring other export potentials in countries such as Germany, Netherlands, United Kingdom, Poland and France.
Forecast show that by diversifying the exports of cashew kernel, Nigeria can grow current export earnings from cashew kernel by 871 per cent from Germany, 76 per cent from Netherlands, 135 per cent from United Kingdom, even as there are no clear indication of the rate at which earnings will increase from Poland and France considering that they are new promising markets for Nigeria’s cashew kernels. “Nigeria currently mainly exports raw cashew nuts to Vietnam and India.
There are opportunities for increasing the export of cashew kernels to consumer markets, like Germany and Netherlands. Estimated potential might very possibly increase further when the processing of cashew increases in Nigeria,” NEPC stated.
Analysis shows that estimated untapped potential in absolute value is largest in the German market, at around $860,000. Germany is the fourth largest current market for Nigeria after Vietnam, USA and The Netherlands.
The Dutch market has the second highest untapped potential of $640,500. Despite having less untapped potential than Germany current exports from Nigeria are greater to the Netherlands than to Germany. Over the past five years, the Dutch and German markets grew with +17 per cent and +24 per cent respectively per year, strengthening the estimation of huge potential.
The United Kingdom has the third highest untapped potential with potential for Nigeria to more than double current exports. Poland is currently a small market for Nigeria and France is a new market but together they have cumulative untapped potential of $522,700.
NEPC advised exporters of raw cashew nuts thus: “Nigeria currently exports mainly raw cashew nuts, making the estimated untapped potential values possibly lower than in reality. Instead of exporting to Vietnam, see whether additional exports can be generated to Vietnam’s destination countries.
Keep focusing on the Netherlands, Germany and U.K., current markets with still large estimated growth potential.
Try to access the French market and increase market share in Poland.” Speaking on the need for Nigeria to diversify away from oil to grow the economy, the Executive Director/Chief Executive Officer of NEPC, Mr. Olusegun Awolowo, said cashew has been a success story for Nigeria’s economy. Awolowo said as at 2018, there has been a rise in production of about 70,000 metric tons in four years from about 130, 000 metric tons to 200,000 metric tons.
He said as production grew, there was also conscious effort to go into processing because of emphasis in the reduction of export of raw materials. “Late last year, we had the vice president commission a cashew processing factory in Ilorin. The idea now is to replicate that with all the products that we have chosen under the zero-oil plan,” he said.