4TH EDITION OF THE WORLD CASHEW CONVENTION & EXHIBITION 2018 - HIGHLIGHTS

Organised by

4 EDITION OF THE WORLD CASHEW CONVENTION &

& EXHIBITION TH

1 - 3 FEB 2018, MACAU

GRAND SHERATON EXHIBITION 2018 - HIGHLIGHTS

The 4th Edition of the World Cashew

Convention & Exhibition 2018 was held in Macau
between 1 and 3, February, 2018. Below is the
summary of the conference.
1.0: Inaugural session and keynote address Dr R K Bhoodes, Chairman,
Cashew Export Promotion
Council of India, in his Special
address emphasized that the
international raw nuts trade
needs to be well structured.
Standardization of RCN
contracts/specifications/
arbitration is the need of the
hour. A proper mechanism
needs to be put in place to
ensure smooth transition of
shipments from RCN exporting countries. Quality issues
need to be addressed properly, including mixing of nuts.

Mr Mahesh Patel, Chairman,

ETG Group, in his inaugural
address stressed on the
importance of attaining
production adequacy of
The Honourable Union Minister of Commerce and Industry, cashews. He advocated
Government of India, Mr Suresh Prabhu, chief guest at boosting local processing
the inaugural function, through a video message assured in Africa substantially by
full support to the cashew industry and urged the CEPCI adopting cutting edge
to prepare a comprehensive business plan for the Indian technology. A three percent
cashew sector- to grow exports, to increase value addition, increase in local processing
to upgrade technology and to impart skill to employees. of RCN in Africa will boost
the household income of African by at least USD 100 Million.

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Dr Adama COULIBALY, CEO 2.0: Raw Cashew Crop 2018 and trade chal-
of the Cotton and Cashew lenges in global RCN trade
Council presented an overview
of Cote D’Ivoire cashew sector. 2.1: Cote d’Ivoire RCN crop; export; local
The country is estimated
processing
to produce 750,000 tons
In 2017, Cote d’Ivoire produced a record 711,236 tons RCN,
of cashews in year 2018.
surpassing the previous record of 702,510 tons produced
Council has taken training
in 2015. In 2017, Cote d’Ivoire processed 44,628 tons RCN,
programmes for orchard
restoration and distribution which is equivalent to 6.28 percent of their total production,
of improved plants. Quality while the installed capacity was 109,500 tons.
improvement is the key to
success. The Council is eying to increase processing to Considering good weather, 2018 Cote d’Ivoire RCN crop is
100,000 tons. expected to be around 750,000 tons. The government has
provided 80+ processors with direct access to bush without
any intervention to purchase the raw materials.
VINACAS President
Mr Nguyen Duc Thanh, In 2016, the government has provided USD 3.7 million as
(though could not come subsidy to cashew processors for exporting kernels from
to conference, sent his Cote d’Ivoire.
presentation) has proposed
collaboration programme Project to promote Competitiveness of the Cashew Value
among three countries, Chain (PPCA) - Start-up of the implementation in 2018, in
viz., Vietnam, Laos and particular, in the development of industrial zones dedicated
Cambodia. Vietnam has its
to processing of cashews in Bouaké, Bondoukou, Korhogo,
advantages on cultivation
Odienné and Séguéla.
technique and processing
technology and today the
biggest market for cashew nut products. Cambodia and
2.2: Nigeria RCN crop, export, local processing
Laos have much unoccupied land for expansion of cashew In 2017, Nigeria RCN exports exceeded 220,000 tons as
trees. In general, according to comments from VINACAS against 160,000 exported in 2016 (Source: NCAN). In 2018,
experts, the three countries have much more advantages for Nigeria’s RCN crop size is projected to increase by 10% to
development of cashew trees. 242,000 according to NCAN and other export bodies.

The government, through the Ministry of Agriculture along

In his key note address, with the private sector and other stakeholders, expects to
Mr Pratap Nair, Board increase RCN production to 500,000 MT by 2025. It also
Member, Ambassador hopes to develop a cashew processing capacity of 70% of
INC, highlighted the role, the total production.
mission and vision of INC.
Very specific to the cashew
Discussion is on-going with shipping lines to ensure that
industry, the INC under its
consignment gets to Ho Chi Min City in 33 days and to Indian
umbrella has very recently
ports in 35 days.
started Global Cashew
Council. The INC has already
Nigeria demanded a fair price for its raw cashew at par
completed a study on
with other west African origins, in recognition of the huge
nutritional composition
improvements in quality of delivered raw cashews in the last
of cashew kernels from different parts of the world which
three years.
includes West African countries of Cote d’Ivoire and Nigeria,
Vietnam, Brazil, Indian states of Andhra, Karnataka, Kerala
and Odisha. An information-kit on cashews has also been
2.3: West Africa – Other countries crop and
released. export
In 2017, Benin produced 125,000 tons RCN, out of which
15,000 tons were processed locally. The cashew campaign

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opening is slated on March 15th, and the Ministry of take samples, how to determine outturn etc, the programs,
Commerce declared 2018 farm gate price at 500 CFA per kg. we need program for training, for reference, and policies.
In summary, we need to have a codification, which could
Benin and Nigeria together is forecast to produce 300,000 to be arrived on the basis of dialogue, discussion, debate and
350,000 tons RCN in 2018. through demonstrations.

Guinea Bissau complex, which comprises Guinea Conakry, In 2017 Vietnamese traders faced lot of problems while
Senegal and Gambia, is expected to produce in the region of importing RCN. Initially the quality of imported RCN was
300,000 and 350,000 tons RCN in 2018. good, but subsequently quality deteriorated. When the
demand is more, Vietnamese faced too many quality
Overall West African RCN crop size is likely to be at around problems, despite higher price. Lot of claims made by
1.65 million tons in 2018 as against 1.56 million tons in 2017. Vietnamese traders/processors are yet to be resolved.
From the lessons learnt in 2017, the Vietnamese people
INC estimated 2017/18 world cashew production at will choose who the right supplier is; reliable partner; right
3,429,696 tons (raw cashew in shell basis). seller to buy RCN, going forward. It is very important for the
African countries/government to ensure that RCN is dried
2.4: East Africa RCN crop, exports and local properly before it is shipped out, as Vietnamese buyers lost
processing heavily, may be in USD millions.
In the recently concluded East African cashew crop
season, Tanzania is estimated to have produced 300,000 to
310,000 tons RCN. Local processing of cashew yet to gather
momentum and is estimated at around 14,000 tons. The
price for 53 lb/200 counts remains at elevated levels around Risk assessment in cashew sector in
USD 2400 per ton.
Africa
In Mozambique, RCN crop size is estimated close to 105,000
tons as against the earlier assumption of bumper crop. Some of the key risks associated with
Unfavorable weather conditions resulted in lesser than the producers include price risk, lack of
anticipated crop. Mozambique is likely to process more than holding power, default, late payment,
60,000 tons RCN (2017-18). late collection, lack of knowledge and
lack of tenure.
2.5: Cambodia
In 2017 Cambodia has produced 104,268 tons of RCN and Some of the key risks associated with
exported 73,179 tons of RCN, out of which 72,248 tons
the processors are lack of management
of RCN exported to Vietnam alone and remaining small
quantities to India, China and Thailand.
skills, high raw material and energy
costs, inadequate working capital and
The challenges are limited investment in agriculture low-cost competitiveness.
(including cashew), low productivity in cashew, and lower
spending on research and development. Some of key risks associated with the
sector are fall in production due to
Future agenda includes (a) strengthening collaboration and drought, quality loss due to excess rains
access to market in the region, (b) access to finance for small
at the time of harvest, poor infrastruc-
holders/SMEs, (c) improving research and development
ture, food safety non-compliance etc.,
in cashew farming and (d) promoting contract farming in
agriculture.

2.6: RCN buyers Expectation 3.0: Cashew Kernel market review and outlook
RCN business is growing at 15 percent CAGR. However, the and cashew kernel buyer expectation
pain point is no standard reference point for raw cashew
contracts. How can we define the reference point? It 3.1: India cashew kernel markets
should be based on past practices, precedent, next comes India Food and Grocery Retail Industry is currently pegged
operational aspects- who should do what, which order over US$ 593 billion and growing at 15% CAGR. Cashew is
where and why it has to be done, the procedures on how to widely used as food ingredient due to its taste, affordability

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and on positive health aspects. Cashew is widely consumed quality nuts started to increase since 2010.
in India in the form of sweets, namkeens, gifting segment,
and in curries/chutneys in the form of paste. In India, 60 3.6: Hong Kong Cashew Market
percent of domestic production of close to 250,000 tons of W240 is the most preferred grade by Hong Kong buyers and
cashew kernels is being consumed in the form of ingredients accounts for 80 percent of the market share. The market for
and 40 percent consumed as whole nuts. Of ingredients, 40 W320 is small and very negligible presence for other grades.
percent is consumed in the namkeen segment, 35 percent They want quality to be supreme with no discolouring, free
in sweets, 15 percent in biscuit industry, remaining in ice- from insect damage, no infestation issues, etc., Also the size
cream and in food curries. should be uniform. The government is very strict on food
safety and quality control.
Technavio predict that the global chocolate and ice-cream
market will grow at a CAGR of more than 5% by 2021. HK consumes 50% of cashews as snack food for home
cooking, 30% as food ingredient and 10% used in Ice cream,
3.2: US Cashew kernel market bakery and confectionary industries.
There are reports that US cashew consumption increased
in 2017 when compared with 2016. However, according to Most of the imported cashews in Hong Kong are used for
most of US retailers and roasters higher prices of cashews their local consumption. Hong Kong cashew kernel import
are hurting consumption. In 2016, US entered the markets ranges from 1200 and 1800 tons per year.
with a lot of carry forward stocks. Normally in US market, if
you sign a contract in Jan month, it will reach the consumers 3.7: Cashew Kernel Buyer’s Expectation and
only after seven to 10 months. So, there is a lag time in Gaps
retail pricing. Lot of new products such as mixture of nuts While machines brought in scale of operation, it also
and unsalted nuts are gaining momentum in the markets. resulted in certain quality issues. Over The buyers
Growth is seen in cashew milk, cashew butter. Health understand this aspect and tolerate it within a reasonable
awareness among consumers is creating space for lot of limit. However, quality issues pertaining to hygiene, lack of
newer products in the markets. food safety systems and non-compliance are not tolerated.

3.3: European Cashew kernel market 3.7.1: Requirement of UK / Europe kernel

In Europe consumers are willing to spend more for quality buyer
foods. Market trend is changing to healthy nuts with less salt, The demand for traceable and sustainable food supply
sugar and fat. Consumers are also seeking new products due chains is growing in the UK markets. To work with European
to increased health awareness and nutritional facts. Rising buyers, cashew processing factories should have BRC or
price is challenge, but controlled by stronger euro against the equivalent certifications. Moreover, the factories should
dollar. The major problem confronting the European industry work to become SEDEX approved as the goal is to create
is the quality issues such as high moisture, bad texture, high products that an ethically conscious consumer can trust.
foreign material, bad smell and taste. The general requirements for kernels buyers especially for
US and EU include i) delivery commitments / no defaults
3.4: China cashew kernel market ii) traceability and quality of the product, (iii) maintaining
China has announced reduction in import tariff on RCN and global food safety standards, (iv) GMP, and (V) Ethical
cashew kernel from the existing rate of 20 and 10 percent to trading initiatives.
7 percent respectively effective December-2017.
Chinese prefer roasted, flavoured cashew, more accurately While the most important things to be addressed are that
oil-blanched, then added to main dishes. Cold weather of foreign matter contamination such as hair/stones/wood
makes it suitable for people to eat nuts in winter season. pieces, bangle piece and other grain contamination and
Major sales happen during Lunar New Year, Mid Autumn infestation in kernels, receipt of poor quality and infested
festival. E-Commerce has become an important way of kernels for processing and unhygienic processing area /
selling and buying. irregular plant fumigation.

3.5: Japanese cashew market From the global cashew buyer’s view point the need of the
Japanese market is growing steadily over years and imported hour is reasonable and stable price of cashews and stability
more than 10,000 tons of cashew kernels in 2017. For the in supply.
past 20 years, more than 90 percent of supplies are from
India and Vietnam. Japanese buyers insist on three factors 3.7.2: Indian kernel buyer’s requirement
viz., quality, responsibility and sustainability in terms of India ranked first in 2017 in the Global Retail Development
stable supplies. Snack retailers are the largest channel of Index (GRDI), rapidly progressing from 20th position in 2014.
distribution of cashews in Japan, and retail sales of premium The retail industry accounts for 10%+ of the country’s GDP

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and ~8% of employment.

In India, the GST- One Nation - One Tax, throws lots

of opportunities for organized players with seamless
integration of national market. No halting of transport on
state borders- substantial saving in transit time.

Challenges as kernel buyer: (1) Lack of Standardisation- All

Specifications need to be standardized across the industry
for benchmarking. (a) All units in Metric Systems KG or
Tonnes. (b) Package sizes should preferably be of 10 Kg. (c)
Rates to be mentioned in Standard Metric Units - Like Kg or Cashew Women meet
Metric Tonnes.
Cashew women meet was held on the
(2) Statutory compliances with respect to FSSAI still remain
a challenge. Concerted efforts are needed to educate day-2 of the conference. Whatsapp group
Consumers & Stakeholders by FSSAI. “CasheWomen” to support and generate
discussions about the cashew sector,
The interpretation of rules is not uniform across the states
encourage mutual learning on occurrences in
causing heartburns for the processors such as labeling,
health benefits, branding, and shelf life of the products. the cashew sector worldwide for over 300 +
Clarity with regard to the size of Fonts, pack size and the women along the entire value chain.
minimum required information are needed.

Publication of women’s success stories to

Clinical Research Studies on Cashews encourage others to thrive in their fields and
revolutionize the cashew sector.
Dr. V. Mohan and his team (Madras Diabetes Research Foundation,
India) assessed the changes in glycemic and lipid profile among
Type-2 diabetic subjects after a daily supplementation of cashews Volume 2 of ‘Global Cashew Women
in their diets. In addition, they evaluated the effects of daily cashew
Entrepreneurs’ was released during the meet.
supplementation on blood pressure. This study was funded by the
Cashew Export Promotion Council of India (CEPCI).

After consuming 30 g of cashews daily for duration of three months,

4.0: New developments in Cashew sector
the participants did not notice any change body weight, waist
circumference and BMI. At the same time, observed decrease in blood 4.1: Technology - Preservation of RCN quality in
pressure, and also increase in good cholesterol level.
transit and storage
The American Journal of Clinical Nutrition published the study “Cashew
The Oltremare proposed system for post-harvest treatment
consumption reduces total and LDL cholesterol: a randomized, and vacuum pack unit will clean RCN from heavy as well
crossover, controlled-feeding trial” in March 2017. The results found as light foreign matters, dry the RCN in a controlled way
that daily consumption of cashews, when substituted for a high-
inside the warehouse controlling infestation, prevents the
carbohydrate snack, in a typical American diet may help decrease total
cholesterol and LDL (“bad”) cholesterol. This study was funded by The
loss of KOR in transit as well as during storage and can
Kraft Heinz Co. pack one ton of RCN in vacuum packs. Some of the key
advantages are minimization of manual labour, high volume
Directions for future research
in shorter duration, ability to dry RCN during rainy season,
• Studies on the effect of cashew nut consumption in population at
risk for diabetes (obese/overweight or prediabetes) would help to
full traceability, prevention of theft, mixing of nuts etc.,
understand the preventive role of cashew nuts in Asian Indians The pack is fully protected from moisture, air, dust, insects,
• Cereal – cashew nut matrix –newer avenues to develop products condensation, and easy to stuff in a 40 feet container during
with lower the glycemic index
transportation.
Development of FUNCTIONAL FOODS using cashew nuts: crackers,
snack bars, beverages, meal replacers, pasta products etc.. suitable for 4.2: Technology – Automation and Artificial
all including population with diabetes
Intelligence
Nanopix forecast that Automation with Artificial Intelligence
(AWAI) will drive the future of cashew processing. The

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AWAI essentially includes four components – Internet of village), and good incentive system for foreign investment.
Things (data collectors collect data from machines and store G-Farm, after a three-year intensive feasibility study of
them securely in Cloud), Image Intelligence (analyses input Cashew-nut, invested in Laos cashew sector under PPCP
through vision technology, Far IR, X-Ray and spectrometer agreement.
imaging), Data Intelligence (Deep analysis of past data to
predict future), and Machine Intelligence (self-learning and 4.7: Why governments invest in Cashew
peer-learning machines). Artificial Intelligence for cashew sector?
processing would result in efficient faster processing, better GIZ’s ComCashew is a part of larger umbrella of
food safety compliance, reduction in food wastage during programmes. Agriculture for sustainable development
processing, better food composing leading to intelligent (A4SD) regroups four value chain projects working in 15
recipes, and help in farm inspection and pollination (through African countries. An important principle of our approach is
drones). to work with partners along the entire Value Chain, not only
on certain levels.
4.3: Gujarat, the emerging hub of cashew
processing More than 420,000 farmers have participated in Good
The Indian state of Gujarat is currently processing 30,000 Agricultural Practice Training. Female participation rate is
tons of RCN and their goal is to achieve 200,000 tons of RCN just at 22%, despite the fact that most of the On-farm labour
processed in the next three years. Gujarat is a good market in Cashew is provided by women.
for broken cashews.
The encouraging message for the cashew sector is as
4.4: Technology platform for RCN trade follows. The potential areas for cashew production increased
The information technology transforms the way in which we significantly, in both Ghana and Ivory Coast. This makes
buy and sell agri commodities. By registering on the platform Cashew a sound investment for longterm Development
(www.agribazaar.com), a user (rcn trader / exporter) can
get a lot of enquiries from across the globe for buying and 4.8: What does financing companies look for
selling. Farmers can get the right price for their produce while lending to cashew sector?
and get instant payment. Traders and processors can get Wish that Cashew being traded on exchange in future. This
wider participants, assured of their quality, supply and their will ensure better regulations and more traditional financiers
payment. Even lenders can be integrated on this platform will be attracted. Will provide a transparent price platform
and can finance the needy. and may also provide some stability.

4.5: Integrated Trade finance option Expect further improvement in quality control across
Recognising ‘access to finance’ as one of the biggest obstacle the cashew value chain. This is necessary to instil trust in
to global trade, Maersk ventured into the business of contracts in order to finance the contracts.
extending trade finance of goods moved through its system.
Specifically, for cashews, this is a big business opportunity 4.9: Technology to eliminate microorganisms
for Maersk as over half a million tons of cashew are moved Various machinery companies explained about their ways
out from its vessel from Africa to India and Vietnam last of controlling pests, foreign matter and infestations by using
year. From trade finance perspective, Maersk has funded pasteurization methods.
16,000 tons raw cashews giving loans of USD 17 million to
its customers based in India, Singapore, Netherlands, US, Pasteurisation of cashew kernels is integrated with food
UAE and Spain. The customers get timely access to capital, safety treatment and vacuum packaging. The advantages of
completely non-collateral loan; the solution is completely continuous process include more than 5 log reduction, 100%
paperless and digital. insect elimination, preserving sensory aspects, no change in
appearance and no moisture loss.
4.6: Farming in new origins
Korean government encourages overseas farming. Lao 4.10: Electricity from Cashew Shell
government has good cooperation with Korea government There was a presentation (TechnoServe) on how de-oiled
in agriculture area - "Saemaul Movement" (installing new cashew shell cake could be utilized for electricity generation.

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As we are aware that 70% of RCN by weight is from cashew more cashews by then.
shell. In Benin by 2022, at least 24,500 tons of shell waste is
anticipated, which could yield about 4 MW of electricity. In the coming days, health and nutritional benefits will drive
the cashew consumption apart from the traditional habitual
Cashew Vision 2030 consuming pattern. India will continue to retain the top slot
Cashew vision 2030 panel discussed some of the key as far as cashew consumption is concerned, may be followed
challenges such as will there be enough cashews to meet the by China, Middle East and the US.
demand, how to tackle the food waste, to boost demand,
to increase supply, which country would be the main The RCN market has all the features of a bubble. It has
producers of cashews by then, whether international RCN unqualified new entrants, too many experts, too little
trade sustainable, how much of RCN would be processed infrastructure.
as kernels in Africa by that time, role of government in the
development of cashew sector, consolidation in the cashew Africa, slowly and gradually will increase the processing
sector, the role of financing – where the money is going capacity, with the active support of public private
to come in to the cashew sector, the role of women, and partnership with the participation of government and their
the interesting aspect of where do you see china in 2030-A policies, Africa would at least process between 30 and
supplier/consumer/grower. 40 percent of their produce by 2030. By 2030, Africa may
process over 1.1 million tons of RCN locally. There won’t be
By 2030 the global raw cashew production is likely to be any problem with RCN exports.
around 6-6.3 million tons.
From farm to folk, the supply chain should be through
Food loss in industrialised countries is three times than that the shortest possible transit. The road map for 2030 is
of developing countries. This trend is going on for quite participation of multi state stakeholders with the driving
some time and will continue in the future also. To minimize seat in hands of government of Africa who are the origin of
food loss, especially in cashew, we need to start utilizing cashew for 2030. Supply chain today, is very convoluted as
cashew apple continuously across the growing origins. production takes place in one place and the produce is then
transported to another place for processing, the processed
Focus more on Africa to increase global cashew supply. All kernel is further transported to final place of consumption.
stake holders need to support Africa. If that happens lot of The current scheme fetches less money to growers and also
change would take place. Next important thing is access increases the cost to the end user.
to affordable finance, which is vital to boost supply of
cashews in terms of producers and processors; they must Women will continue to play a very major role in the cashew
have access to finance from banks and financial institutions, sector. Currently about 60% of global cashew workforce
which will incentivize the stakeholders. Next point is about in the production level comprises women and 90% are in
inter-industry and country collaboration, which will play a processing factories. Foresee at least 15-20% of big factories
key role towards supply boost and cashew future, hope to will be owned by women; foresee more women managers in
see improvement in infrastructure development, transport, factories and in the supply chain.
logistics, public investment and education are required,
more importantly skills are to be developed as per modern Cashew market in China is really big, consuming more than
methods and technology at farm levels and each supply 50,000 tons per annum now. The prices are competitive.
chain levels to ensure growth at all levels. The next priority Consumption of cashews in China is likely to grow by 3 to
is bureaucracy. Seamless dialogue between government 5 percent per annum. Chinese consumption of other tree
and private parties is imperative in the development of the nuts such as almonds, walnuts and pistachios are in excess
sector, as cashew is seasonal and varies from one country to of 100,000 tons. Definitely there is a scope for increasing
other. cashew consumption in a big way by the way of promotional
activities.
In 2030, Africa will produce 70 percent of Global cashew.
In Asia, India is likely to be the key player. Some emerging
countries such as Cambodia and Indonesia may produce

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