How To Start Cashew Farming Business
Cashew farming is one of the profitable agricultural business ideas that anyone that wants to go into farming could consider. Cashew is a fruit that is consumed round the world. According to Wikipedia “ In 2017, the global production of cashew nuts (as the kernel) was 3,971,046 tonnes, led by Vietnam, India and Ivory Coast with 22%,19% and 18% of the world’s total respectively. Benin, Guinea-Bissau, Cape Verde, Tanzania, Mozambique, Indonesia, and Brazil also have significant production of cashew kernels”. These countries have increased their Gross Domestic Income through the exportations of Cashew. Farming Cashew for commercial purpose can generate a great source of income both to the farmer and to the country at large.
What is Cashew?
Cashew is a fruit that grows seasonally and its seed is attached to the fruit. It is a tree crop that is usually single-trunked and spreads in a habitat. The tree can grow as high as 14m (46ft) but the dwarf cashew grows 6m (20ft) and it is more profitable and has greater yield. The cashew seed is the nut. The largest cashew tree in the world covers an area around 7,500 m2 (81,000 sq ft) and is located in Natal, Brazil.
Cashew farming business is a long term investment and it can be passed from one generation to another.
Step By Step Guide On How To Start Cashew Farming Business
Acquire a Piece of Land
The first factor to consider in starting a cashew farming system is land. Land refers to a free gift of nature and it is a very paramount factor. Cashew trees can last for more than 50 years, so, in acquiring a land for the business, make sure you get a land that you can use for a long period of time. I will recommend Land Purchase Tenure System but land inherited from family members is not really a bad idea, in addition, make sure you get the relevant documents for the land acquisition. I will not encourage the farmer to go for lease tenure system because Cashew farming has longevity effects. The best soil for cashew cultivation is sandy loams.
Land Clearing or Preparation
Prepare the land by clearing grasses, thorns and shrubs and also use a machine to level the land. Test the nutrient of the soil whether it is high or low, if the nutrient is low then add animal dung to the soil and mix thoroughly to increase its fertility. Cashew farming can be done in wet and dry tropics.
Making Inquiries from Correct Sources
It is very important for the farmer to get guidance from correct sources that have successfully carried out researches on cultivation of cashew crops so that your cashew farming business can be a success. In Nigeria, for example, the Cocoa Research Institute of Nigeria (CRIN) conducted many extensive researches on cashew; the result of this study has led to the increase in the yield and production of cashew. In addition consulting this research body can also help you to select the correct variety of cashew to plant. There are three major variety of cashew nuts; The Brazilian Cashew, Chinese Cashew and Indian Cashew.
Planting of Cashew
After acquiring a piece of land, clearing and making inquiries the next thing to do is to plant. Cashew is a perennial crop that grows in 3 years. Planting cashew seeds can be very stressful, the planting starts from the nursery before being transferred to the field plant them in containers and irrigate for 4-7 days. Make sure you use fresh seeds, dry the seed under the sun for three days then soak them overnight before planting them. If this process is too rigorous, you can buy the already sprouted ones. The general spacing is 7m by 9m, however you can still use the planting distances 8m by 5m to give 100 seedlings on hectare 7.5 by 7.5 to give 175 per hectare or 8m by 8m to give 156 per hectare.
It is also advisable that you plant cassava, groundnut, cowpea and other crops to over the farm when the cashew is still at early stage.
After the cashews have been planted, the next thing is fertilization. In order to get better yield, apply the adequate ratio of NPK in the soil. Application of 10-15kg of farmyard manure per plant is recommended to ensure adequate organic matter. Cashew crops need nutrient at every point in order to grow faster and yield good fruits. Apply this fertilizer when it produces fruit and also when it produces flower.
Irrigation
The temperature required for cashew farming is 25C-30 which is ideal for optimum growth and in addition 6 hours of direct sunlight. Irrigate your cashew farm during the absence of rain or dry season so that it can produce vibrant fruit. it is only when the cashew plantation is in the early stage of growth that irrigation is required once the trees are grown, they can survive for four months without water.
Weeding and Mulching Cashew Plantation
Weeding the Cashew farm is very important, so that these weeds will not reduce nutrients from the cashew trees. You can use hoe or light digging to weed the farm. If there is shortage of labour chemicals like Gramaxone can be sprayed on the farm.
You can use dry leave and grasses to mulch the farms or you can use compost manure for mulching to increase crop yield. In addition, cashew farms are usually pruned; pruning the trees by removing the lower branches and water shoots coming from the base during the first 3 years will ensure better health of the plant.
Control of Pests and Diseases
Diseases and Pests can cause great damage to crops and can render the farmer’s labour unfruitful. The diseases that affect cashew are flower die-back, twig die-back and Root rot of cashew crops while the cashew pests are tea mosquito, flower thrips, stem, root borer and nut borer. You can control the pests by dusting with 2% sulfur W.P.
Harvesting
Harvesting of cashew is more tedious than planting it, at this crucial stage, there is a great need for labourers that will work in the farm. There are different ways to get labourers, you can talk to friends and family to assist you at the initial stage but as the business expand you may have to recruit labourers that will be on your business payroll. The trees are known to bloom for 2 to 3 months and the fruit ripens about two months. The cashew apple is very delicate and it easily gets bruised, so the fruit should not fall on the ground. Harvesting involves using a sharp knife to detach the cashew apple from the nut and if the separation is not done properly, it can affect both the cashew apple and nut. The cashew apple is very perishable, you can sell the cashew apple to companies that use them for beverage, juice and jam and you can also sell it to market traders.
The cashew nuts when separated from the cashew apple should be dried; there are different methods of drying cashew nuts. In developing countries of Africa, Cashew nuts are dried using the open-air sun drying, the nuts are placed on clean metallic surface and dried under the sun for some days. Other drying methods includes: solar dryer, kernel drying using electrical energy and Cashew nut dryer. When the nuts are dried, they produce a rattling sounds.
Storage of Cashew Nuts
Cashews can be stored for 12 months or more when they are dried, cashew nuts should be dried to 3% moisture before being packed to avoid fungal and other severe infections. They should be packaged in plastic bags, jute bags, sacks but they should not be stored in containers. Stitch the jute bags to avoid spoilage. The bags should be placed in a ventilated area to avoid spoilage and also don’t place them on the floor to avoid moisture absorption that may spoil them. Leave a clearance of 0.5m between the bags for air to circulate properly. The nuts should be sold with the duration of one year to avoid spoilage.
Roasting of Cashew Nut
In cashew farming business, roasted cashew nut when sold is more lucrative than dried cashew nut or the fresh ones. A ton of roasted cashew nuts goes for $10,000 in the international market while a ton of raw cashew nuts goes for $1,200 There are different ways to roast cashew nuts, you can rub oil and salt and roast them in the oven, you can set fire and put a wire gauge on it and roast the nuts , make sure you don’t allow the nuts to get burnt. Cashew nut when roasted is very delicious. For commercial purpose you may need to get a cashew nut roaster machine. The nuts can be packaged in bottles, customize company nylon and many more ways.
Business Structure
Set up a standard business structure. There are different business structures and they are sole proprietorship, Partnership, Limited Liability Company and corporation. The easiest is sole proprietorship but as the business grows, you may have o diversify because of investors. Each business comes with different tax consequences, make your selection wisely and choose the structure that matches your business needs.
Registration of Business
Register your business with the government of your country, the government of each country provides a guideline on how a business should be registered. Firstly, you must decide on the business structure before you register, secondly you will decide on your business name that will suit your business.
This business is an agricultural base business; the business should be situated close to the cashew plantation. Basic amenities like electricity, pipe borne water should be available and also there should be space where customers can pack their cars and feel comfortable. If the business is situated close to the farm, it will be very beneficial for the business but if it is far from the farm, transportation medium have to be put in place. If the business setting is far from the cashew farm, transport mechanism like cars, trucks will be used to convey the harvested cashew apple and nut from the farm to the business setting. Do not set up your business in a busy or noisy area or an area full of competitors.
Target Customers
Everyone consumes cashew nuts except some people that are allergic to it. The closer you are to your customers the greater the chances that they will buy from you. In this business of cashew farming, you are the manufacturer and wholesaler at the same time. You can sell the cashew nuts to retailers or market traders. You can also sell the roasted cashew nuts to final consumers while the dried cashew nuts can be sold to companies and even the government for exports. The cashew apple is very perishable so you can sign a partnership agreement with companies, as soon as these fruits are harvested they can be sold to these companies. These companies process them into juice, jams and beverages.
Price
The law of demand and supply says the higher the price the lower the quantity demanded and the lower the price the higher the quantity demanded. Set up a universally accepted and standard price for your product. High prices of commodities can kill a business. Do not exploit your customers but seek to make profit. Cashew business is very profitable.
Marketing
Locate companies that buy cashew for exports and you can also sell directly to foreign buyers. You can use Google or other search engines and type “companies that buy cashew”; you will be presented with the names of such companies. After you have gotten the names of such companies you can go ahead and contact them and then enter a partnership agreement with these companies so that you can supply cashew nuts to them. There are other marketing outlets you can use:
- Social Media: the social media consist of Facebook, Whatsapp , Twitter and Instagram. These can serve as very good marketing outlets. Post pictures of your farm and the raw cashew on your wall for your customers to see them. Social media is a very fast and cheap way to advertise your product and most companies have social media accounts so it will be very easy to reach out to companies and individuals through social media outlets.
- Handbill and Flyers: Print handbill and flyers and give friends and families to help you distribute, make sure you make them very colourful and attractive. Write out some health benefits off cashews on the handbills. The flyers on the other hand can be posted on the community roads or street roads, make sure it is attractive to customers. Make sure you write your business address on the handbills and journals.
- Newspapers and Magazines: You can place an advertisement in newspapers and magazines about your cashew business. I will advise you book the middle page, front page or back page because these are pages that readers love to read and you will easily get their attention. Most company investors read newspapers and magazines a lot too.
- Business Website: You can launch your own business website. Anyone that types “companies that sell raw cashew” on search engines will see your website among the list. Most investors, especially foreign investors, will find it very easy to reach you through your website. You can also place price tags and payment methods on your website but that will be very expensive.
- Other business websites: You can use other websites to advertise your business. It must not be solely a business website; it can also be an educational or informational website. As people browse online contents, these advertisement placements will be made visible to them.
Total Estimate For Setting Up A Successful Cashew Farming Business
We understand that people will read this article from different geographical locations. Therefore, it is actually practical impossible to provide a costing that will suit everyone. On this note, I encourage you to look at the list below and put appropriate and reasonable amount as your estimated costs.
Land or hectare of land
Surveying of Land
Clearing, ploughing and harrowing
Seedlings
Planting
Others
Advantages Of Cashew Farming Business
- It is not too expensive to start. Cashew business is not too expensive to start; it just requires land, seed and labour. Sourcing for capital will not be tedious, you can use your personal investment to start up the business
- It can last for a long period of time. Cashew business can last for a long time and it can be passed from one generation to another
- The target consumers are large. Cashew farming business does not have specific target consumers because it is consumed by everyone except for those that are allergic to it.
- Maximum profit: This business can generate maximum profit. That is why investors are easily attracted to it. More so, cashew is a delicious delicacy that is consumed round the globe and it is used to prepare delicious culinary dishes and this makes cashew to be on high demand round the world.
- It boosts countries economy: Cashew business is not just beneficial to individuals who practise it but the entire country at large. It boosts the Gross Domestic Income of a country through exports.
- The business expandson yearly basis: As years go by the cashew plantation produces more fruits, year in and year out and this will increase more profits to the farmer.
Disadvantages Of Cashew Business
- It takes time to grow: The cashew seed when planted takes about 3 years to grow into a tree, though it depends on the variety, some variety may take up to five years to grow.
- It is a seasonal fruit: it comes out once in a season that is from January to February or May. The Cashew nut can be processed and stored but the cashew apple is only consumed during this season.
- The cashew apple is perishable: The Cashew apple easily gets bruised and spoilt.
- The harvesting process is tedious: The harvesting process is too tedious and if the farmer does not get adequate labourers, it can be very difficult for the farmer.
- The raw nuts don’t last too long: the raw nut cannot last more than one year if not roasted. Nuts like ground nuts can last for a very long time when dried.
- The farm can be affected by natural disasters, fire or communal clashes.
- Poor management of the farm can spell disaster for the overall business.
- It can be expensive to operate, if it is practised in an environment with low rainfall.
Uses of Cashew
- It serves as a good source of food: the Cashew apple or fruit is oval shaped and it is consumed by people. The cashew apple can be eaten fresh and it can also be processed into jams, juice or fermented to vinegar. The Cashew nuts is more consumed than cashew apple because cashew apples are perishable and they are consumed only at a particular period of time. The nut is also used to prepare delicious cuisine round the world.
- It can be used for industrial purpose: The Cashew nut can be processed into cashew cheese or cashew butter. The cashew nutshell liquid or oil is a raw material for industries that is used in developing drugs, antioxidants, fungicides and biomaterials. In a country like Cambodia, the bark of cashew is used as yellow dye, boat making and a source of charcoal.
Cashew apple and nuts can be used for different purposes round the world, it is a versatile fruit, and countries like India use it to make excellent culinary dishes, in Brazil it can be used to make milk, cheese and even flour. It cannot be argued that cashew is a blessing to the human race.
Health Benefits of Cashew
Cashew fruit and nut have a lot of numerous benefits. Cashew fruit is rich in copper, magnesium, potassium, iron and zinc and it also helps the body to lose weight. Cashew nuts on the other hand is an excellent source of antioxidants, protein and it also boosts the immune system. They are also very low in cholesterol and it is very rich in selenium which boosts the thyroid gland.