The Versatility of Cashew
For more than a year, we have been working with companies exporting cashew nuts. One particular company buys raw cashew nuts from farmers in Ghana and Côte d’Ivoire and exports them to India. They have been trading with one of their customers for three years and would like to extend credit terms to them so they can increase the quantity of cashews they import. We are working to provide the best finance solution that will allow our client to support their customer’s requirements and expand their business.
The cashew trade plays a significant role in the global economy with cashew nuts being one of the most sought-after commodities in the world market and is dominated by countries like Vietnam, India, Cote d’Ivoire and Brazil. Europe is the largest consumer of cashews importing 40.00% led by Germany and the United Kingdom followed by the United States which makes up 28.00% of the market.
Cashew nuts are kidney-shaped seeds found on the bottom of the pseudocarp or ‘false fruit’ called the cashew apple. The cashew shell contains a caustic phenolic resin that is harmful to humans. The resin is known under the name cashew nut shell liquid or CNSL and has widespread industrial uses.
The cashew plant and nut are valuable resources in multiple sectors from food production to industrial manufacturing. Derivatives of the cashew plant include raw cashew nuts, cashew nut shell liquid, cashew kernel, cashew juice, nut oil, shell powder, butter, flour and cashew nut peel. Roasted or salted cashews are popular as snacks and in butter, cakes and cookies as well as various dishes from stir-fries to salads. Cashew oil is used for cooking and salad dressing while cashew fruit can be processed into juice, fermented to make alcoholic beverages like feni in India or even used in smoothies. Cashew fruit can also be made into jams and preserves due to its sweet and tangy flavour.
The cashew plant has several industrial uses. Cashew nut shell liquid is used in the production of paints, varnishes and coatings due to its binding and protective qualities and is used in the production of certain adhesives, rubber and industrial resins. It is also used in the manufacture of brake linings and clutch facings in vehicles and as an ingredient in insecticides and fungicides. Cashew oil and extracts are used in cosmetics for moisturising, anti-ageing products due to their high vitamin E content and in hair products for their nourishing and strengthening properties.
One of the most significant benefits of cashew trade is its potential to boost economic growth in countries that produce and export cashews. Cashew farming provides a source of income for farmers in developing countries helping to alleviate poverty and improve living standards. Additionally, the cashew trade stimulates local economies by creating jobs along the supply chain from farming to processing and distribution.
The versatile cashew plant offers a wide range of applications. The future of the cashew trade remains promising and is likely to be shaped by a mix of demand growth, technological innovation, sustainability efforts and geopolitical shifts with Africa playing an increasingly central role in both production and processing.