Find out “How to Start Cashew Nut Business in Nigeria (2023)” Are you thinking of starting a cashew nut business in Nigeria? Or you are a farmer into cashew farming and you want to know how you can export cashew nuts from Nigeria to countries in Africa and outside Africa?
Read this article to the end. At the end you will know if the cashew nut business is a profitable business, the capital needed to start, how to start selling cashew nut locally and how to export it. It is well known that nothing wastes in cashew fruits from the flesh to the nuts.
All are nutritious and beneficial to humans. The nutrients in cashews and its nuts are so potent that they have properties that make humans live longer. This is why there’s a huge demand for cashew nuts both locally and internationally.
Is Cashew Nuts Businesses Profitable?
Cashew nut business is a profitable business in Nigeria due to the high demand by local producers who use it to produce different foods and other countries. Due to the amazing health benefits and its ability to last longer on shelves without getting spoiled cashew nut business is considered a good investment as long as you have the capital to start.
Capital Needed to Start Cashew Nuts Business
The capital needed to start a cashew nuts business in Nigeria depends on the type of cashew nut business you are going into. However, you will need a minimum of #500,000 – #1,000,000 to start any type of cashew nut business in Nigeria.
Cashew Nut Business Ideas in Nigeria
Like I explained earlier there are different types of ways you can make money from cashew nut business. These are:
1. Roasted Cashew Nut Business
Yes, you can make money selling roasted cashew nuts in Nigeria. Nigerians that are allergic to ground nuts eat cashew nuts as a healthy alternative. All you need to do is to package it very well in nylon wrappers and bottles.
2. Become a Wholesaler
Another type of cashew nut business you can go into in Nigeria is to become a wholesaler. As a wholesaler you can buy your cashew nuts from farmers and resell to food manufacturers.
3. Become an Exporter of Cashew Nuts
The last option is to export cashew nuts. As an exporter of cashew nuts you can make lots of money exporting the products to Europe, Asia and other African countries. The process in cashew nut exports is longer but it has huge rewards.
How to Start Cashew Nuts Business in Nigeria
Below are the steps to start cashew nuts business in Nigeria.
1. Conduct a Market Survey
No matter the kind of cashew nut business you are going into, it is important you conduct your market survey. There are so many reasons why this is important.
However, the most important one is that it lets you know the best cashew nut business suitable for you based on the capital you have at hand and the area you want to start the business.
You do not need to stress yourself if you do not know how to conduct a market survey for a new business.
2. Develop a Business Plan
A business plan is very important. Conducting your market survey will not cover it. However, you can cover your market survey in your business plan. There are many benefits you stand to gain when you write business plans before venturing into businesses today especially if the business is a new business.
Writing a business plan can help you to estimate how much you can make from a business even before starting the business. Another benefit of having a business plan is that it gives you a professional view on how to start the business.
When writing a business plan you need to write it based on the capital you want to use to start. You cannot say you want to start a business of #500,000 and you write a business plan of #1,000,000.
3. Get your Needed Capital
Capital is very important when it comes to starting a business like this. If you do not have it at hand you can save ahead for the business or simply ask for support from your family and friends.
If you are not considering this as an alternative option, there are other ways you can source for funding for your business idea.
4. Register your Business Name
For all businesses to be considered a legal entity in Nigeria it is important for these businesses to be registered under the Corporate Affairs Commission (CAC). After getting the capital needed to start your cashew nut business, the next step is to register it.
There are information needed to register your business, you also need money to register and process your application. We have written an article on how you can do this easily.
5. Register with NEPC
If you are considering exporting your cashew nuts outside the country this step is for you. To be able to export your cashew nut outside Nigeria you need to register your business with Nigeria Export Promotion Council (NEPC).
This body is responsible for the overseeing export affairs in Nigeria on behalf of the federal government of Nigeria.
6. Locate a Farmer
There are many cashew farmers in Nigeria. Most of them are located in the western states in Nigeria. Except you are already a farmer you need to locate a cashew farmer that will be supplying you cashew nuts. Cashew nuts on a large scale are not just gotten from the cashew tree.
They need to be processed before the nuts can be gotten. The farmer could either sell both the fruits and nut to you or sell only the nuts it depends on so many factors. The nuts need to be dried before they are packaged in sacks. How much a bag of cashew nut is sold depends if it is the harvesting season.
7. Secure a Location
After locating a trustworthy farmer, the next step is to secure a location where you can store and sell your cashew nuts. You do not need a prime location like bus stops or round abouts to sell your cashew nuts.
Anywhere is you see is good enough as long as it is secured. When you have rented a shop or store you can buy your nuts and get them delivered to your shop.
8. Sort your Cashew Nut
Most cashew farmers ignore the fact that they need to sort their cashew nuts before selling them to buyers. To make sure your nuts are neatly sorted, you need to sort your nuts before repackaging them. How long it takes you to sort them depends on how many bags of cashew nuts you have. To make the process faster you can hire workers.
9. Export or Produce your Cashew Nuts
If you want to roast your cashew nuts to sell, at this stage you can start the production. But if you want to go into exportation, at this point you can start exporting your cashew nuts. To succeed at doing this in your first trial, you need to locate buyers online in different countries.
You can also run adverts on social media apps like Instagram, Facebook and Twitter to attract buyers.
Conclusion
Cashew nuts business in Nigeria is a goldmine but the business takes time before it starts yielding profits especially from the export angle. If you are really serious about the business you can start by selling to local buyers before going into exportation.
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