Beninese Government Aims to Boost Cashew Nut Market

Benin is the 10th biggest producer of Raw Cashew Nuts (RCN). In 2019, it has produced around 150K metric tons, which is 30K tons lower than in 2018, when 180K tons were produced. More than three-quarters of the cashew nuts produced are destined for export. In 2018, the country exported 140K tons of cashew, worth 302.1 million USD. Like other West-African countries, Benin was affected by 2018 market dynamics, when extremely low prices hit the RCN market. According to InterDomestic, a Korean cashew exporter operating in Benin, “We were among the victims in 2018. We bought up cashew crop at the beginning of the season, and before selling, the price hiked down. It was very difficult to find buyers.” Due to government intervention, the prices and market have stabilized again.

“Beninese cashew nuts are known to have the best quality in the West Africa sub-region,” according to InterDomestic. This is due to their softer outer hulk, which makes it easier to de-shell and process the nuts. The Kernel Outturn Ratio (KOR) 47-49lbs per 80kg. The main export markets are India, which imported 276.5 million USD of Beninese RCNs in 2018, and Vietnam.

Production has decreased this year due to unfavorable weather conditions. Furthermore, for several years the Beninese government had levied duties on buyers, which decreased the demand and made several RCN producers turn to more profitable crops, such as cotton. However, the government has reviewed the law this year and has lifted the duties, according to InterDomestic. The government now seeks to actively encourage the production of RCNs, as the crop has a lot of potentials. “For now, they are mobilizing Beninese and other potential actors to create new plantations and/or rehabilitate old ones with modern standards to boost profitability. The government is also supplying producers with quality seeds.”

Benin has recently started investing in shelling its own RCNs, which would keep more profit in the country. When processed, the value of the nuts would climb from 5.3K USD to 9K USD per ton. Furthermore, the country is also examining other ways to make profits from byproducts of the nuts. Cashew apples, the fruit on which the nut grows, are made into juice and the acidic liquid found in the hard outer shell of the nuts is processed into Cashew Nut Shell Liquid, CNSL, which can be used for industrial purposes. InterDomestic welcomes these innovations, but is aware of the investments these development needs: “Although the government has been attempting to develop the market with new products, and such effort is always welcomed, we feel that it will need many financial and technical resources to be realized.”