Kabdan Cashew Exports was registered on 10th October, 2011 with its corporate office at Accra behind Tesano Police Depot. The company is mainly into the exportation of Raw Cashew Nuts to India, Vietnam, and Switzerland. As part of its export diversification program, the company has added shea nut to its product lines.
Demand for cashew nuts continues to rise in all major markets across the world, ie. USA, EU, and Japan. But suppliers are adequate to meet the 10% yearly increase in global demand for raw nuts.
The company exports an average of 10,000 tons annually to India and Vietnam to be processed into various products.
- To establish cashew plantation
- To set up a cashew processing plant in Ghana
- To certify shea nuts as organic
To provide innovative production and mechanization for smallholder farmers to maximize profits within the cashew value chain and introduce standards to shea collectors.
Goal and Objectives
The goal of Kabdan Cashew Export is to enhance its competitiveness in the Cashew Export sector. This will be achieved through the following objectives;
- Increase Production volumes to 10,000MT annually
- Expand exports to other countries in Europe and America
- Employ over 500 casual laborers and 50 permanent staff
- Quality consciousness
- Market Oriented
- Efficiency and Effectiveness
- Social Impact
3.0 MARKET CONSIDERATION
3.1 Cashew Nuts
The following market opportunities were assessed to be viable and of interest to investors in the Cashew Value Chain and Kabdan Cashew Exports are capitalizing on it for its Business expansion:
- Ghana’s cashews are predominantly exported as unprocessed raw cashew nuts. On average, 90% of the raw nuts produced in this region are exported to India and Vietnam.
- RCN exports contributed to 6.1% of GDP and to 18.2% of agricultural GDP (computed according to data available from the Ghana Shippers’ Council and the Ghana Statistical Service).
Market Needs, Trends, and Growth Potential
Cashew is highly in demand globally. Roasted cashew kernels as a nutritious nut as compared to peanuts.
During the last six (6) years, there has been growing in cashew production, is because of its importance to farm families, coupled with high demand for the export market. Production is mostly undertaken by smallholder farmers (88%) who are usually organized into associations. Cashew nut production is an important source of income for many Ghanaian smallholder farmers.
The vast majority of the sub-region’s raw cashew is currently exported to India and Vietnam where it is processed and either consumed in those countries or shipped to the US or to Europe for further processing and packaging. In India, Vietnam, and Brazil, every part of the cashew nut is used or processed to generate income. This includes the nut, the peel inside the shell, the liquid inside the shell as well as the outer shell, and the cashew apple.
While cashew nuts can be processed using the traditional methods, modern processing techniques are more efficient but require a higher degree of capital input (equipment), business management, and planning. There are opportunities to increase the efficiency of cashew processing in the sub-region, but all of it rests on the adoption of a sound business plan and strategy.
Trends in World Raw Cashew Nut (RCN) Production
Cashew is primarily grown in the continent of Asia, Africa, and South America. Asiatic zones mainly include India, Vietnam, and Indonesia as the major cashew producing countries followed by the Philippines, Malaysia, Thailand, and Sri Lanka. Africa countries producing cashew are Cote d’Ivoire, Nigeria, Tanzania, Mozambique, Kenya, Benin, Guinea-Bissau, Ghana, Burkina Faso, Mali, Senegal, and Madagascar. Latin American countries producing cashew consist of Brazil, Columbia, Costa Rica, Honduras, and Salvador.
Though cashew is originally from Brazil, it gained greater popularity in India, Vietnam, and other African countries than Brazil itself. In the 60s India has a major contribution to world production along with Mozambique and Tanzania. From 1961 to 2013, the area underworld cashew nut production has increased at a rate of 4.25 percent (CAGR).
East African countries like Tanzania, Mozambique, and Kenya introduced cashew. But in the 70s Mozambique left the race due to political issues and civil war in the country. In other Asian countries like Indonesia, Malaysia, Cambodia etc. cashew cultivation became popular.
Till the 80s, raw cashew nuts production witnessed slow and steady growth. From the 90s, global RCN production has seen tremendous growth. The huge production increase has been mainly contributed by Vietnam, the newly emerged RCN producer during the period. Since 1990, the Vietnam cashew industry has seen massive growth with respect to domestic cashew nut production and processing.
Cashew production in Ghana is mainly carried out by small land-holding farmers (88 percent), who are usually organized into associations. About 43 percent of the total family income of farmers is generated through cashew farming (Cashew Development Project, Ghana, 2009). Major areas of Ghana that produce cashew nut are coastal Savanna, Brong Ahafo/Afram Plains, Upper East Region, Northern Region, and Upper West Region.
Ghana is one of the important contributors of cashew in African countries. Ghana produces a smaller quantity of cashew nut (2.13 percent of total African and 0.79 percent of total world), however, it exports more than its national production which indicates the cross border trading of raw cashew nuts between Ghana and neighboring countries like Cote d’Ivoire, Burkina Faso, Togo, and Mali.
|RCN Export (Thousand tons)||5||27||22||70||45||32||132||105||170||–|
|Average Export Price (USD/Kg)||0.33||3.05||2.16||0.63||2.65||2.40||0.28||0.30||0.73||–|
PROFILE OF THE MANAGING DIRECTOR
Kwasi Boakye Danquah is the CEO and Managing Director of Kabdan Cashew Export was born on 10th July 1962 in Kyebi Akyem. He is a holder of Bsc Business Administration from the University of Ghana and a Masters in Economics from the University of Massachusetts in the USA.
He was the program coordinator for the African Network of peace in South Africa. Chief Supervisor for Global Good Agriculture Practices (GLOBAL GAP) in Kenya.
He started his own business in 2011 as the managing director of Kabdan Cashew Export.