Cashew is an essential crop to the largely agrarian Mozambican economy. The cultivation of cashews supports the livelihoods of farmers and the national economy in the following ways
About ninety-five percent of all cashews exported out of Mozambique are currently produced by smallholder farmers, and there are only a handful of commercial farms. About one million rural households, close to 40% of the population, have access to cashew trees, and cashews are often processed at homes as well as in factories. The old, large-scale factories required large stocks of raw cashew nuts, and machine shelling resulted in excessive nut breakage. Whole cashew nuts are more valuable than halves or broken cashew nuts in the international market. Around ten thousand workers were employed in factories before their privatization and liberalized sector. In 1993, the vast majority of government factories were sold and handed over to private entities. Most owners have begun to rehabilitate factories and change technology into semi-mechanized processing, which is labor-intensive but has reduced nut breakage greatly.
Slow improvements have been witnessed over the past five years. Production varied between forty and sixty thousand tonnes during the late nineties. It rose from a little over fifty thousand tonnes during the 2001 to 2002 period, to over sixty thousand tonnes in the following year, and to seventy thousand tonnes in the subsequent year.
The cashew season in Mozambique begins in the month of October and usually ends in March. Owing to the extended flowering of cashew trees, this period also often lasts until the end of April.
In mid-October, the cashew harvest season begins in this northernmost district of Nangade, which is the main cashew producing region of the Cabo Delgado province. By November, trees in the rest of the country's cashew growing areas are ready to be harvested. Harvesting ordinarily lasts until December, when sales begin.
The price for raw cashew nuts from Mozambique is highly variable and influenced by many factors. The prices depend on a series of factors, including market conditions, the quality of nuts, the number of intermediaries, and the time and place of sale. The level of supply and demand in the US and European markets influence international prices greatly. In Mozambique, the exporting of cashew nuts is controlled entirely by a small group of exporters. This group tends to set the prices for raw cashew nuts from Mozambique each year. In fact, with India being the main buyer of raw nuts, the price is largely based on what Indian importers are willing to offer, based on international kernel prices. The prices for Mozambican cashew nuts are affected by the entry of major players in the international cashew economy such as Vietnam.
The quality of nuts has become more important in determining prices, and Vietnam has recently succeeded in conquering larger shares of the international market solely on this basis. Currently, there are close to a hundred major cashew traders in Mozambique, most of whom are well connected to the main exporters. These large traders rely on a network of small intermediaries who buy raw materials cashew nuts directly from farmers and retail traders in rural areas or small urban centers. All these costs figure into the final price of Mozambican cashew nuts.
The number of unlicensed mobile exporters has increased due to liberalization. Smallholders depend completely on their access to markets (which are highly dependent on access and distance from major roads) to be able to sell their raw cashew nuts better. In Itoculo, in Nampula province, for instance, access to markets is difficult. Farmers who live further away, far from main roads, have fewer buyers and even less negotiating power over prices or terms of barter than those with better road links. Additionally, farmers who can afford to store their raw cashews sell them towards the end of the season in order to acquire much higher prices for them.
The price of Beninese cashew nuts has been affected by COVID, but will only go up as more economies begin opening up. Benin cashew prices 2021 - 2022for both RCNs and processed cashew nuts are headed northwards. Managing these price fluctuations, SCashews’ offers unmatched prices for our retailers in India and abroad. Our prices will add economic value to you as a retailer through our quality, cost, and just-in-time deliveries.
at SCashews to learn more about why we’re one of the most sought-after suppliers of both raw and processed Mozambique cashew nuts, today!