Cashew Nuts Aren't Readily Edible
In 2017, 770,000 tonnes of cashews were consumed globally. They are one of the most popular and sought-after nuts in the world, worth over $6 billion today. Cashews grow in tropical regions like India, Vietnam, Ivory Coast, and Brazil. The trees belong to the same family as poison ivy, and like poison ivy, cashew plants contain a toxin called 'Urushiol'. It is found in the plant itself and in the brown oil inside the shell of a walnut. The toxin can cause burning, itching, and even blisters when it comes into contact with skin. This is why unprocessed cashews are considered unsafe to eat or touch. The presence of the toxin is also why raw cashew nuts require more rigorous processing than other nuts. Usually, people think that cashew nut products come to market as they are. This is, however, a misconception as there's a very complex procedure of processing involved before they can be sold.
Each fruit produces only one shelled nut, called a drupe, which the workers separate by hand. The nuts should then be dried in the sun to help extract some of the caustic liquid from the shell. The most difficult and dangerous step involves splitting the nut because a poisonous oil always coats the drupes. Cashews are brittle, so most processing facilities carry out this step manually to make sure the machines did not break the nuts. But doing it by hand has often given rise to problems within the industry. NGOs have denounced certain factories for overworking employees and for the risk of burns if they cannot afford to buy gloves to protect themselves. Today, processing machines have become advanced enough to break the shells cleanly, keeping the majority of nuts intact and helping to minimize risks to workers.
Currently, there aren't a lot of people who can do this job, because of the lack of training and exposure. In order for cashew suppliers to meet the demand for continued supply of cashews globally, they need more employees. This is why they use machines to peel. This is perhaps the biggest difference between small-time suppliers and large-scale ones. A facility that can only shell twenty kilograms of drupes per day by hand loses out to a facility that uses machines as they can shell as much as forty kilograms per day.
Once a machine has split the shells, the next two crucial steps are totally up to the workers, who have to do them by hand. The nuts are roasted to make sure, again, that the toxic liquid inside is destroyed. The next step is particularly tedious, as it relies entirely on manual labor. Workers should peel off the husk or dry outer coating that surrounds each nut, as it is rich in tannins and could irritate the throat. Removing it is a skill that one masters with practice. Experienced workers only shell about two and a half kilograms of cashews every night. Not only is this step the most difficult, it also has the biggest impact on the price of the processed cashews.
Experience is the main factor. If a newcomer joins a processing facility, that person will most likely not be able to reach the required standard, which means the nuts will be broken.
Cashew Nut Prices Also Vary With Variety & Cashew Grades
Cashews are classified according to several characteristics, such as color, weight, and condition. Large whole nuts are the most valuable.
Whole nuts are the most expensive category. The next grade is that of split walnuts, and finally, come broken nuts. If for instance, the price of one kilogram of whole cashew nuts is $34.26, the price of split nuts will be about $0.68 less than that, while the price of broken nuts will drop to $27.39.
Another Reason That Cashew Nuts Are So Expensive Is Because They're Seasonal
“Owing to the fact that cashews can only be harvested once a year, growers across the globe keep some of the nuts in stock so they can continue to make a profit in the months to come. This, however, comes at a high cost. Simply storing the nuts can cost over $65,000 each year, depending on which part of the globe they are stored in.”
Because cashews are a seasonal fruit, they aren't like coconuts, which can be harvested every month. Cashews can be harvested only once a year. Cashew suppliers have to invest a huge amount of money and store it. If cashews could be harvested regularly, the market price would not be that high. As the harvest is only done once a year, cashews are expensive.
“This results in a slight fluctuation in prices throughout the year. In December last year, supply declined, and so the prices increased. The supply chains of individual cashew producing countries also play a role. While countries like Vietnam and India process and sell a lot of their own cashews in the domestic market, other countries export much of what they grow. The chances are that many of the cashews that one can buy in the United States or Europe were grown in Africa, then processed in Vietnam or India, and finally exported to the western market. The African continent produces close to half of the entire globe’s supply of cashews. Côte d'Ivoire, for instance, produced around seven hundred and thirty thousand tonnes of raw cashew nuts in 2019. But it exported over ninety percent. This is because the Ivory Coast and other African countries still do not have a strong processing industry. Côte d'Ivoire plans to expand national processing by 2024. But without it, cashew nuts are much less valuable. In 2018, the export price of cashew nuts processed in India and then exported to Europe was two hundred and fifty percent higher than the price paid to Ivorian farmers. Vietnam, meanwhile, was one of the first nations to invest heavily in automation, making it a key location for cashew processing. Today Vietnam is the world's largest cashew exporter. Within the first three months of 2024, Vietnam exported more than one hundred and eight thousand tonnes of cashews. Automation has also reduced the need to hire workers, which is why many factories in India continue to process manually. In many homes, it is a profession that has been passed down for generations.
“Whether done by hand or by machine, processing cashew nuts is no easy task. And the global climate crisis could make things even more difficult. According to a 2013 report highlighting the impact of climate change on cashew cultivation, non-seasonal rains and heavy dew are proven to negatively impact the quality and quantity of cashew nuts. This year alone, most harvests came late because of this.”
Because of rains, it takes a while for the shoots to come, and when it rains heavily, the fruits get washed away, which results in a drastic reduction in the harvest. When the harvest is good, cashew cultivators usually harvest about one thousand kilograms per day. As the harvest is beginning to lessen these days, cashew farmers only harvest between three hundred and four hundred kilograms on average per day in most cashew-growing countries around the globe. Despite climate challenges, cashew cultivation continues to be a popular and lucrative enterprise. Healthy eating trends have proven to be integral to boosting the demand for cashews, as well as the versatility of the cashew nut itself - another reason the nut remains so valuable. Whether used as a snack, baking paste, or an alternative to milk or butter, cashews have many applications around the world. Researchers predict that the market will reach seven billion dollars by 2025. Despite the fact that cashew nuts are currently cheaper than they have been in recent years, the rising demand for them is expected to drive up prices very soon.
