Agusto & CO. Agric Commodity Report Focus: Exploring Opportunities in Home-Grown Cashew & Sesame Seeds

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Owo Arugbo: Ekiti Begins N20,000 Payment To The Elderly As Monthly Stipend For Social Security Scheme

Ekiti State Governor, Dr Kayode Fayemi on Wednesday re-launched the social security Scheme for elderly citizens in the state with,...

PZ Cussons commences entries for Cussons Baby Moments’ 6th season

PZ Cussons has announced the commencement of entries of the 6th season of its eponymous baby competition in Nigeria tagged...
- Advertisement -
- Advertisement -

Over the last decade, the global agricultural commodity market has improved significantly due to population growth, economic growth, advances in transport, information and communication technology, and improved access to markets. Accordingly, the global cashew market has recorded strong expansion in the last decade, with cashew nut production increasing at a compound annual growth rate of 5% to 790,000 metric tonnes[1] in 2018.

Growth in the international cashew market has been supported by increased consumption of cashew (particularly in middle – and upper-income countries) due to greater health consciousness. This is as cashew nuts are said to contain ‘heart-healthy’ fats, minerals and vitamins, which consumers like to incorporate into daily diets. Other valuable parts of the cashew tree include the cashew apple which can be eaten raw or used as jam, preserves, juice, liquor, dietary fibre in confectionaries, bioethanol fuel and as a feed ingredient in the livestock industry. The juice of the cashew apple is also used as a salve to relieve rheumatic pain.

Read:  June Edition: Latest Prices of Building Materials in Nigeria 2018

In the same way, sesame seed also referred to as ‘Beniseed’ in Nigeria are mainly exported to Asia and Europe for use in the preparation of hummus, toppings on sushi cuisines and confectionery products. The product’s gross export value to Asia and Europe reached ₦30billion in Q4’2018 – highlighting an export potential of ₦120billion per annum in Nigeria. Sesame seed remains in high demand abroad by pharmaceuticals and industries that produce soap, shampoo, lubricant, paints, cosmetics and oil[2]. A popular women’s body lotion ‘Neutrogena’ is made from sesame oil[3].

While cashew and sesame remain key agricultural export commodities in Nigeria, the products like other agri-commodities are traditionally exported in an unprocessed form which creates a loss in value add. Almost 40%[4] of global cashew supplies are shipped to India and Vietnam for shelling and, this loss of value-added totals about $200 million[5]. Therefore, there is need for increased private investments in cashew and sesame processing. This will involve investment in state-of-the-art processing facilities, raw material sourcing from reliable small- and large-scale farmers with good quality output as well as adequate marketing to reach wider clients. It is necessary to note that overseas clients often insist on product quality certifications or at least agro produce inspection from reputable vendors such as SGS for quality assurance.

Read:  Unibadan Business School ready soon - Dangote
Read:  Nigeria, India To Expand $12 Billion Bilateral Trade

Most importantly, for cashew and sesame seed processing to thrive, there is need for adequate supply of raw materials – implying that farming challenges such as (use of crude farming implements, smallholder farmlands, poor access to capital which inhibits farmers’ use of modern planting, harvesting and threshing machines, etc) must be resolved.

Overall, Nigeria’s cashew and sesame seeds remain key crops that will drive the export diversification bid of the Nigerian Government, given the crops’ rapidly developing markets due to growing consumption as snacks and toppings for bakery products.

[1] International Nuts & Dried Fruits Statistical Year Book 2017/2018

[2] https://thenerveafrica.com/14251/sushi-appetite-grows-nigeria-sesame-seed-export/

[3] https://www.agronigeria.com.ng/sesame-seed/

[4]http://documents.worldbank.org/curated/en/389621468214795797/pdf/603680NWP0KH0C10BOX358315B01PUBLIC1.pdf

[5] Ibid

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Ensurity Technologies joins the Microsoft Intelligent Security Association

HYDERABAD, INDIA - Media OutReach - 17 October 2019 - Ensurity Technologies, Hyderabad, India-based cybersecurity company, is pleased to announce that it has joined the...

Sunlight Real Estate Investment Trust ("Sunlight REIT") Operational Statistics for the Quarter Ended 30 September 2019

HONG KONG, CHINA - Media OutReach - 17 October 2019 - Henderson Sunlight Asset Management Limited (the " Manager"), as manager of Sunlight Real Estate Investment Trust...

FG mulls new tax on Coke, Bigi, other soft drinks

Zainab Ahmed, the minister of finance, says the federal government is considering introducing excise duty on carbonated drinks. The minister made this known while addressing...

“Best Global Brands 2019” – Mercedes-Benz is once again the world’s most valuable luxury car brand

Mercedes-Benz further increased its brand value and is once again the world's most valuable luxury automotive brand. In the latest "Best Global Brands 2019"...

More Articles Like This