Nigeria's hope exceeded earnings of $ 402 million. The United States from the export of cashews this year is under threat, said the president of the country, the Federation of Agricultural Commodity Association of Nigeria, Dr. Victor Iyama.
Iyama said that this was due to a sharp drop in world prices and reduced demand for cashew in Nigeria after mass production from other producers. He said that international cashew prices have fallen since March, after mass production by Tanzania, India, Vietnam and others.
World market prices for various varieties of raw cashews range from 1500 to 2100 dollars per ton. However, by May 2018, rates had fallen to $ 1,800 and $ 2,000 per ton, and by the end of June this year had decreased by $ 1,600 and $ 1,800.
As a result, buyers objected to high prices. Given the decline in the market, he said that exporters also buy limited volumes.
He said that cashew exporters see a decline in sales, as exporters are trying to get out of contracts because of the fall in world prices.
He said that the industry is concerned about unpredictable prices.
He explained this with the help of the impasse of Apapa Road, thanks to which trucks carrying cashews spend about a month on the road.
Iyama said that Nigeria produced 220,000 metric tons of cashew nuts out of 2.1 million tons in the world last year, adding that this year the country exported 120,000 metric tons.
Farmers in the country earned N123 billion ($ 402 million) from cashew exports last year. Export earnings from cashew nuts have witnessed steady growth over the past two years, rising from $ 152,000,000 in 2015 to $ 259,000,000 in 2016 and $ 402,050,000 in 2017.
The main importers are the United States, which accounts for 29 percent of the total value of cashew exports, the Netherlands 17 percent, and China 15 percent.