Price discourages Vietnam from Nigeria’s cashew

The 37,000 tonnes of cashew nuts exported by Nigeria have been rejected by Vietnam because of high price.
The Federation of Agricultural Commodity Associations of Nigeria (FACAN) has revealed.
Mr Peter Bakare, the Deputy Executive Secretary, FECAN, said that price volatility was due to as lack of conducive business environment that had made the price of raw cashew from Nigeria to be higher than the price of finished product in the international markets.
“The banks in Vietnam that usually provide the loans to their buyers for purchase complained that the prices of the finished products are less than the price of raw materials.
“The Vietnam financial institutions therefore backed out of the business, stressing that it is not a profitable venture for its farmers, so the produce are stuck in Vietnam now,’’ he said.
Bakare said that over 67,000 tonnes of cashew were also still lying in the warehouse in Nigeria.
He said however that the Nigerian hibiscus flower popularly called ‘Zobo’’ adjudged to be one of the best in the world was in high demand internationally.
“Some countries are using it as drinks or as base for their wine production,’’ he said.
Bakare said that measures were being put in place to safeguard the export of the flower to ensure that exporters were complying with the sanitary and phytosanitary requirements of “Zobo’’in the international markets.
He said that there was also high demand for Nigeria’s shea butter in the international market.
“It is estimated that if well harnessed for large scale production, it could generate more than two billion dollar annually,’’ he said.
Bakare said that FECAN as the apex body for over 45 commodity associations in Nigeria, it was doing its best to serve as a one-stop shop to link farmers and the private sector operators.