Anga Sotonye is an Executive Committee member of the National
Cashew Association of Nigeria and the Coordinator, Agribusiness &
Youth Empowerment in Nigeria. In this interview with ABOLAJI ADEBAYO,
he speaks on what Nigeria is losing for her failure to fully harness
the potential of cashew and other agro commodities for manufacturing
industries’ benefits and the nation’s economic growth
Sir, could you give an insight into the process of preparing cashew for export and what it involves in processing it?
Yes, our equipment just arrived, cashew processing equipment. Right
now, we are about to start assembling and all of that to process cashew
nut into cashew kernel that is one of the ways we would soon commence
aggressively. To me, that is how we can create more jobs and we can earn
more because locally there is a very big market for cashew. But, when
it comes to export of raw cashew nut generally it is big business that I
can always maintain that there is cash in cashew processing.
At a cashew warehouse like this, the process is straight forward. You
buy any cashew from the farm gate, in the bushes, in places such as
Enugu, Kaduna, Nasarawa, Kogi, Oyo, Abia and other parts of the country.
We buy the cashew directly from the farmers and bring them into the
warehouse for processing and subsequent sale in local and international
markets.
As a commodity exporter, could you expatiate on export potential of commodities like cashew, ginger, garlic and others?
We export cashew, ginger, sesame seeds and other agricultural
commodities but our expertise is exclusively in trading and exporting
value addition of these commodities, including plantation in the
(blueprint) and management. Cashew for instance is a great crop. I call
it a winner crop because everything about cashew is just useful. You can
imagine, when you plant cashew it becomes the first line of defence to
fight erosion and you are contributing to an improved and a balance
environment. The canopy the cashew trees provide serves as shield for
relaxation, and when it comes to the cashew nut itself, there is so much
to it.
You can take the cashew nut for export as raw cashew. In
Nigeria, raw cashew nut is exported that is what we do predominantly.
Nigeria today produces 124,000 metric tons of cashew nut, just nut. We
are not talking about cashew apple, and we are not talking about other
by-products of cashew, just the nut alone.When you talk about the apple
we produce over a million metric tons of cashew apple that can easily be
converted to cashew apple juice but over 90 per cent of that cashew
apple juice is wasting during harvest because there is no processing. In
fact, there is zero processing in Nigeria for cashew apple so it is
wasted.
Is there any nutritional value in cashew, what are the health benefits of eating cashew?
When you look at the cashew apple it is richer in vitamin C complex
so when 90 per cent of that is wasted you can imagine the colossal loss
the economy is going through in the first place. We encourage people to
consume cashew apple but people zero in on the cashew nut because this
is where the economy potential of the cashew is, that is obvious so,
everybody is going into the business by buying the raw cashew and
exporting it. The cashew nut has zero cholesterol. So, for the
health-conscious consumers, cashew nut is preferable. When you go to
somebody’s house and they bring cashew nut, ground nut and they drop the
two before you, naturally you will go for the cashew nut because the
cashew nut has greater appeal, it looks more prosperous and of course it
is healthier but it is more expensive and because it is expensive you
don’t find it everywhere. Mainly you find cashew nut in the home of the
rich.
What is the value at the export market, do you have a
benchmark for how much a bag of cashew is sold or do you sell per
container?
The measurement actually is in tons and today a ton of cashew sells
for $1200. We have 1000kg in a ton and 13 bags make one ton. In a
container, you have to store about 17 tons. You can decide to ship 100
containers, 200 containers; it can be 1000 containers depending on the
finance that is available to you. Cashew is a big business and it is a
serious business, it is a sector that should be supported strongly by
the government because cashew is an industry that is not yet fully
explored, the potential of the cashew industry has not been fully
harnessed.
When you do not fully harness the potential of this industry it means
that you are still as a nation that will be suffering from job loss,
reduced income, you are suffering a whole lot of disadvantage. When you
are exporting raw cashew your market globally is defeated than when you
are exporting value added product.
Does Nigeria really depend on imported processed cashew?
Yes, we do.. When we export our raw cashew into Asia it is processed
there and that processed cashew would have created jobs for their own
people. By further exporting the processed cashew into Nigeria they are
also earning foreign exchange for their countries and we buy it as
Nigerians and we eat it.
What we have in Nigeria is low profile processing, which cannot be
compared with the imported ones. We need, as a nation, to build very
advanced cashew processing facilities because we have the capacity, we
have the raw materials. We can take advantage of these raw materials to
add value to them. It can create local jobs for our people and we can
sell the processed ones locally and also export them.
With your experience in cashew trading, what does it entail to have a state of the art world class processing plant for cashew?
You need on the average about $400,000 on the minimum and when you
convert the money into naira, you are talking about N83 million. That is
what we need on equipment alone, not to talk about the warehouse for
the factory and all other things. So, why would you want to invest
$400,000 of hard earn cash into processing when you are not sure of
electricity. If you don’t have electricity it means are going to be
utilizing generator and diesel, which is also very expensive. You are
going to compete with countries like Brazil, Vietnam, India and others
that have constant electricity at a very low price.
You want to use
generator to process and compete with these countries, you cannot
compete. So, for us to be able to build a sustainable cashew industry we
need to support the industry, a lot of government support is needed.
Right now, we know that as a country we don’t have stable electricity.
So, government should give cashew processors some form of subsidy to
subsidize their cost of electricity because running on generator is huge
cost for them.
The other time you were trying to explain cashew nut and the
economic value of its other components would you like to share some
light on that?
The cashew nut I called the winner crop; it is so valuable because it
is a big industry on its own. When you export raw cashew nut, you do
not just export cashew nut alone. First of all when you crack this
cashew nut you have what we call cashew nut shell, from the cashew nut
shell you can extract cashew nut shell liquid which is called CNSL or
shell liquid.
Cashew nut shell liquid is used for a lot of industrial applications
including the manufacturing of insecticide and a whole lot of products.
Cashew nut shell burns like wild fire and it contain bio fuel. When you
come to cashew cannel, it is what people eat as a processed cashew nut.
You salt it, you can spice it with pepper depending on your taste. When
you look at the whole value chain, it is a multi-billion dollar
industry.
We in Nigeria pride ourselves as major producers of cashew with very
insignificant processors. We cannot continue like that. That is why we
have to change the way we do business. We have to provide a lot of
support, specialized, well articulated support for the cashew industry
so that the industry can be built. We can harness the potential of our
cashew crop, so that we can create more cashew millionaire in Nigeria,
we can create more wealth from cashew.
Sir, how do you think government can support the private sector?
That is the critical thing. To create more wealth and create
guarantee market for our cashew farmers is to create the industry here.
All kinds of support should be given to the private sectors so that they
can establish cashew industries in Nigeria. The support should include
tax wavers, subsidy to some level to reduce the cost of energy and all
of that so that people can go on to create more byproducts from cashew
in Nigeria. That is where the wealth is, that is where the job is, and
that is where the economic potential of the crop is that will need to
harness and develop.
The demand for Nigerian cashew nut is on the rise so we have to step
up by increasing local production; we have to grow more cashew trees. It
takes four years, when you plant cashew nut for it to grow into
commercial viability. At the fourth year for the next forty years you
will be harvesting cashew on yearly bases. It is a good business, you
plant your tree once and for the next forty to fifty years you will be
harvesting from the same tree. Government should encourage people to
plant cashew and you see it will be important for the incumbent
government of Buhari to do something radical that no government in
Nigeria has done. If you want to build an industry sometimes you need to
be radical.
Today, our production capacity for the raw cashew nut is 144,000
metric tons annually. We need to step up our production, we need to step
up production by two folds, we need to take our production to somewhere
around 400,000 annually, that is what a serious government should be
talking about. Now if you ask me I can give you categorically and
clearly that it is easy for us in Nigeria to take our cashew production
from 144,000 metric tons to 1,000,000 metric tons in just four years. It
is the simplest thing anybody can do. It is just a matter of being
strategic.
When we increase our production from 144,000 metric tons to 1,000,000
metric tons, it simply means that automatically the value of cashew we
would have grown in Nigeria would have so increased with one million
metric tons, and by that, we will be talking about more economic
empowerment for our people. The implication of that is that we would
have grown our earnings, revenue from raw cashew from about N34 billion
to somewhere in the neighborhood of about N300billion to N500 billion
annually.
Is it not better to increase our earnings from N34 billion to N500
billion without doing anything too technical? All what we have simply
done is get more people to plant cashew. How do you do it? Identify them
and encourage them through simple incentive programme that will be
drawn out. You should increase production of cashew across the nation,
increase processing, and increase export. When you do these three things
you will take the cashew industry from the unpleasant status now to a
multi billion naira economy. More people will be employed because we are
going to have more cashew trees scattered across the country.