CASHEW WEEK. In the Cashew Week... A WEEKLY NEWSLETTER. A Product of

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1 CASHEW WEEK A WEEKLY NEWSLETTER A Product of In the Cashew Week... Cashewinfo market summary Cashew Experts Market Commentaries India and International China International Tree Nuts Conference Highlights Almond Report Prices of Nuts Domestic Prices of Nuts International Prices of Nuts Currency Movement and Outlook An Exclusive Interview with Krishnan G. Nair, Managing Director, KGN Group, at the World Cashew Convention, Feb, 2017, Singapore US Cashew Kernel Import-June-2017 Vietnam Exim Data -July-2017 Health Benefits News Highlights Upcoming Trade Events

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10 Global Cashew Market at a Glance India Indian cashew kernel price in FOB Tuticorin for all grades remain unchanged at previous week level, but cents below the May-2017 peak. In the domestic segment, cashew kernel prices were either unchanged or slightly higher for few grades across the various markets. With the commencement of festival season we expect prices to pick up in the coming weeks. Vietnam Vietnam has exported 36,804 tonnes of cashew kernel in July-2017 as against 33,883 tonnes exported in July In the first seven months of 2017, Vietnam cashew kernel exports totalled 188,612 tonnes as against 191,606 tonnes exported during the same period in Going by the current trend Vietnam exports are likely to be in the region of 330,000 and 340,000 tonnes, slightly below the targeted estimate of 360,000 tonnes in Vietnam imports of RCN for the second successive month was well above 200,000 tonnes and in July it has imported 218,000 tonnes. In the first seven months of 2017 Vietnam had imported in excess of 900,000 tonnes as against 571,258 tonnes imported during the same period in Vietnam so far had imported 87% of last year imports and may import around lakh tonnes of RCN in the next five months of USA The USA cashew kernel imports in H1 of 2017 totalled 68,888 tonnes as against 64,229 tonnes imported in H1 of Since, 2013 USA kernel imports in the second half of the year averages well above 80,000 tonnes. Going by the past trend USA cashew imports in 2017 is estimated to be in the region of 138,000 and 144,000 tonnes. The USA June-2017 cashew kernel imports totalled tonnes as against tonnes imported in June MTP Ghana The second session of the fourth edition of the Master Training Program organized by Comcashew in collaboration with the African Cashew Alliance, the Cocoa Research Institute of Ghana and the Ghanaian government took place in Sunyani, Ghana, in the Brong Ahafo region, from 07 to 11 August During this session, the 75 experts from 12 African countries who had previously participated in the first session held in Ho, Ghana, were trained, inter alia, on various grafting and top-working techniques, the development of improved planting material, the nursery management and pests and 10

11 diseases management. They were also given numerous practical sessions and a field visit to cashew farms and a nursery. The main objective of this second session of the program, with a total duration of 7 months interspersed with intersession works, was for participants to understand the main steps for the development of improved planting material and the importance of Good Agricultural Practices. The third and final session will be held in Côte d'ivoire from 23 to 28 October Source: Cashewinfo Cashew Market Commentaries from Experts CNSL update Mangalore-Karnataka CNSL last week traded in the region of INR 21 and 22 per kg. Cake fetched around INR per kg and shells about INR per kg. The price of Cardanol settled slightly higher at INR per kg when compared with previous week close of INR per kg. Source: Kanco Venkatesh and Santhosh Silva, Karnataka By end June / early July 2017, Cashew Prices had come down from the peak of May For the last 4-6 weeks, market has been steady and there has not been much change in prices. Current offers are in a wide range: W240 from 5.10 to 5.30, W320 from 4.85 to 5.15, W450 from 4.80 to 5.00, Splits from 4.35 to 4.60, LP from 3.75 to 3.95 FOB. Most of the price decline has been in W240 & W320 from small and medium processors. Broken grades, on the other hand, have moved up and continue to be firm. The large processors have adequate sales and are not yet under pressure to make any big reduction in offers. Although their current offers are certainly below the peak of May 2017, they are still about cents higher than the low end of the current range and they are able to sell at these higher levels. Since processors have paid very high prices for RCN this year, they will resist reducing kernel prices until they absolutely have to sell. Reflecting that, the current lower prices from small & medium processors are because they need sales to be able to continue buying RCN to keep factories running. Demand from most markets has been steady despite the high prices. Reasonable volumes are being traded every few weeks. This is keeping the market steady within a range. Even now despite the relative quietness, there is some business being done for Oct-Dec shipments. It is not clear whether this buying is to fulfill old commitments or roasters are able to make new sales with current prices. Indian demand has been slow for last several weeks. During May and June, wholesalers were not building stocks due to the new Sales Tax system coming into effect on 01 July. Fact that prices were historic highs in May/June was additional reason not to build inventory. During July/Aug, people are getting rid of old stocks and getting used to the new system. Indian festivals start from Aug with the peak in mid Oct. We should have idea of how market reacts to the high prices by end Aug/early Sep. If kernel demand picks up in Sep/Oct, prices will move up again otherwise, we may see the market drifting slowly in coming weeks with a big decline possible only if there is a significant fall in demand for end of 2017 and beginning of 2018 deliveries. RCN prices have also come down from the peaks of May/June but that is mainly because (a) at the end of the season, kernel yields now are much lower (b) there is a bunching of shipments putting some pressure on the availability of funds in the chain. Most of the 2017 RCN has been bought by at very 11

12 high levels. RCN prices in 2017 have been about 25% higher than 2016 and 50% higher than 2015 (and about 75% higher than the 5-7 years average!!). At these historic high levels - never seen before - risks are very high. During Oct to Mar, shellers will have to depend on Southern Crop (about 25% of World production) apart from the trader stocks of West Africa RCN. Since availability is small, there may not be much change in RCN prices unless there is a big fall in kernel demand in the coming weeks. The next big move in RCN prices will happen only Feb/Mar 2018 when the Northern Crop starts. If Southern crop RCN prices (last quarter of 2017) are significantly lower it will certainly have impact on the 2018 Northern crop. Lower RCN prices in last quarter are possible only if there is a significant decline in kernel demand in Sep-Dec If kernels continue to be bought at current levels till end of the year we do not see much chance of any decline till middle of 2018 (and that too, if the 2018 crops are good). If roasters make good sales in coming months for first and/or second quarters of 2018, they will either have to buy now or go into 2018 with a short position. Both cases will lead to a strong RCN demand when 2018 season begins and prices will not come down. Considering that prices of other nuts have been gradually moving up in the last few months from the lows of end 2016/early 2017, there may not be any big adverse affect on cashew contracting for To my mind, a significant decline in prices - RCN or kernels - will happen only when there is a big drop in kernel demand. When and at what level and to what extent this will happen are very very difficult questions to answer!! Until there is some indication of 2018 demand trend, it would be prudent for both shellers & buyers to be partly covered till first quarter 2018 because market could move sharply depending on what happens in last quarter of Source: Pankaj N. Sampat, SAMSONS TRADERS The market of cashew nut kernels is in a wait-and-watch mode. Sellers are reluctant to sell too far forward while buyers do not want to buy now and hope for prices to turn softer. The facts remain as written in our previous reports that there are good quantities of unsold RCN in Vietnam, but quality is doubtful and prices are high. The quality of the RCN arrivals, especially from that of Cote d Ivoire in Vietnam is reported to be low. This could lead to the same situation as last year, wherein there was a shortage of the premium grades of WW240 and WW320 during Q4. Current kernel prices are not equivalent to RCN prices and somebody has to take the loss or. wait for kernel prices to pick up again. Buyers still have open positions for the last quarter and those will be booked in the coming 4-6 weeks. As the prices can turn easily and go back up again, we would recommend covering until February/March Source: Kees Bokland, Global Trading Agency, The Netherlands Slight buying interests for pieces were seen during last week and the main grades traded were WS at Usd 4.25 per lb fob for Aug and Sep. For Lp trade were done reportedly at Usd 3.55/3.70 per lb fob for Aug and Sep, depending on packers name. Premium has been paid for top packers with good quality. Very limited trades were done under 4.70 per lb fob for W320 Aug and Sep shipment, sold by good 12

13 medium packers. Prices offered varied from packer to packer, but basically, W320 at Usd per lb fob for Sep and Oct shipment. Top and reliable packers offered W240 at Usd 5.15/5.20, W320 at Usd 4.90/5.00, W450 at Usd 4.70, Ws at Usd 4.30/4.55, Lp at Usd 3.75/3.80 per lb fob for Sep-Dec shipment without being interested by buyers. Buyers saw no reason to chase these offers as they do not have good and firm demand from their end-buyers. A lot of offers have seen from here mainly for W240 and W320 as packers cannot sit on goods without selling as they need cash for their operations. Packers do not reduce their prices as they have paid very high price for Rcn and bought big quantities already. They were of the view that in Sep buyers needs to buy certain quantities for the most important events of the year, so market will be much firmer. Some packers will not sell W320 fewer than 5.00 per lb fob. This is too dangerous as there is no firm sign for market to be up strongly in the coming time as it has been the case during previous months. No one knows clearly how market is going to behave in the coming time but demand seems to be ok till now, as most of the buyers had covered certain goods for their demand. This would indicate a sluggish demand in the coming time and price may turn softer if demand is not so strong. Local prices for pieces were few cents per kg up in comparison with previous week thanks to pick up in demand for pieces from export markets. Source: Mr. Kim, Khiem Nguyen Co., Ltd, Vietnam Vietnam offered price for chinese markets: After keeping prices stable for one week, the Long an processors have to lower their prices again. Nevertheless,WW240 declines much more than other grades. Prices for last week are WW240 at USD/KG ( USD per lb), WW320 at USD/KG ( USD per lb) and WW450 at USD/KG ( USD per lb). It is less than two months before Mid-autumn day and National day(01-oct), if the prices are not going up during this time,we are afraid there will be a big decline after October, because at the time USA and EU buyers have finished their Christmas and new year contracts. There will be plenty orders for Chinese markets. Source: Will, Lee, China 13

14 On day one of the conference, there was a panel discussion on Chinese pine nut industry, matchmaking meeting with Chilean Walnut Exporters and Trader Seminar with Almond Board of California and all three were held simultaneously. More than 300 delegates participated in the three days conference. Pine nuts - China is the main producing and processing country of pine nuts. Chinese had exported 8577 tonnes of pine nuts in H1 of 2017, an increase of 30.30% when compared with previous year. China exported tonnes of Cedar pine nut (in terms of kernel basis) in In 2017 (Jan to Jun) so far it has exported 8576 tonnes. Mongolia is the major producer of cedar pine nuts with crop size of tonnes. Global overall crop size of cedar pine nuts in 2016/17 was tonnes. In 2016/17 ending stocks estimated at 9630 tonnes. Pine nuts kernel total supply in 2017/18 is likely to be estimated in the region of and tonnes. INC Global Tree Nuts Statistical Review - Mr Pino Calcagni, Vice Chairman of International Nut and Dried Fruit Council (INC) presented on Global Statistical Review. In 2017/18 world tree nut production is forecasted at 4.21 million tonnes (on kernel basis, except for pistachios in-shell basis) as against 4.18 million tonnes produced in 2016/17, up by 25% when compared with last 10 years average. Walnuts accounts for 97% of the tree nuts produced in China. Chinese walnut consumption has increased by 115% in the last 10 years, estimated at 900,000 tonnes (dried in-shell) or (kernel basis) in 2016/17 and forecasted at tonnes in 2017/18. Overall world consumption of tree nuts was increased by 46% from 2005 to China Tree Nuts Production and Import was presented by Cheng Hungkay, Director General of Tree nuts Sub-Chamber of CFNA He highlighted about Sino-Australia FTA import duty rate on tree nuts, which will be reduced considerably in 2018 and nil import duty of all tree nuts from Australia from January 2019 onwards. The current import duty on tree nuts has been reduced year on year. The current import duty applicable for 2017 is given below for various tree nuts. Pistachios 5%, Almond, Pecan, Hazelnut and Cashew 10% (Cashew for Asian countries zero import duty), Macadamia 19%, Walnut 25% & Shelled- 10% and Brazil nut 12%. 14

15 Perfect time to grow almond business in China-Richard Waycott, President and CEO of Almond Board of California California almonds are exported to more than 90 countries globally. 36% of the export goes into North America, 29% to West Europe and 25% to Asia-Pacific. US usually represent 30% of the market share, but during recent high prices it shares goes up to 35%. Chinese, rising middle class income is the boon for the nut industry; almond is ready for fast growth. E- commerce penetration in China is growing rapidly with market size of USD 759 million in 2016 as against USD 571 million in The total value of retail salty market in China is forecast to grow and reach RMB billion by Nuts and seeds comprise 84% of the total consumption of salty snacks in terms of volume and likely to witness double digit growth until Almonds took over No.1 position from pistachios for snack association after tremendous growth from 2014 to Mr Warren Cohen of Blue Diamond Growers presented about the California Almond Industry Crop Overview. California accounts for 91% of the global almonds production. Some of the leading almond varieties are Non-pareil-38%, Monterey-16% and Butte/padre-11%. California is estimated to produce 2250 Million lbs in 2017 as against 2134 million lbs produced in Mr Damien Houlahan of Olam Orchards Australia spoken about Australian Almonds. The per capita consumption in Australia is about one kg, which is the highest in the world, followed by US with per capita of grams. Victoria is the largest producing state of almond in Australia with a share of 68% and South Australia with 21%. Australia s export growth has increased by 146% from 2010 to 2016 (from 24,132 tonnes in 2010 to 59,300 tonnes in 2016). Almonds contribute to 61.9% of the overall tree nuts production in Australia. Mr Kevin Ivey, President of the US Pecan Growers Council, presented the US and World Supply and Demand for Pecan. 2016/17 world pecan production is 275,469 tonnes, with most of the produce from Mexico (140,477 tonnes) and US (121,891 tonnes). 2017/18 world production is estimated at 264,933 tonnes, with US (134,558 tonnes) to replace Mexico (113,378 tonnes) as the top producer. Mr Nico Van Schlakwyk of Golden Macadamias presented on global crop update. World macadamia production in 2017 is estimated at 193,462 tonnes (in shell basis) as against 178,506 tonnes in Mr Gaffney of ShoEi Foods (USA) presented on California walnut industry Walnut production is estimated at 684,000 short tonnes, +13% vs At the same time walnut supply is estimated to increase by 9.2% to 749,505 short tonnes. Some of the Chinese products made from walnuts are traditional moon cake, flavoured walnut kernels (spicy, sweet, and savoury) for snacking, dates with walnuts, walnut milk and soup and yogurts. 15

16 Chilean Walnut Report by Rafael Bianchini Jacques, Exe Director of Frunut Chile produced tonnes of walnut in 2016 and estimated to produce tonnes in 2017 and aiming to double the production in the next five years. Chilean walnut commission and Chile nut will lead to single entity in 2018, as per the agreement signed in December 2016.In 2018 Chile plans to invest 3 million dollars in promotion (10 times the current investment) and the top prioritized market is going to be Asia. Mr Andrew Waring (Webster Ltd) on why you should buy Australian Walnuts Cooler conditions are favourable for improved yield on Walnuts from Australia and moreover the premium quality of nuts to satisfy the growing demand. Free trade agreement with China from January-2019 is likely to result in affordable Australian walnuts. Moreover they are planting more varieties to satisfy the needs of Chinese demand. Also they are maintaining food safety and freshness of the produce as well as automatic bagging and palletisation. Ms Anita Lam on Pistachios industry update The world pistachio harvest is 1233 million pound in YTD shipments of 535 million pounds are ahead of 600 Million pound annual target. The US market is showing very strong, driven by the Wonderful Pistachios advertising campaign and strong retail promotions. European shipments remain strong due to reduced prices, thus attracting more consumers. Chinese shipments continued to remain strong to meet its steady demand. Mr Venkatraman of Cashewinfo.com presented about Global cashew market Global raw cashew production in terms of kernel basis continued to remain well above 700,000 tonnes in the last three years. India is estimated to have produced its best ever crop in Vietnam crop reduced considerably in the last seasons owing to unfavourable weather conditions. Cashew kernel prices are likely to remain stable going forward. Cashew kernel consumption in the western countries growing steadily over the years thanks to numerous findings of research carried out by INC on health and nutritional aspects and creating awareness on consumers that consuming cashew is good as it contains good fats, minerals and vitamins. Mr Varun Trivedi of Olam on Hazelnuts 16

17 Turkey accounts for about 70% of the global hazelnuts production. 2017/18 global production (in shells) is estimated at tonnes as against tonnes produced in 2016/17. Italy and Georgia were the other main producers of hazelnuts. China and Georgia inked tree trade agreement in May 2017 to expand bilateral trade. 17

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19 Fig 1: Cashew Kernel- W320- Average FOB prices at Tuticorin port, India (USD/lb) Cashew kernel W320 price last week settled unchnaged in the region of USD 4.90 and 5.10 per lb. Similarly all other grades of wholes and splits/broken remain unchnaged when compared with previous week. Fig 2: Raw Cashew Nut (RCN) - Average Price INR per 80 kg bag RCN price across Andhra were hovered around INR per 80 kg bag. 19

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21 Almond and other tree nuts report The market in Delhi (India's) Khari Baoli for Dry Fruits & Nuts traded for Almonds closed the week at INR /40 Kg for 70% Sliding Scale Basis (equivalent to $ /lbs of Origin's CIF prices) Private Packers, with BD demanding a premium due to very high yields and was quoted at INR Rs.19600/40kg INCLUDING the 12% GST, equivalent to $/lbs. FAQ kernels were traded at INR /kg with Hand Picked/Fancy at INR /kg, for the week ended August 12 th 2017.The said prices are being quoted EXCLUDING THE 12% GST. Currency has been volatile and has depreciated last week and closed at INR against the US$. Position report for the last month of the CY 2016 i.e. July was announced and it was favourable for the entire industry. Global Shipments were a record at 154 Million which was up 11.1% from last year, with these numbers the total 2016 shipments reach to a record 2101 million with a carry over stocks of about 404 Million. India's point of view, we were up by 16% and closed at 167 Million, an increase of 32% over CY 2015, India with these record numbers have attained the second largest exporter after Spain and also the second largest consuming market. For the month of July 2017, India s import stood around 254 containers only, which is too low as against the desired demand for Diwali. This has caused a sudden panic in the market for buying and markets are looking extremely bullish. New Crop commitments were 405 Million which is around 18% of the total estimated crop 2017, it is far shorter than the historical 30% by August end, this may be due to buyer s anticipation of far lower prices against the back drop of a huge crop but sales will pick up to cover the gap. India's demand for the August 2017 month shipment was supposed to be lower as the late August shipments will not be much of use for festival of Diwali which is to be celebrated by October 19 and historically India has been the large buyer for first couple of months for any CY. Indian imports for first quarter of CY 2016 stood at 82 Million Lbs, which was pre-demonetisation era and in remaining 9 months we imported the balance 85 Million Lbs. It is debatable whether Indian markets/traders have recovered from the demonetisation effect or not, as looking at the shipment numbers of CY 2016 it seems India never had any impact but it looks totally different once you look at the break up of 167 Million import months. Further the prices and availability of complementing nuts like Cashews & Pistachios have been a concern in 2016 which also helped in increased quantum. The sheer size of Indian population (1.30 Billion) has helped the markets to look upside only despite the demonetisation and GST reforms. In my view, the consumers have never had any impact of either demonetisation or GST, It s the trading community or the supply chain system which gets impacted by any change as they do not want to move out of there comfort zone and accept the change. But going forward I am sure that our traditional markets will recover and move on. 21

22 Many markets post GST have actually become more competitive as the TAXES have got reduced from 14-15% to 12% and that too in actual consuming states, further the GST has the required provisions to pass on the benefits to consumers. Origin prices in California have been very firm in the last week with current crop from USD /lbs for NP In shell's on CIF Basis, CY 2017 prices also were bullish as quoted for September/ October at USD /lbs on FAS Basis, with August at USD 2.50 FAS. It will be worthwhile to see how the buyers react to this sudden increase in the prices and how much participation will happen from India as the price rally was largely due to Indians chasing the markets to cover for September through November shipments. The initial buying by Indians was done largely for the month of September as it was offered on a safer side by California and accordingly it is expected that the shipments will be over 1000 and all landing post Diwali demand, which might again depress the prices as markets are traditionally closed for about 10 days post Diwali though on the other hand the carry over stocks from CY 2016 will be very negligible. Harvest has started in most parts of California with many offers coming for August shipments also though for the 3 rd & 4 th Weeks only. The markets in India are excited and looking forward to the demand and price increase for this festal season. The price offers has started trickling in for Iranian Pistachios new crop with shipments being planed for Mid September. Cashew prices in Delhi markets have started sliding down and are currently lower by 2-4 % on lack of demand and excess supplies of RCN's which are being routed from Vietnam to India. Source: Ravinder Mehta, IFNO, New Delhi - India Almond Price Chart Almond kernel California prices, last week once again traded higher in the region of INR 695 and 700 per kg as against as previous close in the region of INR 655 and 660 per kg. Cashew W320 traded at Delhi, settled unchanged in the region of INR 835 and 850 per kg. Price of Walnut kernel unchanged at previous week range of INR 800 and INR 1300 per kg.price of Pistachio Irani also settled unchanged in the region of INR 1100/1200per kg. 22

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25 Prices of Nuts in India and International Market Table 1: RCN spot prices (New Crop) in India (INR per 80 kg bag) Indian RCN price at various markets Unit Rs per kg Unit Rs per kg (8/04/17) (8/11/17) Mangalore Goa Odisha Jeypore East, West Godhavari/Vetapalem Table 2: Kernel FOB prices in major ports as on 08/11/17 Grades Tuticorin Kollam Vietnam (USD/lb fob) (USD/lb fob) (USD/ lb fob) W W W SW SW SSW LP/LWP WS FS Table 3: Cashew Kernel: India spot prices in production centres as on 08/11/17 in INR/kg Grades Manglore Kollam Vetapalam Panruti (Karnataka) (Kerala) (A.P) (TN) Odisha Jeypore W W W W W W W S S S S LWP SWP K JH SSW BB JK/JB SW SW

26 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 Prices of Nuts in Other Indian Markets TABLE 4: Cashew kernel: India spot prices at terminal markets as on 08/11/2017 in INR/kg Grades Delhi Sangrur Jalandhar Kolhapur (Punjab) (Punjab) (Maharastra) Mumbai W / 1030/ / W / / W / / W / / / W S 670/ / LWP 650/ / SWP 550/ / Currency Movement Table-5: Forex rates in USD Currency 08/04/ /11/2017 Indian Rupee (INR)RBI ref rate Euro (EUR) Japanese Yen (JPY) Brazilian Real (BRL) Chinese Yuan (CNY) Singapore Dollar (SGD) Tanzanian Shilling (TZS) Thai Baht (THB) Mozambique New Metical (MZN) Vietnam Dong (VND) Indonesian Rupiah (IDR) Benin CFA Franc BCEAO (XOF) Ghanaian New Cedi (GHS) Indian rupee overall appreciation trend is intact Indian rupee last week as we rightly mentioned weakened to against the dollar. Indian rupee overall appreciation trend is intact. Rupee recently gained to two year high on strong FII inflows, weakening of dollar index, renewed reform push by the Government, narrowing current account deficit and on strong economic forecast by IMF. Indian rupee last week traded in the region of and against the dollar and finally settled at on 11 Aug. Rupee may test going forward. Resistance is seen in the region of and

27 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 Brazil real may stay in the recent range Brazil real has pared some of its recent gains and moved closer to our upper end of the target during last week. Brazil real towards the end of the week gained smartly on weakness in dollar index. Further move will depend on geo-political tensions going forward. Brazilian real last week hovered in the region of and and finally settled the week at on 11 Aug. Real downside is limited to 3.11 and then at On the higher side real could touch as high as levels in the near future. Vietnamese dong to trade in the recent range Vietnam's gross domestic product (GDP) is most likely to grow some 6.5 percent this year, lower than its target of 6.7 percent, according to the country's Ministry of Planning and Investment. Vietnam dong last week traded in the region of VND and VND against the dollar and settled the week around Technically dong may trade sideways and expect the recent volatility to continue for some more time. Only above VND on a weekly closing basis, expect dong to weaken further. Comparative Movement of Currencies in 2017 (Jan-August) Vis-à-vis USD in cashew processing regions (Weeks starts from January 2017 and value indexed to 100) 27

28 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 Table 6: Other Tree nut and Dry Fruits Prices at the Delhi Market (INR/kg) Grades 08/04/ /11/2017 Almond Giridi in shell 125/ / Almond Gurbandhi in shell Almond California in shell 458/ /475 Almond Kernel California 655/ /700 Almond Kernel Gurbandi 700/ /800 Pistachio Irani 1100/ /1200 Pistachio Hairati 1380/ /1450 Pistachio Peshawari 1525/ /1600 Walnut New 270/ /380 Walnut Kernel 800/ /1300 Fig Common 450/ /500 Fig Medium 525/ /550 Fig Best 625/ /650 Apricot 463/ /925 Kishmish (Rs per kg ) Indian Yellow 85/100 85/100 Indian Green 150/ /225 Kandhari New 225/ /525 Ranga 200/ / Red 2300/ /7000 Rangkat 3500/ /12500 Raisin- Sangli * * Table-7-Africa Cashew kernel price Cashew Kernel price info W1-W2 Aug, 2017 Grade Description Grade Prix/Lbs (L) Prix/Lbs (H) WHITE WHOLES CASHEWS 180 W-180 NA NA WHITE WHOLES CASHEWS 210 W WHITE WHOLES CASHEWS 240 W WHITE WHOLES CASHEWS 320 W WHITE WHOLES CASHEWS 450 W SCORCHED WHOLES CASHEWS 210 SW SCORCHED WHOLES CASHEWS 240 SW SCORCHED WHOLES CASHEWS 320 SW SCORCHED WHOLES CASHEWS 450 SW FIRST BUTTS/ WHITE BUTTS FB/WB FIRST SPLITS/ WHITE SPLITS FS/WS LARGE WHITE PIECES LWP SMALL WHITE PIECES SWP

29 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 CHIPPS CH BABY BITS BB SCORCHED BUTTS SB SCORCHED SPLITS SS SCORCHED PIECES SP Note: Here are the expected African prices for W1 and W2, Aug US Cashew Kernel Import data- June-2017 Top destination wise US imports of Cashew Kernel-June

30 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 Note: Others include Ghana, Tanzania, Thailand, Benin, IVC, Kenya etc., Vietnam Cashew Exim Data July-2017-Top destination wise Share of Vietnam kernel exports 30

31 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12,

32 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 An Exclusive Interview with Krishnan G. Nair, Managing Director, KGN Group, at the World Cashew Convention, Feb, 2017, Singapore More than two decades in the cashew industry, you are born into the cashew family. Please tell us about your journey? I have seen this industry since I was a small boy and industry has changed a lot. The change is good, it s called embracing change. There is a lot of changes, my first delegation from CEPCI was in 1986 i.e. about 31 years. We have seen a lot of problems coming in import restrictions i.e. government used to buy it and give to us raw cashew but we had, I would say something which matters, people who have bought from us are still with us and people are sold to us. As we know that, Cashew production is the key factor for India s production to attain sustainability. What do you think about the road map to attain sustainability? You say that India has lost its premium position, yes you are right but what has changed is actually something positive. India, today is the largest consumer and one time India could not afford cashew nuts, but today Indians can afford cashew nuts and they are buying it and Indian market, I would say it sweet link market like kaju kathli/burfi, confectionery they demand cashews a lot. That is what sustaining the Indian cashew industry. We cannot compete with the countries like Vietnam i.e. their cost of production is considerably less than India. As you were saying, how can India regain back its top position as a processor? Only way the India can regain its premium position as the top exporter. If we look, still India is one of the largest producers of raw cashew, the largest processor of cashew still largest seller of cashew and largest consumer of cashew. India has only lost its one position as largest exporter of cashew. Now if we want to regain, the only way is to increase the domestic production of raw cashew and for that since agriculture is a state subject, each state has to endeavour to see that domestic production of raw cashew has to be increased substantially. Import taxes, demonetisation, GST, how these are all impacting on cashew industry? Import duty was one of the biggest mistakes which had happened. Personally, I was totally against import duty because you are not putting yourself in a position of strength; putting yourself in a position of weakness because you are not competing with anybody in India. You are actually competing with others outside India like Vietnam or Brazil or Africa. When you imposed a duty, it is going to harm the industry like anything. When you have demonetisation, demonetisation people like us is a boom rather than bane because I would say around 80% of 32

33 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 the workers are outside the registered, they have paid less, they don t have a social security benefits and the demonetisation an especially the bill which came two days ago which says that you can pay through banks that is a trail, it is a trail which makes the employer responsible like the PF, ESI authorities can come and check your records and you are paying somebody some money why. It s a trail which you live and it is very good. Now GST, I cannot comment on it right now because I think all these legislations you have to examine after it is implemented. Food safety is the biggest concern right now, how does KGN group able to manage and what the advanced technologies is being used? See industry is about 90 years old in India, for 70 years there was no competition but that was the problem. The problem was nobody challenged Indian supremacy in cashew and then in 1992 (I think that was the year) when Vietnam exported raw cashew after that they developed their own industry. In 1992, I went to America and I was with Mr. David, the Managing Director of Richard Franco Agency which is the oldest brokerage firm in the world. He showed me a packet of cashew kernels and said see KGN should understand that there is competition coming up and that time I did not take it very seriously but they came with bag. By , there had actually stamped their presence, Indians cannot take any bags and with weighs they came and then you must credit Vietnam because they are the ones who introduced mechanisation. Indians could have done it in way back in 1960s or 1970s in general, because there was no competition but it s only when you challenged, it has changed and what we have done is we have retained the work force and don t want to send anybody away. With the work force, we are trying to increase the production with mechanisation. We have introduced mechanisation, I would like to say that about 70% mechanised. I think this year we will achieve 100% mechanisation and you must also understand mechanisation is not automation. There is a big difference, mechanisation means introduce machineries and automation is where you have from beginning to end, it is automated. The road to automation is very difficult especially in cashew because every origin, every nut is different and cannot treat everything in the same way. What about your predictions for the year 2017 in cashew season? Cashew market goes the way which no one can predict. You think it s going to in one way but it goes in another way. Now what has happened is you have the spikes every year but from the time I remembered in 1986 was the time when cashew market it tends something like 3 dollars 60 cents that is because there was a rush in nuclear milk down and the Turkish nuts affected so the market just spiked and went up to usd 360 and next spike was in In 1991, spike went up to usd 325, in 1995 was 295, and in 2007 it went up to usd 325. In 2011, it hits the current levels i.e. 4 dollars 70 cents and then every year after the spike it comes down very slowly. The kernel market dips very fast but the raw nut market is more inelastic, kernel demand is elastic and raw nut market is inelastic. Cashews are not cheapest of the nuts, so how it affects the cashew trade? It will affect the demand because what happens is many people in industry don t understand i.e. the leader lack behind. These prices are put to the consumers not immediately but after a small 33

34 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 gap. In America, Europe and in all other importing nations what happens is the current prices will be reflected only after a period of six months, so when that comes the demand will crash. A person going to a store for example, a seven-eleven store or any store for that matter when a person goes on suddenly finds the prices are high he or she will not buy it. What are your thoughts about E-platforms coming up in the branded cashews? E-platform is very good for branded products. But for cashews as such, every producer s different like when I buy a raw cashews, I buy from people like from African people who are reliable who deliver me the best quality because I supply only to the premium markets like Japan and other places where quality is appreciated. So If you just put a standard it will not works in cashews it s very difficult because you cannot have a 53 pounds,190 counts, admixture it does not works in cashews because it is very very specialized. As an importer of RCN, what are the challenges you face? Challenges are, first thing the shipment. In Africa still now the logistics is a big problem, you won t get things on time. It s not actually the fault of the sellers; the logistics in Africa are very very difficult ships don t call on time, won t take container on time and it s not like regular market like Europe and America. So that is the biggest challenge when it comes to logistics. The second biggest challenge is moisture; it is still a big problem I wouldn t say it is a sellers problem. People here are going and pushing firm for the purchases, so they just have to take it and give it and unless they dry the kernels. It s going to affect quality; it s going to affect the way the texture, colour, aroma and taste. Lastly, what do you think about WCC and you been helping a lot.what are your expectations for the next year? I was in touch with WCC team members since it came into existence; I think it is really wonderful. I think you are doing a good job because it s a wonderful thing because you have got 500 plus people, which is something helping industry and I think we should appreciate your efforts. Health Benefits 6 Heart Healthy Nuts and Why They're Really Good For You Nuts are great. Not only do they make for a crunchy and filling snack to chomp on between meals, they are also known to boost weight loss, brain power and heart health. These tiny wonders are rich sources of protein, fiber and several antioxidants and anti-inflammatory compounds. Most nuts contain Vitamin E, B2, folate and essential minerals like magnesium, potassium, phosphorus, copper and selenium. Some people may refrain from chomping on these healthy nuts thinking that they are high on calories but Consultant Nutritionist Dr. Rupali Datta clears the air. "Although nuts are fat dense, but have a very healthy lipid profile which is protective to our heart and health. Most fats in nuts are healthy monounsaturated fat and omega-3 fats, she says. 34

35 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 According to a study conducted by Harvard's T.H. Chan, School of Public Health, people who regularly eat nuts are less likely to have heart attacks or die from heart disease than those who rarely eat them. Here are five nuts that you must eat every day for a strong and healthy heart. 1. Walnuts: As a kid, your mother may have convinced you to eat these woody nuts daily for better memory and brain power. Turns out that walnut may be good for your heart too. It is probably the best nut for your heart health. The unsaturated fat found in walnuts - omega-3 fatty acids may help in preventing the development of erratic heart rhythms. Omega-3 fatty acids may also prevent blood clots. Moreover, walnut kernels are known to contain double the amount of antioxidant content than other nuts. 2. Pistachios: A study carried out by Diabetes Foundation of India (DFI) and the National Diabetes, Obesity and Cholesterol Foundation shows that pistachios have beneficial effects on glycemic and lipid parameters. Pistachios have a low glycemic index, are naturally cholesterol free, and are good sources of protein, fibre and antioxidants. These qualities make them great for preventing the risk of obesity and heart disease. 3. Almonds: Almond is one healthy nutty delight. Regular consumption of almonds has been linked to lowering LDL (bad) cholesterol levels in innumerable studies. They are rich in monounsaturated fats, fibre, phytosterols, plant protein, tocopherol, arginine, magnesium, copper, manganese, calcium, and potassium makes them heart protective. Arginine, found in almonds, is a type of an amino acid that is required to make a molecule called nitric oxide which is known to relax constricted blood vessels and ease the flow of blood. 4. Peanuts: Peanuts contain a powerful antioxidant called resveratrol which is found in its skin and is known for its heart protective activity. Switching to peanut butter could be a healthier and protein-rich alternative to processed butter that is full of sodium. Through them in salads and stuff them with the filling in wraps or sandwiches. 5. Cashew Nuts: Cashew nuts are rich in Vitamin E that may help in inhibiting the formation of plaque in your arteries allowing the blood to flow through them smoothly. Development of plaque in the arteries is one of the most common causes of coronary heart disease and heart attack. Sprinkle some cashews on your breakfast cereal or even on stir-fries for lunch. 6. Hazelnuts: These buttery nuts are full of protein and fiber.they are rich in potassium, calcium and magnesium - minerals that help in regulating healthy blood pressure. They are also rich in heart healthy oleic acid which is known to lower bad cholesterol levels and raise good cholesterol levels. Given that a lot of scientific studies have validated the fact nuts are good for you heart and overall health, the US Food and Drug Association recommends the consumption of an ounce or 30 grams of mixed nuts daily. Source: you

36 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 News Highlights Promoting Vietnam-Mozambique Cooperation in Agriculture Vietnam and Mozambique have signed many agreements on investment commitments in almost all sectors, including agriculture. One important area of cooperation that the Mozambique business community wants to boost cooperation in the coming time is the agricultural sector, with a focus on cashew. Continue reading How to boost cashew exports, by experts Can Nigeria grow its cashew export market? Yes, says the National Cashew Association of Nigeria (NCAN) National Publicity Secretary, Sotonye Anga. He expects a major jump from last year s 160,000 metric tonnes of raw cashew export worth $300 million. He however noted that the deficit in transport infrastructure may be a problem. Noting that shipping lines handle fewer agro exports, Anga observed that on-shore containerprocessing time was low. Continue reading Unlocking Africa s potential to create wealth from agriculture There is an unbelievable contrast today in Africa: how can a continent with such an abundance of arable land, water and sunshine annually import food worth USD35billion? This must change, said Akinwumi Adesina, President of the African Development Bank (AfDB). Kogi East tasked on cashew development for economic growth Continue reading COMMUNITIES in Igalaland of the eastern senatorial district of Kogi State have been advised to cultivate cashew in large scale in order to give a boost to their financial situation and also to push up the state s economy. A prominent leader of the Igala people, Cyprian Adejo, who made the submission, also urged the state government to implement the economic diversification programme by investing in agriculture for development. Feni: The Famous Cashew Fruit Liquor from Goa You Must try Continue reading It wouldn t be wrong to deem the thriving party capital of the country - Goa - as one of country s richest culinary hotspots too. An erstwhile Portuguese colony, Goa has successfully managed to retain its vintage charm through its local customs and food. And one such Portuguese contribution to the beverages of the subcontinent is Feni. Continue reading 36

37 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 ComCashew creates over 46,500 jobs in Ghana The Competitive Cashew initiative (ComCashew) has since its inception in 2009 trained more than 40,000 farmers and created over 46,500 jobs in production and processing of cashew. This was contained in a press release made available to the Ghana News Agency at the commencement of the Second Session of the Fourth Edition of the Master Training Programme on Cashew Value Chain Promotion jointly organised by ComCashew and African Cashew Alliance (ACA). California almonds now cover 1 million acres Continue reading California's almond boom has hit 1 million acres, covering a total area bigger than the state of Rhode Island. The Record news of Stockton reports the state's almond harvest is expected to hit a record 2.2 billion pounds (1 billion kilograms) this year. Surging demand for almond snacks in Asia has helped make almonds California's richest agricultural export, surpassing wine grapes and other crops. Mozambique apex bank cuts benchmark lending rate to 22.5 percent Continue reading Mozambique s central bank, Banco de Mocambique (BM), has reduced its benchmark lending rate by 25 basis points to 22.5 percent, APA can report on Friday.The central bank s Monetary Policy Committee (CPMO) in a statement ed to APA on Friday, announced that falling consumer price inflation and a firmer currency against the dollar had prompted the decision to reduce rates, Continue reading 37

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41 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 Are you planning to invest in new processing factory or modernize existing cashew processing factory in India? Cashew cultivation is expanding into new areas in India. Cashew processing too is being taken up in non-traditional areas. Entrepreneurs face several questions when starting a new project, such as, which technology to choose, what should be the scale, should we choose manual vs. semiautomatic vs. fully automatic processing lines and where to set up the plant, what is the demand in my region and what is the forecast and what are the risks in investing and so on. The consulting arm of Cashewinfo.com would be happy to assist businesses in conducting Techno-Economic Feasibility studies for either establishing a new factory or modernizing an existing factory. Let us know your requirements, we would provide you with best advice. It is wise to talk to us before investing your money. Please write to swapna@fbspl.com or talk to Swapna at Event Name Date of Event City / Country Kaju India 2017 The Global Cashew Summit- CEPCI-INDIA 17 th -19 th September Goa, India 11 th ACA Conference 18 th - 21 st September-2017 Cotonou, Benin VINACAS 9 th Golden Cashew Rendezvous 13 th -15 th November Phu Quoc, Vietnam 41

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46 CASHEW WEEK A WEEKLY NEWSLETTER Volume 18 Issue 33 Aug 06-12, 2017 REACH OUT TO GLOBAL CASHEW INDUSTRY ADVERTISE IN CASHEW WEEK & For Advertisement in Cashew Week & Banner Space on CONTACT: info@cashewinfo.com Disclaimer: The data and information presented in this report are based on efforts of analysts at Foretell Business Solutions Private Limited, Bangalore and opinions and data obtained from experts and various industry sources. While sufficient care has been taken to check data and information prior to publishing, Foretell or its employees or external contributors will not be responsible for any kind of errors or omissions or misrepresentation of data or for losses incurred by any party either directly or indirectly based on the information published herein. Caution to Readers Although paid advertisements appear in this publication (in print, online, or in other electronic formats), Foretell Business Solutions Private Limited (the owner of cashewinfo.com) does not endorse the advertised product, service, or company, or any of the claims made by the advertisement. Readers are encouraged to do the necessary due diligence. However, in the interest of the industry, please share your concerns, if any, by writing to us at content@cashewinfo.com 46