OUR NEWS

West African cashew draws Vietnamese buyer to challenge Olam

April 15, 2019

 

A Vietnamese conglomerate is entering the cashew market with possible deals in West Africa for more than a 10th of global output, a bold start to take on the US$7billion industry’s dominant buyers such as Olam International Ltd.

 

In a fractured sector with dozens of producers, the purchase of such a large amount of cashew by a single company could sway prices in a market that’s not traded publicly and is dominated by a handful of traders. It could also offer poor, small-scale African farmers better assurance that their crop will be bought.

 

Hanoi-based T&T Group JSC, which holds investments that range from motorcycle parts to banks and real estate, will purchase 200,000 metric tonnes of raw cashew this year from the world’s No-2 producer, Ivory Coast, said Adama Coulibaly – head of the local Cotton and Cashew Nut Council. The volumes may increase to 400,000 tonnes in coming years, T&T said on its website.

 

The company is also in talks with producers in Guinea-Bissau, Africa’s third-largest grower, to buy a further 50,000 tonnes of nuts this year, said Jaime Gomes, the head of a farmers’ association.

 

“These are huge volumes,” said Pankaj Sampat, a partner at Mumbai-based cashew dealer Samsons Traders. “If this new player buys such large volumes, it will certainly have a significant impact on the market.”

 

Global output of the kidney-shaped nut, coveted in Europe and Asia for snacks and baked goods, was 3.3 million tonnes in the 2017-18 global harvest – of which Africa accounted for more than a half, according to the International Nut and Dried Fruit Council.

 

To be sure, T&T may struggle to fulfil its agreements because newcomers typically take time to establish infrastructure and build distribution channels, said Sampat. Singapore-based Olam took years to build a network of farmers across Africa, and runs its own processing plants in Asia.
 

Please reload

Recent Posts

Please reload

SUBSCRIBE TO OUR NEWSLETTER

Keep up to date with the latest news and services from Oakmark Global Vision

WEST AFRICA'S NO.1 ECONOMIC AGENTS

REGIONAL OFFICE

INTERNATIONAL OFFICE

CONNECT WITH US

SITE MENU

1 Kandi Close, Off Aminu Kano

Crescent, Wuse 2, Abuja F.C.T

Nigeria 

King Court, 17 School Road
Hall Green Birmingham
United Kingdom  B28, 8JG

+234 -(0)- 929 207 02
+234 (0) 808 643 0422

+44 (0) 121 244 1814
+44 (0) 746 625 2505

© 2019 Oakmark Global Vision Ltd - All Rights Reserved.

UK Company No. 07634879 / Nigeria Company No. RC 1288232

WEST AFRICA'S NO.1 ECONOMIC AGENTS
  • Grey Facebook Icon
  • Grey Twitter Icon
  • Grey Instagram Icon
  • Grey LinkedIn Icon