The Global Cashew Supply Chain
The cashew nut industry has one of the most geographically dispersed supply chains of any commodity. West Africa grows the majority of the world's raw cashew nuts (RCN), but most processing happens thousands of miles away in Asia. Understanding this dynamic is essential for any importer.
Here is the breakdown of the global supply chain:
- Production (growing) - West Africa accounts for roughly 50-55% of global RCN production. Ivory Coast is the largest single producer (25%), followed by India, Tanzania, Guinea-Bissau, and Ghana.
- Processing (shelling and grading) - Vietnam processes approximately 65% of the world's cashew kernels, followed by India (25%). Most West African RCN is exported to these countries for processing, then re-exported as finished kernels.
- Consumption - The United States (35% of global imports), EU (30%), and Middle East/Asia (35%) are the primary consuming markets.
This structure creates an opportunity for buyers: sourcing processed kernels from West African processing facilities (which have grown significantly since 2018) can reduce the supply chain by one full step and offer competitive pricing compared to Vietnamese-processed nuts.
Ghana's Position in the Cashew Market
Ghana has emerged as a major player in the global cashew market. In recent years, Ghana has accounted for approximately 43.8% of global in-shell (raw) cashew nut exports. The country's cashew production has grown from approximately 70,000 MT in 2015 to over 150,000 MT annually, driven by government planting programs and favorable growing conditions in the Brong Ahafo, Northern, and Volta regions.
Key advantages of Ghanaian cashew nuts:
- Consistently high KOR (Kernel Outturn Ratio) of 48-52 lbs per 80kg bag
- Well-organized export infrastructure through Tema and Takoradi ports
- Growing domestic processing capacity (currently ~15% of production)
- Established phytosanitary certification systems
Cashew Kernel Grades Explained
Cashew kernel grades are standardized by the Association of Food Industries (AFI) and follow a naming convention where "W" stands for "whole" and the number indicates the count of kernels per pound (454 grams). Lower numbers mean bigger nuts and higher prices.
| Grade | Count/lb | Size | Typical Use | Price Index |
|---|---|---|---|---|
| W180 | 170-180 per lb | King size (largest) | Premium retail, gift packs | +40-60% vs W320 |
| W210 | 200-210 per lb | Jumbo | Premium retail, hospitality | +20-35% vs W320 |
| W240 | 220-240 per lb | Large | Retail, snacking, mixed nuts | +10-20% vs W320 |
| W320 | 300-320 per lb | Medium (benchmark) | Most traded grade globally | Benchmark |
| W450 | 400-450 per lb | Small | Food service, bakery, cooking | -10-20% vs W320 |
| Splits (S) | N/A | Half kernels | Bakery, ice cream, toppings | -30-40% vs W320 |
| Pieces (LP/SP) | N/A | Broken pieces | Paste, butter, food processing | -40-55% vs W320 |
W320 is the global benchmark grade. It accounts for roughly 60-70% of all cashew kernel trade. When commodity reports reference "cashew prices," they almost always mean W320. As of early 2026, W320 prices range from $7,500-9,500 per metric ton FOB, depending on origin and quality.
RCN vs Processed Kernels: Which to Buy?
As a buyer, you have two options: purchase raw cashew nuts (RCN) for processing, or buy finished kernels ready for consumption or further manufacturing.
| Factor | RCN (Raw) | Processed Kernels |
|---|---|---|
| Price (2026 range) | $800 - 1,500/MT FOB | $7,500 - 12,000/MT FOB |
| Buyer type | Processors with shelling capacity | Retailers, food manufacturers, traders |
| Typical volume | 100+ MT per shipment | 1 FCL (14-15 MT) minimum |
| Payment terms | Letter of Credit (mandatory) | LC or T/T with deposit |
| Key quality metric | KOR (Kernel Outturn Ratio) | Grade, moisture, defect rate |
KOR: The Key Metric for Raw Cashew Quality
If you are buying RCN, the Kernel Outturn Ratio (KOR) is the single most important quality metric. KOR measures the weight of usable kernels extracted from a given weight of raw cashew nuts. It is expressed as pounds of kernels per 80kg bag of RCN.
To illustrate the economics: a KOR of 48 lbs means that from an 80kg bag of RCN, you will recover 48 lbs (21.8 kg) of kernels. That is a 27.2% recovery rate. The remaining 72.8% is shell (which contains cashew nut shell liquid, a valuable industrial chemical) and testa (skin).
KOR Quality Ranges
- Premium: 50-54 lbs per 80kg bag (recovery rate 28-30%)
- Good: 46-50 lbs per 80kg bag (recovery rate 26-28%)
- Average: 42-46 lbs per 80kg bag (recovery rate 24-26%)
- Below average: Below 42 lbs (recovery rate under 24%)
Ghanaian RCN typically falls in the "good" to "premium" range (48-52 lbs), which is one reason it commands a price premium over some competing origins.
Quality Parameters for Processed Kernels
When buying processed cashew kernels, your purchase contract should specify these quality parameters:
| Parameter | EU Requirement | US Requirement |
|---|---|---|
| Moisture | < 5% | < 5% |
| Aflatoxin B1 | < 8 ppb (stricter) | < 20 ppb |
| Total Aflatoxin | < 10 ppb | < 20 ppb |
| Defect Rate (spotted/scorched) | < 5% by weight | < 5% by weight |
| Foreign Matter | < 0.05% | < 0.05% |
| Salmonella | Absent in 25g | Absent in 25g |
Note on aflatoxin: The EU has the strictest aflatoxin limits for tree nuts globally. EU border rejections for aflatoxin are the number one cause of cashew import failures. Always request pre-shipment aflatoxin testing from an accredited laboratory and insist on seeing the results before the shipment leaves origin.
Payment Terms
Standard payment terms in the cashew trade vary by product type:
- RCN - Letter of Credit (LC) at sight is standard and essentially mandatory. No established exporter will ship RCN against T/T alone due to the high value per container ($100,000-150,000+).
- Processed kernels - More flexibility. LC at sight is common for first-time transactions. Established relationships may allow T/T with 30% deposit and 70% against copy of Bill of Lading. Some exporters offer 30-60 day credit terms to trusted buyers.
Shipping Logistics
Cashew nuts are shipped in standard 20-foot dry containers. Key logistics considerations:
- Container load - A 20-foot container holds approximately 14-15 MT of processed kernels (in vacuum-packed cartons or tins) or 18-20 MT of RCN (in jute bags).
- Primary ports - Tema (Ghana), Abidjan (Ivory Coast), and Cotonou (Benin) for West African origins. Ho Chi Minh City (Vietnam) and Tuticorin/Mangalore (India) for processed kernels.
- Transit times - Tema to Rotterdam: 18-22 days. Tema to New York: 20-25 days. Tema to Dubai: 25-30 days.
- Packaging for kernels - Vacuum-packed in 25 lb (11.34 kg) or 50 lb (22.68 kg) tins, packed in cartons. Nitrogen-flushed bags are also common. Proper packaging is critical as cashews are prone to moisture absorption and rancidity.
- Temperature - Cashews should be stored and shipped below 25 degrees C. Container should be clean, dry, and free from previous cargo odors.
HS Codes and Duty Rates
Correct HS code classification is essential for customs clearance and duty calculation. See our full HS code reference guide for all products.
| Product | HS Code | EU Duty | US Duty |
|---|---|---|---|
| Cashew in shell (RCN) | 0801.31 | 0% (GSP) | Free |
| Cashew shelled (kernels) | 0801.32 | 0% (GSP) | Free |
| Cashew roasted | 2008.19 | 8.0% | 17.9% |
Important: Raw and shelled cashew nuts from Ghana enter the EU duty-free under the Generalized Scheme of Preferences (GSP) and also benefit from the EU-Ghana Economic Partnership Agreement. Roasted or processed cashew products attract standard duties. Always confirm current rates with your customs broker as trade agreements and tariff schedules can change.
Source Cashew Nuts with Origin Direct
We source cashew nuts directly from Ghana's growing regions, offering both RCN and processed kernels in all standard grades. Our supply chain includes:
- Pre-shipment quality testing at SGS or Bureau Veritas accredited labs
- Full documentation: Certificate of Origin, Phytosanitary Certificate, Certificate of Analysis, Bill of Lading
- Flexible terms for both first-time and repeat buyers
- Competitive pricing with direct access to farming communities across Brong Ahafo and Northern regions