Cashew Coast

𝗪𝗵𝗮𝘁 𝗜𝘁 𝗠𝗲𝗮𝗻𝘀 𝘁𝗼 𝗕𝗲 𝗮 𝗖𝗮𝘀𝗵𝗲𝘄 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗼𝗿 𝗶𝗻 𝘁𝗵𝗲 𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗠𝗮𝗿𝗸𝗲𝘁 Being a cashew processor today involves navigating a complex and volatile market landscape, where processors must adapt to prevailing trends rather than trying to drive market movements like speculators. At Cashew Coast, our focus is on building an efficient processing business and maintaining a responsible supply chain. Our goal is to generate value for all of our stakeholders by working closely with both growers and customers, rather than engaging in speculative activities that could destabilise the market. The year 2024 has presented significant challenges for cashew processors, exemplifying the inherent uncertainties of agriculture. Adverse weather conditions have diminished the quality of raw cashew nuts (RCN), leading to lower outturn yields and higher processing costs. Despite these hurdles, we remain committed to serving our clients consistently, albeit at a greater expense in terms of time and money. Market volatility and speculation are detrimental to processors globally, as they introduce unpredictability that complicates our operations. One of our main concerns this year is quality. Lower quality RCN translates to reduced kernel yields, impacting overall productivity. For instance, a decrease from 47lbs to 40lbs per batch would represent a 14% loss in kernel weight. This year, the quality of RCN in Côte d'Ivoire has dropped significantly due to rainfall patterns. This has been a trend since we started our operations in 2019 - a combination of under-investment in farms by buyers and climate change. While the decline is a continuous challenge, our teams, from sourcing to processing, work tirelessly to maintain consistency of our products. At Cashew Coast, we are dedicated to selling traceable cashew kernels, ensuring that each product can be traced back to the farmer. This commitment to traceability means our acquisition process is inherently slower, as it requires meticulous attention to detail and careful sourcing. It also means buying high quality RCN and low quality RCN from the same farmer, and working with the farmer over time to improve his overall raw material quality. We don't pick and choose, and leave what is poor behind without thinking of the farmer. Tough times of 2024 will eventually pass, and we aim to ensure that our enduring relationships continue to thrive, securing a stable future for all stakeholders involved.

MOSH / MOAH Contamination Pathways MOSH (Mineral Oil Saturated Hydrocarbons) and MOAH (Mineral Oil Aromatic Hydrocarbons) can contaminate food through various pathways throughout the production, processing, and packaging stages. These contaminants originate from materials such as: - environmental contamination (air, soil, aquatic), - lubricants for machinery, - release agents, processing aids, - food or feed additives, - printing inks - adhesives used in food packaging, - the use of recycled cardboard can lead to high levels of contamination, both in direct contact and by gas phase migration Additionally, under certain conditions involving moisture and temperature, a fraction of the lipids naturally found in naturally oily and fatty foods, both of plant and animal origin, can convert into free fatty acids (FFA) and unsaponifiable substances which are chemically similar to MOSH/MOAH. Foods with higher fat content are more susceptible to contamination due to their lipophilic properties, which attract MOSH and MOAH. Lipophilic foods lack water-based barriers, allowing hydrocarbons to migrate more easily. Furthermore, temperature and moisture fluctuations can influence the migration of contaminants from packaging materials into food. Advanced analytical techniques allow for the detection of MOSH and MOAH even at low concentrations, helping to identify and address sources of contamination throughout the supply chain. Read the full article on our Website: https://lnkd.in/eJQ9nb2B

At Cashew Coast, we love working with great people who share our values. Together, great collaboration can change the world. Thank you, Bösch Boden Spies (BBS), for your continued partnership and dedication!

Many of the women who make up the majority of the workforce in the cashew industry have not had proper schooling which often results in adult illiteracy, hindering their career growth. To address this, we offer literacy classes and provide training to help our staff improve their skills and advance in their careers 🎓 Empowering our employees through education is a key part of our commitment to their personal and professional development. #EmpoweringWomen #EducationForAll #CareerGrowth #CashewCoast #SustainableDevelopment #WomenInWorkforce

Safety Recommendations & Guidelines on MOSH / MOAH The European Food Safety Authority (EFSA) has been assessing the risks associated with MOSH and MOAH exposure in food products. They found that current MOSH intake levels across all age groups don't pose health risks, but uncertainties remain, particularly regarding specific food exposures. Recommendations from German consumer protection groups suggest using "orientation values" to guide safe levels of MOSH in food. On the other hand, due to its carcinogenic potential, exposure to MOAH should be limited. The EU PAFF standing committee has set permissible concentrations of MOAH (C 16-C 35) in different food categories based on fat content. - 0.5 mg/kg for dry foods with a low fat/oil content (≤ 4% fat/oil) - 1 mg/kg for foods with a higher fat/oil content (> 4% fat/oil, ≤50% fat/oil) - 2 mg/kg for fats and oils (>50% fat/oil) The lack of standardisation becomes evident in the diverse approaches taken by different regulatory bodies and agencies. Factors such as the specified hydrocarbon ranges (e.g., C10-C16, C16-C20), migration limits, and the emphasis on specific fractions (MOSH or MOAH) vary considerably across jurisdictions. Harmonization of regulations remains a challenge due to varying approaches from national and international risk assessment bodies. Efforts are underway to streamline guidelines and promote a unified approach to food safety. Read the full article on our Website: https://lnkd.in/eJQ9nb2B

According to the recent CNV Internationaal FairMatch Support report [1], in Côte d'Ivoire, only around 10% of cashew processing facilities are creating additional value from their waste streams. Adding value to the waste streams generated in the supply chain is an excellent way to increase company income while benefiting the environment 🌍 At Cashew Coast, we are relentless in our pursuit of better solutions for both the planet and our company. Creating additional value from our waste streams is in our DNA. 𝗕𝗶𝗴 𝘁𝗵𝗶𝗻𝗴𝘀 𝗮𝗿𝗲 𝗰𝗼𝗺𝗶𝗻𝗴—𝘀𝘁𝗮𝘆 𝘁𝘂𝗻𝗲𝗱. [1] CNV Internationaal / FairMatch Support (2024) Looking for synergies - Understanding the current situation of labour rights in the cashew sector in Côte d’Ivoire in relation to upcoming European Union legislation.https://https://lnkd.in/edV3-dg2

A compelling overview of the shifts in Africa's trade dynamics by Axel Peyriere, showing some interesting trends. For us, as an African processor that champions the industrialisation of Africa, the question that comes to mind is what is the nature of these exports? Specifically, what is the breakdown between raw materials (such as mining and oil resources) and finished/transformed/manufactured goods, and who trust African companies like Cashew Coast? According to Afreximbank Research for the 2019-2021 period [1], the destination of exports of African manufactured goods was as follows: 🇪🇺 EU: 39% 🌍 Africa: 29% 🌏 Low and Middle-Income countries excluding Africa: 13% 🏯 East Asia: 7% 🇺🇸 North America: 6% 🌐 Other countries: 8% 𝗧𝗵𝗶𝘀 𝗱𝗮𝘁𝗮 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗽𝗼𝗶𝗻𝘁𝘀: ▶ The EU remains a major destination for African manufactured goods, receiving 40% of such exports. ▶ Intra-African trade accounts for 1/3 of the continent’s manufactured goods exports, showing the robust regional integration and economic cooperation already emphasized. ▶ East Asia accounts for only 7% of African manufactured goods exports. 𝗖𝗼𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻: While Africa's trade with Asian markets is booming, it is primarily focused on raw materials. Manufactured goods head to the EU and within Africa itself. This indicates ongoing strong economic ties and demand for African manufactured products in Europe. Reference: [1] Afreximbank "African Trade Report 2023" https://lnkd.in/e7fHKZaT

MOSH & MOAH are ubiquitous in food products, and according to some accounts, "𝘺𝘰𝘶 𝘤𝘢𝘯𝘯𝘰𝘵 𝘩𝘢𝘷𝘦 𝘧𝘰𝘰𝘥 𝘧𝘳𝘦𝘦 𝘰𝘧 𝘔𝘖𝘚𝘏 𝘢𝘯𝘥 𝘔𝘖𝘈𝘏 𝘢𝘯𝘺 𝘮𝘰𝘳𝘦 𝘵𝘩𝘢𝘯 𝘺𝘰𝘶 𝘤𝘰𝘶𝘭𝘥 𝘩𝘢𝘷𝘦 𝘧𝘢𝘵-𝘧𝘳𝘦𝘦 𝘣𝘢𝘤𝘰𝘯" (Andreas Adam - Food Grade Lubricants Working Group). Cashews, like all nuts, are a high-fat food. While they provide a healthy form of fat with both poly- and monounsaturated fats, their lipid component is susceptible to degradation and transformation into free fatty acids (FFA) and unsaponifiable substances which are assimilated to MOSH/MOAH due to their chemical properties. In other words, MOSH & MOAH are naturally occurring in cashews. Additionally, cashews like most fatty foods such as palm oil, olive oil, sunflower oil, rapeseed oil or cocoa butter are more susceptible to contamination by MOSH and MOAH due to their lipophilic properties. Learn more: https://lnkd.in/eH2E6vZU

𝗟𝗮𝘀𝘁 𝘄𝗲𝗲𝗸, 𝘄𝗲 𝘀𝗵𝗲𝗱 𝗹𝗶𝗴𝗵𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗿𝗲𝗰𝗲𝗻𝘁 𝗽𝗿𝗶𝗰𝗲 𝘃𝗼𝗹𝗮𝘁𝗶𝗹𝗶𝘁𝘆 𝗮𝗳𝗳𝗲𝗰𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗰𝗮𝘀𝗵𝗲𝘄 𝗺𝗮𝗿𝗸𝗲𝘁 𝗮𝗻𝗱 𝘁𝗼𝗱𝗮𝘆 𝘄𝗲 𝘄𝗼𝘂𝗹𝗱 𝗹𝗶𝗸𝗲 𝘁𝗼 𝗰𝗹𝗮𝗿𝗶𝗳𝘆 𝗼𝘂𝗿 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻. Cashew Coast, like a number of established processors, secures annual contracts in March and April for over 80% of our supply, with prices locked-in at that time. While these prices were significantly lower, as a processor that emphasises reliability, our contracts are legally binding. In short, over 80% of our supply was pre-sold in March/April. So, what about the remaining 20%? We are finalising their purchase, and that's where the recent events described in our previous post come into play (see: https://lnkd.in/eHGjsF_D). Driven by speculation, bush prices have soared to over 500 CFA francs (twice the state price) as our team on the ground reported. Greed has further led to product retention. The issue is that, as time passes, cashew quality decreases resulting in lower yields. This year, the problem is compounded by a crop that was already of lower quality due to a dry February. We are now in a difficult situation where mediocre quality raw cashews are simply uneconomical to process due to their over-inflated price. So the question is do we buy or do we pass? That's a real dilemma because, at the moment, processors like us are caught between a rock and a hard place. The hard place being the European buyers who view the sharp increase in kernel prices as a temporary spike, driven by spot purchases for immediate needs. The market seems to anticipate a drop in cashew prices in the last quarter of the year, and this projected decline poses a significant risk to local processors who decide to purchase raw nuts at inflated prices. A price correction in the cashew market was necessary due to Vietnam’s previously extremely low pricing practices which showed no regard for the farmers’ welfare. However, the recent sudden rise in the prices of cashew kernels (and raw cashew nuts) has primarily benefited speculators. This price volatility will also have a detrimental impact on overall consumption.

MOSH & MOAH Regulatory Landscape The regulatory landscape surrounding MOSH (Mineral Oil Saturated Hydrocarbons) and MOAH (Mineral Oil Aromatic Hydrocarbons) in the food industry is complex and currently lacks uniform limits or precise rules. While the European Food Safety Authority (EFSA) has provided recommendations, these are not legally binding, leaving member states to craft their own legislation. There are, however, some regulations on mineral oils covering part of the general problem of MOH. Existing EU regulations on food safety and contaminants emphasise the need to minimise harmful substances in food products and ensure compliance with good manufacturing practices. This includes setting maximum tolerances for specific contaminants and requiring materials and articles intended to come into contact with food to be manufactured in compliance with good practices. What makes the situation particularly difficult for the food industry is that EU regulations imply a proactive and cautious stance. Despite the absence of specific regulations for MOSH and MOAH, heightened public concern is likely to drive regulatory updates in the future. The regulation of trans fatty acids (TFA) serves as a precedent, suggesting that regulations regarding MOSH and MOAH may evolve over time. An important note for the cashew industry is that the regulation on TFA applies to industrial TFA and excludes “trans fat naturally occurring in fat of animal origin”. This precedent could lead to a specific approach to naturally occurring forms of MOSH and MOAH. Read the full article on our Website: https://lnkd.in/eJQ9nb2B