SAN FRANCISCO, January 18, (THEWILL) – 37,000 tonnes of cashew exported to Vietnam from Nigeria were rejected because of high price of the commodity.
The Deputy Executive Secretary, Federation of Agricultural Commodity Associations of Nigeria (FACAN), Mr. Peter Bakare, who made this known, saying the price volatility was due to lack of conducive business environment.
He said this made the price of raw cashew from Nigeria to be higher than the price of finished product in the international markets.
“The banks in Vietnam that usually provide the loans to their buyers for purchase complained that the prices of the finished products are less than the price of raw materials.
“The Vietnam financial institutions, therefore, backed out of the business, stressing that it is not a profitable venture for its farmers, so the produce are stuck in Vietnam now,” he said.
Bakare said over 67,000 tonnes of cashew were also still lying in the warehouse in Nigeria.
He, however, said the Nigerian hibiscus flower, popularly called ‘Zobo,’ adjudged to be one of the best in the world, was in high demand internationally.
“Some countries are using it as drinks or as base for their wine production,” he said, noting that measures were being put in place to safeguard the export of the flower to ensure that exporters were complying with the sanitary and phytosanitary requirements of ‘Zobo’ in the international markets.
He said FACAN as the apex body for over 45 commodity associations in Nigeria, was doing its best to serve as a one-stop shop to link farmers and the private sector operators.