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Cashew Nuts

Chikaodili Ezeama

Oluwakemi Akinroye

Robert Armstrong

Arshdeep

International Business Planning

Joe Lombardo

Confederation College
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INTRODUCTION
Name of the proposed Entrepreneurial Venture: Thunder Nuts Company Ltd.
Description of the proposed import opportunity:
The Canadian market presents a lucrative opportunity for the importation of cashew nuts from Nigeria.
Cashew nuts are popular snacks and ingredients in various cuisines worldwide, including Canada, where
there is a growing demand for healthy and nutritious foods. This report aims to provide a
comprehensive description of the cashew nut import opportunity in Canada, including product
feasibility, industry and target market feasibility, product sourcing, and financial & legal feasibility.

Demand for Cashew Nuts

The demand for cashew nuts in Canada has been steadily increasing due to several factors:

 Shift towards healthier snacking options: Consumers are increasingly seeking nutritious snacks,
and cashew nuts are perceived as a healthy alternative to traditional snacks.

 Growing popularity of plant-based diets: Cashew nuts are a staple in vegan and vegetarian diets,
driving demand among health-conscious consumers.

 Culinary versatility: Cashew nuts are used in a variety of recipes, including salads, stir-fries,
desserts, and nut butter, contributing to their popularity among home cooks and chefs.

Summary of the venture

Cashew nuts are kidney-shaped nuts that grow on the cashew tree (Anacardium occidentale) native to
Brazil but also cultivated in various tropical regions, including Nigeria. Known for their creamy texture,
mild flavor, and nutritional benefits, cashew nuts are a popular choice for snacking, cooking, and baking.
Our cashew nuts are sourced from reputable suppliers in Nigeria who adhere to ethical and sustainable
farming practices. By supporting ethical sourcing, consumers can feel good about the origin and
production of the products they purchase. This sourcing will be done through the shipping route, and
transported from the port to a warehouse in southern Ontario for packaging and subsequently delivered
to all supermarkets and convenience shops across the country.

PRODUCT FEASIBILITY
Concept Statement
Our concept statement outlines the vision, mission, and key objectives of Thunder Nut Ltd in Canada.
With a focus on delivering high-quality cashew nuts to meet the growing demand of health-conscious
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consumers, our business aims to establish a strong presence in the Canadian market and become a
trusted supplier of premium cashew nuts sourced from reputable suppliers from Nigeria.
Vision: To be the leading importer and distributor of premium cashew nuts in Canada, known for our
commitment to quality, sustainability, and customer satisfaction.
Mission: Our mission is to provide Canadians with access to the finest quality cashew nuts sourced from
trusted suppliers in Nigeria. Through our dedication to product excellence, ethical sourcing practices,
and exceptional customer service, we aim to enhance the well-being and culinary experiences of our
customers.
Key Objectives:
1. Source High-Quality Cashew Nuts: Partner with reputable suppliers and producers in cashew-
producing regions, specifically Nigeria but also consider Ghana and India to ensure the highest
standards of quality and freshness for our products.
2. Ensure Product Safety and Compliance: Adhere to strict food safety regulations and quality
standards set by Canadian authorities, including the Canadian Food Inspection Agency (CFIA), to
guarantee the safety and integrity of our cashew nuts.
3. Offer Diverse Product Range: Provide a diverse range of cashew nut products to cater to varying
consumer preferences and usage occasions, including raw, roasted, flavored, and organic
options.
4. Promote Sustainability and Ethical Sourcing: Embrace sustainable sourcing practices and
support fair trade initiatives to promote social responsibility and environmental stewardship
throughout our supply chain.
5. Build Strong Brand Reputation: Cultivate a strong brand identity and reputation for quality,
reliability, and trustworthiness through transparent communication, product excellence, and
outstanding customer service.
6. Expand Market Reach: Expand our distribution network to reach a wider audience of retailers,
wholesalers, food manufacturers, and consumers across Canada, leveraging strategic
partnerships and marketing initiatives to drive growth.

Buying Intention Survey:

As summary of responses gathered from a survey conducted to gauge consumer perceptions and
attitudes towards cashew nuts in Canada. The survey aimed to assess the frequency of cashew nut
awareness, perceived demand, purchase intent, preferences for locally made versus imported products,
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willingness to pay a premium for quality, acceptance of new cashew nut-based products, and perceived
market opportunities.
Survey Questions and Responses:
1. Frequency of Awareness: Respondents were asked, "How often do you hear about cashew
nuts?"
 Positive Response: 70% of respondents indicated that they hear about cashew nuts
frequently or occasionally, suggesting a high level of awareness and visibility for the
product in Canada.
2. Perceived Demand: Respondents were asked, "I believe there is a growing demand for cashew
nuts among consumers in Canada."
 Positive Response: 80% of respondents strongly agreed that there is a growing demand
for cashew nuts in Canada, reflecting a favorable perception of market trends and
consumer preferences.
3. Purchase Intent: Respondents were asked, "How likely are you to purchase cashew nuts?"
 Positive Response: 65% of respondents expressed a high likelihood or certainty of
purchasing cashew nuts, indicating strong purchase intent and potential demand in the
market.
4. Preference for Locally Made vs. Imported: Respondents were asked, "Would you prefer locally
made cashew nuts or imported?"
 55% of respondents indicated a preference for locally made cashew nuts, while 45%
expressed a preference for imported products. This suggests a market opportunity for
both domestic and imported cashew nuts, catering to diverse consumer preferences.
5. Willingness to Pay Premium: Respondents were asked, "Consumers in Canada are willing to pay
a premium for high-quality cashew nut."
 Positive Response: 75% of respondents strongly agreed that consumers in Canada are
willing to pay a premium for high-quality cashew nuts, highlighting a perceived value
proposition for premium products.
6. Acceptance of New Products: Respondents were asked, "Consumers in Canada are likely to
embrace new cashew nut-based products, such as cashew milk or cashew butter."
 Positive Response: 60% of respondents strongly agreed that consumers in Canada are
likely to embrace new cashew nut-based products, indicating receptiveness to
innovation and product diversification.
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7. Perceived Market Opportunities: Respondents were asked, "I personally see opportunity for
cashew nuts to thrive in the Canadian market."
 Positive Response: 85% of respondents strongly agreed that they see opportunity for
cashew nuts to thrive in the Canadian market, suggesting optimism and confidence in
the potential success of cashew nuts in Canada.
Overall, the survey results indicate positive sentiments and favorable perceptions towards cashew nuts
among consumers in Canada. The findings suggest a growing awareness, perceived demand, purchase
intent, willingness to pay a premium, acceptance of new products, and perceived market opportunities
for cashew nuts in the Canadian market. These insights can inform strategic decision-making and
marketing efforts to capitalize on the favorable market conditions and drive growth in the cashew nut
industry in Canada.
INDUSTRY AND TARGET MARKET FEASIBILITY
Industrial Attractiveness
Asia-Pacific has been a consistent importer of cashew kernels despite the presence of large cashew-
producing countries, such as India and Vietnam, in the region. In terms of consumption, India is the
leading country in the world. As Vietnam leads in the production of cashews worldwide, it is also a
significant exporter of the same to other international markets. (www.mordorintelligence.com/industry-
reports/global-cashew-market).
Asia-Pacific is the largest consumer of cashew nuts in the world. In recent years, there has been an
increasing interest in the use of cashew nuts in regular diets and healthy ready-to-eat snacks. The rising
number of manufacturers producing innovative cashew-based consumables has taken both young and
geriatric consumers by stride. For example, roasted and spice-coated cashew nuts that appeal to the
local palate were introduced in India. (https://straitsresearch.com/report/cashew-market).
The demand for cashews in Asia has persistently increased as the imports for shelled cashews increased
exponentially by over 700% from 4,321 metric tons in 2017 to 30,688 metric tons in 2021 in China, with
Vietnam being the major import partner according to the ITC trade map. China leads the region in
cashew import, followed by Japan, Thailand, and India. (www.mordorintelligence.com/industry-
reports/global-cashew-market).
Nuts have become a primary component in the Chinese diet since the inception of the National Health
Policy called 'Dietary Guidelines for Chinese Residents,' which emphasizes daily nut consumption. The
increased cashew nut imports may also be attributed to the new product campaign of selling 'daily nuts,'
including cashews, in ready-to-eat packages, by Chinese nut manufacturers, thus driving the cashew nut
market in the country. (www.mordorintelligence.com/industry-reports/global-cashew-market).
PRODUCT SOURCING
Cashew nuts come from fruit-producing trees. The fruit, or 'cashew apple', which resembles a bell
pepper, is a 'false fruit'. A master of deception, the real fruit dangles from the bottom of the cashew
apple, guarding within it a single seed known to us as a cashew nut.
The most popular area in Nigeria producing the highest cashew nuts outturns is the Ogbomosho area of
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Oyo state. Now, it's key to know that Oyo state produces cashew nuts in many parts of the state, but
Ogbomosho is simply the part with large volumes of high-quality
Two potential suppliers and contacts
1. Kogi state cashew nuts growers cooperative. Located in Lokoja the state capital
2. Organic cashew nuts kernels located in Lagos state. This is one of the most popular exporters of
cashew nuts to America and Europe
Rationale for Selection
Partnering with local companies in Nigeria enable Thunder Nuts Ltd get these commodities at far
cheaper prices than they would have gotten from other markets.
In as much as the international buyer would be in a direct purchase partnership with the local company,
the buyer would provide funds to purchase much more quantities than would previously have been
possible by the local cashew nuts supplier in Nigeria, and so, both organizations can profit with each
other playing their respective roles and the banks ensuring all parties interests are protected.
The rationale for selecting these suppliers for cashew nuts from Nigeria involves careful consideration of
several factors to ensure reliability, quality, and compliance with import regulations. Here are some key
considerations:
 Reputation and Experience: the chosen suppliers have a proven track record and extensive
experience in the cashew nut industry. They have a reputation for reliability, professionalism,
and adherence to industry standards.
 Quality and Certification: The selected suppliers have high-quality cashew nuts that meet
international standards for hygiene, safety, and nutritional value. The suppliers are certified by
relevant regulatory bodies, such as the Nigerian Export Promotion Council (NEPC), and comply
with food safety and quality certifications, such as Hazard Analysis and Critical Control Points
(HACCP) and Good Manufacturing Practices (GMP).
 Sourcing and Traceability: It can be verified that the cashew nuts are from reputable farms and
producers with sustainable agricultural practices. There is substantial traceability throughout
the supply chain to guarantee the origin and integrity of the products.
 Capacity and Reliability: Their production capacity, infrastructure, and logistical capabilities to
meet our import requirements consistently has been established.
 Compliance and Documentation: The suppliers comply with all relevant import regulations,
including sanitary requirements, labeling regulations, and customs documentation. It has been
confirmed that these suppliers have the necessary permits, licenses, and certifications to export
cashew nuts to Canada.
 Communication and Support: The suppliers have demonstrated clear communication,
responsiveness, and willingness to provide support throughout the importation process.

FINANCIAL AND LEGAL FEASIBILITY

Legal Requirements.
Importing cashew nuts from Nigeria to Canada involves compliance with various legal requirements and
regulations to ensure food safety, customs clearance, and adherence to import laws. Here are the key
legal requirements:
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1. Canadian Food Inspection Agency (CFIA) Regulations: Cashew nuts imported into Canada must
comply with CFIA regulations governing food safety, quality, and labeling. Importers must
ensure that cashew nuts meet Canadian standards for hygiene, packaging, and labeling,
including allergen declarations, nutritional information, and country of origin labeling.
2. Phytosanitary Regulations: Cashew nuts must be free from pests, diseases, and contaminants to
prevent the introduction of harmful organisms into Canada's agricultural ecosystem. Thunder
Nuts Ltd will obtain phytosanitary certificates from Nigerian authorities certifying that the
cashew nuts meet Canadian phytosanitary requirements.
3. Customs Clearance: Thunder Nuts Ltd will comply with Canadian customs regulations and
procedures for importing goods into the country. This includes accurately completing customs
documentation, paying applicable duties and taxes, and complying with import restrictions or
prohibitions.
4. Tariffs and Duties: Cashew nuts may be subject to tariffs, duties, and other import fees imposed
by the Canada Border Services Agency (CBSA). Importers must determine the applicable tariff
classification and rate for cashew nuts based on the Harmonized System (HS) code and the
country of origin.
5. Import Permits and Licenses: Depending on the quantity and type of cashew nuts being
imported, Thunder Nuts Ltd may need to obtain import permits or licenses from Canadian
authorities. Certain types of cashew nuts or processed products may require specific permits or
regulatory approvals.
6. Food Safety and Quality Standards: Cashew nuts must meet Canadian food safety and quality
standards to ensure that they are safe for consumption. Thunder Nuts Ltd will at all times make
sure that cashew nuts are produced, processed, and handled in accordance with good
manufacturing practices (GMP) and other relevant standards.
7. Labeling Requirements: Cashew nuts imported into Canada will comply with labeling
requirements specified by CFIA regulations. Labels will include essential information such as the
product name, ingredients list, allergen declarations, net weight, and contact information of the
importer or distributor.
8. Documentation and Record-Keeping: Importers must maintain accurate records of all
transactions, including invoices, shipping documents, certificates of origin, and import permits.
Documentation should be retained for a specified period as required by Canadian regulations.
By adhering to these legal requirements and ensuring compliance with Canadian regulations, Thunder
Nuts Ltd can facilitate the smooth importation of cashew nuts from Nigeria to Canada while mitigating
risks and ensuring regulatory compliance..
Landed Cost Projections
A budgeted cash of $300,000 will be needed to start:
 Hired or bulk-built warehouse close to the farm or close to the market for $10,000.
 Warehouse equipment like forklift $6000
 Loaders and off loaders salaries per load $2000
 Transport to farm and market $3000
 Money for the purchase of goods cashew nuts $150,000
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 Transportation to shipping warehouse $2000

 License, approval import duties and others $5000
 Shipping to Canada $6000
 Clearing and forwarding $3000
 Dropping off at were housing in Canada $4000
 Labeling and distribution including delivery of $3000
Total is $184,000

Goods bought and supplied is 200,00mt \$150,000

1m of cashew nuts is $1.3
Sale of 1t = $8 averagely
200,000t \ 8 = $ 1,600,000
25% tax = 1,200,000
Profit
You still have $116,000 at hand after all expenses.

SUMMARY AND CONCLUSION

The Canadian market presents a lucrative opportunity for the importation of cashew nuts from Nigeria.
Cashew nuts are popular snacks and ingredients in various cuisines worldwide, including Canada, where
there is a growing demand for healthy and nutritious foods. The findings in this report suggest a growing
awareness, perceived demand, purchase intent, willingness to pay a premium, acceptance of new
products, and perceived market opportunities for cashew nuts in the Canadian market. These insights
can inform strategic decision-making and marketing efforts to capitalize on the favorable market
conditions and drive growth in the cashew nut industry in Canada. Furthermore, by adhering to the legal
requirements and ensuring compliance with Canadian regulations, Thunder Nuts Ltd will be able to run
the smooth importation of cashew nuts from Nigeria to Canada while mitigating risks and ensuring
regulatory compliance..
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References
https://straitsresearch.com/report/cashew-market
www.mordorintelligence.com/industry-reports/global-cashew-market
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