The Federation of Agricultural Commodity Associations of Nigeria (FACAN), on Monday, said 37,000 tonnes of cashew exported from Nigeria to Vietnam were rejected because of the high price of the commodity.
The Deputy Executive Secretary of FECAN, Mr. Peter Bakare, disclosed this on Monday in an interview with the News Agency of Nigeria (NAN) in Abuja.
Mr. Bakare said the price volatility was due to lack of a conducive business environment that had made the price of raw cashew from Nigeria to be higher than the price of the finished product in the international market.
He said, “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 is stuck in Vietnam now.”
Bakare further said over 67,000 tonnes of cashew were 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 a base for their wine production,’’ adding that measures were in place to safeguard the export of the flower to ensure that exporters were complying its sanitary and phytosanitary requirements in the international market.
He also said there was high demand for Nigeria’s shea butter in the international market.
“It is estimated that if well harnessed for large scale production, it could generate more than $2bn annually,’’ he said.
Bakare concluded that FECAN, 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.