Cashew presentation NJLIP

Presentation
On
Cashew processing in Bangladesh at Cluster level
Presented to:
NJLIP
World Bank
This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to any
third party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

WELCOME
Presentation
for Concept and Options of Production, Processing
and Marketing of Cashew in Bangladesh at Village
level by NGO’s to Cluster level to scale to Industry
level.
This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to any third
party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

Raw Cashew Nuts
The raw cashew nut is
the commercial product
of the Cashew Tree,
though yields of cashew
apple are eight to ten
times the weight of the
raw nuts.
Cashew Nut Shell Liquid
inside the shell
represent 15% of the gross
weight and has some attractive
medicinal and industrial uses.
The liquid is one of the natural
resin that is highly heat
resistant and is used in braking
systems and in paint
manufacturing.
The Cashew Apple is
Processed and Consumed
Locally as it is difficult to
Transport
Cashew Kernel
60% consumed as Snacks
40% consumed as
Confectionery

1. Ms. Mahina Arefin She is a Social Entrepreneur having exposure more that 10 years in various
field and various countries. She has a nich and soft heart on innovation for
livelihood of poor women. She is the first who could identify the potential and
commercialization of cashew trees standing untilled in hill track of Bangladesh.
2. Mr. Sheikh Razif
Ahmed
He is an international trader having experience of 25 years mainly in Chinese
market .He has commendable adoptability due to his exposure in country like
China. a strong clutch on Cashew's growing market in China and Eastern Asia is his
focused specialization
3. Mr. Sunil K. Sonee He is an International Entrepreneur of core level having experience in cashew and
many other product in various countries for more than 30 years. He has practical
experience and net work in Cashew raw nut import ,finished kernel export and
processing units.
4. Ms. Sanjida Kaium Is a social Entrepreneur and Development worker of National level having
experience in the field of program development , management, communication
and capacity building for more than 15 years
5. Mr. Morari Lal Patel as Consultant. He is well experienced businessman having special acumen to develop
cluster cashew industries. He is already running a cashew industry in state of Gujarat in India.

Why NJLIP
The Project Development Objective (PDO) is to improve the livelihoods of
extreme poor communities and to strengthen the community institutions and
Cashew processing has all the potentialities to play a successful part in this
program by:
Empowering women through capacity development on cashew processing:
 Cashew is a global food item having demand all over the world. Through
developing the skill of the community women on cashew processing the
women will get a standard income that will empower them financially.
According to researches financial empowerment is the key factor in taking part
in making decisions
Ensuring day to day income all through the year:
 Cashew has got demand allover the world throughout the year, it can be
imported, processed and exported all through the year. As a result the women
will be able to work all around the world and earn money

Why NJLIP
Ensuring sustainable development in aspect of livelihood:
 Once the women are trained on cashew processing they can work all through
their life by themselves as it has a global demand around the year
Addressing mal – nutrition as cashew nuts are full of protein:
Cashew nuts are full of food values and protein, it is also very helpful in brain
development. Once it is available the children and women will have an available
source of protein and recover mal - nutrition
Developing women entrepreneur :
 Through cashew processing each of the processor may become the owner of
processing machine that results a home based factories. Ultimately the
women are becoming entrepreneur
 Through Individual development cashew processing will successfully develop a
group that may really take active part in decision making for developing a
healthy and wealthy village that will lead to a healthy and wealthy nation.

1st option
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2nd option to be triggered on failure of 1st option
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Why leader
If a leader get involved in NJLIP Cashew project:
• The leader will become more popular amongst
his/her followers
• The poverty of his/her area will be eradicated
• The livelihood of his/her people will be
developed
• Children of his/her area will live a healthy life
• He/she will become a role model for others
• He/she will be able to create a sustainable
positive impact to his/her followers mind

NJLIP with cashew project is most applicable
project for the government as:
• It provides a time bound result
• It is so well - planned to bring successful result
• It brings equal profit by means of time , money
and national development
• It ensures financial solvency
• it has business popularity in developed countries
Why Government

The NJLIP cashew project strongly refers the role of social entrepreneur because this project:
• The social entrepreneur will be successful in creating societal leadership this is
• Creating a sense of shared commitment and co-ownership by embedding the social objective
within the hearts of relevant social actors.
• social entrepreneurs are able to foster active citizen involvement and positively impact the rate and
reach of their social vision.
• He/she will be able to take part in Business management: translating vision into action as a leader
who is able to constantly realign strategic choices made at the commercial level with the
organization’s social vision, while effectively utilizing its social capital to this end. The total budget
for.
• He/she will be able to develop Personal leadership: self-awareness and self-development through
driving forward the social objective, advocate the cause, with a people’s approach to doing
business whilst simultaneously achieving and preserving financial sustainability.
• A major part of NJLIP covers advocacy: a social entrepreneur can bring a complete success through
advocating for the right livelihood for the right cluster
• He/she will be able to develop a group of entrepreneurs to have a sustainable positive impact to
the financial development of the society
Why social Entrepreneur

Why media
Now a days media plays a vital role in every development
activities. In NJLIP Cashew project media may have:
• a great opportunity for news coverage
• Scope to develop success stories of a developed
Bangladesh
• Increase the popularity of their channels/publications
• A great chance to prove themselves as the friend of
common people
• An opportunity to become social leaders

Why celebrities
In the NJLIP cashew project celebrities will find
every option to be :
• More popular to the common people
• A hero/heroine of real life
• An example of real leaders
• An entrepreneur and a leader

Through the cashew project in NJLIP an
advocate may:
• Have opportunity to have a strong reputation
on common people
• Will create a positive image
• Will have a great chance to advocate for the
poor people
• Will develop a strong working network
Why Advocates

Why NGOs
NJLIP cashew project fulfills all the aspects for
NGOs to consider this as a successful on because:
• It is self sustainable
• Funds revolves automatically
• Ensures 100% implementation of funds
• Organization gets benefitted
• It is Well- planned to manage
• Provides global network

WHY BANGLADESH
Cashew Kernel is exported to Developed Nations, where Bangladesh already exports
Garment. Addition of Cashew will result as a Brand Value due to exposure in two main
components as food and clothing.
The raw material of Cashew is procured from under-developed nations from where Barter
Trade is possible of the various food products and garments manufactured in Bangladesh.
The processing of Cashew involves lot of Manpower which is easy and economical in
Bangladesh.
Electricity and Power required in the Processing can be obtained through Solar Energy
which will lead to development of Bangladesh as a whole, and moreover make the whole
Project as a Green Project
In many countries World-wide it is worth billion dollar and very similar to garment industry.
This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to any third
party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

CASHEW AND ITS USES
• Used as snack, biscuits, confectionery items and in
various other delicacies.Cashew Nuts
• Pressed from Cashew Nuts of Broken Chunks created
during Processing. Often used as dressing in salads.Cashew Oil
• Raw material in developing drugs, antioxidants,
fungicides etcCashew Nut Shell Liquid
• It is a soft fruit, rich in nutrients, and contains five
times more Vitamin C than an OrangeCashew Apple
• Used in paan ( a popular serving made of Betel Leaf)
Cashew Peel
• Used in Poultry Feed
Cashew Bud

OUR OBJECTIVES
1. Our Objective is to utilize Cashew production in Bangladesh , which
remained unutilized up to recently.
2. Our objective is to bring Cashew Project in existence so as to :
a) Provide employment to un-skilled, semi-skilled and skilled labor force in
Bangladesh
b) Bring Nutrition value in Bangladesh as well as in other parts of the World
c) Earn foreign exchange for the country.
3. Develop exchange trade or barter trade to boost the supply chain
substantially with right vision.

OUR ROLE
Empowering Women and Youths
Skill Development Training Centre
Technical know-how
Marketing
Buying
Selling
Market Acquisition
Optimization of Funds
Land acquisition and plantation on Global level

SCALABLE AND SELF SUSTAINANCE
With extensive commercialization scope that the
product offers, the benefit is not restricted to
Rural Farmers.
Many Small & Medium Enterprises can be
developed which may buy the raw material from
Farmers process it and make it saleable.
Self Help Groups can setup their own Plants with
appropriate Fundings from bank, thus providing
employment opportunity along with rotation of
funds of the Banks.
Export Oriented Units will be born too.

STRENGTHENING OF VILLAGES
The direct export benefit is foreign exchange
flow in the Villages.
The economic and financial aspect of the
Village improves with every export activity
conducted.
It brings in recognition to the Village of
Bangladesh and strengthens its position.
This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation
to any third party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

NUTRITION AND FOOD
Cashew nut is a well known nut for its Nutritional
Value in terms of Protein and Calories.
World Bank has been funding Product Cashew so
as to eradicate the Protein Deficiency.
The farmers and their families can deal with the
problems of Mal-nourishment with consumption
of Cashew and with the Income earned in the
Process to meet their other needs.
This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to
any third party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

INFRASTRUCTURE IMPROVMENT
Bangladesh can enter into beneficial Cross-Border
Trade with other Countries.
The process of Loading, Unloading, Aggregation
of Cashew in Containers will not only provide
employment but also help in expansion of
Custom Ports of the Countries.
Roadside plantation of cashew trees along with
other small shrubs like mint, chilies, etc. can be
cultivated on contractual basis by local people.

Benefit to Environment along with Employment
 Coastal Bangladesh is a suitable place for the Plantation of
Cashew Trees in terms of Climatic Conditions.
 The plantation of Trees will provide employment to
Unemployed as a whole.
 It also will upgrade the Environment by Generation of more
oxygen in the air and will beautify the Road Side apart from
orchard.
 Plantation of Cashew will also help from Soil Erosion and
other environmental Hazards.
 It will also bring in opportunity of Employment as labour
can be employed for picking up Raw Cashew nuts (in shell)
from these trees.

SKILL DEVELOPMENT & EMPLOYMENT
Process of testing, grading requires skills which
can be imparted to the youths, thus making them
Technically Skilled and also generating
Employment Opportunities.
The Youths can form Groups like Self Help Groups
and work unanimously.
These processes ultimately leads to Skill
Development along with Employment and export
of technical know how and skilled people.

WOMEN EMPOWERMENT
Being Labour-Intensive Process of Cashew, it
provides Employment Opportunity to the Rural
Poor who can do these processes by forming
groups.
It provides employment opportunities to the
unemployed Rural Youth.
Empowers women as they can also get
employment opportunities in the processes of
Peeling etc.
Ultimately, improving Livelihood of the poor. This
job does not need any school qualification.This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation to any

EDIBLE AND EXPORTABLE
Cashew being a widely used agricultural
produce and having high nutritional value is
being consumed by many other Countries.
As Coastal Bangladesh fits in the climatic
conditions required for Raw Cashew Nuts and
other requirements in the processing of the
Final Product, Cashew can be exported.

Possible Means of Finance and Funding
 1. Equity funding by Angel and other investor.
 2. Scheme funding from World Bank such as :
A) Nuton Jibon Livelihood Improvement Project
3) Funds can be sought from NGO and Social development
foundations too.
 4) Crowd Funding
 5)Buy back based funding from market .

INVESTMENT
It is estimated that about BD taka One million per village using 100 village
will be required which will include
 Land,
 Building,
 Offices
 Plant and machinery
 Recurring expenses
 Working capital
 Stock of raw and finished product

INVESTMENT IN CASHEW
Cashew is White
Gold. The investment
in Cashew is more
worthwhile than
investing in Gold
Metal, Stock Market,
Real Estate etc.

One of the most suitable
Investment for Account
and Fund Appropriation
and availing Tax Benefit
being an Agriculture -
Horticulture Produce, Skill
Development Opportunity
and Export Orientation of
the Product.

Cashew has High return on
Secured Investment along
with
• 1. Developing Rural Land and Real
Estate
• 2. FMCG produce by Branding
• 3. Cottage to Industrial Level-
benefit
• 4. International Trade and
Immigration Opportunity
• 5. Family Security

INVESTOR ROLE
• Joint Venture Company with his Own
or Proxy Ownership
• He can sign a MOU as Investing
Partner
• He can be an Investor on Fixed
Return
• He can Invest with pre-planned Exit
Plan.
• He can Invest with Pre-Planned
Inclusion Plan
Investor
can join
as

RETURN ON INVESTMENT
In a period of 3- 5 years the profit accrued will
relinquish the Initial Investment as the
Minimum Assured
Along with larger market acquisition for the
product in house as well as Overseas leading
to goodwill.
Net Return on Investment 18%
Gross Return on Investment 30%

SOURCE OF RETURN
Interest and Structure Financing
Trading Profit at Procurement Level
Profit on High Seas and International Sale
Profit from Migration and Skill Development
Profit from Processing
Profit from Local Sale and Export
Profit from Branding
Profit from Rural Real Estate Development

OPTIMUM INVESTMENT
It is estimated that about BD taka Twenty million
will be required which will include
Land,
Building,
Offices
Plant and machinery
Recurring expenses
Working capital
Stock of raw and finished product

RETURN ON INVESTMENT
In a period of 3- 5 years the profit accrued will
relinquish the initial Investment as the
Along with larger market acquisition for the product
in house as well as Overseas leading to goodwill.
Note : Spreadsheet of fund utilization to achieve
above profitability can be disclosed to a
Nominated CA Firm for Audit only.
Net Return on Investment 18%
Gross Return on Investment 30%

Amount per 100 grams
Calories 553
Total Fat 44g
a. Saturated Fat 8g
b. Polyunsaturated Fat 8g
c. Monounsaturated Fat 24g
Sodium 12mg
Potassium 660mg
Total Carbohydrate 30g
a. Dietary fiber 3.3g
b. Sugar 6g
Protein 18g
NUTRITION FACTS
Source : Wikipedia

PLANTATION OF CASHEW
 The traditional cashew tree is tall (up to 14 m) and takes
three years from planting before it starts production, and
eight years before economic harvests can begin.
 More recent breeds, such as the dwarf cashew trees, are
up to 6 m tall, and start producing after the first year, with
economic yields after three years.
 The cashew nut yields for the traditional tree are about
0.25 metric tons per hectare, in contrast to over a ton per
hectare for the dwarf variety.
 Grafting and other modern tree management technologies
are used to further improve and sustain cashew nut yields
in commercial orchards.

OBTAINING RAW CASHEW IN SHELL
Testing of Sample of Raw
Material
Placing order and buying
from Farmer as per the
order
Raw Cashew Nut
Treatment
Moisture
Nut-Count
Out-turn
Color & Structure

RAW CASHEW NUT TREATMENT
*
SUN DRYING
At the Producer
Level Raw Cashew
Nuts are sun dried
for several days.
*
PACKING
AND
TRANSPORTING
*
IN-FACTORY
PROCESSING
1. Testing
2. Sorting

IN-FACTORY PROCESSING
1. TESTING
2. SORTING
TESTING
MOISTURE
TESTING
NUT COUNT
TESTING
OUT-TURN
TESTING
COLOR &
STRUCTURE

CASHEW NUT PROCESSING
SHELLING/CUTTING
DRYING
PEELING
GRADING & PACKING

SHELLING/CUTTING
 At each shelling machine the nuts are cut and
then opened by a pin separating the kernel
from the shell.
Daily production is about 30 kgs per team of
average 8 persons.

DRYING
The raw kernels are put in aluminum
perforated trays and then put in an electric /
steam drying machine for three hours at a
constant temperature of 80 deg. C.
The moisture content of the raw kernel is
reduced from 7% to 3% to prevent natural
deterioration.

PEELING
Manual peeling is done by gentle rubbing with
fingers or by use of special peeling knife; with
this operation 10-12 kg of kernels can be
peeled per day.

GRADING & PACKING
 There are 27 specific grades of cashew nut kernels
obtained from peeling. The major work is to select the
kernels according to size, shape color and count. Once
the kernels have been graded, and after going through
final quality control; they are packed in pouches of 25
lbs/11.34 kg net weight.
 The pouches are vacuum-packed to extract air and
carbon dioxide; then, nitrogen gas is injected in and the
pouch is automatically sealed. The final process
prevents the product deterioration and extends the
storage / shelf life of the kernel up to 5 years if the
pouch is not punctured.

MAJOR PRODUCERS OF RAW CASHEW NUTS (IN SHELL)
`
RANKING COUNTRY PRODUCTION (METRIC
TONS)
I NIGERIA 650,000
II INDIA 613,000
III IVORY COAST 380,000
IV VIETNAM 289,842
V INDONESIA 145,082
VI PHILIPPINES 134,681
VII BRAZIL 104,342
VIII GUINEA-BISSAU 91,100
IX TANZANIA 80,000
X BENIN 69,700
SOURCE : WIKIPEDIA (YEAR 2001)

MAJOR PRODUCERS OF CASHEW NUTS
S.No COUNTRY PRODUCTION (METRIC TONS)
1. Vietnam 1237300
2. Nigeria 835000
3. India 674600
4. Ivory Coast 393000
5. Brazil 230785
SOURCE: GOOGLE (YEAR 2011)

MAJOR CONSUMERS OF CASHEW NUTS
Cashew kernels are ranked as either the second
or third most expensive nut traded in the US.
S.NO. COUNTRY CONSUMPTION
1. The United States 55%
2. The Netherlands 10%
3. Germany 17%
4. Japan 5%
5. UK 5%

GRADES & CLASSIFICATION
Cashews are graded on how white they are and
how broken the kernel is. There are four color
grades, four styles of break on the kernel and six
sizes (or maximum number of kernels per pound)
Classification Method 1 - Classified according to
grades / with or without basing on number of
kernel per Lbs.
Classification Method 2 – Based on whether the
cashew kernel is whole or broken

METHOD 1
Cashew kernels have been classified according to
6 quality levels Explanation of cashew grade
terminology: The alphabets at the front represent
a word descriptive of the form of cashew – W for
whole, B for Broken, S for Split etc.
The numbers that follow the alphabets (where
present) usually represent the number of kernels
per pound. Hence, to give an example, W 210
implies that it is a whole cashew kernel which
gives 210 kernels per pound.
This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this presentation
to any third party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

QUALITY Classified according to grades / with or
without basing on number of kernel per Lbs
FIRST
W210, W240, W320, W450, WB, WS, LWP, SWP
SECOND LBW210, LBW240, LBW320, LBW, SW210, SW2440,
SW320, SW, SB, SS, LP, SP
THIRD
DW320, DW350, DW
FOURTH DW2, DW3DW2, DW3
FIFTH
SW2, SSW2, SW3, DW, DWTW3, DW, DWT
SIXTH
CS, SK, SK2, TPN, TPN2, TPB, DW4CS, SK, SK2, TPN,
TPN2, TPB, DW4

METHOD 2
 Plain Natural Wholes - Cashew is graded in three categories based on
colour. White Wholes (“W” appearance – white, pale ivory), Scorched
Wholes (“SW” – slightly reddish) and Scorched Wholes Seconds (“SSW” –
discolored); W and SW Wholes are graded according to size, i.e. number of
nuts per Pound; Super Premium – W 150; Premium – W 210; Regular – W
450; Economy – SW 450
 Natural Halves - Cashew Kernels broken evenly into 2 parts are less
expensive than wholes. They are used in economy packs and also for
candy bars, sweets and pastry. Splits are crisper than wholes and
sometimes preferred for that reason. The different varieties are: Fancy
Splits (FS): White halves split lengthwise; Fancy Bults (FB): White halves
broken crosswise; Scorched Splits; Scorched Bults
 Natural Broken’s - Natural Cashew pieces are used in economy packs and
also in confectionery, pastry, ice creams & cooking; Large White Pieces
(LWP); Scorched Pieces (SP); Scorched Pieces Seconds (SPS)

Cashew Kernel Preservation Cashew kernels should be preserved in a dry clean
place, far from heat resource. The storage of
preservation should be closed, dry clean, free from
foreign smell, no insect, rodents.
Cashew Kernel Transportation Cashew kernels should be transported by dry, clean,
closed transport facilities that free of foreign smell.
The loading operations should be done gently, with
care.
Cashew Kernel Standards Cashew kernel standards have been laid down by the
following organizations :
•AFI (Association of Food Industries of New York)
•TCVN 4850 1998 - Vietnam Cashew Nuts Kernel and
Technical Request
•CENTA
•Grade Specification for Indian cashew Nuts kernel

TECHNICAL REQUIREMENTS OF CASHEW KERNELS
The following are some of the typical technical requirements of cashew
kernels that are traded in the various parts of the world:
 The kernels should be dry and should have the characteristic shape.
While depending on the grade they can be either scorched or unscorched,
wholes or broken, they should be free from oil (CNSL) and the thin outer
skin.
 Cashew kernels should be completely free from living insects, moulds,
from rodent contamination and insect damage
 Cashew kernels should have natural smell, and should be free of rancid or
any other unnatural smell.
 Moisture content: The cashew kernels should have moisture content not
greater than 5% by weight.
This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of this
presentation to any third party in full or in part as extract is not allowed without written consent of Ms Mahina Arefin.

Arrangement of
Plant &
Machinery
Arrangement of
Land & Offices
Collection of
Information &
Appointment of
Consultant
NDA & MOU
Concept and
Information

Arrangement
of Finance and
Funding
Arrangement
of Raw
Material
Training of
Worker and
Staff
Receipt of Raw
Material
Grading of
Raw Material
De-shelling
Drying Peeling Grading
PackingSelling
Receipt of
Payment

CHAIRMAN
MANAGING
DIRECTOR
EXECUTIVE
DIRECTORS
Finance and
Budget
Banking
Cash and
revenue
Account and
Statistics
Purchase and
Raw Material and
Import
Sourcing and
import
Shipping and
Logistics
Quality and
Credit
Quality control
,Production
Inventory control
Raw material
Production and
output
Plant and
machinery
Sales, Marketing
and export
Customer
relation and
communication
Dispatch and
quality control
Export and sales
Export logistic
and travel
protocol
CO-ORDINATION
DIRECTORS*
EXECUTIVE
DIRECTORS
Communication
NGO and Village
NGO coordinator
and
Communication
SHG and
grouping
Village
coordinator and
communication
Micro finance
and account
Assessment and
granting
Coordinator and
fallow up
Recovery,
adjustment
accounts
Raw Material
Distribution and
ware housing
Raw Material
Sorting and
dispatching
Logistics and
safety
Production and
training
Training at village
and NGO
Quality control
and assessment
Packing and
dispatch
*FOR NGO, VILLAGES
AND WAREHOUSING
DIRECTORS
PROPOSED ORGANOGRAM

DIRECTOR :
SOURCING &
IMPORT
GENERAL
MANAGER
BANGLADESH
INDONESIA
EAST AFRICA
WEST AFRICA
ANY OTHER
COUNTRY
DIRECTOR :
CUSTOMER RELATION
& COMMUNICATION
GENERAL MANAGER
BANGLADESH
JAPAN
MALAYSIA
AMERICA
EUROPE
ANY OTHER COUNTRY
DIRECTOR : NGO
CO-ORDINATION &
COMMUNICATION
GENERAL
MANAGER
NGO A
NGO B
NGO C
DIRECTOR : VILLAGE
CO-ORDINATIOR &
COMMUNICATION
GENERAL MANAGER
VILLAGE A
VILLAGE B
VILLAGE C

At Farm
during Harvest
•Depending on
Period, Quality,
Competition etc
To Town
Warehouse
•Apart from Logistics
•Value addition USD
40 - 100
FOB Price
•Apart from
Expenses and
Logistics
•Value addition USD
50 – 200
CIF and High
Seas Price
•Apart from
Expenses and
Freight Logistics
•Value addition
USD 50 – 200
PRICE MARK-UP PER METRIC TONNE
Continued..
USD 400 - 900
USD 450 - 1000
USD 500 - 1200
USD 550 - 1400

To Unsorted and
Graded Kernel
Production
• Where 87 – 75 % is
by-product
To Sorted Kernel
• Value addition USD
750 - 900
To Whole Sale
Market
• Including Packing
Charges and
Commission
PRICE MARK-UP PER METRIC TONNE Continued..
Stage Avg. Price PMT
I USD 650
II USD 725
III USD 850
IV USD 975
V USD 1750
VI USD 2565
VII USD 5175
USD 1030 - 2450
USD 1780 - 3350
USD 3350 - 7000
This presentation is prepared by Ms Mahina for a specific goal and made available to specific person. Disclosure of
this presentation to any third party in full or in part as extract is not allowed without written consent of Ms Mahina

Cashew Cluster Development
Programme
Country : Bangladesh

REQUIREMENTS
FOR A CLUSTER OF 10 VILLAGES
Central Warehouse with Office
Local transportation to and fro from warehouse to Villages
A small warehouse for certain processing equipments at every village
A boiler in each village (Capacity will be defined on the number of labors)
A Dryer in each village (Capacity will be defined on the number of labors)
Shelling Tables (Quantity on the no of labors Min 1 table between 3 labors)
Other Storage items like Bowls, Plastic carets etc.

MAN – POWER REQUIREMENT & WAGES
Person Capacity Work
2 19 to 55 years, normal health,
good eyesight ,logic, math and
weighing skill
To check and grade the raw nuts received
2 19 to 45 years ,sound physic and
health ,good cooking skill.
To operate the boiler and dryer To Boil the raw
Cashew in cooker To Dry the kernels in the
dryer
9 19-55 years, sound health, skill of
cutting and separating
To cut/shell the boiled raw nuts To cut and
separate the kernels from the shell
5 19-55 years,
Sound health peeling skill
Peeling of Nuts To remove the husk from the
dried kernels
2 19-55 years,
Sound health, segregation ,logic,
maths and weighing skill
To remove the damaged or unwanted kernels
To pack the ready kernels to be sent to head
office
TOTAL MANPOWER AND WAGES 20xBDTk5000=BDTk100000 per month

Requirements of Machinery and Cost to process 250kg
Raw Cashew Nuts per day of 8 hrs by 18 persons
• Approx. Ex-Factory rates in India
QUANTITY ITEMS PRICE(in BDT)
1 Boiler 80kg batch 84000
1 Dryer for 60kg 84000
8 Shelling Machines
(Leg and hand operated)
60000
10 Peeling knives 1000
20 Small plastic bowls 700
20 Big bowls or crates 13000
Total Cost of plant and
Instruments
242700

Power/ Electricity Consumption
DEVICE/EQUIPMENT UNITS PER DAY COST (in BDT)
80kg Boiler 3 22.26
60kg Dryer 12 89.04
3 Fans 1.44 7.17
Lights for workers 1.28 6.37
TOTAL 17.72 124.84
FOR 25 WORKING DAYS 443 3252

Cost of Raw Material
Raw Material required per day 250 Kg
Raw Material required per month (25 Days)
6250 Kg
Average cost of raw material CNF (Port)
1350 USD/Ton
Clearing and port charges
100 USD/Ton
Local transport from port and drying at the center
100 USD/Ton
Local transport from centre to village
50 USD/Ton
Total Cost Per Ton 1600 USD/Ton
Total Cost Per Ton 124350 BDT/Ton

Cost of Material reached at Village for processing per
month
PARTICULARS COST(in BDT)
6250 Kg Per Village 777188
Labour 64000
Power 3252
Spares 1000
Local Transport 15000
Interest Per Month @12.5% per annum 2528
Other Charges 1000
Rent 5000
Total Cost per Month 868968

Returns
ITEM COST(in BDT)
Average Rate of wholes (8.6$/kg) 680916
Average Rate of Broken (7.5$/kg) 395687
TOTAL RETURN 1076603
Approx Return after deduction of Cost
Per Village (Return – Cost)
207635
6250kg RCN @ 48Lbs Outturn 1698 Kg of F.G
Estimated Broken Percentage ratio 60:40
1019 Kg Wholes & 679 Kg Broken

Skill Development and Training
Buying Skill
Raw material grading skill
Running Boiler
De-shelling
Scooping and separating
Drying
De-husking
Grading and separating
Packing

Skill Development Infrastructure
ITEM QUANTITY
Testing Cutter 12
Plastic Bowls 50
Weighing Machines 12
Record Book 12
Boiler 1
Dryer 1
Shelling Machine 1
Scooping and Peeling Knife 12
Moisture Meters 5

System of skill development
STEP 1
• : Apprentice- For 1 month A person become apprentice
and paid a stipend during training as per capability.
STEP 2
• Junior Worker : For 5 months A person is paid a 80% of
Wages and 20% is reserved till the person become owner of
500kgs of raw material.
STEP 3
• Senior worker : For 2-5 month A person stays as Senior
worker or group leader of step 2.

System of Skill Development
STEP 4
• Junior Trader: 500 kgs of Raw material is given with a buyback
assurance for 1 month of processed Kernels or as trade of Raw
Material.
STEP 5
• Trader : Once buyback assurance is over the person become
independent with a option to join in step 1 or step 2 should he
make loss as trader subject to seat vacancy in step1 and/or 2.

Export and Investment Incentive
BOI (Board of Investment) in Bangladesh says that
A) Government and NGOs conduct regular training programs
to develop skilled manpower in the Agro Based Industry.
B) High value-added foods for export, including herbs, spices,
nuts and pulses.
C) Special loan facilities available to set up an agribusiness.
D) Cash incentives to the exporters ranges from 15% to 20% in
various sub sectors

Precaution required at stages
• 1. Concept and information
• Many a time concept is not understood properly
and its limitations.
• 2. NDA and MOU
• All NDA and MOU are required at place for
regular and unique flow of the business.
• 3. Appointment and collection of informations
• Right people and right time with information is a
must for a success of the project.

• 4. Land and offices
• One need to be very economical in the start and
expand with growth of the projects.
• 5. Arrangement of plant and machinery
• One need to install and maintain right
machineries and at time and price.
• 6.Arranging of funding
• Right amount and right time at right cost is the
crux. No less no more and no before nor delayed.

• 7. Purchase of Raw Material
• One need to buy right quality at right time at
right price every month as available in the world.
It need a very special skill.
• 8. Training of Worker and Staff
• Very friendly and skill full instructor will be
required.
• 9.Receipt of Raw material
• Proper storage and care is required of raw
material.

• 10. Grading of Raw Material
• Calculation and experience based skill will be required.
• 11. Boiling
• A proper knowledge of boiler with its timing and
products input - output knowledge will be required.
• 12.De-sheling
• It needs a very special skill, experience and knowledge
as yield of quality is decided at this stage.

• 13. Drying
• One need to know machine of drying and its
experience.
• 14. Peeling
• One need to have skill of peeling .
• 15.Grading
• One need to know various grades acceptable
and the skill to segregate it.

• 16. Packing
• There are various packing required in different market .
This need to be adopted as per requirement from
buyer.
• 17. Selling
• There are different market which has different time of
demand for various quality at different price.
• 18. Payment
• One need to be very strong in accounts and in recovery
of payment in such a way that there are no much debts
and surely no bad debts.

Countries & Timing for Raw Material
• Feb to April – Benin, Togo, Ghana, Nigeria
• March to July – Ivory Coast, Guinea Bissau, Gambia,
Senegal, Guinea Conakary
From the above countries minimum shipping time is 45
days.
• March To April – Bangladesh, Cambodia
• September To November - Indonesia
• October to January – Tanzania, Madagascar, Mozambique
From these countries maximum shipping time is 30 days

Sales
• Local Markets.
• Consumer packs of 250grms and 500grms.
• One main packing centre to be established.
• Material packed for domestic market or
international market will go through a complete
micro biological test and then packed at the
centre.
• All packs will be tracked by batch nos.
• International packs will be as per requirement of
the buyers.

Marketing
• Local Advertisements Approx. Budget (15000$ yrly)
• Branding and Promotion of brands
• Organizing or participating in local and international
trade fairs. (Approx Budget 50000$ yrly)
• Educating people of health benefits
• 0 % Cholesterol and good for heart.
• Giving appointment to executives for local marketing.
• Appointment of companies in countries of exports

Packing Centre Machines and Cost
• Machinery Required.
• 1. Electrical Dryer (Capacity will be defined later)
• 2 Inspection belts with metal detectors, fine particle
removers ( 2000$ Vietnam)
• 1 Color sorter with air compressor (75000$ Vietnam)
• 1 size sorter for wholes (28000$ India)
• 1 size sorter for broken (7000$ India)
• 1 pouch packing machine with nitrogen flushing (Capacity
Will be defined on requirement)
• 1 Vacuum packing machine with nitrogen generator (7000 $
Vietnam)
• Packing materials (Quantity and Specifications as required)

Requirement of Manpower (Packing Centre )
• 1 Manager
• 2 Supervisors
• 2 Clerical staff (Accounting, Local & Export
Documentation
• 14 Ladies for final inspection
• 8 Man for dryer, sorters, packing.
• 2 Man for dispatch
• Local transportation from centre.

Government / Licenses
• Import Export licenses to import Machinery
• Food Licenses both for Local and export from the
Government of Bangladesh.
• Test reports of material batch wise from a notified
Microbiological lab.
• Third party Inspection agency like RBS , SGS for exports.
• Import and Export Licenses for RCN and finished products
as per government norms.
• Fumigation and Certificate of Origin issuing Agency
• International banking facility since all the transactions will
be through bank and audited yearly by a CA

Role and charges
• Study and analyze the scope where to setup the whole structure.
• Setting up training centre (10000 USD One time for 5 provinces)
• Installation of Units at Village Level (1000 USD Per Unit)
• Training to labors , Operators, and Other staff (100 USD per trainee)
• Monitoring of Processing units, Warehouses, Packing unit (7500USD
Monthly)
• Monitoring of Procurement of Raw Material (Included)
• Monitoring of Processing and Distribution of Raw Material (Included)
• Monitoring of Collection of finished goods and packing (Included)
• Monitoring of Local Market analysis and distribution network (3% of sales
value)
• Setting up exports in different countries. (3% of sales value)
• Tie ups with companies in different countries for exporting the finished
products.
• * Travelling both International & Local, Visa charges, Accommodation, Food
• etc. will be extra and to be paid in advance.

Measures for Safety and Environment.
• 1. While de shelling it is must to keep hand
protection and eyes protection to avoid
etching .
• 2. Proper Fumigation and quarantine is
required while storage and transit of in shell
• Cashew.
• 3. Water and moisture contact should be
avoided while storage and handling Kernels.

Bank Guarantee by NGO
Based on present market following amount of Bank Guarantee will be required:
USD 1200( approx BDTk 90,000) per person minimum.
USD 24000( Approx BDTk 18,000,00) per village minimum.
Funds against these guarantee must be made available unconditionally for supply of
Raw Material to process the cashew nuts.
Funds against these guarantee must be made available unconditionally for supply of
Raw Material to process the cashew nuts.

TOR for Sunil Kumar Sonee
• Ms Mahina Arefin(MA) and Mr. Sunil Sonee (SS)explored and discovered
the potential of “Cashew Project” jointly . During discovery a insight of the
whole trade was developed and a short term , medium term and long
term strategy was formed.
• Mr. Sunil shared his 30+ years experience and introduced Ms Mahina to
the global market and gain some real time experience of the trade
• With a greater vision MA+SS agreed to enter Bangladesh market and
expand this trade vastly.
• With the vision of developing a sustainable livelihood for the poor
people of Bangladesh Ms Mahina Arefin and Mr. Sunil Kumar Sonee work
jointly for NJLIP.
• Following know-how transfer and consultancy has been sought from Mr.
Sunil due to his long experience and skill already known to Ms Mahina.

Guide and know how sought
• 1. Study and analysis of the location(s)
• 2. Setting up a training center and method.
• 3. Analyze the type and part of machines and equipment to be made in
Bangladesh and the which need to be imported.
• 3a. Since Budget is too low ,to find a solution for proper packing either manually or
by out sourcing.
• 4. Lay out of installations.
• 5. Installation and commissioning of the units
• 6. Systematization of monitoring of Warehouses.
• 7. Training of labors and staff as may be required along with update in the market .
• 8. Monitoring of Procurement, processing distribution of Raw Material.
• 9. Monitoring of grading and packing of raw material.
• 10. Monitoring of local and export sales distribution
• 11. Tie up with market trend in various countries for Plantation , procurement ,
marketing, local food control law and sales.
• 12.Consultency on Diversification and growth prospect

Duration of services
• 1. Study and analysis of the location(s) : 10 days
• 2. Setting up a training center and method.: 30 days after receipt of Raw Material of FAQ.
• 3. Analyze the type and part of machines and equipment to be made in Bangladesh and the which
need to be imported.: 15 days
• 3a. Since Budget is too low ,to find a solution for proper packing either manually or by out
sourcing.: 15 days
• 4. Lay out of installations : 10 days after receipt of all facts.
• 5. Installation and commissioning of the units: 10 days after receipt of machines equipment and
Raw Material
• 6. Systematization of monitoring of Warehouses.: It is a regular process as and when cargo are
received and finished product need to be stored.
• 7. Training of labors and staff as may be required along with update in the market: It is a regular
process according to quality of crop and technology may be required.
• 8. Monitoring of Procurement, processing distribution of Raw Material. : It is a regular process and
a special skill equipped with weather world wide, sowing pattern ,tree falling pattern, plantation
technology, competition buying etc.
• 9. Monitoring of grading and packing of raw material.: It is a regular process
• 10. Monitoring of local and export sales distribution : It is a regular process
• 11. Tie up with market trend in various countries for Plantation , procurement , marketing, local
food control law and sales.: It is a regular process.
• 12.Consultency on Diversification and growth prospect: It is a regular process

Cost of Services
1. Study and analysis of the location(s) : There will be 2 person. USD 100/day for one person. If Mr. Sunil is
employed for regular service his service for this component will be free.
2. Setting up a training center and method.: There will be 2 person. USD 50/day for one person. If Mr. Sunil is
3. Analyze the type and part of machines and equipment to be made in Bangladesh and the which need to be
imported.: There will be 2 person. USD 50/day for one person. If Mr. Sunil is employed for regular service his
service for this component will be free.
3a. Since Budget is too low ,to find a solution for proper packing either manually or by out sourcing: There will
be 2 person. USD 50/day for one person. If Mr. Sunil is employed for regular service his service for this
component will be free.
4. Lay out of installations: There will be 2 person. USD 50/day for one person. If Mr. Sunil is employed for
regular service his service for this component will be free.
5. Installation and commissioning of the units: There will be 2 person. USD 50/day for one person. If Mr. Sunil is
6. Systematization of monitoring of Warehouses.: within USD 1200/Month net home take as advance within 5th
of every month ,all other expenses for the jobs at actuals
7. Training of labors and staff as may be required along with update in the market .: Within USD 1200/Month
net home take as advance within 5th of every month ,all other expenses for the jobs at actuals
8. Monitoring of Procurement, processing distribution of Raw Material.: 2% of Invoice value and material
purchased
9. Monitoring of grading and packing of raw material.: within USD 1200/Month net home take as advance
within 5th of every month ,all other expenses for the jobs at actuals
10. Monitoring of local and export sales distribution : 1% of sales value
11. Tie up with market trend in various countries for Plantation , procurement , marketing, local food control
law and sales.: To be decided in case to case
12.Consultency on Diversification and growth prospect: To be decided case to case.

Back up Facilities required.
• 1. All travel , transport and conveyance facility
and expenses
• 2. Minimum 3star boarding and lodging
• 3. A Chauffeur driven car on medium range .
• 4. All communication expenses including
gadgets.
• 5.Health and medical insurance

Cashew presentation NJLIP

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