Project Profile of Cashew Nut Processing and Export Business in Bangladesh
Cashew nut processing is emerging as one of the most promising agro-industrial ventures in Bangladesh. Because the global demand for cashew nuts is rapidly growing and the country’s climatic conditions support cashew cultivation, this sector presents enormous opportunities for entrepreneurs. Most important, Bangladesh’s proximity to major export markets like India, China, and the Middle East makes it an ideal location for setting up a cashew nut processing and export-oriented industry.
1. Introduction
Cashew nuts, often called “nature’s butter,” are among the most consumed nuts worldwide. They are valued for their rich taste, nutritional benefits, and use in confectionery, bakery, and food processing industries. Because of increasing global demand and the potential for high export margins, cashew nut processing can be a profitable and sustainable business in Bangladesh.
While countries like India and Vietnam dominate global cashew processing, Bangladesh is still in the early stage of development. Therefore, a properly structured processing unit with advanced technology can capture local and foreign markets efficiently.
2. Objectives of the Project
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To establish a modern cashew nut processing plant in Bangladesh.
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To produce high-quality kernels for export and domestic markets.
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To generate employment and promote agro-industrial growth.
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To contribute to foreign exchange earnings through export.
3. Project Overview
| Particulars | Details |
|---|---|
| Project Name | Cashew Nut Processing and Export Business |
| Proposed Location | Khulna / Chattogram / Rangamati (Cashew cultivation areas) |
| Business Type | Agro-processing and export-oriented industry |
| Production Capacity | 1,000 MT Raw Cashew Nuts per year |
| Estimated Investment | BDT 120 Million |
| Project Implementation Period | 12 months |
| Technology Source | India / Vietnam |
| Power Requirement | 200 kW |
| Employment Generation | 80–100 persons |
4. Market Potential
4.1 Global Market
The global cashew nut market was valued at around USD 7 billion in 2024 and is expected to grow at a CAGR of 5–6% in the next five years. India, Vietnam, and Ivory Coast are the top processors. However, these nations face rising labor and energy costs, creating an opportunity for Bangladesh to enter as a cost-effective processor.
4.2 Local Market
In Bangladesh, demand for cashew nuts has been growing steadily in urban centers like Dhaka, Chattogram, and Sylhet. Cashew kernels are now used in bakery products, sweets, and snacks. Therefore, a local processing plant can cater to both domestic and export demands.
5. Raw Material Availability
Cashew trees grow well in coastal and hilly regions of Bangladesh such as Chattogram Hill Tracts, Khulna, Cox’s Bazar, and Barguna. Because local production is increasing under government and private initiatives, sourcing raw nuts will become easier in the coming years. Besides that, raw cashew nuts can also be imported from Mozambique, Tanzania, and India for large-scale processing.
6. Manufacturing Process
Cashew nut processing involves several stages. The goal is to separate the edible kernel from the outer shell and skin without damaging it.
| Step | Process Description |
|---|---|
| 1. Cleaning | Removal of dust, stones, and impurities. |
| 2. Roasting / Steaming | Shells are softened by steam to ease cutting. |
| 3. Shelling | Nuts are cracked to remove the outer shell. |
| 4. Drying | Kernels are dried to reduce moisture. |
| 5. Peeling | Removal of the thin inner skin. |
| 6. Grading | Kernels are sorted by size and quality. |
| 7. Packing | Vacuum packing in nitrogen-filled containers for export. |
Modern automatic cashew processing machinery is available from India and Vietnam, which ensures higher efficiency and minimal breakage.
7. Machinery and Equipment
| Item | Quantity | Approx. Cost (BDT) |
|---|---|---|
| Raw Nut Cleaning Machine | 1 set | 10,00,000 |
| Steam Boiler & Cooker | 1 set | 15,00,000 |
| Cashew Shelling Machine (Automatic) | 5 units | 25,00,000 |
| Dryer (Electrical / Solar Hybrid) | 2 units | 10,00,000 |
| Peeling Machine | 2 units | 8,00,000 |
| Grading Machine | 2 units | 5,00,000 |
| Packing Machine (Vacuum Sealer) | 2 units | 12,00,000 |
| Nitrogen Filling System | 1 unit | 5,00,000 |
| Laboratory Equipment | - | 3,00,000 |
| Miscellaneous Tools | - | 2,00,000 |
| Total Machinery Cost | 95,00,000 BDT |
8. Building and Civil Construction
| Particulars | Area (sq.ft.) | Estimated Cost (BDT) |
|---|---|---|
| Processing Hall | 10,000 | 30,00,000 |
| Raw Material Storage | 3,000 | 9,00,000 |
| Finished Product Warehouse | 2,000 | 6,00,000 |
| Office & Staff Quarters | 2,000 | 5,00,000 |
| Utility Area (Boiler, Generator, etc.) | 1,500 | 4,00,000 |
| Total Civil Works Cost | 54,00,000 BDT |
9. Manpower Requirement and Salary Projection
| Category | No. of Employees | Monthly Salary (BDT) | Annual Cost (BDT) |
|---|---|---|---|
| Factory Manager | 1 | 80,000 | 9,60,000 |
| Production Supervisor | 2 | 50,000 | 12,00,000 |
| Machine Operators | 10 | 25,000 | 30,00,000 |
| Helpers / Laborers | 30 | 15,000 | 54,00,000 |
| Quality Controller | 2 | 40,000 | 9,60,000 |
| Admin & Accounts | 3 | 35,000 | 12,60,000 |
| Security & Cleaning | 4 | 18,000 | 8,64,000 |
| Total Yearly Manpower Cost | 1,36,44,000 BDT |
10. Utility and Overhead Costs
| Particulars | Monthly Cost (BDT) | Annual Cost (BDT) |
|---|---|---|
| Electricity & Fuel | 2,00,000 | 24,00,000 |
| Water & Maintenance | 50,000 | 6,00,000 |
| Transportation | 1,50,000 | 18,00,000 |
| Packaging Materials | 2,50,000 | 30,00,000 |
| Marketing & Promotion | 1,00,000 | 12,00,000 |
| Total Overhead Cost | 90,00,000 BDT |
11. Project Cost Summary
| Particulars | Amount (BDT) |
|---|---|
| Land & Land Development | 25,00,000 |
| Building & Civil Works | 54,00,000 |
| Machinery & Equipment | 95,00,000 |
| Pre-Operating Expenses | 10,00,000 |
| Vehicles & Office Setup | 15,00,000 |
| Working Capital (6 Months) | 1,20,00,000 |
| Total Project Cost | 3,19,00,000 BDT (Approx. 3.19 Crore) |
12. Revenue Projection
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Production (MT of Kernel) | 200 | 300 | 400 | 500 | 500 |
| Sales Price per MT (BDT) | 9,00,000 | 9,50,000 | 10,00,000 | 10,50,000 | 11,00,000 |
| Sales Revenue (BDT) | 18,00,00,000 | 28,50,00,000 | 40,00,00,000 | 52,50,00,000 | 55,00,00,000 |
13. Profitability Analysis
| Description | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Sales Revenue | 18.00 Cr | 28.50 Cr | 40.00 Cr |
| Operating Cost | 15.00 Cr | 20.00 Cr | 28.00 Cr |
| Gross Profit | 3.00 Cr | 8.50 Cr | 12.00 Cr |
| Depreciation & Finance | 0.50 Cr | 0.60 Cr | 0.70 Cr |
| Net Profit Before Tax | 2.50 Cr | 7.90 Cr | 11.30 Cr |
| Net Profit Margin | 13.9% | 27.7% | 28.2% |
Therefore, the project is highly profitable, with the payback period estimated at 2.5 years. The Internal Rate of Return (IRR) is around 28–30%, making it an attractive investment opportunity.
14. Export Potential
Cashew kernels from Bangladesh can target premium markets such as:
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India: The largest global importer and processor.
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Middle East: Saudi Arabia, UAE, and Qatar have high consumption.
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Europe: Germany, the Netherlands, and the UK demand quality cashew kernels.
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China and Japan: Growing demand for snacks and bakery use.
Because of the favorable location of Chattogram Port and competitive labor costs, Bangladesh can become a significant player in the Asian cashew trade within a few years.
15. SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| Favorable climate and land availability | Limited processing technology |
| Low labor cost | Need for export certification (HACCP, ISO) |
| Access to regional markets | Lack of large-scale plantation |
| Government support for agro-industries | Need for skilled technical workforce |
| Opportunities | Threats |
|---|---|
| Rising global demand | Competition from India and Vietnam |
| Value-added products (flavored, roasted) | Price fluctuation in raw cashews |
| Export incentives | Logistics and port delays |
16. Project Implementation Schedule
| Activity | Duration (Months) |
|---|---|
| Project Feasibility & Land Acquisition | 1–2 |
| Design & Civil Construction | 3–5 |
| Machinery Procurement & Installation | 6–9 |
| Recruitment & Training | 10–11 |
| Trial Production & Commercial Operation | 12 |
17. Financial Viability
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Break-even Point: 55% capacity utilization
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Payback Period: 2.5–3 years
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Net Profit Margin: 25–30%
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Return on Investment (ROI): 28%
Because of these financial indicators, the cashew nut processing project is viable and bankable for long-term investment.
18. Environmental and Social Impact
The project is environmentally friendly, as cashew shells can be used to produce Cashew Nut Shell Liquid (CNSL) — a valuable industrial oil used in brake linings and paints. Additionally, it creates rural employment, empowers women workers, and promotes agricultural diversification.
19. Challenges and Mitigation
| Challenge | Mitigation Strategy |
|---|---|
| Raw material shortage | Encourage local cultivation and import contracts |
| Quality control issues | Implement HACCP and ISO 22000 standards |
| Export regulations | Partner with export agencies for compliance |
| Skilled labor shortage | Conduct regular staff training |
20. Conclusion
The Cashew Nut Processing and Export Business offers an excellent opportunity for Bangladeshi entrepreneurs to enter a high-margin export sector. Because demand is growing both locally and internationally, establishing a modern processing plant can generate sustainable profits and contribute to national export growth. With proper technology, marketing, and certification, Bangladesh can soon become a notable exporter of premium cashew products.
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