Nigeria’s drive to improve non-oil export has suffered a huge setback. About 37,000 tonnes of cashew exported to Vietnam were rejected because of high price of the commodity.
Mr. Peter Bakare, the Deputy Executive Secretary, Federation of Agricultural Commodity Associations of Nigeria (FACAN), revealed that the unstable price was was due to lack of conducive business environment.
According to him, 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.
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“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.
He added that over 67,000 tonnes of cashew were also still lying in the warehouse in Nigeria. Notwithstanding this, the Nigerian hibiscus flower, popularly called ‘Zobo,’ adjudged to be one of the best in the world, was in high demand internationally.
He explained that some countries are using it as drinks or as base for their wine production. Bakare also noted 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.
Speaking on the high demand for Nigeria’s Shea butter in the international market, he said “it is estimated that if well harnessed for large scale production, it could generate more than two billion dollars annually,.’
He restated that FACAN, which controls over 45 commodity associations in Nigeria, was doing its best to serve maintain a seamless link between farmers and the private sector operators.