Cashew Case

Topics: International trade, Cashew, Economics Pages: 4 (1109 words) Published: April 30, 2012
The Cashew, best known for its nuts, had become important when Brazil, India, East Africa, Indonesia and Southeast Africa realized that with exporting that product they could create an important market that could generate for them many benefits. It began when the Tupi Indians of Brazil harvested the cashew apple in the wild and they later introduced it to early Portuguese traders who in turn propagated the plant in other tropical countries. Having in mind that at the beginning, the plantations in these countries were unsuccessful because the cashew was vulnerable to some insects. Nowadays, Brazil is one of the largest producer of wild cashews. Brazil is expanding its presence in the world markets and has steadily improved its macroeconomic stability. As a cashew’s producer since they harvested the cashew apple they had absolute advantage because they were specialized and they produced it more efficiently. We can see that in their yields which are usually higher than other countries and Brazilian processors pay only between 30 and 36 percent of the price the Indian processors pay for raw nuts. Brazil is characterized by high technology in the processing of cashews, especially in shell-cutting machines. However, this country has some weak points: they use more fertilizers than India. The lack of fertilizers of India apparently gives India nuts a better flavor. Turning to India, the biggest export competitor of Brazil, it’s developing into an open-market economy. India is the largest producer and exporter of cashew kernels in the world. Over 65 per cent of the world export of cashew kernels is accounted for by India. Indian cashews are consumed in as many as 60 countries all over the world. The Indian cashew kernel is well acclaimed for its good quality, taste and appearance. Some weak points of India are the lack of technology and government control.

In the present they have to start developing a strategy to minimize weaknesses and maximize...
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