Cashew Farming: Business Plan, Cost and Profit

April 3, 2022


Cashew farming is unarguably a profitable venture any farmer or investor can participate in. To engage in cashew farming, you need to write a business plan and forecast your expected cost and profit.

Do not rush into the business of growing cashew without knowing the financial numbers and accounting data. Knowing the financial plan will enable you to formulate a clear budget and strategy.

cashew plantation

Cost, Revenue and Profit Analysis of a One Hectare Cashew farm (₦)

Year 1
Year 1
Cost of Land Acquisition
                     100,000.00
Cost of Cashew Seedlings
                     150,000.00
Fertilisers
                        50,000.00
Manure
                        10,000.00
Pesticides
                        10,000.00
Cost of Transplanting
                        10,000.00
Labour Cost
                        50,000.00
Herbicides
                        15,000.00
Farm Tools and Machines
                        20,000.00
Farmland Preparation
                        50,000.00
Total Cost
                     465,000.00


Year 2Year 2
Fertilisers                        60,000.00
Manure                          5,000.00
Pesticides                        10,000.00
Labour Cost                        50,000.00
Herbicides                        15,000.00
Farm Tools and Machines                        25,000.00
Total Cost                     165,000.00


Year 3Year 3
Fertilisers                        65,000.00
Manure                          5,000.00
Pesticides                        10,000.00
Labour Cost                        50,000.00
Herbicides                        15,000.00
Farm Tools and Machines                        25,000.00
Cost of Harvesting                        20,000.00
Total Cost                     190,000.00


Revenue Analysis (Cashew Nuts)Year 3Year 4Year 5Year 6Year 7Year 8Year 9
Yield of Cashew Nuts (tons)0.30.511.5222
Price of Cashew Nuts/ton                     750,000.00       750,000.00       750,000.00       750,000.00       750,000.00       750,000.00       750,000.00
Total Revenue                     225,000.00       375,000.00       750,000.00   1,125,000.00   1,500,000.00   1,500,000.00   1,500,000.00


Profit AnalysisYear 3Year 4Year 5Year 6Year 7Year 8Year 9
Total Revenue                     225,000.00       375,000.00       750,000.00   1,125,000.00   1,500,000.00   1,500,000.00   1,500,000.00
Total Cost                     190,000.00       190,000.00       190,000.00       190,000.00       190,000.00       190,000.00       190,000.00
Profit                         35,000.00       185,000.00       560,000.00       935,000.00   1,310,000.00   1,310,000.00   1,310,000.00

Assumptions of the Business Plan for a One Hectare Cashew Farm

In year I of planting the cashew crop, 465,000 is expected to be spent. This includes 100,000 for cost of farmland acquisition, 150,000 for cost of buying hybrid cashew seedlings, 50,000 for fertilizers, 10,000 for manure, 10,000 for pesticides, 10,000 for cost of transplanting seedlings, 50,000 for labour cost, 15,000 for herbicides, 20,000 for farm tools and machines and 50,000 for farmland preparation.

In year 2, the total cost expected to be spent on the one hectare cashew farm is 165,000. This cost includes 60,000 for fertilizers, 5,000 for manure, 10,000 for pesticides, 50,000 for labour cost, 15,000 for herbicides and 25,000 for buying of machines and tools.

In year 3, the total cost expected to be spent on the cashew farm is 190,000. This cost includes 65,000 for fertilizers, 5,000 for manure, 10,000 for pesticides, 50,000 for labour cost, 15,000 for herbicides, 25,000 for buying of machines and tools and 20,000 for harvesting.

The cost to be incurred on the farm in year 4 till the end of the life of the cashew trees will be similar to the cost incurred in year 3, but these costs need to be adjusted for inflation.

In year 3, the one hectare cashew farm is expected to have a yield of 0.3 tons, revenue of 225,000 and a profit of 35,000.

From the profit analysis, the cashew farm will make a profit from the first year of harvest (year 3) till the end of the life of the cashew farm. A cashew tree can fruit for over 40 years.

Please note that this is not a financial advice, the onus is on you to do your own research before venturing into the business of growing of cashew.

If you need a business plan or feasibility study about cashew farming in Nigeria, you can contact us on sales@veggieconcept.ng.

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