Setting up a Modern Cashew Factory
This guide provides an exhaustive roadmap for entrepreneurs eyeing cashew processing ventures. Whether you’re launching a modest 2 tons per day (TPD) operation or scaling to a 100 TPD industrial powerhouse, we’ll cover every facet: feasibility assessments, plant layouts, processing workflows, certifications, export logistics, and financial modeling. Drawing on real-world data from 2025, we’ll reference production dynamics across all major cashew-producing countries, highlighting how local contexts influence factory setups.


Cashew Processing Industry Statistics
The cashew industry stands as a cornerstone of tropical agriculture, blending economic opportunity with nutritional value. Cashew nuts, derived from the Anacardium occidentale tree, are not only a popular snack but also a versatile ingredient in global cuisines, contributing to a market valued at approximately USD 9.90 billion in 2025. Setting up a modern cashew factory involves meticulous planning, from sourcing raw nuts to exporting premium kernels, ensuring compliance with international standards while maximizing efficiency and profitability.
In an era of sustainable agriculture and global trade, a modern cashew factory isn’t just about machinery—it’s about integrating technology, workforce welfare, and environmental stewardship. With global production reaching 4.3 million metric tons (MT) in 2025 and projected to hit 4.69 million MT by 2026, opportunities abound for savvy investors. Let’s dive into transforming raw potential into polished profits.



Feasibility Study and Project Scaling
Embarking on a cashew factory demands a robust feasibility study, assessing market demand, raw material availability, and financial viability. For a 2 TPD startup, focus on local sales; for 100 TPD, target exports to the US (22% of Vietnam’s cashew trade).
Conducting a Feasibility Study
- Market Analysis: Project demand—global kernel consumption hits 1 million MT in 2025. Analyze competitors in your region; e.g., in Tanzania, target EU organics.
- Raw Material Sourcing: Secure contracts from producers like Mozambique’s Nampula farms. For 2 TPD, need 6-8 MT/month; 100 TPD requires 300 MT/month at $1-1.5/kg.
- Technical Assessment: Evaluate site (tropical, 500m elevation ideal, like in Benin). Conduct soil/water tests.
- Financial Projections: Initial CAPEX for 2 TPD: $200,000; 100 TPD: $10 million. ROI: 20-40% in 2-3 years.
- Risk Evaluation: Climate (droughts in Burkina Faso), price volatility (nuts at $1.2/kg in 2025).
Scale progressively: Start at 2 TPD for proof-of-concept, expand to 10 TPD in Year 2, 100 TPD by Year 5, mirroring Vietnam’s model.
Comparison of Project Scales
Scale | Capacity (TPD) | Land Required (acres) | Initial Investment (USD) | Labor Needs | Output Focus |
---|---|---|---|---|---|
Small | 2 | 1-2 | 150,000-300,000 | 10-20 | Local/domestic kernels |
Medium | 10-20 | 5-10 | 1-2 million | 50-100 | Regional exports, value-added |
Large | 50-100 | 20-50 | 5-15 million | 200-500 | Global, organic/processed products |
Cashew Plant Design and Infrastructure
A modern cashew factory’s layout optimizes flow, hygiene, and efficiency, spanning 1-50 acres based on scale. Inspired by Vietnam’s automated lines and Côte d’Ivoire’s communal models, designs prioritize zoning.
Core Layout Components
- Raw Material Storage Area: Ventilated silos (500-5,000 MT capacity) to maintain 7-8% moisture, preventing aflatoxin. For 2 TPD, 500 sqm; 100 TPD, 5,000 sqm. Use stackable bags in Ghana-style open sheds with rodent-proofing.
- Drying Area: Solar or mechanical dryers (hot air at 60°C) reduce moisture from 10% to 7%. 2 TPD: 200 sqm tunnel dryers; 100 TPD: 2,000 sqm conveyor systems. In humid Philippines, integrate dehumidifiers.
- Processing Hall: Central zone (1,000-10,000 sqm) for shelling/peeling. Stainless steel floors, HACCP-compliant drainage. Modular for scaling, like in India’s Kerala plants.
- Labor Quarters: Ethical housing for 10-500 workers—dorms with sanitation, echoing Tanzania’s cooperative ethos. Allocate 10% of land; include training centers.
- Utilities Block: Boiler rooms (steam for cooking), generators (backup for Nigeria’s grids), water treatment (RO for 50-500 m³/day). Solar integration in Burkina Faso reduces costs 20%.
- Admin Block: Offices, labs for quality testing, conference rooms. 500-2,000 sqm with ERP software for inventory.
- Waste Management and Effluent Treatment: Biogas from shells (fuel for dryers), aligning with EU sustainability mandates.
Total layout: Linear flow from storage to packing minimizes cross-contamination. For 2 TPD, compact 2-acre footprint; 100 TPD, 40-acre campus with rail access for Brazil-like exports.
Site selection: Near ports (e.g., Guinea-Bissau) or farms (Mozambique). Permits: Environmental Impact Assessment (EIA) mandatory in all countries.


Core Processing Steps in a Modern Cashew Factory
Cashew processing transforms toxic raw nuts into safe kernels through 8-10 steps, automated for 95% efficiency in modern setups. Adapted from global best practices, here’s the workflow:
- Reception and Cleaning: Inspect incoming nuts (from Mali’s Sahel harvests) for defects. Vibratory cleaners remove debris; capacity scales from 2 MT/day to 100 MT.
- Drying: Sun or mechanical drying to 7% moisture. In rainy Indonesia, use hybrid solar-electric systems (8-12 hours).
- Storage: Cool, aerated warehouses (15-20°C) for 1-3 months, preventing mold as in Vietnam’s humid climate.
- Grading/Calibration: Size sorting (180-220 nuts/lb) via rollers. Essential for uniform processing in Philippine factories.
- Steam Cooking/Steaming: Soften shells (100-120°C, 20-45 min) in boilers. Reduces breakage; automated in Indian plants.
- Shelling: Mechanical crackers (manual for 2 TPD, auto for 100 TPD) extract kernels, yielding 25-30%. Low breakage (<5%) via precision tech.
- Drying (Post-Shelling): Hot air ovens loosen testa (skin) at 70°C for 8 hours.
- Peeling: Pneumatic or manual removal of testa. Modern air-blast peelers achieve 85% wholes.
- Grading and Sorting: Optical sorters detect defects; grades like WW-320 for export.
- Roasting/Flavoring (Optional): Salted or coated for value-add, popular in Brazil.
- Packaging and Fumigation: Vacuum-seal in 50kg bags; methyl bromide for pests.
- Quality Checks: Lab tests for aflatoxin (<4 ppb).
This sequence, refined in Côte d’Ivoire’s mega-factories, ensures 90% yield. For small scales, semi-manual; large, fully automated with AI monitoring.
Machinery and Equipment Selection
Selecting equipment scales with capacity. For 2 TPD: Basic cleaners ($10,000), manual shellers ($5,000). 100 TPD: Integrated lines ($2 million) with PLC controls.
Key machines:
- Cleaners/Graders: 1-10 tons/hour.
- Steam Boilers: 500-5,000 kg/batch.
- Shellers: 200-2,000 kg/hour, <3% breakage.
- Peelers: Pneumatic, 400 kg/hour.
- Sorters: CCD optical, 99% accuracy.
Sourcing: Vietnam for affordability, Germany for precision. Maintenance: Annual 5% CAPEX budget.

Selecting the right machinery and equipment for a modern cashew factory hinges on production scale, budget, efficiency, and sustainability goals. For a 2 tons per day (TPD) startup, focus on affordable, semi-automatic systems to minimize initial costs while allowing upgrades, while 100 TPD facilities require fully automated lines for high-volume precision with reduced labor. In 2025, with the global cashew processing equipment market valued at around $6.15 billion and growing due to demand in emerging markets, choices should prioritize throughput, breakage rates under 5%, energy efficiency, and compliance with standards like HACCP and ISO 22000. In Côte d’Ivoire, the top producer with 1.15 million metric tons in 2025, factories favor durable graders and shellers to handle local raw nuts efficiently, cutting transport costs. India, with 725,000 metric tons, emphasizes organic-compatible machines for EU exports, with costs from $10,000 for basic cleaners to $500,000 for complete plants. Budgets allocate 40% of capital expenditure to machinery—$150,000-$300,000 for small setups, $5-15 million for large ones. Efficiency is key: machines should achieve 95% kernel recovery, as seen in Vietnamese plants using locally sourced equipment blended with imported precision parts. Maintenance is critical—opt for modular designs with easy part replacement, budgeting 5-7% of equipment value annually ($10,000-$500,000) to avoid downtime costing up to $1,000 per hour in high-volume operations. Sourcing from TTQ Co. Ltd. offers competitive pricing, with full lines at $100,000-$200,000 for mid-scale, while imported precision sorters justify a 20-30% premium. Site visits to operational factories in Tanzania or Benin can guide selections tailored to African nut hardness versus Asian varieties, ensuring scalability for value-added products.
Essential Machinery and Equipment
The core machinery lineup includes cleaners and graders, steam boilers, shelling machines, peeling systems, and sorting equipment, each adapted to scale and regional nut traits. For 2 TPD, basic vibratory cleaners and rotary graders handle 1-2 tons per hour at $10,000-$20,000, removing impurities crucial in humid Philippines conditions to prevent mold. At 10-20 TPD, automated graders with multi-deck vibration systems process 5-10 tons per hour at $30,000-$50,000, ensuring uniform steaming as in Indonesian factories. Steam boilers range from 500 kg batches ($15,000) to 5,000 kg ($100,000+), operating at 100-120°C to soften shells without scorching—flexible fuel options suit power-scarce Burkina Faso. Shelling machines evolve from manual/semi-automatic for 2 TPD (200 kg/hour, $5,000-$10,000) to high-speed automatic units for 100 TPD (2,000 kg/hour, $50,000-$150,000), using adjustable blades for under 3% breakage, a standard in Vietnamese processing hubs. Peeling systems, like pneumatic units with 0.5-1.5 bar air pressure, handle 400 kg/hour at $15,000-$30,000, using rubber rollers for 85% whole kernels, scaling to advanced air-blast peelers ($100,000+) for large factories. Sorting equipment ranges from manual tables ($5,000) to optical sorters with 99% accuracy ($50,000-$200,000) for grades like WW-320, vital for Ghana exports. Ancillaries like conveyors ($10,000-$50,000) and dryers ($20,000-$100,000) with 60-70°C hot air prevent aflatoxin, a concern in West African nuts from Guinea-Bissau.
Here’s a comparison table of essential machinery by scale:
Machinery Type | Capacity (kg/hour) | Cost Range (USD) | Suitable Scale | Key Features |
---|---|---|---|---|
Cleaners/Graders | 1,000-10,000 | 10,000-50,000 | 2-100 TPD | Vibratory removal of impurities, multi-deck sorting |
Steam Boilers | 500-5,000 kg/batch | 15,000-100,000 | 2-100 TPD | Temperature control at 100-120°C, flexible fuels |
Shelling Machines | 200-2,000 | 5,000-150,000 | 2-100 TPD | Adjustable blades, <3% breakage |
Peeling Systems | 400-1,000 | 15,000-100,000 | 10-100 TPD | Pneumatic air pressure, 85% whole kernels |
Sorting Equipment | 500-8,000 | 5,000-200,000 | 20-100 TPD | Optical CCD sensors, 99% accuracy  |
Nut Packaging Strategies in a Modern Cashew Factory
In a cashew factory, nut packaging plays a pivotal role in preserving freshness and ensuring compliance with global standards. For raw cashew imports from India, where the cashew industry thrives in states like Maharashtra, opt for vacuum-sealed 50kg bags to extend shelf life up to 12 months. Quality cashew kernels require moisture-proof liners to maintain <7% humidity, preventing aflatoxin growth common in humid processing environments.
Packaging Size Options for Cashew Nut Exports
Standard packaging size for cashew nut includes 10kg cartons for retail and 25kg bulk for wholesalers, tailored to buyer preferences in the cashew industries of Kerala. Smaller 500g pouches suit e-commerce, while larger 80kg jute bags handle raw cashew shipments from Andhra Pradesh suppliers.
Shelf Life Optimization in Cashew Processing
Shelf life of processed cashew nuts averages 6-12 months when stored at 10-15°C, enhanced by nitrogen flushing in nut packaging lines. In Indian cashew companies, advanced fumigation extends this to 18 months, crucial for exports to the EU where quality cashew demands rigorous testing.
Cashew Nut Sourcing and Raw Material Handling
Sourcing raw cashew is foundational for any cashew factory, with India leading as the second-largest global producer at 725,000 metric tons in 2025. Focus on suppliers from Tamil Nadu for high-yield varieties, ensuring <10% defects to minimize waste in downstream cashew processing.
Raw Cashew Grades and Quality Checks
Raw cashew grades like WW-320 or SW-240 dictate processing efficiency; select suppliers offering 48+ lbs outturn per 80kg bag. In the cashew industries of Goa, quality checks include visual inspection for mold, vital for maintaining cashew kernels integrity.
Supplier Networks in the Indian Cashew Industry
Building a reliable supplier chain in the Indian cashew industry involves partnering with certified exporters from Kollam, famous for cashews since colonial times. Contact supplier networks via platforms like APEDA for bulk raw cashew at ₹600-800/kg, ensuring traceability from farm to factory.
Processing Type Variations in Cashew Factories
Cashew processing type—manual, semi-automatic, or fully automated—impacts output quality and cost. For small Indian cashew companies in Karnataka, semi-automatic lines suffice for 2 TPD, while large-scale operations in Maharashtra adopt automated processing type for 100 TPD, achieving 95% efficiency.
Automated vs. Manual Cashew Processing
Automated cashew processing reduces labor by 70%, ideal for high-volume cashew factories in Punjab. Manual methods, common in smaller cashew industries of Odisha, offer flexibility but higher breakage rates (up to 10%).
Custom Processing Type for Quality Cashew
Tailor processing type to yield quality cashew kernels; steam cooking at 100°C followed by pneumatic peeling ensures 85% wholes. Indian suppliers in Gujarat provide hybrid systems blending manual oversight with automated sorting for premium cashew grades.
Cashew Kernels Grading and Sorting Techniques
Post-peeling, cashew kernels grading sorts into categories like whole whites (WW) or splits (SW), essential for market pricing in the global cashew industry. In Vietnam-inspired Indian cashew factories, optical sorters achieve 99% accuracy, elevating value by 20%.
Cashew Grades and Their Market Value
Cashew grades such as WW-180 command $8-10/kg, while SW-350 fetches $6-7/kg. Focus on premium grades in cashew companies targeting the US market, where quality cashew from Maharashtra dominates.
Advanced Sorting for Cashew Nut Purity
Advanced sorting in cashew nut processing removes defects via color scanners, ensuring aflatoxin-free output. This step, critical in the cashew industries of Kerala, boosts shelf life and export compliance.
Building a Sustainable Cashew Company in India
Establishing a cashew company in India requires navigating regulations from the Directorate of Cashew Development. Start with a feasibility study in cashew-rich districts like Kollam, integrating eco-friendly practices to align with global sustainability trends.
Key Districts for Cashew Factory Setup
Top districts include Kollam (Kerala) and Sindhudurg (Maharashtra), where cashew factory setup costs range from ₹50 lakhs for small units. These areas offer proximity to ports for efficient raw cashew imports.
Indian Cashew Company Success Stories
Indian cashew companies like those in Andhra Pradesh have scaled from 5 TPD to 50 TPD, leveraging government subsidies under the Cashew Mission for 30% cost savings on machinery.
Packaging and Logistics in the Cashew Supply Chain
The cashew supply chain from raw nut to packaged kernels demands robust packaging to withstand transit. In India, where the cashew industry processes 36.5% of global volume, use corrugated boxes with desiccants for 1kg retail packs.
Packaging Innovations for Shelf Life Extension
Innovations like modified atmosphere packaging extend shelf life to 24 months, popular among Indian suppliers exporting to Europe. For cashew nut, PET jars in 200g sizes preserve crunchiness.
Supplier and Distributor Networks
Contact supplier and distributor networks via IndiaMART for seamless cashew chain logistics. In Uttar Pradesh, regional distributors handle 500kg lots, ensuring timely delivery to cashew factories.
Investment and Cost Breakdown for Cashew Factory
Investment for cashew factory in India varies: ₹1-2 crore for 10 TPD semi-automatic units, covering land (₹20 lakhs), machinery (₹50 lakhs), and utilities (₹10 lakhs). Factor in working capital for raw cashew at ₹700/kg.
Processing Type Cost Implications
Processing type influences costs—manual setups at ₹50 lakhs vs. automated at ₹1.5 crore. In Maharashtra, subsidies reduce this by 25% for quality cashew initiatives.
ROI Projections for Indian Cashew Industries
ROI in Indian cashew industries averages 25-35% within 2 years, with payback on ₹80 lakhs investment yielding ₹2 crore annual revenue at $2/kg kernel prices.
Quality Control, Certifications, and Standards
Quality is non-negotiable for exports. Implement HACCP from reception to packing, preventing contamination.
Essential Certifications
- HACCP/ISO 22000: Food safety management; mandatory for EU/US.
- Organic (USDA/EU): No synthetics; premium pricing (+20%). Vital for Indian exports.
- Phytosanitary Certificate: Pest-free proof, issued by authorities.
- Fair Trade/UTZ: Ethical labor; appeals to Ghana’s cooperatives.
- AFI/INCODEX Standards: Moisture <7%, outturn >48 lbs/80kg bag.
- FDA/EU Regs: Aflatoxin <2 ppb, heavy metals limits.
Audits cost $5,000-20,000 annually. In Benin, certified plants fetch 15% higher prices.
Export Procedures and International Trade
Exporting cashews involves navigating tariffs, docs, and logistics. Global trade: $7 billion in 2025, led by Vietnam to US/China.
Step-by-Step Procedures
- Registration: Obtain exporter license (e.g., Ghana’s FDA permit).
- Quality Certification: Secure phytosanitary, COA.
- Documentation: Invoice, packing list, Bill of Lading, Certificate of Origin. For EU, fumigation cert.
- Customs Clearance: Declare HS Code 08013100; duties 0-12% (e.g., 5% to India).
- Logistics: Containerize (20-40ft); insure against humidity. From Nigeria: 5-10 days to Europe via Lagos.
- Payment: LC or TT; hedge against $1.2-1.5/kg fluctuations.
In Mozambique, post-liberalization, exports surged 20%. Use FTAs like AfCFTA for Africa.
Financial Planning, Costs, and ROI
CAPEX breakdown: Machinery 40%, building 30%, utilities 20%. OPEX: Raw nuts 50%, labor 20%.
For 2 TPD: $250,000 CAPEX, $50,000/year OPEX, breakeven 18 months at $2/kg kernel price.
100 TPD: $12 million CAPEX, $2 million/year OPEX, ROI 25% in 2 years.
Sensitivity: 10% nut price hike erodes margins 15%. Finance via loans (ADB in Africa).
Cost Comparison Chart
Component | 2 TPD (USD) | 10 TPD (USD) | 100 TPD (USD) |
---|---|---|---|
Land/Building | 50,000 | 500,000 | 3,000,000 |
Machinery | 100,000 | 800,000 | 5,000,000 |
Utilities Setup | 20,000 | 100,000 | 1,000,000 |
Certifications | 5,000 | 15,000 | 50,000 |
Total CAPEX | 175,000 | 1,415,000 | 9,050,000 |
Human Resources, Training, and Sustainability
Hire 10-500 skilled workers: Engineers for large scales, peelers for small. Training: 2-week programs on HACCP, like in Tanzania.
Sustainability: Zero-waste (shells to fuel), water recycling (50% savings). In Brazil, carbon credits add revenue.
Challenges, Risk Mitigation, and Best Practices
Challenges: Supply volatility (Guinea disruptions), labor shortages (Philippines typhoons). Mitigate with contracts, insurance. Best: Automate 70%, diversify markets.
Setting up a modern cashew factory is a strategic venture blending tradition with innovation. From Côte d’Ivoire’s vast fields to Brazil’s boutique yields, global insights guide scalable success.
- Nut packaging is crucial for maintaining cashew nut freshness, with vacuum-sealed options extending shelf life to 12 months for raw cashew from India.
- Cashew industries in India, especially in Kerala, rely on efficient cashew processing to produce quality cashew kernels, boosting export potential.
- Contact supplier networks in Andhra Pradesh for raw cashew at competitive rates, ensuring a steady supply for your cashew factory.
- Packaging size varies—10kg cartons for bulk and 1kg pouches for retail—impacting shelf life and logistics in the cashew supply chain.
- Processing type options include manual for small-scale (2 TPD) and automated for large-scale (100 TPD) cashew factories in India.
- Quality cashew requires strict processing type adherence, with steam cooking enhancing cashew grades like WW-320.
- Indian suppliers offer diverse packaging solutions, from 50kg bags to 200g packs, tailored for different shelf life needs.
- The cashew industry in Tamil Nadu thrives with advanced nut packaging, ensuring 18-month shelf life for exported cashew nut.
- Contact supplier experts in Maharashtra for processing type equipment to optimize your cashew company’s output.
- Cashew kernels grading is key, with optical sorters ensuring 99% accuracy for premium cashew grades in Indian markets.
- Pradesh regions like Andhra Pradesh lead in raw cashew production, supporting local cashew industries with quality stock.
- Shelf life of 24 months is achievable with nitrogen-flushed nut packaging, a trend in India’s cashew processing hubs.
- Processing type innovation, like hybrid systems, suits small Indian cashew companies aiming for scalability.
- Packaging material choices, such as biodegradable options, align with sustainable cashew factory practices in India.
- Contact supplier firms in Gujarat for custom packaging size solutions to enhance your cashew supply chain efficiency.
- Quality cashew exports from India require HACCP-compliant processing type, ensuring global market acceptance.
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