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Why are cashews so expensive?

Published in Food Economics 2 mins read

Cashews are expensive primarily because of the labor-intensive and hazardous process required to harvest and process them.

Here's a breakdown of the contributing factors:

  • Labor-Intensive Harvesting: Cashews grow inside a shell attached to a cashew apple. Harvesting involves hand-picking the cashews. This isn't mechanized, adding to the labor costs.

  • Hazardous Processing: The cashew shell contains a caustic oil called cashew nutshell liquid (CNSL), which is toxic and can cause severe burns. Therefore, processing requires careful handling and specialized equipment.

  • Dangerous Roasting: Roasting the cashews is essential to destroy the toxins. This process is dangerous because the toxins are released into the air, posing health risks to workers. Proper ventilation and protective gear are necessary, which increases costs.

  • Individual Extraction: Each cashew nut must be individually extracted from its shell. This is typically done by hand in many regions, which further increases labor costs.

  • Grading and Sorting: After extraction and roasting, the cashews must be graded and sorted based on size, quality, and appearance. This is another labor-intensive step.

  • Global Demand: The demand for cashews is consistently high, contributing to their price. Limited supply chains and geographical constraints on cashew cultivation also play a role.

In summary, the high price of cashews reflects the complex, dangerous, and labor-intensive processes involved in bringing them from the tree to the consumer.

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