There are a few reasons why cashews are pricier than other nuts:
Labor-Intensive Collecting – Cashews are harvested from a cashew apple which develops on the cashew tree. These nuts are encased in a hard-shell that contains a caustic oil that can cause skin irritation. They need to be handled carefully during harvest. It’s labor intensive. Every nut is hand-picked from the shell.
Processing – Once gathered, the cashew nuts must undergo several processing steps to remove the outer shell and toxic oils. It requires skilled labor and specialized equipment which adds to the overall cost.
Low Yield – Generally, cashew trees have low yields compared to other nut-bearing trees like almonds or peanuts. The yield per tree is low(ish) contributing to higher prices.
Demand and Supply – Cashews are prevalent worldwide with high demand in various cuisines, both as a snack and as an ingredient in dishes. When demand is high and supply is constrained, costs tend to rise.
Transportation and Distribution Costs – Cashews are frequently grown in tropical regions such as India, Vietnam, Brazil, and Africa, and then transported globally. Transportation costs, including shipping and handling, add to the overall price.
These components, combined with the labor-intensive nature of cashew production and processing, contribute to the relatively high cost of cashews compared to other nuts.
