Cashew Batch Costing and Pricing Worksheet for Small Processors

Why a batch costing worksheet matters

A processor can buy raw cashew nuts at a reasonable price and still lose money after shelling, peeling, grading, packaging and delivery. The difference often comes down to two numbers: how many kilograms of saleable kernels are produced and how much it costs to produce and sell them. Looking only at the raw-nut purchase price or the selling price of premium whole kernels can hide losses elsewhere in the batch.

This Mato Cashew resource is a business decision tool, not a lesson on how to operate processing machines. It helps a processor compare the cost of one defined production batch with the expected revenue from its different saleable kernel grades. It can also help cooperatives prepare transparent quotations and researchers collect comparable operating data.

1. Define one costing batch

Start with a clearly defined batch: for example, all raw nuts issued to processing on one production run. Record the batch ID, date, raw-nut weight in kilograms and the total landed purchase cost. If the raw nuts were bought at a price per kilogram, multiply the purchased quantity by that price. Add procurement transport, handling or other costs when they are not already included in the landed price; do not count the same expense twice.

Use a consistent measurement basis. If raw-nut weight was recorded before further drying, note that fact; a change in moisture can change weight without representing a change in kernel quality. For comparisons between batches, record the stage at which each weight was measured.

2. Record saleable kernel output by grade

After processing and grading, weigh the saleable finished kernels, not merely the kernels recovered during an earlier cutting test. Keep whole kernels, broken kernels and any other saleable grades separate because they may have different selling prices.

A simple production recovery measure is:

Saleable kernel recovery (%) = total saleable finished kernel weight (kg) ÷ raw-nut weight processed (kg) × 100.

This is a measured factory recovery rate. It is not the same as the sample-based outturn or KOR figure sometimes quoted when purchasing raw cashew nuts. Never substitute an intake cutting-test figure for actual packed output in a batch profit calculation.

If some output is rejected or not yet saleable, record it separately and do not treat it as revenue. If some finished kernels remain unsold, use the worksheet as a potential-sales scenario, not as proof of realized profit.

3. Capture all relevant costs

For each batch, record the raw-nut cost and the direct expenses attributable to processing and sale. A practical list includes direct labor, energy or fuel, packaging, transportation, and other variable expenses such as consumables. Allocate an appropriate share of rent, equipment depreciation, routine maintenance, administration and other fixed overheads if the purpose is to estimate the full cost of the batch.

Be consistent about cost allocation. For example, a processor may allocate monthly factory overhead across batches based on kilograms of raw nuts processed, machine hours or another reasonable method. Write down the chosen method and use it consistently. Interest, tax, financing fees, waste disposal and marketing costs may also matter; include them where relevant and disclose any exclusions.

Total batch cost = landed raw-nut cost + direct/variable processing and selling expenses + allocated fixed overhead.

4. Calculate sales revenue and the break-even price

For each grade, multiply the quantity expected to be sold by its selling price per kilogram. Add the amounts across grades. Include revenue from by-products only when there is a credible buyer and a realistic net realizable amount; otherwise enter zero.

Expected batch revenue = sum of (saleable kernel grade kg × expected selling price/kg) + credible net by-product revenue.

Potential batch result = expected batch revenue − total batch cost.

Cost per kg of saleable kernels = (total batch cost − net by-product revenue) ÷ total saleable kernel kg.

The last figure is also the minimum blended kernel selling price needed to cover the batch’s included costs, assuming all counted saleable kernels are sold, the estimated by-product revenue is received, and no additional costs arise. It is a batch cost-recovery price, not a market price quotation and not a substitute for a full monthly business break-even analysis.

5. Worked example — illustrative figures only

Consider a hypothetical processor that uses 1,000 kg of raw cashew nuts at US$1.20/kg. The batch produces 150 kg of saleable whole kernels and 80 kg of saleable broken kernels. The expected selling prices are US$8.00/kg for wholes and US$5.00/kg for brokens. These are deliberately invented teaching figures, not current Cambodian market prices, industry averages or promised recovery rates.

The example shows why the mix of whole and broken kernels matters. A processor should compare the weighted average selling price across all grades with the full cost per kilogram, not compare the highest grade’s selling price with raw-nut cost alone.

6. Use the worksheet before buying or quoting

Before purchasing raw nuts, enter a conservative output estimate based on the processor’s own previous batches and current quality information. Test several realistic combinations of raw-nut price, whole/broken grade mix, energy costs and buyer prices. A small reduction in recovery or a larger share of broken kernels can change the result substantially.

Before accepting a buyer’s quotation, replace estimates with actual costs wherever available. For finished stock that is already processed, use measured grade weights. Record the date, price basis, currency, delivery terms and whether the price is before or after freight, discounts, commissions and taxes.

7. Keep one record for each batch

A useful record contains the batch ID, date, raw-nut kilograms and landed cost, finished grade weights, actual or assumed grade prices, variable expenses, overhead allocation, by-product revenue (if any), and the resulting recovery, cost per kilogram and potential margin. Retain invoices and weighment records that support the entries.

When a batch is completed and all products have been sold, compare actual revenue and actual expenses with the earlier estimate. This makes the worksheet more useful over time. A costing record may reference an existing batch code, but it does not replace the separate traceability register used to track which suppliers and customers are linked to a lot.

Download the costing calculator

Download the Mato Cashew Batch Costing & Pricing Calculator (Excel)

The workbook includes a blank batch calculator, a clearly labeled illustrative example, and instructions. Enter your own quantities, prices and costs in the highlighted input cells. Calculated results are estimates until they are reconciled against actual sales and accounting records.

Important notes

This tool is for planning and internal management. It is not a substitute for financial statements, professional accounting, food-safety controls or an independent market quotation. The example uses hypothetical figures. Recovery, grades, prices and operating costs vary by raw-nut quality, equipment, worker skill, process and market conditions. Check units and definitions carefully, especially when comparing a sample-based purchasing KOR with measured saleable factory output.

References and further reading

• UN Trade and Development (UNCTAD), Commodities at a Glance: Special issue on cashew nuts (2021): https://unctad.org/publication/commodities-glance-special-issue-cashew-nuts
• FAO AGRIS, Economics of cashew processing technology in India (2015): https://agris.fao.org/search/en/providers/122535/records/65df36c44c5aef494fe0e74d
• U.S. Small Business Administration, Break-even point: https://legacy.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs/break-even-point

Mato Cashew Resources provide practical templates, worksheets and decision-support materials for Cambodia’s cashew value chain.