Cashew Out-Turn (KOR) Explained: How Buyers Calculate Real Value

At a glance

• Out-turn (KOR) is the pounds of usable kernel a processor recovers from an 80 kg bag of raw cashew nuts.
• Tanzanian RCN typically grades between 46 and 54 lb out-turn, depending on district, harvest timing and handling.
• A 52 lb out-turn bag yields about 23.6 kg of sellable kernel after shelling.
• At the same gross price, a 52 lb lot delivers roughly 8 per cent more kernel than a 48 lb lot.
• The safe moisture window at bagging is 8 to 10 per cent — above it risks mould, below it brittle shells.
• Experienced buyers contract a target out-turn band with an adjustment formula, not gross weight alone.

Out-turn — also written as KOR, the kernel out-turn ratio — is how many pounds of usable cashew kernel a processor expects to recover from each 80 kg bag of raw cashew nuts. Tanzanian RCN typically lands between 46 and 54 lb out-turn depending on growing district, harvest timing and post-harvest handling. That eight-pound spread looks small until you do the maths across a 17-ton container, where a two-lb out-turn difference is the difference between a profitable processing run and a marginal one.

How out-turn is measured

A processor draws a representative sample from the lot, shells it under controlled conditions, separates the sound kernel from the broken pieces, and weighs the recovered kernel against the bag's gross weight. The result is expressed in pounds per 80 kg bag — a legacy unit the global cashew trade has never replaced. A 52 lb out-turn means a typical Tanzanian 80 kg RCN bag yields 52 lb (about 23.6 kg) of sellable kernel after shelling. Multiply across the container, factor in your shelling cost, and you have a real per-kilogram kernel cost for the lot.

What drives out-turn

• Growing district — Tunduru and Mtwara typically deliver higher out-turn than blended-district lots; the soil and rainfall profile shape kernel size and density.
• Harvest timing — nuts that fell naturally and were collected promptly retain more usable kernel than nuts collected after sitting on damp ground.
• Drying discipline — moisture above 10 per cent at bagging risks mould; below 8 per cent risks shell brittleness during shelling. The 8 to 10 per cent window is where out-turn holds.
• Storage conditions — ventilated, off-the-ground warehouse storage keeps out-turn stable across the season; poor storage degrades it lot by lot.
• Defect rate — discoloured, shrivelled or mould-marked nuts are excluded from the usable kernel count and pull the out-turn down.

How out-turn affects pricing

Two RCN lots can have the same gross-weight price per ton and still represent very different value. A 52 lb out-turn lot at the same gross price as a 48 lb out-turn lot delivers roughly 8 per cent more usable kernel per kilogram of raw nut — meaningful margin for a processor running a tight cost model. Experienced buyers price RCN on the out-turn-adjusted basis: the contract names both gross weight and the agreed out-turn, with a pricing adjustment if the delivered out-turn deviates from the agreed value.

“Buying RCN on gross weight is buying a number on a bag. Buying it on out-turn is buying the kernel you'll actually sell — which is the only number that matters by the time the lot is shelled.”

— Asha Ngonyani, Quality Manager

Tanzanian out-turn bands at a glance

• 46–48 lb — standard / volume lots. Workhorse bands for established processors prioritising consistent supply over premium yield.
• 48–50 lb — solid standard. The most common Tanzanian RCN band in international trade.
• 50–52 lb — premium standard. Often the organic-certified Tunduru lots, or early-season Mtwara nuts.
• 52–54 lb — premium. The lots processors prize for kernel-yield programmes — also priced at a premium.
• Above 54 lb — rare. Almost always a tightly-selected single-cluster lot; pricing reflects scarcity.

What to specify in your RCN contract

• Target out-turn band — e.g. 'minimum 50 lb out-turn, target 52 lb'.
• Sampling method — how the representative sample is drawn and how disputes are resolved.
• Adjustment formula — what happens if delivered out-turn falls below or rises above the agreed band.
• Moisture spec — the 8 to 10 per cent window that protects out-turn through transit.
• Defect tolerance — percentage of discoloured, shrivelled or mouldy nuts allowed before the contract is renegotiated.

Pricing RCN on out-turn rather than gross weight closes the gap between what the bag says and what your processing line will actually deliver. It is a small contract change with a meaningful impact on landed kernel cost — and it is how the most experienced cashew buyers structure their programmes.