Your Margin Looks Positive – But Your Cash Is Disappearing
Many factory owners today are facing a confusing situation.
On paper, the margin looks fine.
But in reality, cash is getting tighter.
You sell kernel at a workable price.
You calculate cost.
You still see margin.
But at the end of the cycle,
cash is not there.
The problem is not price.
The problem is timing.
In cashew trading, cash does not move in a straight line.
You pay for raw material first.
You process over time.
You sell later.
You collect even later.
If any part slows down,
the whole system stretches.
And when the system stretches,
your margin may still exist
but your cash is already gone.
This is what many factories are experiencing now:
Raw material bought at higher levels
Processing ongoing
Kernel prices not improving
Buyers delaying decisions
The result is predictable:
Inventory increases
Cash cycle extends
Pressure builds
This creates a dangerous illusion.
You are not losing yet.
But you are no longer liquid.
At this point, decisions change.
You don’t sell because price is good.
You sell because you need cash.
And when selling is driven by pressure,
margin disappears quickly.
This is why some factories:
Sell below expectation
Release cargo earlier than planned
Accept weaker deals
Not because they want to,
but because the system forces them.
The real risk is not negative margin.
The real risk is losing control of your cash flow.
Once that happens,
you are no longer trading.
You are reacting.
Profit is an accounting number.
Cash flow is survival.
Disclaimer
This article reflects market observations and practical experience in the cashew industry.
It is intended for discussion purposes only and does not constitute financial or commercial advice.
—
Ho Quang Binh
Vietnam Cashew Specialist
RCN Sourcing | Kernel Trade | Africa–Vietnam Market Access
WhatsApp: +84 909 226 739
Email: kevin.quangbinh@gmail.com
Website: https://codebanthe.com/
Further Reading
This perspective is part of a broader thinking framework on how to operate in volatile agricultural markets.
If you want to understand deeper:
How to control cost structure
How to align cash flow with trading decisions
How to build a resilient trading system
You can explore more in my writing on agricultural trading operating systems.
👉 Because in this business, survival is not about price
it is about how your system responds to uncertainty.