In brief
Despite its position as the third-largest exporter of unprocessed cashew nuts, Ghana lags in processing the crop locally, leaving farmers with paltry returns. Calls for improved access to finance, market development, and logistical support have emerged as the country seeks to enhance its cashew industry and ensure sustainable livelihoods for its farmers.
Ghana is known for its significant cashew production, being the third-largest exporter of unprocessed varieties globally. However, the massive disparity in pricing for roasted and unshelled cashews has led to growing concern among local farmers who struggle to thrive under unreliable supply chains and fluctuating market prices. The challenge is palpable for farmers like Nashiru Seydou, who feels the strain of meager returns, receiving around $50 for a 100kg sack of unshelled cashews, while the same nuts can be sold for up to $40,000 a tonne after roasting. Entrepreneurs like Bright Simons highlight the need for local producers to expand their businesses and cultivate a consumer base for cashews within Ghana, where currently, only a small middle class engages with the product.Mildred Akotia, founder of Akwaaba Fine Foods, is among those trying to shift the tide by processing more cashews locally, yet she grapples with high interest rates that hinder growth. "Local banks charge up to 30% interest for loans," she laments, making it difficult to invest in necessary equipment.Despite attempts to enforce export bans on raw cashews in the past to promote local processing, those policies have faced backlash. Farmers and traders were quickly impacted by declining prices, forcing the government to backtrack. Some recently proposed strategies include increased tariffs on raw exports, but experts like Simons argue that the focus must shift to enhancing demand and branding for cashew products domestically.World-renowned economist Prof. Daron Acemoglu emphasizes that international market access for processed Ghanaian cashews is crucial. He advocates for the improvement of local infrastructure to ease transportation costs, while Akotia aims to establish her own logistics network to streamline processing.The essence of the challenge lies not just in increasing production but creating a robust local market. Akotia's aspirations include increasing demand for her products both locally and abroad, capitalizing on the potential opportunities that exist if Ghana can transform its raw cashew industry to one capable of processing and exporting value-added products.
