Ghana, the world’s third-largest exporter of unprocessed cashew nuts, is grappling with challenges that hinder its potential to capitalize on this lucrative crop. With around 300,000 Ghanaians involved in cashew farming, the industry is vital for many livelihoods, particularly in the northeastern regions of the country. However, farmers like Nashiru Seydou, who struggles with unreliable supply chains and fluctuating prices, express a desire for government support to help improve their situation.
Currently, Seydou sells a 100-kilogram sack of unshelled cashews for approximately $50. In stark contrast, the same nuts are sold by retailers for up to $500 per tonne, while consumers pay significantly more for roasted cashews, which can fetch between $20,000 and $40,000 per tonne in international markets. This disparity highlights the challenges faced by local farmers who receive only a fraction of the profits generated by their crops.
Despite producing around 180,000 tonnes of cashews annually, with over 80% exported in raw form, Ghana misses out on the higher profits associated with processed nuts. Mildred Akotia, CEO of Akwaaba Fine Foods, is among those working to increase local processing. However, she faces significant obstacles, including high interest rates on loans, which can reach 30%, making it difficult for businesses to invest in necessary equipment.
The Ghanaian government previously attempted to boost local processing by banning raw cashew exports, but the policy was quickly abandoned due to backlash from farmers and traders. Current discussions include the possibility of increased tariffs on raw exports and restrictions on direct purchases from farms, yet many experts argue that these measures may not address the core issues facing the industry.
Bright Simons, an economic commentator, emphasizes the need for local businesses to enhance their branding and marketing efforts. He notes that many talented individuals are leaving Ghana for better opportunities abroad, exacerbating the country’s economic challenges. Simons advocates for a focus on building a domestic market for cashews, suggesting that a broader consumer base would help drive demand.
Economist Daron Acemoglu supports this notion, stressing the importance of improving access to international markets for processed cashews. He points out that local producers face numerous hurdles, including inadequate infrastructure and corruption, which hinder their ability to compete globally.
As entrepreneurs like Akotia strive to establish a foothold in the market, she envisions expanding her operations to meet growing demand for locally processed cashews. With interest from international buyers, Akotia believes there is a significant opportunity for Ghana to enhance its reputation in the processed food sector.
The future of Ghana’s cashew industry hinges on overcoming these challenges, fostering local processing capabilities, and ultimately ensuring that farmers receive a fair share of the profits generated by their hard work.