The President of the Association of Cashew Processors Ghana (ACPG), Mr. Caramelo Raposo, has urged the government to introduce stronger measures to support farmers and local processors as the country’s cashew industry struggles with declining farmgate prices and the dominance of raw nut exports.
Mr. Raposo said access to capital and supportive policies were needed to strengthen local production and processing and ensure that more value was retained within Ghana.
“The government needs to support the processors and farmers in the value chain with capital and laws which can boost local production and processing,” he told the media.
Ghana produces an estimated 260,000 metric tonnes of cashew annually, yet approximately 95 percent of the raw nuts are exported. Industry stakeholders say the situation limits opportunities for local value addition, while farmers are increasingly concerned about declining returns from their investments.
Farmers express frustration over low prices
Cashew farming has expanded across parts of the Bono and Bono East Regions, with large areas around Tuobodom and Sampa dedicated to the crop.
However, some farmers say falling prices have left them discouraged and uncertain about continuing in the business.
Agyarko Kofi Hayford, a cashew farmer at Kanapor near Tuobodom who has cultivated the crop for more than a decade, said the sharp decline in farmgate prices has made farming increasingly difficult.
“If I am analyzing the farmgate price now, then I would say it has dropped drastically compared to last year. Some of the farmers have even stopped harvesting; we are demoralized,” he said.
He added: “At first the farmgate price was 20 cedis per kilo, now it is 5 cedis. Some are even going as low as 3 cedis.”
Antwi Joyce, who has also cultivated cashew for 11 years, said the current conditions have reduced her interest in continuing with the family business.
“This is a family business; we have been cultivating cashew for the past eleven years. This year has been bad. I have no interest in continuing the farm,” she said.
Local processors struggle to secure raw cashew
Processors also say they are facing difficulties securing enough raw nuts, particularly because they have to compete with foreign buyers who have greater purchasing power.
Portia, a cashew processor in Sampa, said many farmers prefer selling their produce to buyers from neighbouring Côte d’Ivoire because they are able to offer stronger purchasing power.
“The farmers prefer to sell the raw cashew to buyers from neighboring Ivory Coast because they hold the purchasing power. What we get to process is like a surplus,” she said.
According to processors, the situation makes it difficult for local factories to operate at their full capacity and limits the potential for job creation and industrial development within Ghana.
Stakeholders seek solutions in Accra
The challenges facing the sector were discussed at a stakeholder roundtable in Accra held under the theme, “Building a Competitive and Sustainable Cashew Value Chain Together.”
The meeting was organised by the Association of Cashew Processors Ghana and the Cashew Council Ghana, with support from GIZ and other European funding partners.
It brought together representatives from government institutions, cashew processors, farmers, exporters, financial institutions, development organisations and researchers.
Discussions focused on reducing the export of raw cashew while increasing local processing and value addition. Stakeholders said strengthening the domestic industry could create more jobs, improve farmer incomes, support industrialisation and enable Ghana to retain a greater share of the economic value generated from cashew.
Government considers export levy
The Chief Executive Officer of the Tree Crops Development Authority, Dr. Andy Osei Okrah, disclosed that efforts were underway to introduce policy measures aimed at supporting local processors.
“We are pushing for a raw cashew export levy to enable us support local processors and also control the export of raw cashew,” he said.
The roundtable further examined ways to improve access to finance, technology, markets and raw materials, while also strengthening sustainability and traceability within the industry.
Stakeholders believe coordinated action by government and industry players will be critical to developing a competitive cashew value chain and positioning Ghana to benefit more from the growing global cashew market.
By: Prince Martey-Sogar.