Cashew Processors Ghana President urges government support to strengthen value chain

Cashew farmers in Ghana say falling farmgate prices are discouraging them from continuing production, while local processors are struggling to compete with foreign buyers for raw cashew nuts.

The President of the Association of Cashew Processors Ghana (ACPG), Caramelo Raposo, has called on government to strengthen its support for farmers and local processors as the sector faces declining prices and increasing reliance on raw cashew exports.

He said government support through financing and appropriate legislation was needed to strengthen local production and processing.

Ghana produces an estimated 260,000 metric tonnes of cashew annually, but about 95 percent of the raw nuts are exported, leaving limited supplies for local processing and value addition.

From Tuobodom in the Bono East Region to Sampa in the Bono Region, significant areas of farmland have been converted to cashew cultivation.

However, some farmers say the current prices are making the business increasingly unattractive.

Agyarko Kofi Hayford, a cashew farmer at Kanapor near Tuobodom who has been in the business for more than 10 years, said he was considering abandoning the farm despite his investment.

He said the farmgate price had fallen significantly compared with the previous year, leaving farmers demoralised.

Another farmer, Antwi Joyce, who has cultivated cashew for 11 years, said the poor returns had reduced her interest in continuing the family business.

Local processors say they are also being affected by competition from foreign buyers who have greater purchasing power.

Portia, a cashew processor in Sampa, said many farmers prefer selling their raw nuts to buyers from neighbouring Côte d’Ivoire because they are able to offer better prices.

She said local processors are often left with only the surplus after foreign buyers have purchased the available raw cashew.

The concerns were raised during a stakeholder roundtable in Accra held under the theme, “Building a Competitive and Sustainable Cashew Value Chain Together.”

The event was organised by the Association of Cashew Processors Ghana and the Cashew Council Ghana, with support from GIZ and other European funding partners.

The meeting brought together representatives from government institutions, farmer groups, processors, exporters, development organisations, financial institutions and research institutions.

Discussions focused on the export of raw cashew without sufficient local value addition, which stakeholders say limits job creation, industrialisation, farmer incomes and the retention of economic value in Ghana.

The Chief Executive Officer of the Tree Crops Development Authority, Dr Andy Osei Okrah, said the Authority is advocating policy measures to support local processors.

He disclosed that discussions are ongoing on the introduction of a levy on raw cashew exports as a means of supporting local processing and regulating the export of unprocessed cashew.

The roundtable also explored strategies to improve access to finance, technology, markets and raw materials, while strengthening sustainability and traceability within the industry.

Stakeholders said such measures could help improve Ghana’s position in the global cashew market and promote greater value addition locally.

By Esther Padmore Amonoo