The street vendor in Accra gives me a curious glance. I am trying to understand why the small 30g bag of roasted cashew nuts she is selling by a busy road in Ghana’s capital costs me approximately 75 cents (60p). While this may not be much for me, a visitor from the UK, I am astounded by the significant markup. The price is over 4,000% higher than the cost of purchasing the same amount of raw, unshelled cashews directly from a Ghanaian farmer.
Expressing my disbelief, I point out the apparent discrepancy to the vendor. However, she seems puzzled by my English and reasoning. The price of the nuts is clearly displayed on the packaging, making it challenging to convey why I find it excessive.
Ghana ranks as the world’s third-largest exporter of unprocessed cashew nuts, trailing behind Ivory Coast and Cambodia. A considerable number of Ghanaians, around 300,000, rely on cashew cultivation as a source of income.
Nashiru Seydou, whose family operates a farm in the northeastern region of the country, located some 500 miles (800km) from Accra, shares the hardships faced in the industry. He highlights the demanding nature of the work, coupled with unstable supply chains and fluctuating wholesale prices that pose challenges for survival.
“We are facing difficulties. Leveraging sunlight and fertile land could help create more employment opportunities,” he remarks. “I would appreciate government intervention to support our sector.”
Seydou mentions that he currently receives about $50 for a large 100kg sack of unshelled cashews. Bright Simons, an entrepreneur and economic analyst based in Accra, echoes Seydou’s sentiments, emphasizing the disparity in pricing dynamics. Simons notes that roasters and retailers acquire cashews from farmers at $500 per tonne and sell the processed nuts to consumers, both locally and internationally, for prices ranging from $20,000 to $40,000 per tonne.
Ghana’s annual cashew production stands at approximately 180,000 tonnes, with over 80% earmarked for export in its raw, unshelled state. While this generates about $300 million in export revenues, the country is missing out on the higher profits associated with selling roasted, ready-to-eat cashews.
Mildred Akotia, the founder and CEO of Akwaaba Fine Foods striving to boost local cashew processing, aims to increase the quantity of cashews that undergo shelling and roasting in Ghana. Akotia dismisses claims of price inflation, attributing the limited processing capacity to the exorbitant credit costs in Ghana, which hinder access to necessary packaging and roasting equipment.
Akotia points out the challenges faced in securing loans from local banks due to the high interest rates. This predicament has led businesses like hers to rely on
In the world of Ghanaian cashew production, recent developments have sparked both concern and opportunity for local farmers and traders. The industry, reliant on a delicate balance of factors, faces challenges that require innovative solutions from those involved.
The initial backlash followed the absence of affordable loans, leading to a disruption in the market as new roasters struggled to enter due to financial constraints. This resulted in a surplus of raw nuts, causing prices to plummet and produce to wither away without buyers in sight.
As the dust settled, discussions emerged regarding potential tariff hikes on raw cashew exports and restrictions on direct cashew purchases from farms by exporters. However, amidst these proposed policy changes, a crucial aspect seems to be overlooked, according to industry expert Mr. Simons.
Simons emphasizes the importance of local producers honing their business practices and expanding their operations to achieve efficiency and scale. In his view, encouraging cashew consumption among Ghanaians at large, rather than just a niche market, is essential for industry growth.
Renowned economist Prof. Daron Acemoglu echoes the sentiment, underscoring the significance of cultivating a robust local market for Ghana’s cashew sector. While acknowledging the need for international market access for processed cashews, Acemoglu stresses the need for addressing internal challenges such as skill shortages, infrastructure deficiencies, and bureaucratic hurdles.
The call for governmental support in improving transportation networks and facilitating market access resonates within the industry. However, Simons advocates for a shift in responsibility towards Ghanaian businesses themselves, urging them to elevate their branding and marketing strategies to attract consumers and investors.
Amidst these dynamics, entrepreneur Mildred Akotia stands as a beacon of hope, aiming to revolutionize the sector by establishing a direct processing system from farm to market. With a burgeoning demand from international markets and a solid branding strategy, Akotia envisions a future where Ghanaian processed foods receive global recognition.
The overarching narrative in Ghana’s cashew industry underscores the need for a holistic approach, combining governmental support, business innovation, and consumer engagement to drive sustainable growth. The challenges at hand present opportunities for transformation, where local entrepreneurs like Akotia are poised to lead the charge towards a brighter future for Ghana’s cashew sector.
