Vol No: 81,
Home spacer About Us spacer Editorial spacer Top Stories spacer Business News spacer Sports spacer Advertise spacer Health Corner spacer Agony Aunt spacer Subscription spacer Feedback spacer Contact Us
spacer
Business News
Letters to the Editor
Archives
 
 

Blue watch
 

spacer
Business News - Cashew Nut: The quest for better quality and wealth

AFRICA currently produces more than one-third of the world’s cashew (605,000 tons out of 1.6 million tons world wide in 2006) and exports an estimated 95% of raw nuts abroad.

Cote d’Ivoire, Guinea- Bissau and Tanzania rank 4th, 5th & 6th respectfully on the league of biggest producers in the global market, urging out a country like Mozambique which was the then leading producer of cashew on the continent in the 1970s.

But despite the apparent good standing of the continent’s exports, majority of the farmers continue to struggle to make the needed economic impact, forcing them to either fold up completely or shift their attention to the cultivation of new set of crops.

From a low level of local consumption to the absence of credit facility from the banks and other donor agencies, farmers continue to struggle to stay in business despite the odds.

A case in hand is Guinea- Bissau where a lack of financing for raw material purchases and lack of buyers of kernels are some of the problems facing the industry.

Besides, there is no national export brand and no credible quality certification, which means the country’s kernels lack recognition in the international market.

Surprisingly, this problem is equally prevalent in most of the cashew growing countries like Ghana, Senegal and even Cote d’Ivoire which is seen as one of the big-shots in the industry.

The industry recently formed a continental cashew association to promote a campaign to add value to its nuts, encourage higher production and better quality, and market Africa as a source of quality organic cashews. The African Cashew Alliance is a privatepublic partnership that aims at promoting the African cashew sector from production to consumption.

It also serves as a platform that brings together cashew stakeholders to share common vision and capitalise on the sector’s potential for economic growth and employment.

The African cashew industry employs three million households, but is dogged by depressed prices and dwindling production.

The West African Trade Hub (WATH) an agency that is helping to revamp the cashew industry in Africa says for many years African raw cashews have been exported to India and Vietnam where they are processed and the majority is shipped to Europe and to the USA for consumption.

According to the agency, East Africa alone processes more than 20% of its domestic production. West Africa is increasing the number of its processing plants and will expand its current processing capacity of 3% to higher levels in the coming years.

But industry officials say whereas world cashew production has increased, Africa's share has decreased over the years. The continent's current output of 300,000 tonnes is less than half its potential of 700,000 tonnes.

The Alliance therefore hopes to address this very situation by liaising with local associations in the 14 member countries, by linking actors of the industry across countries to share information and create a common vision and synergies.

Again, the association equally hopes to prioritise and stimulate interventions to increase competitiveness, as well as facilitate fund raising efforts for cashew industry development initiatives and projects in the sector.

At its recently held meeting in Guinea Bissau, delegates discussed the pertinent issue of appropriate forms of drying the nuts in order to make them attractive to the international markets.

“Exporters and international buyers are stressing proper drying, the need to let the cashews mature before harvesting, and the need to package raw nuts in jute bags instead of the polyplastic bags,” participants stressed.

According to officials of TechnoServe, an agency that advocates a better pricing for cashew farmers in Mozambique, cashew processing in Africa could generate annual revenues as high as $500 million by 2015, of which 40 per cent would go to wages for manual labour.

The primary target markets for Africa, which produces a third of the world's cashews, are the European Union and Asia.

 

Please email your comments to
editor@africanecho.co.uk

 
spacer spacer




 
Suite C, Queensway House, 275-285 High Street, Stratford, London, E15 2TF, UK
Tel: +44 (0) 208 534 2255 (Editorial), +44 (0) 208 534 2299 (Advertisements)
Fax: +44 (0) 20 8519 5564 Email: info@africanecho.co.uk
Terms & Conditions : Privacy Policy
Powered by:Alt N Solutions