Bono Farmers Struggle Amid Cashew Abundance: Smuggling, Poor Practices, and Raw Nut Exports to Blame

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Bono Farmers Struggle Amid Cashew Abundance: Smuggling, Poor Practices, and Raw Nut Exports to Blame

by Ghana Insights
22 June 2024
3 min read

Global Cashew Market Growth

The global cashew market, valued at $8.05 billion in 2023, is expected to reach $8.52 billion by the end of 2024, growing at a CAGR of 5.7%.


2031 the market is projected to hit $10.5 billion, expanding at a CAGR of 4.6% from 2022 to 2031.


Despite this growth, Ghana, a leading cashew producer in West Africa, earned only $300 million in 2022.


Challenges in Ghana's Cashew Industry

Ghana produces between 110,000 and 130,000 metric tonnes of raw cashew nuts annually, with 85% being exported.


This heavy exportation, coupled with improper drying, smuggling to neighboring countries, and other poor agricultural practices, prevents the country from fully benefiting from the cashew market.


Issues in the Bono Region

In the Bono Region, a key cashew-producing area, farmers often sell their produce before it is properly dried.


Additionally, high farm inputs transportation costs and high interest rates hinder small-scale farmers from commercial farming.


Unauthorized buyers and exporters also purchase nuts directly from farm gates at lower prices, exacerbating the problem.


Cashew Watch Ghana (CWG) Initiatives

Cashew Watch Ghana (CWG), funded by Star Ghana Foundation, is addressing these issues through the "Amplifying the Voices of Cashew Farmers" project.


CWG, a coalition of cashew farmers, media practitioners, and non-profits, aims to revolutionize the cashew industry via policy advocacy.


The project, implemented in Jaman North District, Jaman South Municipality, and Tain District, seeks to strengthen over 1,500 farmers and equip them with skills to engage the government and stakeholders.


CWG's Strategic Objectives

CWG's objectives include mobilizing cashew farmers' cooperatives, increasing the capacity of civil society groups for policy advocacy, and enhancing media coverage of cashew sector issues.


The organization also advocates for value addition to cashew nuts to boost foreign exchange and calls for measures to increase productivity and revenue.


Calls for Government Action

Mr. Raphael Godlove Athena, National Coordinator of CWG, emphasized the potential of the cashew sector to generate significant revenue for Ghana if properly managed.


He highlighted the need for the government to address the sector's challenges to benefit fully from global market projections.


Mr. Ahenu noted that the lack of coordination among cashew associations contributes to price volatility and low local processing levels.


Farmer Concerns and Market Challenges

Joseph Alexander Bonsu, a farmer, expressed concerns over low producer prices and market challenges.


He noted that buyers often disregard the minimum pricing set by the Tree Crop Development Authority (TCDA) and cheat farmers through adjusted weighing scales.


Mr. Bonsu also mentioned the influx of foreign cashew nuts from neighboring countries as a challenge.


Efforts to Improve Industry Standards

Dwobeng Nyantakyi, Wenchi Zonal Value Chain Officer of TCDA, stated that over 1,600 actors across the country have been trained and registered to improve industry standards, especially in the proper drying of nuts.


He emphasized the need for commitment to ensure full benefits from the cashew industry and adherence to the TCDA Act 1010, which reserves aggregator and trader roles for Ghanaians.


Support for CWG's Intervention

Dennis Abugri Amenga, Bono Regional Director of Agriculture, supported CWG's intervention, noting that it would help halt illegalities in the industry.


He urged TCDA to provide incentives for farmers who properly dry their nuts to promote the practice.


Economic Impact of the Cashew Sector

The cashew sector, employing about 300,000 farmers and supporting over 800,000 people, significantly contributes to Ghana's economic growth.


CWG's strategic objectives include advocating fair pricing, enhancing farmer capacity, and promoting awareness of the cashew industry's economic importance.


By addressing these challenges and implementing strategic measures, Ghana's cashew industry has the potential to transform the country's economic landscape.