Ghana's Cashew Industry Faces Struggles for Better Returns

Ghana's cashew trade often leaves local farmers feeling undervalued, as market prices favor extraordinary profits for roasters and retailers rather than the growers themselves. A visit to a street vendor in Accra reveals startling price disparities; the 30g bag of roasted cashews goes for 75 cents, which is up to 4,000% markup compared to the raw counterparts sold at $50 for a 100kg sack by farmers like Nashiru Seydou. Ghana ranks as the third-largest exporter of unprocessed cashews globally, producing around 180,000 tonnes annually, with around 80% destined for international markets. While this generates approximately $300 million, the nation misses out on greater revenues associated with value-added processes like roasting. Entrepreneurs in the sector, such as Mildred Akotia, are striving to increase domestic processing, but face barriers like exorbitant interest rates on loans, making it difficult to compete with foreign industrialized processing.Ghana's previous attempts to stimulate local processing through an export ban were met with pushback from farmers and ultimately abandoned. Recent discussions on imposing higher tariffs and direct purchasing restrictions echo the government's ongoing examination of solutions but fail to tackle fundamental business challenges, including skill gaps and infrastructure inefficiencies.Experts argue that building a robust local market for cashew nuts is critical. Economists suggest fostering a consumer base to create demand while also expanding international market access can significantly benefit local processors. Akotia, aiming to overcome these hurdles, plans to enhance her business operations to meet growing demand from abroad and within Ghana. With aspirations to elevate Ghanaian processed foods, she strives to boost the industry despite the formidable obstacles inherent in the current landscape.