A look at the complex situation surrounding the cashew industry in Ghana, where farmers struggle with low prices for raw cashews while consumers pay exorbitant costs for roasted nuts. The article explores the reasons behind this disparity, highlighting the challenges faced by local processors and the need for increased investment in infrastructure and skills development.
A Ghana ian street vendor sells a 30-gram bag of roasted cashew nuts for the equivalent of about 75 cents. This price is at least 4,000% higher than the cost of buying the same weight of raw, unshelled cashews from a Ghana ian farmer. This discrepancy highlights the challenges faced by cashew farmers in Ghana , where the majority of the crop is exported in its raw form, missing out on higher returns from processed cashews.
Around 300,000 Ghanaians rely on cashew farming for their livelihoods, but unreliable supply chains and volatile wholesale prices make survival difficult. Farmers like Nashiru Seydou, who works on a family farm in the country's northeast, struggle to make a decent living. Bright Simons, an entrepreneur and economic commentator in Accra, points out the stark reality: Roasters and retailers buy cashews from farmers for $500 a tonne, but sell them to consumers for amounts between $20,000 and $40,000 a tonne.Despite the potential for increased domestic processing, only about 20% of Ghana's cashews are currently processed locally. This is partly due to the high cost of credit, making it difficult for local processors like Mildred Akotia, founder and CEO of Akwaaba Fine Foods, to invest in the necessary machinery. Imported processed cashews, often from countries like India, Thailand, and Vietnam, are sold at the same price as domestically roasted cashews, despite the lengthy sea freight journey and import costs. Previously, the Ghanaian government attempted to encourage local processing by banning the export of raw cashews in 2016. However, the policy was short-lived due to farmer and trader resistance, as insufficient new Ghanaian roasters entered the market. The price of raw nuts plummeted, and many began to rot due to lack of buyers. Experts like Prof Daron Acemoglu, a Nobel Prize-winning economist, suggest that improving access to international markets for processed Ghanaian cashews is crucial. He acknowledges the challenges faced by local businesses, including a lack of skilled workforce, inadequate infrastructure, corruption, and difficulty reaching foreign markets. While building a strong local market is important, Prof. Acemoglu emphasizes that the domestic market is too small for Ghanaian cashew processors to rely solely on it. He also recommends that the Ghanaian government invest in its transportation network to reduce the cost of exporting processed cashews
CASHEW INDUSTRY GHANA FARMERS PROCESSING EXPORTS DOMESTIC MARKET
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mahama Assumes Ghana's Presidency Amid High ExpectationJohn Mahama will have his work cut out for him when he takes over as the next president of Ghana on Tuesday, January 7, 2025 as the country grapples with its worst economic crisis in a generation.
Read more »
The Office Air Conundrum: Why Your Makeup Melts and Hair Goes Flat at WorkThe GetReadyWithMe trend makes office life look glamorous, but the reality might be different. From dry skin and lackluster hair to harsh fluorescent lighting, there are many reasons why your beauty routine takes a hit at work. This article explores the science behind why office air conditioning can wreak havoc on your appearance and offers practical tips to combat these beauty woes.
Read more »
Ghana Joins List Of African Countries Offering Visa-Free Entry To All AfricansGhana has joined a growing list of African countries offering visa-free entry to all African citizens. This decision is expected to boost tourism and travel across the continent.
Read more »
Mahama Sworn in for Second Term as Ghana President, Pledges Economic RevivalJohn Dramani Mahama was sworn in as Ghana's president for a second term, promising to address public discontent by boosting the economy and creating jobs. Mahama's victory follows a period of economic hardship, including a cost-of-living crisis and a sovereign debt default. He faces pressure to deliver on campaign promises to curb youth unemployment and combat corruption.
Read more »
Ghana Elects John Mahama Amidst Economic CrisisJohn Mahama wins the Ghanaian presidential election by a landslide, promising to address the country's economic struggles.
Read more »
Burkina Faso's Leader Sparks Concern at Ghana Inauguration by Carrying a PistolBurkina Faso's military leader, Capt Ibrahim Traore, attended Ghana's presidential inauguration with a holstered pistol, raising concerns about security protocols and diplomatic tensions in West Africa.
Read more »