Ghana's Cashew Industry Faces Challenges and Opportunities

Ghana is one of the largest exporters of cashew nuts but relies heavily on raw exports, missing opportunities for greater profit through local processing.

Ghana's cashew nut trade reveals a complex story of potential and challenges. While the country stands as the third-largest exporter of unprocessed cashew nuts globally, behind the Ivory Coast and Cambodia, local farmers remain disconnected from the lucrative end of the market. On the streets of Accra, a vendor sells a 30g bag of roasted cashews for about 75 cents—a stark contrast to the mere $50 farmers earn for a whole 100kg sack of raw nuts.

Many farmers, like Nashiru Seydou from northeastern Ghana, express frustration over unreliable supply chains and volatile prices. Seydou emphasizes the underutilized fertile land and sunlight in Ghana, advocating for government support to help boost the sector. Bright Simons, an economist, notes the staggering markup on cashew prices, where roasters pay farmers $500 per ton but sell the same product for up to $40,000 per ton when processed.

With Ghana producing approximately 180,000 tonnes of cashew annually and exporting more than 80%, the country’s earning potential significantly diminishes as most raw nuts are shipped abroad for processing. Notably, less than 20% of these cashews are locally processed, leading to a reliance on imported brands that often match or exceed the prices of locally produced alternatives.

Mildred Akotia, CEO of Akwaaba Fine Foods, is among those fighting for change. Processing only 25 tonnes of cashews a year, Akotia highlights the financial difficulties posed by high interest rates on loans, making it difficult for local businesses to invest in necessary infrastructure. Past government attempts to ban raw cashew exports aimed at encouraging local processing proved ineffective, largely due to farmer opposition and market disruption.

Mr. Simons further argues that building a strong local market is crucial. Encouraging Ghanaians to consume more cashews would help entrepreneurs grow their businesses and reduce reliance on exports. Prof. Daron Acemoglu stresses the need for improved access to international markets and infrastructural advancements to support the cashew industry.

With aspirations to expand her operations, Akotia aims to refine her logistics and processes, seizing opportunities in both local and international markets. She believes that with the right branding and marketing, Ghana's cashew industry could undergo significant transformation, bridging the gap between local production and global demand while fostering a thriving consumer base within the country.