Ghana’s Cashew Industry Struggles for Growth Amid High Export Demand

Ghana is seeking to boost its cashew processing industry to capitalize on high global demand, but challenges like high interest rates and limited local consumption are hampering progress. Local entrepreneurs, such as Mildred Akotia, are striving to match supply with demand while pushing for better support and infrastructure from the government.

Ghana's position as the world's third-largest exporter of raw cashew nuts is remarkable, yet the country struggles to capture the higher profits associated with processed cashews. A visit to an Accra street vendor highlights the drastic price difference between raw and roasted nuts, with consumers paying a hefty markup. Despite the difficulties faced by local farmers, including unreliable supply chains and volatile prices, Ghanaian cashew nut exports generate around $300 million annually. Over 80% of these exports remain unshelled, depriving farmers of greater profits available through processing.

Entrepreneur Mildred Akotia is working to improve this scenario. As the founder and CEO of Akwaaba Fine Foods, she emphasizes the challenges of accessing credit in Ghana, where typical interest rates on loans can soar to 30%. The limited processing capability in the country leads to a situation where high-quality cashews are exported to factories abroad, processed, and then sold back in Ghana, often at similar prices to domestically roasted nuts.

Past government attempts to foster local processing through export bans on raw cashews failed, leading to a surplus of unsold nuts. Current discussions on increased tariffs and bans on direct purchasing from farmers could impact the already struggling market but need to be approached wisely. Industry commentaries suggest that bolstering the local market for cashews should begin alongside efforts to improve infrastructure and logistics.

Furthermore, experts believe it is vital for local businesses to elevate the branding and marketing of cashews to enhance local demand. Akotia aspires to create a strong logistics network that directly connects farmers to her processing facility, responding to the high international demand. As she notes, "There’s a ready market both locally and internationally; my dream is to give a facelift to Ghanaian processed foods."

Without concerted efforts from both the government and the private sector to navigate these challenges, Ghana's cashew industry may continue to miss out on the financial benefits derived from fully leveraging its agricultural potential.