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Africa: UNCTAD deplores the poor processing of cashew

22/04/2021
Source : ORISHAS FINANCE
Categories: Sectors

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Only a fraction of cashew nut production is processed in Africa, while most of it is produced on the continent. A new report by the United Nations Conference on Trade and Development (UNCTAD) reveals the opportunities missed by Africa as a result of weak transformation

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The report, entitled “Commodities at a glance: a special issue on cashew nuts,” zooms in on countries that grow cashew nuts but do not process them on a meaningful scale. These retain only a small portion of the value created when the nut is moved from the farm to the store.
According to Miho Shirotori, who heads UNCTAD's work on trade negotiations and diplomacy, “African farmers, exporters and workers are missing out on a multitude of opportunities.”
Cashew nuts grow in tropical climates in 20 countries in West and East Africa, which produce about 90% of the raw cashew nuts sold on the world market. After Côte d'Ivoire, the main producers are Tanzania, Nigeria, Benin, Guinea-Bissau, Mozambique and Ghana.
But less than 15% of the continent's nuts are peeled on African soil. The rest is exported mainly to Asia, where 85% of the world's cashew nuts are shelled, adding value to the product. Between 2014 and 2018, two Asian countries alone — India and Vietnam — accounted for around 98% of global imports of raw cashew nuts. More value is added in Europe and North America, where 60% of nuts sold are roasted, salted, packaged and consumed as aperitifs or incorporated into a drink, nutritional bar, or other product.
“Since production generally takes place on small farms in rural areas, there is a direct link between value added in the cashew sector and poverty reduction,” write the authors of the report, stressing that cashew nuts are a source of income for around 3 million small-scale farmers in Africa. The report highlights the potential of cashew nuts to contribute to the United Nations Sustainable Development Goals, in particular the one aimed at reducing poverty

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