Ghana Wants to Earn More from Cashews, But It’s Not Easy, Reports BBC
Cashew nuts are a big deal for Ghana. They grow under cashew fruits and are one of the country’s top exports. But, as the BBC explains, Ghana isn’t making as much money from cashews as it could.
On the streets of Accra, Ghana’s capital, a small bag of roasted cashews costs about 75 cents. That might not sound like much, but it’s a huge markup compared to what farmers earn.
A farmer like Nashiru Seydou, who grows cashews in northern Ghana, gets only about $50 for a 100kg sack of raw, unshelled nuts.
The BBC highlights that while farmers struggle, businesses that roast and package cashews make a lot more money. Bright Simons, an economic expert in Accra, says that while farmers sell cashews for $500 a tonne, roasted nuts can sell for up to $40,000 a tonne.
Ghana grows about 180,000 tonnes of cashews each year, but more than 80% are exported raw. This means Ghana misses out on the higher profits from selling roasted and packaged cashews. Mildred Akotia, who runs a small cashew processing business, is trying to change this. She says high interest rates on loans make it hard for local businesses to grow.
In 2016, the Ghanaian government tried to ban raw cashew exports to encourage local processing. But, as the BBC reports, this plan failed because there weren’t enough local processors to buy the nuts, and many cashews ended up rotting.
Experts like Bright Simons and Nobel Prize-winning economist Prof Daron Acemoglu say Ghana needs to focus on building a strong local market and improving access to international markets. They also suggest better roads and railways to reduce transportation costs.
Simons adds that Ghanaian businesses need to work on branding and marketing to create more demand for cashews. He believes the real challenge is creating a culture where more Ghanaians eat cashews, not just the middle class.
Mildred Akotia dreams of growing her business and giving Ghanaian processed foods a better reputation. She says there’s a big demand for her roasted cashews, both locally and internationally, but she needs more support to meet that demand.
The BBC notes that Ghana’s cashew industry faces many challenges, but with the right policies and investments, it could become a bigger player in the global market. For now, though, it’s a tough nut to crack.
Credit : BBC
https://www.bbc.com/news/articles/cg5y1r189m0o