The global market has lowered the quality of cashews from Ghana, causing a decrease in prices both locally and globally. CEO of the Tree Crop Development Authority (TCDA), William Agyapong Quaittoo, revealed that this has resulted in Ghana slipping to the third position in West Africa for cashew quality.
Quaittoo mentioned that this quality downgrade led to a drop in the country’s cashew price per tonne from US$1,080 to US$880. High-quality nuts are expected to have a firm, crunchy texture, but most cashews in the local market are too soft due to poor storage conditions, losing flavor and nutritional value.
To address this, the government, through TCDA, has implemented a short-term strategy by setting a price of GH¢7 per kilo for cashew purchases nationwide in 2024, down from GH¢8.5 the previous year. This move aims to promote quality production and support farmers despite the existing challenges.
Quaittoo emphasized that the price reduction is part of a plan to establish a market for farmers and producers. He stated that, according to calculations, a kilo should be sold at GH¢6.76 this year, but the government decided to round it up to GH¢7.
The TCDA CEO also highlighted the influence of the Ghanaian currency’s value in the price adjustment. However, he suggested that there could be a potential upward adjustment in the first quarter of the year if cashew quality improves.
To enhance quality, the TCDA is finalizing training processes for farmers and stakeholders while regulating traders in the cashew industry. Ghana, a major cashew exporter in West Africa, expects to export about 350,000 metric tonnes of Raw Cashew Nut (RCN) in 2024. Additionally, the World Bank has granted a US$100 million facility to the TCDA for improving production and value chains under the Tree Crop Diversification Project, a six-year funding initiative in partnership with the government.
source:thebftonline.com
