Share
Africa cashew nut farmers not reaping benefits, says UN body
According to the United Nations Conference on Trade and Development, cashews thrive in the tropical climates of 20 western and eastern African nations, where about 90 per cent of the raw cashew nuts traded in the global market are grown. However, the continent’s farmers and exporters get only a fraction of the final retail price. Geoffrey Kirenga, CEO of the Southern Agricultural Growth Corridor of Tanzania, SAGCOT joins CNBC Africa for more.
Wed, 21 Apr 2021 14:50:03 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Despite Africa's significant role in the global cashew nut market, farmers and exporters are only receiving a fraction of the final retail price.
- There is immense untapped potential for African countries to further establish themselves in the global cashew nut market through strategic positioning and increased production and productivity.
- The private sector plays a crucial role in the cashew nut industry, particularly in areas such as collecting, storing, grading, and exporting or processing cashew nuts, as well as providing technologies for increased production.
Africa has long been a key player in the global cashew nut market, with about 90% of the raw cashews traded in global markets grown in 20 western and eastern African nations. However, despite its significant role in cashew nut production, the continent's farmers and exporters are only receiving a fraction of the final retail price. This disparity was discussed in a recent interview on CNBC Africa where Geoffrey Kirenga, CEO of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), shed light on the challenges faced by African cashew nut farmers. Kirenga highlighted the immense potential for African countries to further establish themselves in the global cashew nut market but emphasized the need for strategic positioning and increased production and productivity. He stressed that many African countries are currently operating at less than 50% of their potential yield compared to leading producers like India and Vietnam. The conversation also touched upon the crucial role of local processing in adding value to the cashew nut value chain. Kirenga pointed out that while there has been a notable increase in production in Africa, driven by expanded crop land, more attention from governments, and higher incomes for farmers, there is still room for growth in maximizing yields per tree and per hectare. The private sector was highlighted as a key player in the cashew nut industry, with Kirenga underscoring the farmer's role as a significant part of the private sector in Africa. He emphasized the importance of private sector involvement in areas such as collecting, storing, grading, and exporting or processing cashew nuts, as well as providing necessary technologies for increased production. Additionally, Kirenga mentioned the formation of farmer cooperatives as a strategy to organize and empower farmers, though he also acknowledged the challenges that come with increased government involvement in these entities. The interview delved into the issue of measuring investments in small-scale farming, with Kirenga advocating for the use of technology to track and manage investments effectively. He cited initiatives in Tanzania where cashew and cashew trees are being registered to provide a basis for decisions on boosting production and addressing challenges such as crop protection and disease management. The conversation underscored the critical need for African countries to focus on local processing of cashew nuts to add value and potentially position African nuts in the international market as premium products. As Africa continues to make strides in cashew nut production, the call for increased local processing and strategic development to unlock the full potential of the continent's cashew nut industry grows louder.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.