Creating Sustainable Income through the Cashew Nuts Value Chain (Evidence from Ghana)

Abstract

The study assessed the actors along the Cashew value chain and their influence in making the income derived from cashew sustainable. Primary data for the study were collected from 210 actors using a structured questionnaire. The gross margin and the Herfindahl-Hirschman Index (HHI) were used to determine the revenue margin and market competitiveness (concentration) among the various actors along the cashew value chain. The results revealed that most of the actors were male and had between 6-10 years of experience in cashew production. Also, the actors’ resort to loans in financing their operations was an interest rate of 24%. Producers had the lowest net margin on revenue of 16.95%, and they indicated that fluctuation in pricing and bushfires were challenges faced in production. Purchasing clerks pointed out that inadequate storage facilities and the high cost of transportation were their challenges. Moreover, processors indicated that lack of government support, high interest on loans, and low demand for processed cashew nuts were their challenges. According to cashew nuts exporters, their significant challenges are high cost of transport and high cost of storage facilities. Furthermore, the Herfindahl-Hirschman index showed that the cashew industry in the study area was highly concentrated. The study recommended that government efforts should be focused on developing a cashew Development Board to enhance marketing and price regulation.