Cashew Sector Research Articles

Unlocking the potential of Tanzania's cashew processing industry: A comparative analysis with Côte d’Ivoire and Mozambique

Cashew processing is a vital contributor to economic growth in Tanzania, renowned for its cashew nut production. However, despite the country’s historical prominence in cashew production, only 5% of raw cashews undergo local processing, resulting in substantial economic losses. This paper explores the challenges and opportunities within Tanzania’s cashew processing industry, focusing on limited local processing capacity, inefficient tools, raw material availability, market access, and government support. Comparative insights from Côte d’Ivoire and Mozambique further enrich our understanding of the cashew sector. It recommends increasing local processing capacity, enhancing technical expertise through training, ensuring a reliable supply of high-quality raw materials, improving market access via information systems, and strengthening government support with tailored policy frameworks. Notably, the paper emphasizes regional collaboration among African cashew-producing nations as a crucial strategy for collective growth and knowledge exchange. By drawing upon their experiences, this study aims to provide guidance for policymakers, industry stakeholders, and investors to revitalize and sustain Tanzania’s cashew processing sector.

Operational Risk Assessment for the Pollination Service with Apis mellifera Bees in Cashew Crops in Vichada, Colombia

The cashew tree relies heavily on the presence of pollinators during the peak receptivity of its flower to facilitate the transfer of pollen from the stamen to the stigma and ensure successful fruit production. Apis mellifera bees play a crucial role as intermediaries in the pollination process of the fruit, simultaneously extracting nectar and pollen from the flowers. The pollination service (PS) is susceptible to various risk factors that, if realized, could impact both the beekeeping industry and cashew production. This article aims to assess the operational risks associated with pollination service for Anacardium occidentale production in Vichada, Colombia, as a strategic measure to safeguard the business’s value. Drawing on expert opinions and relevant literature, nineteen risks were identified, encompassing threats such as fires, thefts, attacks by wild animals, unexpected rains, etc. Following the application of Failure Mode and Effects Analysis (FMEA), four risks were prioritized based on their severity and occurrence. Subsequently, Value at Risk (VaR) was employed for risk evaluation. The anticipated loss for the pollination service, resulting from these prioritized risks: 1, 9, 12 and 13, was quantified at $226674 ± $19096 per year for an 8000-hectare margin with a confidence level of 95%. The economic loss for 16000 hectares was $453348 ± $38192. This substantial value is of great significance to the beekeeping sector, translating to a loss of $27.3 per hectare per year and directly impacting the estimated $437824 loss in the cashew sector. Such losses have far-reaching consequences, affecting the livelihoods of peasant beekeepers in the region and potentially discouraging the maintenance of bee colonies and forests.

Cashew processing in Ghana – A case for infant industry support?

West Africa produces almost half of the world's cashew nuts. With the domestic cashew processing industry still in its infancy, however, most of it is exported as raw material and processed in India and Vietnam. In Ghana, this is provoking discussions about market interventions to support domestic processing. Since different price policies have diverging implications for farmers and processors, the choice of the policy instrument leads to conflicts of interest between the two groups. In this study, we analyse the short- and long-term economic impacts of enhancing cashew processing through (i.) a temporary export tax on raw cashew nuts, (ii.) a temporary subsidy to cashew processors, and (iii.)a temporary export tax on raw cashew nuts, with government revenues passed on to cashew growers. For this purpose, we develop a partial equilibrium model for the Ghanaian cashew market including the processing from raw cashew nuts to kernels. We find that in the short run, all price policies lead to a substantial increase in processing at the expense of net welfare. We argue, however, that the sector may experience productivity gains through learning by doing and thus, after price policies are phased out, stick to its increased level of output such that short-term welfare losses could be recouped. Therefore, temporarily introduced price policies could help the infant cashew processing industry to grow up, promote the development of the domestic cashew sector, and be welfare-enhancing in the long run. A subsidy to processors is the most appropriate option to achieve this.

Assessing smallholders’ heterogeneity towards sustainable agrifood value chain in developing countries

PurposeAgrifood value chains in developing countries are transforming into higher value markets which require sustainable practices, with smallholders playing a critical role. However, smallholders are a heterogeneous group which may have discrepancies in outcomes to meet sustainability standards. This paper aims to empirically investigate smallholders' heterogeneity towards sustainable value chain practice in developing countries.Design/methodology/approachEight key enabling factors of sustainable value chain transformation were used to explore smallholders' typology, then profiled, based on their socio-economic status and current practices. A quantitative method was applied in Indonesia's cashew sector with 159 respondents from the primary producer area on Madura Island. A combination of descriptive analysis, cluster analysis, cross-tab analysis and one-way ANOVA analysis was used in this study.FindingsFour types of groups were identified, each with distinct characteristics and arranged in priority order as follows: accelerator, progressor, inattentive and conservative groups. Interventions can be implemented on per clusters basis or based on potential similarities among clusters, depending on priority. It is noted that the pursuit of sustainable value chain practices by smallholders is not necessarily associated with high socio-economic status, as those with low socio-economic status may have a stronger inclination towards them.Practical implicationsThe paper enhances awareness of practitioners and policymakers regarding smallholders' heterogeneity in sustainable value chain practice. It enables more effective and focused interventions to support smallholders who require assistance in sustainable production and value-adding activities. Different smallholders' characteristics call for different assistance/intervention. Practitioners can recognise smallholders' characteristics that are more compatible with higher value markets and sustainability requirements to better integrate their practices. Policymakers must carefully develop short-term and long-term interventions based on the activities prioritised by particular traits to “hit the right button” for smallholders' practice development.Originality/valueThis study investigates the typology of smallholders towards sustainable value chain practices by using eight enabling factors and profiling them based on their socio-economic condition and current practices. Additionally, this study shifts the focus of typology exploration away from the traditional lens of farm sustainability to a larger perspective which encompasses sustainable value chain activities.

Cashew Production and Breeding in 5 West African Countries

Cashew (Anacardium occidentale L.) Is an evergreen perennial tree crop that produce hard greyish nut enclosing a white nutritious kernel. The kernel is one of the major edible nuts or snacks with increasing global demand. The world's largest and most active cashew production region is in West Africa; where Cote d’ivoire, Nigeria, Benin, Guinea-bissau and Ghana top the list of countries where it thrives best. Since 2014, cashew has become the second-main crop after cocoa in terms of export value, in these countries. It is one of the essential agricultural commodities that have significantly boosted the continent of Africa's GDP, foreign exchange profits, and overall worth due to the rising demand for raw cashew nuts. Cote d'ivoire has profited from a few research and development programs in nut quality control. Efforts are on to enhance the peel-ability of Nigerian cashews and to produce improved planting material with the help of private sector investment. Cashew cultivars development of Guinea-bissau has not made significant progress, due to few resources available for doing research. In Ghana, there are efforts to increase the genetic diversity of cashews, and in Benin, numerous farmers have reported inadequate output from their cashew fields. Narrow genetic diversity has been reported in west African cashew gene pools. Low productivity, poor nut quality, infestation of pests and diseases, poor funding, and other factors continue to limit cashew production in West Africa. Improvement in nut yield, nut quality, and broadening of cashew genetic base is important to the sustainability of the region’s cashew sector. This paper provides an overview of current status of cashew production and breeding in the top five cashew producing countries of West African; the challenges, and opportunities for future improvement.

Policies and Intervention Approaches Challenges in Promoting Agricultural Innovation: The Case of The Cashew Sector in Benin

Purpose: Innovations are necessary for the development of agricultural sector. However, there are questions about their appropriation and sustainability. This article analyzes policies and intervention approaches challenges in promoting local innovation in the cashew sector in Benin.
 Methodology: This study combines a literature review on policy and intervention approaches and qualitative information from nine cashew project managers to collect data.
 Finding: The results reveal the following three main intervention approaches: (i) Capacity-building approaches, which include training, experience sharing, experimentation and demonstration, (ii) approaches facilitating access to finance and organizational support, and (iii) Business relationship development approaches that focus on relationship building and training. The choice of approaches is generally based on the priorities given to the challenges related to the development of the sector
 Unique Contributions to Theory, Policy and Practice: However, investment and consideration of weaknesses in the implementation of intervention approaches would contribute to the development of innovation and the sustainability of innovation support services in the agricultural sector.

Enabling sustainable agrifood value chain transformation in developing countries

As agri-food value chains in developing countries transform to serve higher value markets, they are coming increasing under pressure to embrace sustainable practices. Many key players, particularly smallholders, find it difficult to comply with sustainable practice requirements. They face various barriers in the chain's operation (in terms of governance and value addition), while their primary focus is on increasing incomes to alleviate poverty. Therefore, this study empirically identifies and analyses the factors that enable sustainable value chain transformation in developing countries. A total of three key dimensions (sustainability, governance, and value addition) were used to explore the factors that enable sustainable value chain transformation. Furthermore, the existing practice as well as future intentions towards sustainable value chain practices are evaluated. A quantitative method was employed within Indonesia's cashew sector, and structured interviews were conducted with 159 smallholders from the key production area on Madura Island. The analysis was performed using a combination of descriptive and principal component analyses (PCA). A total of eight factors that enable sustainable transformation were identified. Farm practices and information communication were identified as the most significant enabling factors, as well as stakeholder support, certification motivation, and market expansion. Conversely, the most challenging factors were pre-harvesting value, value capturing, and value adding activities. The results reveal the current practices, barriers, and enablers, and provide policy and practice insights for transforming sustainable value chains in developing countries.

Cashew contract farming in Ghana: implications on farm performance and household welfare

PurposeEfforts to reduce farmers' market risks and improve buyers' access to farm commodities have encouraged contract farming (CF) in Ghana's cashew sector in recent years. Consequently, the existence of CF shows that farmers who use it may be benefiting from it, as it is their economic responsibility to decide how to sell agricultural products. However, the magnitudes of these benefits or otherwise have been inadequately explored. This paper aims to empirically estimate the impact of CF on farm performance and welfare of smallholder cashew farmers.Design/methodology/approachThe study used probit-two-stage least square (probit-2sls) as a primary estimator to account for self-selection bias and endogeneity that could arise from both observed and unobserved heterogeneities among farming households to estimate the causal effects of CF on farm performance and household welfare.FindingsThe results indicated that participation in CF contribute significantly to the gains in farm performance (price margins, yields and net farm revenue) and welfare (consumption expenditure per capita), and that the non-participants of CF would have benefited substantially if they had participated. An analysis of the farm size disaggregated into small, medium and large with regards to the outcome variables produces mixed results.Research limitations/implicationsIt can be concluded that participating in CF enhances farm performance and household welfare.Originality/valueWhile many other studies do not account for changes in farm performance and welfare due to differences in farm size or other observed factors, this study fills a crucial void.

Impact of Cashew Nut Trade Policy on Household and Government Revenues in Senegal: A Dynamic Computable General Equilibrium Model Analysis

The objective of this paper is to assess the medium and long term sectoral impacts of a trade policy on the cashew nut sector in Senegal. Thus we used the dynamic computable general equilibrium model which was inspired by the dynamic PEP model (PEP-1-t) developed by Decaluwé et al (2010) to simulate the impact of a 10% tax on raw cashew nut exports on the sectors of activity and on household and government income. The accounting framework of the model is the 2017 Senegal Social Accounting Matrix (SAM), from which we disaggregated the agricultural branch to isolate the cashew sector. The results of the simulation showed that a policy of taxing raw cashew nut exports from Senegal at a rate of 10% would have a negative impact in the medium and long term on the value added of the cashew nut sector, as it would decrease over the period 2017 to 2022. This decline would be explained by a drop in export demand for the product, which is linked to the sector's loss of competitiveness. On the other hand, this policy would benefit the other sectors, particularly the agricultural sector for which the value added would increase during the period. This policy would also negatively affect the income and savings of urban and rural households. However, the government would benefit from the measure since its income would increase over the period.

A Case Study of Cashew Industry in Karnataka

Purpose: In the Indian food processing sector, the cashew nut processing industry plays a critical role. Often, the cashew is considered as ‘both a poor person’s crop and a rich person’s meal.’ From the cultivators, traders, wholesalers, processors to supermarkets and retailers, the cashew processing sector is a vital source of income. Cashew processing is a labour-intensive sector that has always employed a significant number of rural women. The purpose of this study is to gain an in-depth understanding of the Cashew Processing Sector, its position in the world market, issues it is confronting and future prospects. While doing so, the present study attempts to examine the profile of the Indian Cashew Industry, including cashew processing and international trade. The quality, flavour and appearance of the Indian cashew kernels are highly respected in other nations and are consumed in more than 60 countries worldwide. Unfortunately, it was found that cashew production in India has been fluctuating in recent years. Despite its tremendous expansion, India’s cashew sector has been affected by low-quality cashew cultivated in some regions, which is mostly due to improper harvesting techniques, inadequate drying of the nuts and insufficient storage and warehouse facilities for dried cashew nuts. Design: For the purpose of analysis, this study used secondary data sources - Google Scholar articles, cashew industry and other related websites. Moreover, the literature is used to analyse the position of the industry within SWOC and PESTLE framework analysis. Findings: Based on the analysis, the cashew business needs certain incentives to attain a better rate of production and export growth in the future. Value: This paper emphases on the growth of the cashew industry in India in relation to its current status and future opportunities. Based on findings and their interpretation, the Indian Cashew Industry must prepare itself for the ever-increasing demand of the domestic market and contribute more effectively to the country’s economic growth. Paper Type: Case Study-based Research Analysis

АСПЕКТЫ УПРАВЛЕНИЯ ИННОВАЦИОННЫМ И ИНВЕСТИЦИОННЫМ РАЗВИТИЕМ СЫРЬЕВОГО СЕКТОРА: КОМПАРАТИВНЫЙ АНАЛИЗ, НАПРАВЛЕНИЯ РАЗВИТИЯ

The study reflects the management aspects of innovation and investment development of the commodity sector on the example of the African Republic. The key problems of African countries are problems caused by dependence on world commodity prices. When examining the dynamics of the development of the commodity sector (production of cashew nuts) in the Republic of Côte d’Ivoire, the need to increase the country's resilience to the volatilization of world prices and global demand has been identified. The authors noted that to achieve this goal it is necessary to increase the competitiveness of cashew products on the world market and to steadily increase processing. The novelty of the study is to consider changing the vector of development of the cashew sector in order to intensify processing in the country and minimize dependence on world prices for raw cashews. The relevance of the research results on the creation of value added in the agro-industrial complex is based on its importance and the need to make innovative and investment decisions for conducting in the Republic of Côte d’Ivoire, as well as in Russia and other foreign countries. The authors analyzed the dynamics of the development of the cashew sector in the Republic of Côte d’Ivoire and noted its stability since the 1990s and during 2000–20019, and conducted a comparative analysis to increase the share of the country's cashew products in world production. Innovation and investment trends in the development of the cashew sector in the African Republic are considered with the help of World Bank investments, public and private investments. For the development of processing enterprises, the government needs to effectively use innovative solutions and investment resources. Proposed measures to ensure the steady growth of cashew nuts processing. The work includes examples from the World Bank, the government, the National Cotton and Cashew Council (CCA), foreign companies in the Republic of Côte d'Ivoire on innovative and investment development, industrialization of the cashew sector and the creation of new jobs in this sector to increase employment of the population.

Agrifood value chain assessment in developing countries: a case of Indonesia’s cashew sector

A value chain approach is increasingly used in the agrifood sector to help respond to the globalised food system. However, the agrifood value chain in many developing countries faces additional challenges to address any changes regarding the prevalence of smallholder players. Meanwhile, value chain studies are still limited in many developing countries, such as in Indonesia. Therefore, this paper aims to assess agrifood value chain in a developing country context. A qualitative methodology was applied in Indonesia’s cashew sector, specifically in the Sumenep Regency of Madura Island. A value chain mapping tool was used by focusing on governance (vertical-horizontal coordination and information flow) and value addition (safety, quality, and value orientation). The results showed that value chain mapping is a powerful tool to draw the complex interaction within the dynamics between different value chain actors. The exploration in Indonesia’s cashew sector showed that there is a gap in practices between actors in terms of governance and value addition. Therefore, it is recommended that smallholders’ governance participation and value adding activities be improved in order to minimize the gap of practises. The potential follow-up research is to address the maturity level of value chain practice to obtain a rigorous improvement route.

Prospects and challenges of cash crop production in Nigeria: The case of cashew (Anacardium occidentale, Linn.)

The paper examined the prospects and challenges of cashew production in Nigeria. Qualitative and quantitative data which were used to identify these challenges and prospects were retrieved from research findings, literatures, journals and reports. Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis was used to highlight the strengths and weaknesses inherent in the internal environment of the cashew sector as well as the opportunities and threats from the external environment of the cashew sector. The paper takes a step further by employing Threats Opportunities Weaknesses and Strengths (TOWS) analysis matrix to come up with models that can be employed to improve the cashew sector in Nigeria. Some of the prospects identified include the potential employment creation, increasing cultivation area and evidenced value addition. While some of the challenges identified include poor pricing of cashew nuts, lack of proper policy intervention and underutilization of cashew apple. Government is advised to set up a cashew marketing board and provide proper policy intervention to improve prices, production levels and provide employment opportunities.

A Comparative Evaluation of Trends in Area, Production and Productivity of Cashew in Western and Eastern Regions of India

Cashew is an economically important tropical crop. On average, 52 percent of the raw cashew nut processed in India was imported. In recent years, the decreased supply of raw cashew nuts and increased demand for processing forced the cashew sector to concentrate on increased domestic production. To understand the area, production and productivity scenario of cashew nut; India was divided into eastern and western regions based on the traditional area of cashew cultivation along the coasts. The growth in the area under cashew and production of cashew nuts were examined from 2000-01 to 2017-18. Compound Annual Growth rate of area for eastern and western regions was 2.98 and 1.06 percent respectively. The growth rate of production was calculated as 2.08, and 3.55 percent and productivity growth were calculated to be 2.98 and 1.06 percent for eastern and western regions, respectively. The overall average productivity of different varieties in the western and eastern regions was 16.08 and 10.83 kilograms per tree.

Technical Efficiency of Farms, and Fight Against Poverty: Case of the Cashew Sector in Côte d’Ivoire

Cashew was introduced in the north of Côte d’Ivoire to support the economy in the region. This study was conducted to evaluate the technical efficiency of cashew farms in Côte d’Ivoire. The technical efficiency of producers was measured using the Data Envelopment Analysis approach, and the determinants of this efficiency were identified using a TOBIT model. Data were collected in 4 regions: GBEKE, HAMBOL, PORO and WORODOUGOU. In the four regions studied, the average technical efficiency is 49.2% in Variable Scale Efficiency (VRS) and 38.3% in Constant Return to Scale (CRS). Based on our results, the producers in the study area were not efficient. The producers who follow the good practices, have a technical coefficient estimated at 74.2%, and superior to those who follow the good practices, of which, the coefficient is estimated at 70.2%, in Variable Scale Efficiency (VRS). The technical efficiency of farms was positively influenced by the age of farms and agricultural advisory services, and negatively influenced by the pruning practice. Income from cashew farming in the study area (21,816 to 37,987 CFAF/person/year according to region) is below extreme poverty line (CFA F 122,385/year/person), leading to deteriorating cashew/food terms of trade. Cashew farming is often used as a means of land appropriation and of getting credit. Its rapid expansion has dramatically reduced land for subsistence agriculture, raising an accute food security issue. Cashew farming has helped improve poverty indicators through macroeconomic policy. However, this impetus from the agricultural sector economy remains insufficient to boost the modernization of the agricultural sector. The country still has all assets (research institutes, schools of agronomy, skills etc.) to reverse this situation. Hence the he study recommends that producers capitalize on exogenous variables which can improve agricultural efficiency. It also recommends coaching organizations to use technical efficiency measurement and identification of effectiveness determinants to better guide their coaching. As for the Government, it should redouble efforts to implement the recommended solutions in order to avoid producer impoverishment, a barrier to harmonious development in this region of Côte d’Ivoire.

PERFORMANCE OF AREA, PRODUCTION AND PRODUCTIVITY OF CASHEW IN INDIA AND KERALA IN THE GLOBALISED SCENARIO

Cashew industry is a prominent agro based, export oriented and traditional industry which provides employment and income for the economic development of Kerala. There are lakhs of workers engaged in the cashew processing industry; about ninety four percent are women workers. The performance of cashew in the international scenario reveals the position with which the cashew holds among the agricultural commodities. India is the first country which commercialized cashew as a horticultural crop. India’s raw nut production is not sufficient to sustain the processing capacity established in the country. The low yielding cashew plants of senile and non-descript origin need to be replaced with cashew grafts of high yielding varieties along with adoption of improved production technologies. Higher productivity as well as production is the urgent need for all the major producers of cashew across the globe. The scrutiny of cashew productivity data in India over the last few years indicated stagnation and there was a wide gap existing between the actual and potential yields. It is essential that India should keep pace and meet the requirement of raw cashew nuts for cashew processing industries and achieve self sufficiency. The present paper examines the performance of cashew sector in terms of area, production and productivity in India and Kerala.

Environmental Change and the Cashew Sector: A Case Study in Manding-speaking Côte d'Ivoire

Odienné, the capital of the northwestern Denguélé district of Côte d’Ivoire, has recently undergone an important agricultural transformation. It has entered the global market of cashew production, growing raw cashews for export overseas. This pilot study combines qualitative and quantitative research methods to study agricultural changes in land-use practices, using ethnographic research and spatial analysis of land-use/land-cover (LULC) data to clarify this transformation. The LULC data confirms that agriculture has increased in the region since 1975. Today, local residents report that cashews have become the dominant cash crop in their communities. Preliminary ethnographic research provides a finer understanding of this process by exploring who is contributing to the increase in cashew production and how they are doing so. Such agricultural change, according to local communities, has increased agricultural revenue while creating new challenges for regional ecosystems.

Value chains and comparative advantage assessment of the Ghanaian cashew sector

The study investigated the value chains and comparative advantage of cashew production and marketing in the Brong Ahafo Region of Ghana. A SWOT analysis of the Ghanaian cashew industry was also carried out and the comparative advantage of the industry estimated, using the domestic resource cost ratio concept. The results of the value chain analysis revealed that farmers earn more on the marketing channel with no retailer/wholesaler. Similarly, the end-users (exporters) also get produce at lower cost. Producer's share in end-users Ghana cedis for a channel involving retailer/wholesaler (Channel III) was 62.3% against 64.3% for channels without retailer/wholesaler (Channels I and II). The result of domestic resource cost ratio (DRCR) was less than unity in both cashew production and trade, indicating a greater comparative advantage for the cashew industry.

Impact Du Conseil Agricole Sur Les Performances Des Producteurs D’anacarde De Cote d’Ivoire

The cashew sector has been booming in Côte d'Ivoire for the last three years. In the face of international competition, it appeared important to improve the performance of producers in order to maintain the comparative advantages of Côte d'Ivoire. In this perspective, the agricultural advisory project was set up to train cashew farmers in good practices. This study aims to evaluate the impact of this project on their performance in terms of returns. The data used for the analysis come from the survey conducted by the National Agency for Rural Development (ANADER). The average effect was estimated trough the propensity score matching method by using the kernel method. The results reveal that the advice and training support of cashew producers has led to a significant increase in yield of 22.4% on average.

Governance and upgrading in South–South value chains: evidence from the cashew industries in India and Ivory Coast

AbstractIndia, the world's largest processor of cashew kernels, depends heavily on imports of raw cashew nuts (RCNs), primarily sourced from Ivory Coast. While the Ivorian processing industry is still in its infancy, in the last decade domestic cashew factories have rapidly increased their capacity. This study is an exploration of how the cashew value chain is organized and what this implies for upgrading prospects in the Ivorian cashew sector. Its findings suggest that the cashew value chain is characterized by a bipolar governance structure comprising a trader‐driven segment between Ivorian farms and Indian processors, and a buyer‐driven segment that links processors to Northern end markets. The results are consistent with studies that describe South–South value chains as being less tightly controlled, with a decreased significance of quality related standards and lower entry barriers than those chains feeding into Northern end markets. Inter‐firm linkages in the Indo–Ivorian RCN channel provide few opportunities for product and functional upgrading of RCN suppliers. Considerable institutional support is needed to overcome the barriers to Ivorian firms' direct participation in the North–South value chain for processed kernels.