I.
Introduction to African Cashews
II.
Challenges & Opportunities
III.
Cashewnomics
IV.
Who we are, what we do and how we do it
I. Introduction Introduction (1): Cashews & its by by--products Conventional Markets
Niche Markets for by-products
2
I. Int Introduction roduction (2): The African Cashew Value Chain
1
2
Local Roasting 5
Drying and Storage
Picking
Production
3
Internat‘l marketing 6
African Processing 4
Processing Abroad 7
Roasting abroad 8
3
II. Challenges (1): Cashew Production Cashew Production
Farmers & their families
2.5 million cashew farmers
90% rural poor
$US 140 to 600 p.a.
Ca. 50% of farmers income
Smallholders (0.5 to 4 ha)
Low productivity (1.5-4 kg/tree)
Brazil = 17 kg; Vietnam = 11 kg
Lack of Good Agricultural Practices
II. Challenges (2): Cashew Processing Cracking & shelling
Labor-intensive work
Labor & safety standards
Minimizing broken kernels (profitability)
Peeling & grading
Quality is key (marketability)
Grading system: 5 sizes (WW 450, 320, 240, 210, 180)
Broken kernels: butts, splits, LWP & SWP
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II. Opportunities (1) - Added Value
II. Opportunities (2): Capture of Added Value World Raw Cashew Nut Production in MT 2007-08 750,000
95% of RCN is exported, primarily to India for added value processing African transport cost advantage of 15-25% to US/EU markets relative to Asian processors By processing the 650,000MT of RCN exported in 2007 Africa would gain:
1,000 new processing businesses & 250,000 new jobs
$150m in increased foreign earnings annually 7
III. Cashewnomics (1) – Global Demand & Supply Demand
71% growth
Supply
138 % growth
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III. Cashewnomics (2) – Trade Balance Production, processing, and exports of cashew nuts thousand of tons, 2006
RCN Processing Processed exports
Similarly, India has also forbidden the exports of RCN and has a long tradition in processing Viet Nam has become an important processor through a policy change banning the export of RCN. Processing in Africa could generate US$150 million added value.
India
Viet Nam
Brazil
Africa
Source: Cotonou, ACA Meeting Benin, 2006, Cashew sector across Africa
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IV. Who we are (1): The African Cashew initiative Four year project in five countries Overall Budget of $US 50m BMGF ($US 25m), BMZ ($US 3m) Private partners ($US 22m) GTZ responsible for management
Development project supported by the private sector
Mission (4 years):
Vision (10 years):
- 150,000 farmers
-500,000 farmers or
(900,000 beneficiaries)
(3,000,000 beneficiaries)
- $US 15m add. income
-$US 80m add. income
($US 100 p.c.)
($US 160 p.c.)
- 5,500 new jobs
- ca. 20,000 new jobs
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IV. What we do (2): Our 5 project components • Africa as a viable source of quality cashew • Increased market share for African cashew brands • export revenues increase by 15% • ACA represents 70% of industry actors
• 150,000 farmers increase productivity by 50%
1-3
4-5
• 45,000 farmers achieve international quality standards
• 95% of the stored cashew fulfill quality requirements • 30% farmers increase use of inputs to improve tree productivity
• Processors increase revenues by $US 40m • 5,500 jobs created in cashew processing 11
IV. How we do it (3): Our partnerships Interventions along the value chain = A Global Strategic Alliance Production
Consolidation / Transport
Processing
Roasting/ Retail/ packaging Marketing
Private players
Public nonprofit
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IV. How we do it (3a): ACi’s Project Structure
Steering Committee African Cashew initiative (ACi) Implementing and Contributing Partners
Regional Program Office (RPO) M&E Unit
Advisory Unit
Benin
Burkina Faso
Ghana
Côte d‘Ivoire
Mozambique
National Steering Committee ACi
National Steering Committee ACi
National Steering Committee ACi
National Steering Committee ACi
National Steering Committee ACi
Representatives of National Governments, Producers and Processing Associations, Research Organizations, GTZ, ACA, TechnoServe, FMS, Private Project Partners, etc. 13
Eat more African cashews!
Please visit: www.africancashewalliance.org Thank you! 14