The Transformation of the Ghanaian Cashew Processing Industry
Presented by: Rowell Kutie Weyori December 2009
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Order of Presentation • • • • •
General Overview of Processing Industry ACi Support Financing Other Initiatives Plan for 2010
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General Overview Ghana is relatively small cashew producer but offers good conditions for cashew processing
Cashew Industry •Cashew Farmers : 35,000
Doing Business •Easy start up, free zone facility, tax holidays.
•Hectares under cultivation : 72,000 •Favorable labour policy •Yearly Production : 27,000 tons •Average Farm size : 0.8 - 2.5 ha
•Better Infrastructure, water, electricity, roads, port, etc.
•Average Yield : 2-3 kg/tree
•Good management people
•Productivity/ha : 250 kg/ha
•Workers are Hard working though expectation levels are high.
•Farm Gate price : $350/ton •Value Raw nuts : $11m
•Finance for Working Capital is not easy even at high interest rates
•Value processed Nuts : $19m •Local Processing : 2% •Yearly exports : 55 - 70000 tons
•Raw nut quality is good to support profitable processing
Cashew Processing at a glance ‌. Processor
Potential
Bottle Neck
Mim Cashews Goaso Municipality
1500 tons/year 530 acres plantation Cashew apple brandy
Workers training Expansion Quality Control
Kona Agro Processing Wenchi
1000 tons/year
Financing Management Complete TA
West African Market Link Techman
Project in pipeline (5000tons/year)
N/A
Cashfoods Ltd. Drobo
750 tons/year
Financing Management Complete TA
Winker Investments Lda. Afeinha (Volta region)
150 tons/year Local market oriented
Expansion Financing Complete TA
Muskaan Ghana Limited
A new investor 1000 tons capacity plant in Nsawkaw
New kick off Financing Complete TA
Bole , Sampa, Kabile, Nsawkaw (4 small plants)
100 tons/year each Local Market oriented
Expansion Financing Complete TA
Facility Location
Plantation
Processing Plant
Apple Plant 4
ACi is Providing Technical assistance for three existing plant, Expansion for 2 existing plant and one new in pipeline • Technical assistance to MIM Cashew & Agri products Ltd. and Winker Investments Limited: Systems to control production loss and traceability tools are in progress. Technology up-grading and training on quality. • Financing for Kona Agro Processing, installation of machinery for 2010 • Discussions on MOU for CRIG processing plant at Bole: Complete Technical Assistance will be given by 2010, February. • Expansion plans for Mim, Winker, CRIG - Bole and Kona Agro processing. • One New client is receiving base line assistance to kick off a plant in 2010. (Muskaan Ghana Limited, Nsawkaw) • Business Plans • Layout designs • Environmental and social Impact study • One potential client is in the pipeline.
Financing is a critical issue in revitalizing old closed processing plants as well as for new start ups. Banks and financial institutions are not prepared for financing cashew sector • Introduced cashew processing to the banks as banks have hardly any experience of it: some banks show a positive response, a step forward to help cashew processors. • Various introductory meetings with many banks, ADB, Ecobank, Amal Bank: Root Capital has assisted in visits to some processors. • Ecobank and Root Capital is working on some proposals. Other banks are still reluctant to finance cashew processing. • New processors are also motivated and investing a good part of investments from their pockets.
Other Initiatives Creating a Direct Linkage between farmer groups and Processors and introducing tools to measure for premium payments • Work with FMS and GTZ to introduce farmer associations, groups, cooperatives to processors. • Training program for these farmer groups in evaluation of their product quality, post harvest handlings. • Set up tools for processors as well as for farmer associations on premium base. (Mutually agreed by farmers as well as processors) • Creating one brand for processors to export
Plan for 2010, Next steps.. • Continuous Technical assistance to MIM, Winker in their expansion phase • Trainings for future managers, supervisors and workers, Academic and hands on approach on cashew processing and controls • Installation and Commissioning on equipment for 2010 processors, maintenance schedule for equipment • Assist Kick off processing for 2010 processors, install all control systems in place • Quality control at each stage of process, Hygiene and workers health • Assessment of certification need and preparation for certification • Farmer linkage with the processors, introducing tools to measure premiums. • New client search and set up. • Holding company base line as services provider as AIA in Mozambique, address brand needs
Thank You
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