<p>WITH less than 10 per cent of cashew produced in the country being processed, stakeholders within the cashew sector have sought government’s intervention in setting up a N50 billion-development fund for the commodity. According to the stakeholders, the fund would aid processing and marketing efforts of cashew growers and producers thereby assisting the country in realizing unlocked potential in the sector.</p> <p>Precisely, the stakeholders noted that with effective value-addition of the commodity, Nigeria can earn at least $2 billion within the next five years compared to N17.7 billion or $110 million presently generated through the export of the raw commodity. Speaking at a strategy workshop to aid the commodity’s development through a comprehensive value-chain approach, in Lagos, yesterday, Executive Director/Chief Executive Officer, Nigerian Export Promotion Council (NEPC), Olusegun Awolowo, explained that capacity utilization of the commodity remains very low while raw exports continue to negatively affect the country’s growth potential.</p> <p>“Nigeria is the sixth largest producer of raw cashew nut in the world, producing about 120,000 metric tonnes yearly. Cashew is produced in almost all the states in Nigeria as the crop survives all ecological zones. Out of Nigeria’s annual production figure, only about 50 per cent are exported as raw cashew nut (RCN) while about 20 per cent are processed into kernel, leaving about 30 per cent wasted as a result of insufficient processing capacity.</p> <p>“Regrettably, all RCN exports go to India, Vietnam and recently China where thet are further processed for markets in the EU, US and the Middle East. Not adding value locally results in loss of foreign exchange and exportation of jobs. An increase of 20 per cent from Nigeria’s current production figure would create more than 344,000 new jobs and $75.8 million additional income”, he added.</p> <p>He noted that revenue generated from exports of the commodity in 2013 was N17.7 billion or $110 million compared with India’s over $2.5 billion and Vietnam’s export of $3 billion from processed kernel. According to him, Nigeria needs a well-articulated strategy to grow the cashew sector and harness the opportunities therein.</p> <p>On his part, President, National Cashew Association of Nigeria (NCAN), Tola Faseru emphasized the need for increased government intervention in the sector stating that to improve capacity utilization and processing in the sector, a N50 billion cashew development fund is key in achieving the objective.</p> <p>“Presently, there is a price differential of $250 between Nigerian and Benin Republic per tonne of the commodity. Better pricing will aid the industry’s growth and this can best be achieved through quality promotion and enhanced value-addition processes. “Informal trade in the sector remains high and there are no official data for stakeholders to work with. The sector needs at least N50 billion as development fund for the commodity to boost processing and marketing efforts”, he added. Chief of Party, USAID's Nigeria Expanded Trade and Transport (NEXTT) Programme, Alf Monaghan hinged growth of the sector on effective marketing strategy and value addition. With competition changing the reality in the market place, he stressed the need for increased value-addition of the commodity.</p>