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  • Benin: cashew campaigns 2013/14 and 2014/15

    Feb 17th, 2015

    <p></p><p>Cultivated mainly in the central and northern regions of Benin, cashew constitutes the second largest source of foreign revenues after cotton.&nbsp;</p><p><b>2013/2014 campaign</b></p><p>Like most of the Western African cashew producing countries, Benin experienced an earlier-than-usual rainy season and poor rainfall in some producing regions, affecting negatively the raw cashew output and quality. Production is thought to not have exceeded 100,000 tons. <br></p><p>In order to assist the domestic processing industries to develop and expand even in a year of poor harvest, the Beninese Ministry of Trade and Industry in collaboration with the National Council of Benin Cashew Exporters granted exclusive authorization for domestic processors to purchase cashews during a one-month period prior to the official commencement of the marketing season. Processors could thus purchase the best quality nuts at relatively low prices. This policy measure did not reach its purpose for two reasons: unreliable processors took advantage from buying quantities exceeding the capacity of their plants for later export, and the unfair foreign buyers took advantage of this period of derogation to purchase also, causing disorder and an early opening of the campaign. <br></p> <p>Some other setbacks of the campaign included losses in cashew sales due to the non standardized and badly maintained weighing equipment, the lack of cooperation among cashew sector stakeholders, fluctuations of prices and the inadequate funding allocated to the sector. A specialized monitoring task force committee comprising producers, processors, exporters, buyers, and government ministries has been established to review the policy drawbacks and ensure that similar problems are not replicated in future cashew seasons. <br></p> <p><b>2014/15 campaign</b></p><p>The raw cashew output in 2014/15 is expected to reach 120,000 tons, benefitting of a favourable rain pattern and weather conditions. The relatively good maintenance of cashew plantations, as well as the replacement of some old trees, the enlarged implementation of good agricultural practices, pest management and proper harvest and post-harvest practices should contribute to obtaining a good quality crop. <br></p> <p>Despite the strong import demand for raw cashew in Asian markets, the trend towards their self-sufficiency in the medium term is guiding national policies in West African producing countries towards a sustained increase in domestic processing. <br></p> <p>In order to reach its goal of processing at least 25% of production domestically by 2020, the Beninese government intends to maintain the policy of prioritizing supply to domestic processors, with an improved and more effective approach. A Crisis Committee to reorient the sector for this purpose has been set up until 6 September 2015, comprising representatives of the National Council of Cashew Exporters of Benin (CoNEC), the National Federation of Benin Cashew Producers (FENAPAB), the National Council of Cashew Processors (CNTC), the National Federation of Buyers of Agricultural and Tropical Products (FENAPAT), and the National Union of Customs Declarants and Service Providers for Tropical and Agricultural Products in Benin (UNADES-TP).<br></p> <p>According to a statement of the President of the Crisis Committee of the National Council of Exporters of Benin on 31 January 2015, with renewed cooperation of all cashew sector stakeholders, government's support and the assistance of technical and financial partners, the 2014/2015 cashew marketing campaign will take place in good conditions.<br></p> <p>There will be no guarantee to pay, and no levy to be collected before any export of cashew nuts. Other initiatives comprise the financing of improved warehouse maintenance, the reduction of cashew boarding time, the maintenance of weighbridges and the increase of market and information transparency. The Beninese producers' association FENAPAB (Federation Nationale des Producteurs d'Anacarde du Benin) prioritized training and supervising their members. Following the unsuccessful experiment of the previous campaign, all cashew sector stakeholders should remain closely involved in monitoring and modifying policies, when needed to remedy or adapt to unexpected challenges.<br></p> <p>At present, Benin is in the process of experimenting with a system of bulk sales, in which farmers' associations and cooperatives negotiate their sales collectively with buyers, thus assuring that processors or foreign buyers cannot circumvent the system by making deals with individual farmers. The monitoring committee will oversee the process, cancelling deals which do not comply with the rules.<br></p> <p>The Beninese Ministry of Industry, Trade and Small and Medium Businesses announced the launching of the 2014/15 cashew marketing campaign, by setting the price at 75 XOF/kg (0.13 US$/kg), against 70 XOF/kg (0.12 US$/kg) for the previous season and 200 XOF/kg (0.30 US$/kg) in 2012/13.<br></p><p></p>


    Source: www.intracen.org/itc/blogs/market-insider/Benin-cashew-campaigns-2013-14-and-2014-15/
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