<p>Ivory Coast has suspended exporters' purchases and exports of raw cashew nuts to allow local processors to supply their factories, according to an agriculture ministry memo dated May 7 and seen by Reuters.</p> <p>Ivory Coast, the world's largest cocoa producer, has also become a leading grower of cashew nuts in recent years, but only a fraction of its nuts are processed locally as firms face steep competition from deeper-pocketed Asian exporters.</p> <p>The ministry did not say how long the suspension would be in place, but a ministry official, speaking on condition of anonymity, said it would stand until further notice.</p> <p>"These restrictive measures, which are part of the national policy for the development and promotion of agro-industry, aim to ensure the supply of local processing units," the memo said.</p> <p>In February, local processors appealed to the government for extra support, warning of impending bankruptcy. Just 22% of output was processed locally in 2023, according to the ministry.</p> <p>Speaking on condition of anonymity, the head of a local processing company said the sector had been asking the government to introduce this kind of suspension for three years.</p> <p>"It is only now that the decision comes after the bankruptcy of at least nine processing companies," the source said.</p> <p>Another member of the cashew processors association said: "it's a bit late, but it's a beneficial decision for the sector and especially for us ... It was impossible to compete against the Asian multinationals."</p> <p>Ivorian cashew nut output is expected to rise to 1.25 million metric tons this year, about 5% higher than in 2023, Agriculture Minister Kobenan Kouassi Adjoumani told reporters in February.</p>