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  • Trade Minister Vows Action to Keep Cashew Processors Competitive

    Sep 18th, 2025

    Trade and Industry Minister Elizabeth Ofosu-Adjare has announced emergency support measures for Ghana’s cashew processing sector following threats from Usibras Ghana Limited, the country’s largest processor, to relocate operations to neighboring Côte d’Ivoire due to escalating operational challenges. The intervention comes as Usibras, with a plant capacity of 35,000 metric tonnes per year, managed to secure only 7,000 MT of raw cashew nuts in 2025, highlighting critical supply chain disruptions threatening Ghana’s value-addition strategy in the lucrative cashew sector. During emergency consultations with industry stakeholders, Ofosu-Adjare committed government to collaborate with the Tree Crop Development Agency to “strengthen and regulate the cashew production line to benefit processors and farmers,” emphasizing administration support for maintaining Ghana’s processing competitiveness against regional rivals. Usibras Ghana Limited, which has operated a 24-hour production cycle for the past decade, represents a cornerstone investment in Ghana’s agricultural transformation agenda. Originally founded in 1979, the Usibras group operates as one of Brazil’s leading cashew businesses with fully operating factories across multiple continents. The company’s potential departure poses significant risks to Ghana’s $12 billion export diversification strategy targeting six tree crops by 2030, including cashew alongside coconut, oil palm, rubber, mango, and shea. Ghana has the potential to earn at least US$12 billion annually from these key tree crops by 2030, making processor retention critical for sectoral growth. Management pointed to rising electricity costs, unfavorable export tariffs including a 15% duty on products exported to the United States, and insufficient raw material access as primary relocation drivers. These challenges contrast sharply with Côte d’Ivoire’s aggressive expansion plans creating an additional 12,000 direct jobs by end-2025 through operationalizing three agro-industrial zones. Cashew exports generated approximately $350 million in non-traditional export earnings for Ghana in 2024, according to trade ministry data, positioning the sector as a significant foreign exchange contributor. However, Ghana’s cashew export earnings in 2020 fetched $340.7 million with an estimated untapped potential exceeding $660 million, indicating substantial growth opportunities remain unrealized. The Association of Cashew Processors, Ghana announced plans to process 85,000 metric tons annually by 2026, representing ambitious expansion that requires sustained raw material supply and favorable operational conditions. The target could position Ghana as a major West African value-addition hub if processing retention succeeds. Usibras General Manager and Cashew Processors Association President Antonio Camamelo expressed cautious optimism about the minister’s intervention capacity following the discussions. The company’s potential relocation would represent a significant loss of technical expertise and employment in Ghana’s agricultural processing sector. Côte d’Ivoire positions cashews as its second most important export commodity after cocoa, serving as a crucial income source for smallholders and processors in the country’s northern regions. The neighboring nation’s systematic incentive programs create competitive pressures that Ghana must address through coordinated policy responses. Government officials indicated plans for comprehensive regulatory reviews addressing raw material supply chains, utility cost structures, and export facilitation mechanisms. The Tree Crop Development Agency will reportedly lead coordination efforts ensuring adequate cashew supply for domestic processing operations. Industry observers note that successful processor retention requires addressing structural challenges including farmer-processor linkages, financing mechanisms, and infrastructure development supporting efficient operations. The sector’s growth potential remains significant given global cashew demand trends and West Africa’s production advantages. The cashew processing crisis reflects broader challenges facing Ghana’s agricultural transformation initiatives, where value-addition goals require sustained policy support, infrastructure investment, and competitive operating environments to attract and retain private sector participation. Minister Ofosu-Adjare’s commitment to creating a “conducive environment” for sector investors will be tested through implementation of concrete measures addressing the operational challenges that threaten Ghana’s position in the regional cashew processing landscape.


    Source: https://www.newsghana.com.gh/
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