Fruits, Nuts and Oil News
----------------------------------------------------------------------

Sod Cut For US$10 Million Sheabutter Plant - 15/11/09
Ghana Vice President, John Dramani Mahama, broke the ground for the construction of a US$10 million sheanut processing plant in Buipe. The project is part of the Savanna Accelerated Development Authority [SADA] initiative is expected to be in operational in 6-months and already has a marketing agreement with the Produce Buying Company Limited [PBC] in Ghana and agreements with Brazil.

Under SADA, other projects to be executed included the Northern Ghana Groundnuts Project [NGGP] for the processing of groundnuts oil for export to Europe. A group from India was also conducting feasibility studies towards setting up a jute factory for the mass production of sacks for export to neighbouring countries, while a 25,000ha sugar cane factory is to be set up in Makango in the East Gonja District to process ethanol for export to mainly Sweden. [Peacefm 15/11/09]

GGC Ready for 2009/2010 Trade Season - Estimates to Buy 25,000 Tons of Groundnuts - 11/11/09
As the 2009/10 groundnut trade season is being ushered in, officials at the revived Gambia Groundnut Cooperation [GGC] have stressed their resolve to ensuring a successful trade season. The Corporation indicated that they are well prepared and ready with the hope to buy an estimated 25,000 tons of groundnuts. Surveys have been undertaken, depots prepared and once the price is determined marketing will start. According to the Cooperation there will be no credit buying with farmer’s getting their cash as soon as they deliver the nut at the secco. In addition, they hope to eliminate the middlemen, noting that the GGC deals directly with the farmers so as to ensure that farmers enjoy cash on delivery and the commissions. [DO 11/11/09]

Banana Deal Emerging - 05/11/09
An end is in sight to the world's longest-running trade dispute, involving bananas, and a deal could be in place by the end of the year according to senior European and Latin American trade negotiators. Settling the banana dispute would be a fillip for the World Trade Organisation, whose long-running Doha round to free up global commerce, like other trade negotiations, has at times been held hostage by the decades-old row.

" We are not yet there, but I perceive a willingness on all sides to come to an agreement," Costa Rica's WTO ambassador, Ronald Saborio Soto, who coordinates Latin American countries at the WTO in negotiations on tropical products.

Cesar Montano Huerta, the top diplomat at the WTO mission of Ecuador, the world's biggest banana exporter, said officials were negotiating intensively and even hoped to clinch a deal in the next couple of weeks. "We feel the elements are now there, we feel we could close this quite quickly," said David O'Sullivan, director-general for trade in the European commission.

The deal, which could be reached before the WTO's ministerial conference starting 30/11/09 would see the European Union cutting tariffs on bananas for suppliers in Latin America and elsewhere. In return the Latin Americans would drop outstanding challenges to the EU at the WTO, and Brussels would provide compensation to African, Caribbean and Pacific [ACP] countries who would lose their preferential access to the European market. The detailed terms are likely to resemble an agreement almost reached in July last year on the fringes of a meeting of trade ministers seeking a breakthrough on the Doha talks.

That banana agreement was linked to a broader Doha deal in agriculture, and when the July meeting collapsed, the European Union walked away. Under that deal, the EU would have cut the tariff on bananas to US$114 a tonnes by 2016 from US$176, with an initial cut to US$148. Negotiators say those tariff figures are likely to be in a new deal, but the timing of the reduction is still open and may not complete in 2016. The WTO has ruled that the current EU regime for bananas for Latin American countries, who market their fruit through U.S. distributors like Chiquita and Dole, is unfair compared with preferential arrangements for ACP states. Brussels has replaced these with new Economic Partnership Agreements [EPA’s] to comply with WTO rules, but the Latin Americans say their fruit still suffers discrimination, and Ecuador has threatened to retaliate against the EU under WTO rules.

One issue still to be decided is whether the Latin Americans will drop their outstanding challenges at the WTO once Brussels has notified the WTO of its tariff plans, or when they have been certified, become legally binding and irrevocable, a legal process that could take years. Another is the future treatment of bananas under a Doha deal, whenever that happens. If there is no Doha deal, the phasing of tariff cuts could be delayed, but would go ahead eventually.

But if there is a deal, Brussels would want assurances that bananas will be treated as normal agricultural goods and not as tropical products, which would be subject to faster and deeper tariff cuts than other farm products. That is to assure the ACP countries, who would lose their preferential treatment under a stand-alone banana deal, that they would not become even less competitive in a Doha pact. The Latin Americans already have some 80% of the EU market and less efficient ACP states, used to years of duty-free access to the EU market, fear they will be squeezed further. The EU will also have to persuade all its member states to support a deal which is resented by domestic producers, mainly in Spain's Canary Islands and the French Caribbean. [RT 02/11/09]

African Cashew Alliance Builds A Global Voice - October 09
Cashew in Africa abounds with profitable opportunities and the 4th annual African Cashew Alliance [ACA] annual conference,, organized with the West Africa Trade Hub [WATH] support, allowed businesses to start making deals. Interest in processed cashew nuts, cashew fruit and cashew nut shell liquid, an ingredient in a variety of chemical and industrial products, fueled the one-on-one meetings at the conference. The event drew over 220 people from around the world, representing every aspect of the cashew industry, to Abidjan, Cote d'Ivoire, Sept. 1-3. And it helped the ACA build momentum for a truly global cashew alliance involving everyone from cashew
farmers to processors, traders to retailers, banks to investors. Representatives from Sindicaju the Brazilian cashew organization and Vinacas the Vietnamese Cashew Association also attended.

In Africa, roughly 90% of the raw cashew nuts farmers harvest are exported for processing abroad. Processing companies in India and Vietnam buy up the raw cashews, allowing their companies to operate throughout the year, long after the cashew harvest in India has ended. Building processing capacity in Africa, which could create tens of thousands of jobs and produce millions of dollars in revenues for African economies.

The ACA conference allowed industry stakeholders to look at a variety of issues, from tree yields, which could be increased dramatically, to processing, which is growing, to marketing, which will ultimately drive the industry's growth. The ACA is barely 4-years old, but we're showing the world the great potential for African cashew. The African Cashew Initiative, a new project led by GTZ under the umbrella of the ACA, presented its first report of activities at the conference. In the 5-countries targeted by the US$50 million project – Benin, Burkina Faso, Cote d'Ivoire, Ghana and Mozambique – the ACi has set up country teams including representatives of private companies, non-governmental organizations and government.

" We've already helped processors develop business plans and implement a number of technical changes to improve their efficiency and productivity," said Peter Keller, director of the initiative at GTZ. "Farmers have been trained in the best practices of cultivation, too." At business-to-business meetings at the conference, companies and banks and investors met individually to strike cashew trade deals or look at investment and partnership opportunities. Access to finance remains a critical issue for companies within the sector, but with clearly profitable opportunities for lending, banks were aggressively engaging companies. As the technical assistance has helped companies develop better presentations - clearer business models and compelling cases for profitable activity - we are seeing banks step up with the financing necessary to help businesses expand," said Judson Welsh, the Trade Hub's financial services expert. "We'll see some concrete deals coming from these meetings and that's going to open the door for more agribusiness in the region."

"If we want the cashew industry to be competitive on international markets, everyone in the sector, from companies to government, needs to understand that the cost of transport is an important issue," Annequin said. "Private industry can find ways to reduce these costs significantly. With the entire industry working on this, there's no reason it can't be done." [WATH October 2009]

Burkina Faso Leather Industry Recession-Proof - 19/10/09
At the Tan Aliz factory in Burkina Faso's capital, Ouagadougou, workers sort through fresh goat and sheep skins. Tan Aliz is the largest factory of its kind in West Africa processing about 25,000 skins a day with a capacity to reach 30,000 skins per day. The factory makes over US$10.5 million a year with 70-80% of production sold to Italy. Tan Aliz also expects to expand its export base to Spain, India and China. Burkina Faso's promising leather industry could help reduce the country's dependency on cotton production which accounts for 60% of the country's export revenues. Global trade in cotton was predicted to shrink this year and countries have been
advised to find ways to cushion against these effects. [Tang TV 19/10/09]

Processing Plants Fear Shortage Of African Raw Cashews - 14/10/09
At a cashew industry conference in Abidjan [Ivory Coast], the buzz was about African plans to develop processing plants at home, rather than export raw nuts to processors in, for example, Vietnam. African cashew producers have decided that it is time to follow Vietnam’s example and strive to export processed products instead of raw materials. This move is bad news for Vietnam, because Africa is a principal supplier of raw cashews to Vietnamese processing plants. Though the number of cashew nut processing plants has been increasing in Vietnam, domestic nut production has been decreasing. This has forced Vietnamese cashew processors to rely on imported nuts. For many years, Vietnamese processors have had to import 40% of the raw nuts needed from Africa, or about 300,000 tonnes, worth US$180 million a year. The figure is expected to increase in coming years, because Vietnamese farmers have chopped down cashew plants to grow rubber, coffee and other more profitable crops.

Some 14 African nations grow and export cashew nuts. In East Africa about 25% of the production is processed locally, but in West Africa the processing rate is only 5-10%. These countries, members of the African Cashew Alliance and with advisory assistance from the Gates Foundation [US], are now making serious plans to boost local processing capability. The most practical way for the Vietnamese cashew industry to avoid being squeezed would be to make direct investments in Africa. There Vietnamese enterprises could do preliminary processing, then export semi-processed nuts to Vietnam, where Vietnamese processing plants could make finished products to be launched into the world market. In other words, the Vietnamese cashew industry would imitate many industries in advanced countries by ‘going up the value chain.’ They would make finished products and get higher added value instead of making semi-processed products as at present. However, Vietnamese businessmen hesitate to invest in African facilities. A problem lies in the fact that Vietnamese processors are
now only halfway up the ‘value chain’ themselves, exporting semi-processed nuts to Chinese, European and US processing companies that roast and market the nuts.

Oltrema, an Indian company, was at the African cashew conference, offering cashew nut processing equipment and taking many orders. The Indians have been aware of the changing viewpoint of the African cashew producers who provide them 80% of the raw nuts they use. Already several Indian cashew processing and export groups have established processing plants in Africa which can serve as the ‘springboard’ for a lot more. In this case, the big Vietnamese processing plants that have contracted to Indian companies are likely to be ‘orphaned.’ They will have to find their own way to survive. It is high time for Vietnamese enterprises to start investing in African plants, for while Vietnamese enterprises have vacillated, the Indians have cemented their firm positions in the market. [Vietnam Net 14/10/09]

Liberia: Sime Darby Plantation Eyes African Markets - 18/09/09
Malaysian Sime Darby Plantation Sdn Bhd is exploring opportunities in other African countries besides Liberia for its palm oil business expansion. Its parent company Sime Darby Bhd had, in May, signed an US$800million concession agreement with the Liberian government to restore and expand the country’s rubber plantation and help develop its palm oil industry. The concession agreement allows Sime Darby Plantation to develop 220,000ha of land, with the company allocating an initial investment of RM70million. [The Star 18/09/09]

World Cashew Association to Be Established - 17/09/09
The Vietnam Cashew Association [Vinacas], together with the Cashew Export Promotion Council of India [CEPC] and the Brazilian Association of Cashew Nut Manufacturers [Sindicaju], recently discussed a plan to establish a world cashew association. They met on the sidelines of the 4th annual conference of the African Cashew Alliance [ACA] in Abidjan, Cote d’Ivoire. According to the discussions, the world cashew association will be established within a year. Vinacas said that it will talk about the matter further at a meeting in late September to discuss the import of raw cashew from African countries. Vietnam cashew processors import about 100,000 tons of raw cashew nuts from Africa annually. [Saigon News 17/09/09]

Bakrie Sumatera Oil Palm to Expand to Africa - 17/09/09
Indonesian PT Bakrie Sumatera Plantations Tbk [UNSP] is planning to develop the oil palm and rubber plantations in African countries, considering the similar climate to Indonesia in the country.
According to UNSP land in Africa is promising for oil palm and rubber plantations development since there have not been many investors who notice the potential, despite the fact the climate in African countries is tropical as in Indonesia. "We know that Indonesia is considered attractive by CPO and rubber investors. If the field here is limited, [we] need to find a new field that has the same climate," the company announced who are looking at expanding into Liberia and Cote d’Ivoire. [VIVA 17/09/09]

Guinea Bissau Exports Over 132,000 Tonnes Of Cashew Nuts - 25/08/09
Guinea Bissau has so far this year exported 132,000 tonnes of cashew nuts, the best sales season of the country’s main export product. Hélder Barros, the director general of Trade and Competition, said that the amount already exported to India, the main purchasing market for the product, had already exceeded the target of 120,000 tonnes. In order to maximum exports the land borders were strictly controlled in order to prevent illegal exports of cashews. The country is expected to net around US$80 million from cashew exports. Barros noted, however, that the political and military events of March [assassination of the President of the Republic and the Head of the Armed Forces] and June [assassinations of two members of parliament accused of an attempted state coup] had had a negative effect on the cashew export season. [Macauhub 25/08/09]

Brazil To Boost Agriculture Exports From Ghana - 11/08/09
The Brazilian Ambassador to Ghana, Lvis Fernando Serra has said that his country is ready to partner government to boost and strengthen its agricultural sector in order to increase its export to Brazil which is currently low. He noted that the Ghanaian market is the largest market for Brazil and was hopeful that Ghana will increase her exports to his country to change the current tread, adding that Brazil has not bought any Shea butter from Ghana and that rice, as well as Shea butter projects will be built by the end of the year. [GBC 11/08/09]

Nigeria: Cashew Production - Investors Invited to Consider the Potential - 28/07/09
The Kwara State Government is inviting investors to consider the opportunities available in the cashew sub-sector.

· Investors interested in processing activities can decide on whether to grow their own cashew or buy from local growers. Olam Nigeria Limited recently showed its faith in the sub-sector by investing in a cashew processing factory at Ogbondoroko in the state.
· Investors will have a ready market in Nigeria with its population of close to 150 million.
· Nigeria enjoys preferential trade agreements with the ECOWAS [Economic Community of West African States] countries.
· Opportunities for export to America and the EU also exist.
· The soon to be completed cargo terminal at Ilorin International Airport will further simplify the transport of goods from Kwara State.
· The Kwara State Government is committed to create an enabling environment for investors and have introduced a number of incentives. These include assistance with obtaining land, the provision of all required infrastructure [roads, electricity, water] and various tax incentives.

Nigeria is the world's 4th largest producer of raw cashew but there is still plenty of room for increased production. [TIA 28/07/09]

Cashew Attracts Global Demand In Spite Of Downturn - 13/08/09
The African Cashew Alliance’s [ACA] 4th annual conference is to be held on 1-3/09/09 in Abidjan, Cote d’Ivoire. It will focus on improving value and increasing efficiency as well as to help development agencies and the industry to come up with the right set of policies that will favour catalytic growth in the cashew sector. This year’s conference will feature thematic panels on market trends and quality management, as well as sessions on cashew processing and visits to processing sites. Companies and financial institutions will leap-frog access to finance constraints through a targeted business-to-investors forum. And the $50 million 4-year African Cashew Initiative will also be a hot topic at the event. [VAN 13/08/09]

Ghana & Burkina Faso: Tomato Trade Liberalization - 03/07/09
A 2-day sub-regional meeting held in Navrongo, Ghana, deliberated the issues of tomato trade between Ghana and Burkina Faso. The programme was organised by the Ghana Trade and Livelihood Coalition [GTLC], a civil society organization seeking to strengthen tomato trade liberalisation. Figures compiled by the Customs Excise and Preventive Service [CEPS], within the 2008/2009 season, recorded that about 6,562.43 metric tonnes of tomato was brought from neighbouring countries into Ghana. [TC 03/07/09]

Benin To Become A Rice Exporter - 16/07/09
The UN’s Food and Agricultural Organisation [FAO - www.fao.org] has set aside US$500,000 help for Benin to achieve its ambitious goal of producing 300,000 tons of rice, double the curent production in 2011. According to FAO data, imports of rice in West Africa reached 6 million tons in 2001, and forecasts indicate that this figure will be 11 million tonnes in 2010. According to FAO experts, with the increased production, Benin could not only meet the needs of local consumption but also export the surplus to the subregional and regional markets. FAO estimates the net increase would amount to more than US$55 million. [AFROL 16/07/09]

West African Specialty Foods - The Next Big Thing? - 13/07/09
The US$60 billion specialty foods market has doubled its share of the overall food market, from 8 to 16%, in the past 5-years. This June’s Fancy Food Show drew more than 24,000 buyers to the biggest specialty foods trade show in North America, which featured an African presence assisted by the West Africa Trade Hub, the Ghana Export Promotion Council, Technoserve, Association Africa Agro Export and Agence Sénégalaise de Promotion des Exportations. Interest was driven by the unique pavilion modeled on West African architecture, custom-built in Ghana and positioned directly in front of one of the main entrances. It showcased 19 exhibitors from Benin, Burkina Faso, Cameroon, Cote d’Ivoire, Gabon, Ghana and Nigeria.

Africa has a natural advantage in this novelty-crazed market, few people are familiar with its flavors. Africa is one of the few markets still to be absorbed into the mainstream. Some thought that companies from sub-Saharan Africa couldn’t produce high-quality and competitive food products, but they are being proved wrong. Despite the momentum, West Africa still lags behind, commanding less than 1% of the specialty foods market. [WATH 13/07/09]

Ghana: Papaya - A Rising Commodity in the Export Business - 09/07/09
A strategic investment in the commercial cultivation of papaya [paw paw] could boost the country's export earnings and contribute substantially to the country's economic growth according to the Federation of Associations of Ghana Exporters [FAGE] if appreciable practices were applied. Ghana's geographical location offers a favourable climate for the production of the commodity, while Ghana's proximity to Europe was also a logistical advantage over major producing countries such as Brazil and Ecuador, who control 65% and 10% of the European market respectively.

These observations were noted at a 1-day forum, organised by FAGE and the Trade Investment Program for a Competitive Export Economy [TIPCEE] on the increasing potential of papaya in Ghana's export business. Notable developments have been the successful introduction of golden papaya which has led to increased yields from 45 metric tonne p/ha to 65-80 metric tonne p/ha. FAGE however noted that the need for further investment in the sector was driven by the existing market opportunities, both on the local and export, and high returns on investment resulting from high yielding varieties.

Available figures provided by FAGE indicate that in 2008 the 15 core member states of the European Union imported 35,750 metric tonnes of papaya with a CIF value of €53-million. Ghana's papaya amounted to 1,061 metric tonnes, representing a market share of only 3%. [TC 09/07/09]

China Near Senegal Deal To Grow Peanuts - 10/07/09
China is close to a deal with farmers in Senegal to use 100,000 ha for growing peanuts. President Wade noted that under the agreement, the Chinese would export 30% of the production and 70% will remain for local factories. During a visit to Senegal in February, Chinese President Hu Jintao signed deals worth US$90 million, including an agreement to buy 10,000 tonnes of Senegalese peanut oil. Farmer cooperatives, unions and associations will lease the land and the Chinese will provide fertilisers and other assistance. [RT 10/07/09]

Ivory Coast's SIFCA Seeks To Double Palm Oil Output - 06/07/09
Ivory Coast's SIFCA group will double its annual palm oil output to 500,000 tonnes over the next 3-years with technical and financial investment from Singapore's Wilmar International.It said that the increased output and the SIFCA group's purchase of its own ship to improve regional deliveries should help reduce the reliance on Asian imports while also easing a deepening shortfall in palm oil across West Africa.

With this project, palm oil production from Palmci [a part of the SIFCA group] will increase from 250,000 tonnes to 500,000. Wilmar will bring its techniques and experience in boosting production from plantations and reducing factory and refining costs to make the finished product more competitive for a growing market. SIFCA, a privately owned agro-industry company, has secured support from banks as well as Wilmar for a project that will see US$85.28 million spent on building four new factories to improve processing. A further 11 billion CFA francs will be spent every year providing agricultural inputs for farmers. Output from plantations is expected to jump from 12 tonnes p/ha to 20 tonnes p/ha while small-scale farmers should see their yields improve from 5 to 12 tonnes p/ha.

SIFCA said West Africa's deficit currently stands at 300,000 tonnes per year but it could jump to 500,000-600,000 tonnes if production is not boosted to meet growing needs in the region. Ivory Coast, the world's biggest cocoa grower, is Africa's top palm oil producer with output of 390,000 tonnes last year. Many cocoa farmers are turning to palm oil, which they say is more profitable and less labour intensive. SIFCA hopes that the new investments will help it tackle the twin challenges of a shortage in palm oil in the region and the tendency of Asian, rather than local, companies to fill the gap. [RT 06/07/09]

New Sheanut Processing Plant For Buipe, Ghana - 07/07/09
Ghana and Brazil have signed a US$7-million agreement for the establishment of a sheanut processing plant at Buipe in the Northern Region. The facility, which would start operations in August, would be the first of the 3-plants to be established under the Savannah Accelerated Development Authority. The agreement is between Ghana Cocoa Board [COCOBOB], Saka Worldwide Trading Limited, a Ghanaian company, and Sysgate Brazil Limited which includes the purchase and process of 40,000 tons of sheanut. Curotibah, a company in Brazil, will buy about 5,000 tons of the processed sheanut, while many other companies had expressed interest in the processed product. [GNA 07/07/09]

Guinea Bissau: Government Finds Buyers For Cashew Nuts - 14/05/09
The government of Guinea Bissau has found buyers for the country’s cashew nut crop, thus avoiding a sharp drop in prices paid to farmers. Two Guinean and one Senegalese businessman will buy the cashews for 200 cfa francs per kilo [0.30 euro] in the country’s interior and for 230 cfa francs [0.35 euro] in Bissau. The measure by the government, which is prevented from setting the price of cashew nuts, the country’s main export product, aims to minimise losses to farmers, who were selling the product at 100 cfa francs [0.15 euros] per kilo, or exchanging it for rice. Last year, each kilogram of cashew nuts in Guinea Bissau sold for 300 cfa francs [0.45 euro], with the country exporting 110,000 tonnes of the product. Guinea Bissau has no cashew processing industry and essentially exports to India. [Macauhub 14/05/09]

Optimism Reigns At Cashew Project Launch - 12/05/09
Barely a year old, Mim Cashew in western Ghana is an example of the potential the industry holds for Africa. The company employs about 300 people who work to produce up to 2,000 tons of raw cashew nuts annually. Representatives of the world’s largest buyers, technical experts and farmers visited the company’s 540 acre plantation of about 56,000 cashew trees as part of the launch of a US$45 million project to increase farmer productivity, improve links between smallholder farmers and the marketplace, increase African processing capacity and promote a sustainable global market for African cashews. The Bill & Melinda Gates Foundation is providing US$25 million and private industry and other stakeholders are providing US$20 million to transform the industry in Benin, Burkina Faso, Côte d’Ivoire, Ghana and Mozambique.

The project, led by the German development group GTZ under the umbrella of the African Cashew Alliance, was launched on 18/04/09 at a meeting of its key partners in Accra. They met for 3-days to put in place a steering committee and to discuss how to implement the project. The 4-year project intends to increase the incomes of 150,000 farmers in the 5-countries.

The project includes virtually every aspect of the cashew value chain, from development agencies like GTZ, TechnoServe, FairMatch Support and USAID’s West Africa Trade Hub, to the African Cashew Alliance, an industry body involving public and private sector stakeholders. International food companies including Kraft Foods, OLAM and Ahold are involved as are African cashew processing companies and farmers. It is hoped the industry would create 250,000 new jobs and over US$150 million in revenues. A local processing industry would also contribute to stabilizing farm gate prices for cashew farmers and stimulate them to improve the current quality and low yield in order to receive better prices. [WATH 12/05/09]

Nigerian Government Signs MoU On Rice Production With Popular Farms - 12/04/09
Popular Farms & Mills a subsidiary of the Stallion Group owned by the Vaswani Brothers has commenced work on N162billion rice project soon after it signed a MoU with the federal government. The 1-millon hectare commercial rice development project will not only help to make Nigeria self-sufficient in rice production but would also make the country a net exporter of rice. The project has the capacity to produce 1.5-million tonnes of rice per annum by 2013. [DT 12/04/09]

Gambian Officials Confident Of Bumper Groundnut Harvest This Year - 14/04/09
Gambian government officials believe that this year’s groundnut harvest will prove the once-devastated industry is about to bounce back for the first time in 10 years. Groundnuts are Gambia’s biggest cash crop, bringing in 43% of agricultural revenues and 13% of overall income. But the industry has been crippled since the early 1990s when the main company marketing the crop was forced to shut down by presidential decree due to corruption.[AA 14/04/09]

Ghana’s PBC Signs Sheanut Processing Plant Mou With Brazil’s Sysgate - 15/04/09
Ghana’s Produce Buying Company [PBC] has signed a MOU with Sysgate of Brazil towards the establishment of a sheanut processing plant. The establishment of the plant, which is a brainchild of vice president John Mahama, would allow for the export of sheabutter and help Ghana tap into a fast expanding global shea trade projected to gross US$500-million per annum within the next 5-years. The estimated market value of shea butter in Brazil alone is $40-million per annum. [PA 15/04/09]

Japan Donates To Gambia To Enable It Purchase Rice - 12/04/09
Japan has granted Gambia D120-million under its Food Aid Programme. The grant is aimed at helping Gambia to purchase rice. [DO 12/04/09]

Nigeria: Yam Exports Deal Planned With The European Union - 08/04/09
Nigeria may soon maximise its position as the world’s number one producer of cassava, yams and cocoyams by exporting the crops. Arrangements have been concluded to export yams to the European Union [EU] with expected foreign exchange earnings of US$200-million. Production volume currently stands at 32 tonnes per annum. This was made known by the executive director of the National Root Crop Research Institute [NRCRI], Dr Kenneth Nwosu, during the opening ceremony of 2009 annual research review and planning workshop of the institute. He said the export of yam tubers to the EU would be realised with the collaboration of NRCRI with the Nasarawa State government and a British company. [TD 08/04/09]

Ghana Seeks To Woo Investors Into Its Cashew Industry - 09/04/09
The Ghana Investment Promotion Centre is inviting investors to cultivate and process cashew nuts. A recent USAid report shows West Africa’s cashew industry has a new status as a major supplier of raw nuts, accounting for almost a third of the world’s output. The report also noted that the global trade in cashew nuts could do with increased tonnage from Africa. Ghana’s exported raw nuts reached 47,000 tonnes in 2006. This figure is considered very small when compared with world excess demand of 430,000 tonnes of raw nuts. Less than 50% of Ghana’s exports is derived from domestic sources, with cross border trading accounting for a large chunk of this. There are plans to process cashew nut locally to earn more money and create jobs. Processing locally would increase cashew revenue by 50%. [TI 09/04/09]

Guinea Bissau President Seeks Processing Of Cashew Nut - 29/03/09
Guinea Bissau has launched a campaign to promote the commercialisation of the cashew nut. The country is also in the process of setting up a National Cashew Nut Institute as well as a fund to encourage local processing. Guinea Bissau exported 110,000 tonnes of cashew nuts last year, an increase of about 4,000 tonnes, compared with 2007. The country is the leading raw cashew nut exporter in Africa and the fifth in the world. Last year, the government was wary of fixing the reference price of the kilogram of cashew nuts, but the kilogram was sold at 300 CFAF while the average export tariff increased from US$550 per tonne in 2007 to US$750 per tonne in 2008. [PANA 29/03/09]

Africa Pushed To Broaden Cashew Processing - 09/03/09
African cashew farmers are expecting to produce more than 600,000 tonnes of raw cashew nuts [RCN] this year but the sector is being urged to expand its processing capacity rather than ship the bulk of its produce in raw form. Christian Dahm of the Ghana based African Cashew Alliance [ACA] said: "The harvest is under way and West African producers are set to produce over 600,000 tonnes of cashew this year, roughly 33% of the world's supply. Cashews hold enormous potential for West Africa and as more processing capacity is developed, the region's farmers will see increased incomes and thousands of new jobs will be created."

ACA officials said the industry could contribute much more to the region's economy if more of its raw nuts were processed locally. As it is, less than 10% of the RCN produced in West Africa is processed before being exported. Africa as a whole exports about 650,000 tonnes of RCN a year. In Guinea-Bissau, where exports are this year likely to be 110,000 tonnes, revenues from RCN exports are expected to fall by 20% to 30%. Tanzania is anticipating a crop of more than 100,000 tonnes and, with local processors complaining about the high costs of operation, a large proportion of this is likely to be available for export in raw form to India or Vietnam. Ghana is expecting a favourable harvest and Mozambique is on track for 95,000 tonnes against 90,000 tonnes last season. [PL 09/03/09]

2008 Yam Exports Fetch N56bn - 02/03/09
The Nigerian Export Promotion Council [NEPC] has realised N56-billion from yam exports for 2008 compared with the N37-billion in 2007. This was achieved through the efforts of the NEPC in sensitising citizens on the export of non-oil products. Nigeria is the largest producer of yam in the world followed by Ivory Coast, Ghana and Benin. Global yam production is 51.4m tonnes per year, of which Nigeria accounted for 36.7m tonnes, Ghana 3.6m tonnes and Ivory Coast 4.8m tonnes. [AA 2/03/09]

Ghana - New Mango Nurseries Promote Market Access - March 2009
The Ghana Export Promotion Council [GEPC] has established four mango centres located at Ho and Nkonya-Kwamekrom in the Volta Region, Kpalo-Salaga in the Northern Region and Ada-Afiadenyingba in Greater Accra Region, involving a total of 120,000 grafted seedlings of export variety exotic mangoes.

African Cashew Alliance Helps Sector Win Grant - March 2009
The Bill & Melinda Gates Foundation’s US$25 million grant to the German development organization GTZ and inflated to $50 million with contributions from the industry, was the culmination of over a year’s work to help develop the cashew sector. Deutsche Gesellschaft für Technische Zusammenarbeit [GTZ] Gmbh will lead the cashew project with assistance from the African Cashew Alliance [ACA], FairMatch Support, and TechnoServe.

The African Cashew Alliance [ACA], founded in 2005 with support by the West Africa Trade Hub, has worked with key partners to develop the cashew sector: improving yields, increasing local processing capacity and enhancing marketing. The move could bring over US$150 million in new revenue, create tens of thousands of jobs and boost incomes of hundreds of thousands of poor cashew farmers.

The ACA provided the Gates Foundation and key partners with market intelligence, figures on cashew production and processing capacity and important links to industry stakeholders. Close collaboration with the grant’s partners ultimately led to a proposal to address key issues along the cashew value chain for regional and global markets.

The Gates Foundation’s grant will fund activities in five African countries: Benin, Burkina Faso, Cote d’Ivoire, Ghana and Mozambique. The activities aim to improve the quality of raw cashew nuts, increase farmer productivity, improve links between smallholder farmers and the marketplace, increase African processing capacity, and promote a sustainable global market for African cashews. For example 3-years ago Sotria-B a cashew processor in Burkina Faso had 130 workers and processed about 60 tons of cashew for export. This year, the company expects its 350 workers to produce almost 200 tons of cashew for export – outlined in a business plan it developed with help from TechnoServe during a technical expert's visit sponsored by the Trade Hub.

Financial support, in-kind contributions and other support for the cashew project come from supply chain managers and processors Global Trading Agency BV [GTA] and Olam International Ltd.; branded manufacturers Intersnack Group GmbH & Co. KG and Kraft Foods; retailer Costco Wholesale Corporation; equipment manufacturer Oltremare; and other contributors, the German investment and development company DEG - Deutsche Investitions-und Entwicklungsgesellschaft GmbH and the United States Agency for International Development. [This article originally appeared in the WATH Factor, a monthly newsletter published by the West Africa Trade Hub, a USAID-funded project promoting export development and trade facilitation. www.watradehub.com]

Ghana: Salt Export Strategy Ready - 18/02/09
Players in Ghana's salt industry met in Accra to discuss and finalise a strategy document aimed at enhancing the products export. A draft strategy, produced by the Ghana Export Promotion Council with the support of Commonwealth Secretariat, provides a framework for the development of the sector isolating the different categories of salt producers on the basis of their volume, scale of operation and growth potential. The report recommends actions to be taken at various levels and has been formally submitted to Government for implementation.

The document estimates that Ghana has about 500km coastal front with a total production potential of 2.2million metric tonnes per year. Over 60% of this is in the Songhor basin. The country currently produces about 250,000 metric tonnes per year, worth an estimated US$2,558-million. It is clear that Ghana will not be a world player in the salt sector in the short to medium term. But, the country has a long history of supplying neighbouring States and the strategy will be to build on this strength.

The focus on the salt sector is in line with Ghana's effort to diversify its export base by including non traditional exports such as salt, with a view to attain middle income status by the year 2015. [CNIS 18/02/09]

USAID Commits US$5.3m To Expand Cassava Production Across Africa - 04/02/09
A US$5.3million United States Agency for International Development [USAID] funded sub-Saharan project is seeking to raise cassava production by 30% in 7-African countries. The project, themed Unleashing the Power of Cassava in Response to the Food Price Crisis, aims to maximise the utilisation of cassava to address food price crisis in Nigeria, DRC, Ghana, Malawi, Mozambique, Sierra Leone and Tanzania. The Ibadan-based International Institute for Tropical Agriculture [IITA] and its national partners across the 7-countries will implement the project, which has a time frame of 2-years. [PU 04/02/09]

Gambian Cashew Food-For-Progress Initiative Launched - 02/02/09
The American embassy in Gambia, the US Department of Agriculture’s Foreign Agricultural Service and the Department of State for Forestry and the Environment, have launched a food for progress initiative. Designed to improve the income gained from the production and processing of cashew in The Gambia river basin, the programme is under the aegis of a US non-governmental organisation International Relief and Development [IRD].

Given the high potential for cashew in the sub-region, the programme will work with farmers’ organisations, processors and traders in the Casamance region of Senegal and northern Guinea-Bissau, as well as the South Bank of The Gambia. The goal of The Gambia River Basin Cashew Value Chain Enhancement Project is to enable 59,000 cashew farmers maximise returns from production and improve their livelihood in the targeted regions of The Gambia, Senegal, and Guinea-Bissau. This will be achieved by increasing the competitiveness of the sub-regional cashew value chain. [DO 02/02/09]

Disease Threatens Banana Harvests Across Africa - 29/01/09
Efforts by banana farmers across sub-Saharan Africa to increase production of the crop that currently feeds about 100m people on the continent are being threatened by diseases resulting in growers losing as much as half of their produce. Scientists warn that this can soon lead to more severe food shortages in some parts of Africa. [DI 29/01/09]

China Signs Senegal Peanut Oil Deal - 14/02/09
Visiting Chinese President Hu Jintao's delegation has signed a deal under which China will buy 10,000 tonnes of Senegalese groundnut oil, although Le Soleil gave no timeframe for the purchases. Groundnuts are one of the West African country's main crops. [RT 14/02/09]

Senegal Worried About Slow Take-Up Of Sesame Seed Production - February 2009
Senegal’s government is worried about the slow take up of sesame seed production by its farmers despite having invested millions of dollars in the sector. As profits decline for the country’s main cash crops peanuts and cotton and Asia’s demand for sesame seed grows, some producers are reconsidering the abandoned crop. Government agricultural advisor Khardy Ndiaye, said farmers have been reluctant to cultivate sesame seed but face pressure to find a viable cash crop with higher food prices and lower profits.

In recent years, international prices for cotton and national subsidies for peanuts have decreased. Fuel price increases have further eroded farmers’ profits but despite increased worldwide demand and potential profits for sesame seed, some farmers have yet to take to sesame. Sihounké Diatta of the government’s local agricultural agency, said: “It is still only considered as a back-up crop here. There is traditional preference for other cash crops and the price is not that good.” [All Africa]

Kano Farmers Step Up Sugarcane Production With New Hybrid - 25/02/09
Farmers in Kano State are stepping up the production of sugarcane as part of a drive to generate revenue from new sources. Sugarcane is one of the major cash crops grown in Kano State. While most areas of the state are producing the crop. Two species of sugarcane is being cultivated in Kano, the old one known as yar Hausa and the new one, which was imported into the country. Although the old one is still being grown by some farmers the bulk of sugar cane grown is the new specie due to is its lasting quality. Yields improved from just 3-months to 1-year. [DT 25/02/09]

Cameroon’s CDC Plans Huge Investment In Palm Rubber And Bananas - 12/01/09
Cameroon’s state-owned commodities company plans to increase palm oil output by 20% by 2012 as it prepares to be split up the corporation under an eventual privatisation plan. The Cameroon Development Corporation [CDC], the country’s top agro-industrial company and second biggest employer after the state, also plans to invest 20-billion CFA francs [US$40m] over 5-years to boast rubber and banana output. CDC’s plan also involves the installation of a new 7bn CFA francs oil mill with a processing capacity of 15 tonnes an hour.

CDC produces the majority of Cameroon's palm oil and operates 43,413 hectares of rubber, palm and banana plantations out of Cameroon's total of 98,000 hectares of land concessions. The investments, intended to consolidate CDC ahead of a future privatisation, would raise rubber production by 5% and banana production by 10%.

CDC produced 22,356 tonnes of rubber in 2008, mostly for export to Asia, and 98,443 tonnes of bananas, which are mainly exported to the European Union, which has a preferential banana import policy for former colonies like Cameroon. Already one of Africa's top banana exporters, the government hopes to increase annual exports to 400,000 tonnes from 250,000 tonnes. It is also the world's fifth biggest cocoa grower.

Palm oil, which is used in food and for manufacturing industry, is sold mainly within Cameroon or in neighbouring states in the Economic and Monetary Community of Central Africa [CEMAC]. Cameroon produces a tiny proportion, 0.5% of world palm oil production, which is dominated by Asian producers including Indonesia and Malaysia. Interest in palm oil, already the most common source of vegetable oil, has increased in recent years as its use in biofuels has risen.

However, questions over the environmental impact of palm oil plantations and the biofuel trade in general has taken the shine off its green credentials and prices have sunk as the global economic crisis has hit commodities markets. As part of its plan to rehabilitate 8,000 hectares of palm oil plantations, CDC has grown 266,000 improved variety seedlings which should more than double yield to 15-20 tonnes per hectare from 7 tonnes now. The company will start planting them in April, meaning they will be mature and start producing fruit by 2012. As the palm oil plantations are in the remote Boa plain, the company also plans to upgrade 738 km [460 miles] of roads to improve access. The plantations are near the Bakassi Peninsula which Nigeria handed back to Cameroon last year under a World Court ruling. [RT 12/01/09]

Cameroon: CDC Begins Planting Boa Plain Oil Palms Next April - 22/12/08
With some 266,000 oil palm seedlings already growing in a new oil palm seedling nursery at Bounjari, the Cameroon Development Corporation, CDC, is set to begin planting the very first oil palm trees in April, 2009. The planting marks a milestone in the on-going operation launched in January 2008, by CDC to develop 6000 hectares of land in the Boa Plain [Illoani] area with the planting of more oil palm trees within the next 5-years [in Dikoume, Mbongo and Bounjari]. CDC will also erect a new FCFA 7-billion oil mill in Boa with production expected to start by the close of 2009. Construction will start in April. [Post 22/12/08]

heanuts Producers Appeal For Regulation Of Industry - 20/12/08
Members of Sunbawiera Sheanuts Producers Association at Kperisi, a farming community in Wa Municipality have called on the management of Ghana Cocoa Board [COCOBOD] to speed up regulation of the industry. Alhaji Ayitey, Chairman of the association noted that the disorganised nature of the industry made it difficult for producers to benefit and called for measures to be instituted to arrest the situation.

The Ministry of Trade, Industry and President's Special Initiatives had planned to organise training programmes for the producers to acquire skills to enable them improve quality of their produce and the co-ordinator of sheanuts at COCOBOD was preparing a manual to regulate the industry in 2009 and urged producers to organise themselves into groups or associations to benefit from the regulated industry. [GNA 20/12/08]

Unilever Completes Deal To Dispose Of Ivorian Edible Oil Assets - 04/12/08
Unilever has completed the sale of its edible oil business in Ivory Coast together with its interests in local oil palm plantations, Palmci and PHCI. The businesses have been sold to SIFCA and to a 50:50 joint venture between two Singapore-based companies, Wilmar International and Olam International. At the same time it has acquired the soap business of Cosmivoire, an Ivorian producer with a market presence throughout Francophone West Africa. Cosmivoire is a subsidiary of SIFCA, the parent company of an Ivorian agro-industry group. [PL 04/12/08]

Senegal: Peanut Output May Rise 66% To 550,000 Tons - 08/12/08
Peanut production in Senegal is likely to increase 66% to 550,000 metric tons in the 2008-09 season after plantings increased, according to the US Department of Agriculture. Output fell 28% to 331,200 tons in the 2007-08 season, from the previous year, because of poor rainfall. [BL 08/12/08]

Gambian Groundnut Season To Begin On December 5 - 02/12/08
Gambia’s Agribusiness Services and Producers’ Association [ASPA] declared 05/12/08 as the official start date for this year’s groundnut-marketing season. ASPA said the session will last until 31/03/09 and added that in consultation with the government, it has fixed a groundnut producer price of 8,000 dalasis per tonne. ASPA said that this year’s producer price had been arrived at using the officially recognized producer price determination mechanism, which takes into account the world market price for groundnut products as well as parameters and ratios relevant to the domestic marketing system. [DO 02/12/08]

Ifad To Fund Cassava Processing And Marketing In Nigeria - 01/12/08
The International Fund for Agriculture Development [Ifad www.ifad.org] plans to invest US$50m to improve cassava processing in Nigeria and increase market accessibility of the product. Furthermore, plans are underway to diversify the huge focus on cassava and spotlight other crops that would better the lives and livelihood of small scale rural farmers. Ifad is a specialised financial agency of the United Nations, focusing exclusively on poor farmers and rural communities with the aim of reducing poverty in the rural areas. Perin Saint Ange, the regional portfolio adviser for Ifad in Nigeria, who made the disclosure at an interactive session in Abuja, was responding to criticisms directed at the agency for over-emphasising on cassava production to the neglect of market accessibility and other crops. [TD 01/12/08]

New Boss Appointed To Head Gambian Groundnut Body - 03/12/08
Alieu Mboge has been appointed as the director general of the Gambia Groundnut Cooperation [GGC] effective December 2008. [DO 03/12/08]

Nigeria: FG Imports $650 Million Frozen Fish - 29/11/08
President of the Fisheries Society of Nigeria [FISON], Foluke Areola, has said Nigeria imported 739,700 tonnes of frozen fish worth US$650.53 million in 2007. The figure was lower than the 800,000 tones imported in 2006. The bulk of the supply comes from Europe, Asia, South Pacific, South America and some African countries. Scandinavia also supplies about 160,000 tonnes of stockfish worth more than US$400 million annually. Official statistics indicate that Nigeria's demand for imported frozen fish, especially mackerel, herring and croaker, is growing. Nigeria was re-certified to export shrimps to the United States in 2007. [TD 29/11/08]

Gambia Groundnuts - 20/11/08
With the groundnut trade season almost upon us, the issue has ignited intense Parliamentary debate centered mainly on poor prices being paid to producers. At the time of writing, no producer price has been set. It is expected that Gambia will see a dramatic increase in groundnut harvest due to the good rains during the current rainy season. It is unfortunate that of the 500 tons of seed purchased by Government, almost one third of this total was rejected as being unsuitable for purpose. [WABA 20/11/08]

Africa's Top Cashew Exporter In Processing Bid - 10/11/08
Guinea-Bissau, Africa's top exporter of raw cashew nuts [RCN] which currently processes just 3% of its annual production, is set to boost processing capacity with 4-factories to be opened by early 2009. With annual production of 130,000 tonnes, the small west African country is the world's fifth largest producers of cashew, but there is only rudimentary processing by small-scale processors. Andre Nanque, president of the country's National Cashew Commission, said the area under cashew cultivation is rising by 4% a year and exports are projected to reach 105,000 tonnes of RCN this year.

The rising production and an end to government-fixed farmgate prices were attracting foreign processors into the country. Two processors of medium capacity are re-launching operations and a Libyan investment group has invested US$4m to establish three plants each with 2,500 tonnes processing capacity.

According to Bien Amie of the non-governmental organisation SNV which supports the sector in Guinea-Bissau, cashew nuts from the country are highly disease resistant and free from any chemical treatment, thus qualifying for organic certification. Traders said the lack of finance for raw material purchases, price competition from RCN exporters, and a non-business-friendly policy environment present some of the main obstacles to processing in Guinea-Bissau.

Industry official Mario Mendonca said prices are now not fixed by government but determined by the market. Export and trade licensing procedures have been simplified and financing from banks had soared to unseen levels. "As a result the entire value chain has benefited. Prices went up from the farm gate via the intermediaries to the fob price," said Mr Mendonca who heads cashew promotion agency No Fianca.

No Fianca recently joined forces with Heriot, a South African trade finance fund, ATE Finance Bissau, a cashew trading company, the national agriculture association, regional and local co-operatives and the government, whereby Heriot provides finance to ATE to purchase raw nuts, while No Fianca mobilises co-operatives and farmer associations who negotiate prices with buyers.

Last month, a conference of cashew industry stakeholders called for formation of a national cashew institute and a law to encourage processing. Participants said government should offer more extension services and training to growers, and called for establishment of a Mozambique-style guarantee fund for cashew production and processing in order to ease access to finance. [PL 10/11/08]

Nigeria's Second Sugar Refinery Starts Production - 22/10/08
Nigeria's second sugar refinery, with a capacity for 720,000 tonnes a year, has started operation and plans to expand by 50% in 2009. BUA Sugar Refinery, a subsidiary of privately-owned BUA Group, began production in September at 60% of installed capacity and should attain full capacity before year-end. The plant, located at Lagos Tin Can Island port, produces around 2,000 metric tonnes a day and plans to expand capacity, by another 1,000 tonnes per day in the next year. BUA is also looking at the possibility of listing the sugar unit on the Nigerian Stock Exchange.

Nigeria's sugar industry has expanded rapidly in the last 8-years, buoyed by new investments estimated at US$1 billion. Nigeria hopes to slash sugar imports to 30% of national demand by 2010. [Nigeria still imports about 1.2 million metric tones of sugar annually, 90% of the country’s needs.] The government has privatised most of its companies, which are being revamped by new investors. BUA and Dangote Sugar Refinery, Nigeria's biggest maker of the sweetener, have a combined capacity for over 2 million tonnes per annum, enough to save Nigeria about US$500 million yearly in sugar imports.

Dangote is expanding its capacity to around 2.1 million by end-December to meet surging national and regional demand, while Singapore-based commodities trader Olam International said last month it would invest US$91 million in a Lagos port-based 49:51 joint venture sugar refinery. It is hoped by 2009 it will be unprofitable to import refined sugar because of the advantages enjoyed by local manufacturers. [RT 22/10/08]

Nigeria Exported Shrimps Worth $65m in 2006 - 24/09/08
Nigeria exported shrimps worth more than US$65 million in 2006. According to former Minister of State for Agriculture and Rural Development, Bamidele Dada Nigerian shrimps were in high demand in Europe and America. He stressed the need to boost fish production to meet the protein needs of the population, adding that "there is a gap between supply and demand, so we need to double our efforts in marine production, as well as in fish farming. [TD 24/09/08]

Africa: Going Bananas - 10/10/08
Arguably one of the world's most popular fruits, bananas are poorly marketed as a value-added commercial crop in Africa. But that is about to change as a plan is being conceptualised to transform the way Africa produces and sells bananas.

A 5-day conference organised by the International Institute for Tropical Agriculture [IITA] and Biodiversity International, focussing on banana and plantain research throughout Africa was held in Kenya's second largest city Mombasa. The conference, was attended by over 400 delegates, including banana growers, buyers, scientists, government officials, donor organisations and policy makers. A 10-year plan to transform banana production in Africa was developed which addressed themes such as farmer cooperatives; processing and value-addition; and seed systems.

Starchy varieties of banana and plantain are a staple food in Africa where most of the produce is sold on the local market. Due to marketing constraints, a very small quantity is exported. Bananas provide income, jobs and nutrition for small-scale farmers.

While bananas earn around US$5-billion dollars annually, only 13% of the global production of around 104 million tons is traded, indicating a potential for Africa to increase commercial trade in bananas. The challenge is to determine how Africa can claim a larger portion of the market in a way that puts money in the pockets of the continent's small-scale growers. Lack of markets, limited value addition and high post-harvest losses are some of the key factors that have hindered Africa from making the most of its bananas and plantains. Water and soil nutrition are also strong limitations in banana production across the continent.

Some of the research findings presented during thematic sessions at the Banana 2008 conference indicated a lack of capital, inadequate transportation, taxes and inconsistent prices. These problems significantly limit the ability of small-scale farmers to benefit from growing cross-border banana trade between countries such as Rwanda, Burundi and the DRC.

Scientists and farmers participating in the conference are also discussing new production methods and organic farming techniques, which will help small-scale growers overcome current and emerging threats to production, including plant diseases, poor soil and climate change. Among the most serious challenges to Africa's banana production are diseases which cause yield losses of up to 50%. Banana xanthomonas wilt attacks all varieties of bananas, causing annual losses of over 500 million dollars across the East and Central African region.

Discussions also focused on how investment in banana processing can greatly expand income opportunities for banana farmers. In Africa, products made from bananas and banana plants include beer, wine, juice, sauce, mats, handbags, envelopes, postcards, flour, soup and breakfast cereals. [IPS 10/10/08]

African Cashews – The Ultimate Source - October
The third annual conference of the African Cashew Alliance in Dar es Salaam, Tanzania heralded cashew as “the ultimate source” for economic development and poverty reduction in Africa. It’s not hard to see why: Farmers are willing and able to grow more cashews. The number and quality of processors in Africa is on the rise. And cashews top consumers’ nut preferences.

The conference, organized by the West Africa Trade Hub in its capacity as secretariat of the alliance and hosted and co-sponsored by the Cashewnut Board of Tanzania, the Cashewnut Processors Association of Tanzania, and other stakeholders, covered virtually every aspect of the industry – from how to increase cashew tree yields to how to market the final product to consumers.

Over 130 industry stakeholders from 19 countries participated, including 60 active ACA members. Confident in the future of the cashew sector in Africa, they made and attended presentations, panels and discussions, visited local cashew processors, shared best practices and sealed cashew deals with newly found business partners.

Cashew growing is more advanced in West Africa, and processing is more advanced in East Africa. Thus, one of the keys to development will be to help the east and west to learn from each other. partnership among the players in the cashew industry – private, public and non-profit organizations – is well-positioned to provide resources, expertise, and advocacy to enhance the African cashew market and yield benefits to smallholder farmers.

Two banks that also co-sponsored the conference, Ecobank and NMB, presented their plans of financing African agriculture and processing, while Greylock Capital Management, a New York-based investment fund outlined its strategy of tapping into Africa’s emerging market.

Another panel explored policy and incentive frameworks for investments in the cashew sector. The tools available are in place, they said, citing tax exemptions, favourable tariffs, taxation of raw cashew nut exports, and flexible labour regulation. Those measures need to be applied in a systematic and consistent manner to produce an investment-friendly climate, said Ashok Krishan, Spices and Cashew Manager for OLAM.

While much work remains on effective farmer and processor representation at the government level, participants agreed that the development of the African Cashew Alliance, now just 3-years old, represented a big step forward. [WATH October 2008 - This article originally appeared in the WATH Factor, a monthly newsletter published by the West Africa Trade Hub, a USAID-funded project promoting export development and trade facilitation. www.watradehub.com]

Senegal Projected To Double Its RCN Exports In 2-Years - 22/09/08
Senegal raw cashew nut [RCN] exports are this year projected to double compared with two years ago, with the limited local processing capacity leaving virtually the entire production heading to export markets. RCN exports in 2006 were estimated at 10,000 to 15,000 tonnes but rose to 15,000 to 20,000 tonnes last year. This year, they are projected to rise to more than 30,000 tonnes.