A Value Chain Analysis of the Cashew Sector - AGOA Export Toolkit

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30 2.6.1 Demand and Supply of Financial Services along the Value Chain Funding is of crucial importance to success in the cashew value chain. Th e various stakeholders may require fi nance to procure and distribute inputs, to purchase RCN, or to process and market cashew products. An assessment of the short- and long-term credit needs of the diff erent value chain stakeholders is presented in the Tables 2.9 and 2.10 below. Short-term loans could be provided by the Agricultural Develop ment Bank (AgDB), rural banks, commercial banks and the National Investment Bank. Meanwhile, the Export Development Investment Fund (EDIF), venture capital fi rms, and the proposed government fund for agricultural development could supply long-term loans. Th e latter would support agricultural activities and related agents (including input suppliers, processors, market intermediaries, warehouse operators, Table 2.9 Short-term Financial Needs of Value Chain Stakeholders Short-term credit for ... Financial organisation Value chain stakeholders Input dealers Farmers Processing fi rms Distributors Exporters Import of agrochemicals AgDB Rural banks Credit unions Farm inputs and hiring of farm labour AgDB Rural banks Credit unions Table 2.10 Long-term Financial Needs of Value Chain Stakeholders Value chain stakeholders Long-term credit for ... Financial organisation Purchasing of raw material and labour costs AgDB National Investment Bank Transportation costs (renting of cars) AgDB Rural banks National Investment Bank Purchasing of RCN for export, and warehouse rental AgDB Commercial banks Input dealers Farmers Processing fi rms Distributors Exporters No information No information haulers and exporters). Currently, some cashew value chain stakeholders (i.e. producers, processors and exporters) benefi t from credit facilities off ered by the AgDB and EDIF. Table 2.11 on page 31 gives an overview of the fi nancial organisations which could play an important role in the provision of short- and long-term credit to cashew value chain stakeholders. 2.7 Summary of Major Political Frame Conditions Cashew value chain promotion in Ghana has to be integrated into national policies and strategies. Major policies important for cashew sector development are summarised in Table 2.12 on page 31.. Construction and extension of processing facilities EDIF Venture capital Proposed government fund for agriculturaldevelopment Purchasing of haulage equipment and trucks National Investment Bank Rural banks EDIF Construction of warehouses EDIF AgDB
Table 2.11 Overview of Financial Organisations Supporting Agricultural Activities Name Target group Products Assessment Agricultural Development Bank Rural banks Commercial banks; National Investment Bank; ECOBANK; Merchant Bank ÿ Input suppliers ÿ Farmers ÿ Traders ÿ Distributors ÿ Processors ÿ Exporters ÿ Producers ÿ Traders ÿ Distributors ÿ Medium- to large-scale businesses ÿ Commercial farmers; medium- to largescale traders, processors, exporters and distributors Table 2.12 Summary of Major Political Frame Conditions National Policies Description Food and Agricultural Sector Development Policy (FASDEP) Ghana Poverty Reduction Strategy I, Growth and Poverty Reduction Strategy II, etc. ÿ Warehouse Receipt ÿ Short-term and longterm loans ÿ Credits for investment and working capital ÿ Various agricultural loans (short-term and long-term; and microcredit) ÿ Warehouse Receipt ÿ long-term loans, inventory credit, working capital AgDB serves as a channel for credit schemes (associated with food security and the marketing of farm produce) supported by the government, as well as bilateral and multilateral assistance. ÿ many cashew farmers have accounts with rural banks ÿ producers, buying agents, traders and processors work with rural banks ÿ Network of branches in rural areas. ÿ Support investment in the equipment and machinery required for processing RCN ÿ Help with purchases, e.g. haulage trucks. Within the framework of FASDEP, the Government of Ghana through the Ministry of Food and Agriculture (MoFA) identifi es and promotes processing technologies at the farm and industry level. FASDEP aims to support the private sector by creating an enabling environment for investments. FASDEP adopts a sector wide approach to managing agricultural development, i.e. as opposed to the discrete project approach pursued in the past. It is the strategic framework within which all present and future programmes and projects operate. It provides a broad platform for agricultural development from which projects and programmes dealing with specifi c issues can be planned in detail and implemented. FASDEP recognises access to markets as being a major key to success. In the short term, the government will facilitate improved marketing through advancements in infrastructure (such as roads, markets and storage facilities), and strengthen farmer-based organisations. GPRS I provides a policy framework for eradicating poverty. Specifi c interventions in the agricultural sector for reducing poverty, as outlined under the GPRS II and equally supported by FASDEP, are: ÿ Infrastructure development (e.g. as regards feeder roads, bridges, farm tracks, irrigation, and construction of storage and marketing facilities). ÿ Promotion of appropriate technology (linked to research, development and dissemination work; focus on value addition). ÿ Extension: the public extension system will initiate pro-poor extension programmes in targeted areas and for specifi c groups of the population. 31
Page 1 and 2: A Value Chain Analysis of the Cashe
Page 3 and 4: A Value Chain Analysis of the Cashe
Page 5: Table 2.2 Farm Gate Producer Prices
Page 9: Value chain addition regarding cash
Page 12 and 13: 12 ductivity and insuffi cient nut
Page 14 and 15: 14 Table 1.2 Essential Data/Informa
Page 16 and 17: 16 Table 1.6 Policies Governing the
Page 18 and 19: 18 Figure 2.1 Cashew Value Chain Op
Page 20 and 21: 20 Table 2.2 Farm Gate Producer Pri
Page 22 and 23: 22 Cashew is grown as a smallholder
Page 24 and 25: 24 An Economic Analysis of Annual C
Page 26 and 27: 26 Table 2.6 Technical and Economic
Page 28 and 29: 28 Table 2.7 Needs Assessment for S
Page 32 and 33: 32 Table 2.13 Programmes/Projects I
Page 34 and 35: 34 ÿ Geographical proximity to pri
Page 39 and 40: List of Acronyms ACA African Cashew
Page 41 and 42: Author(s) Title of Document/Materia
Page 43 and 44: Appendix II: Further Sources of inf
Page 45 and 46: Notes 45
Page 48: Published by: Deutsche Gesellschaft

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