A Value Chain Analysis of the Cashew Sector - AGOA Export Toolkit
A Value Chain Analysis of the Cashew Sector - AGOA Export Toolkit A Value Chain Analysis of the Cashew Sector - AGOA Export Toolkit
32 Table 2.13 Programmes/Projects Involved in Promoting the Cashew Value Chain in Ghana Programme/ projects involved in cashew value chain promotion Cashew Development Project (CDP) Afram Plains AgriculturalDevelopment Project Trade and Investment Program for a Competitive Export Economy (TIPCEE) Adventist Development and Relief Agency (ADRA) Ricerca e Cooperazione (R & C) African Cashew Alliance (ACA) West African Trade Hub (WATH) Major partners involved (government, NGOs, donors) Government of Ghana and the African Development Bank USAID Italian NGO Public-Private Partnership USAID Geographical area ÿ 6 districts - Brong-Ahafo ÿ 5 districts - Northern Region ÿ 2 - Upper West ÿ 2 - Volta Region ÿ 2 - Greater Accra Kwahu North District Operates in all cashew growing districts Districts in Brong-Ahafo Kwahu North District Cashew growing districts 2.8 Overview of Ongoing Support Activities/Projects for Cashew Production in Ghana Th e Government of Ghana has given priority to the cashew sector, more specifi cally through the Cashew Development Project of the Ministry of Food and Agriculture. Over the past decade, training and technical advice on cashew production has been given to more than 40,000 farmers. Non-governmental organisations and other projects supported by donors have joined the MOFA in its eff orts. Th e NGOs and Major activities ÿ Production ÿ Processing ÿ Marketing ÿ Research & Extension ÿ Credit provision ÿ Local improvements –feeder roads ÿ Production ÿ Marketing ÿ Training (technical- and businessmanagement-related) ÿ Farm Mapping ÿ Technical Backstopping ÿ Marketing ÿ Training ÿ Farm Mapping ÿ Technical Backstopping ÿ Production ÿ Marketing ÿ Promotion of African cashews in regional and global markets ÿ Trade Development Services Potential cooperation with ACi Yes Yes Project has ended Implementing partner Yes Interest in cooperation with ACi All activities along the value chain All activities along the value chain Marketing Promotion of trade services Remarks Project ends in September 2010 Project ends in 2012 Project ends in December 2009 No funds to continue cashew activities Project has ended Experience of cooperation Cooperation with NGOs in farm mapping;training and extensionactivities Cooperation with CDP Cooperation with Technoserve/ CDP Cooperation with CDP to map farms Cooperated with CDP Cooperation with ACi institutions most actively involved in cashew production and processing have been: Technoserve; Ricerca e Cooperazione; ADRA; West African Trade Hub (WATH); Ghana Export Promotion Council (GEPC); MoAP (supported by GTZ); TIP- CEE (supported by USAID); and the African Cashew Alliance (ACA). Th rough collaboration between CDP, ADRA and TIPCEE, cashew farms are being mapped using Geographic Information Systems technology. Th is farm mapping is primarily aimed at facilitating extension delivery and forecasting yields,
or estimating harvest volumes at particular times. Also, mapping allows for traceability which is a critical requirement for certifi cation. Recently, TIPCEE, Technoserve and CDP jointly organised a Training of Trainers workshop for selected extension staff on quality standards and norms for cashew. Th e major outputs expected from such workshops include training and the sensitisation of farmers towards producing good quality RCN for domestic and export markets. Table 2.13 on page 32 summarises programmes/projects involved in promoting the cashew value chain in Ghana. 2.9 Opportunities and Bottlenecks for Promoting the Cashew Value Chain in Ghana Th e most important problems/ bottlenecks within the cashew value chain in Ghana are: ÿ Diffi culty in accessing farm inputs and good planting materials: Th e existing distribution system for farm inputs is generally weak and characterised by a lack of funds, unreliable suppliers and poor infrastructure (feeder road networks, storage facilities) in rural areas. Furthermore, farmers lack access to agro-chemicals needed for increasing the productivity of cashew farming. ÿ High incidence of pest infestations: Devastating eff ects from sucking pests (Helopeltis spp, Anoplocnemis curvipes, Pseudotheraptus devastems) and stem borers (Apate telebrans) lead to secondary infections and subsequent losses in yield and quality. ÿ Inadequate extension services: Th ere is insuffi cient dissemination of research fi ndings g due to inadequate q exten- sion services services and high extension worker-farmer ratios (1: at least 500). ÿ High interest rates and lack of working capital: High interest rates charged by fi nancial institutions on loans and overdrafts are said to be one of the major factors negatively impacting processing. Also, lack of working capital prevents the expansion of processing companies. ÿ Inconsistent supply of RCN to processing companies: although RCN are exported, there is an inadequate supply to meet the needs of existing local processing companies. ÿ Weak farmer associations: Th ese associations do not have a strong enough collective voice to promote the interests of their members when it comes to selling RCN. Th us, their members lack the bargaining power needed for negotiations with traders. ÿ Inadequate transport facilities and frequent fl uctuations in the price of fuel have resulted in high cashew transport costs. ÿ Lack of an eff ective marketing information system for monitoring and analysing global products and market trends, and for relaying the information gathered to stakeholders in the sector. ÿ Frequent bush fi res. Th e most important opportunities for the cashew value chain in Ghana are: ÿ Increased global demand for cashews ÿ Availability of land in environments suitable for cashew production ÿ Increased farmer interest in cashew production due to a fl ourishing export market ÿ Th e enabling g environment facilitated by y ggovernment sup- p port for for infrastructure support (e.g. 70% of the feeder roads in major producing areas areas have been rehabilitated) 33
- 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 30 and 31: 30 2.6.1 Demand and Supply of Finan
- 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
32<br />
Table 2.13 Programmes/Projects Involved in Promoting <strong>the</strong> <strong>Cashew</strong> <strong>Value</strong> <strong>Chain</strong> in Ghana<br />
Programme/<br />
projects involved<br />
in cashew value<br />
chain promotion<br />
<strong>Cashew</strong><br />
Development<br />
Project (CDP)<br />
Afram Plains AgriculturalDevelopment<br />
Project<br />
Trade and Investment<br />
Program<br />
for a Competitive<br />
<strong>Export</strong> Economy<br />
(TIPCEE)<br />
Adventist Development<br />
and Relief<br />
Agency<br />
(ADRA)<br />
Ricerca e<br />
Cooperazione<br />
(R & C)<br />
African <strong>Cashew</strong><br />
Alliance (ACA)<br />
West African<br />
Trade Hub<br />
(WATH)<br />
Major partners<br />
involved (government,<br />
NGOs,<br />
donors)<br />
Government <strong>of</strong><br />
Ghana and <strong>the</strong><br />
African Development<br />
Bank<br />
USAID<br />
Italian NGO<br />
Public-Private<br />
Partnership<br />
USAID<br />
Geographical<br />
area<br />
ÿ 6 districts -<br />
Brong-Ahafo<br />
ÿ 5 districts -<br />
Nor<strong>the</strong>rn<br />
Region<br />
ÿ 2 - Upper<br />
West<br />
ÿ 2 - Volta<br />
Region<br />
ÿ 2 - Greater<br />
Accra<br />
Kwahu North<br />
District<br />
Operates in all<br />
cashew growing<br />
districts<br />
Districts in<br />
Brong-Ahafo<br />
Kwahu North<br />
District<br />
<strong>Cashew</strong><br />
growing<br />
districts<br />
2.8 Overview <strong>of</strong> Ongoing Support Activities/Projects for<br />
<strong>Cashew</strong> Production in Ghana<br />
Th e Government <strong>of</strong> Ghana has given priority to <strong>the</strong> cashew<br />
sector, more specifi cally through <strong>the</strong> <strong>Cashew</strong> Development<br />
Project <strong>of</strong> <strong>the</strong> Ministry <strong>of</strong> Food and Agriculture. Over <strong>the</strong> past<br />
decade, training and technical advice on cashew production<br />
has been given to more than 40,000 farmers.<br />
Non-governmental organisations and o<strong>the</strong>r projects supported<br />
by donors have joined <strong>the</strong> MOFA in its eff orts. Th e NGOs and<br />
Major activities<br />
ÿ Production<br />
ÿ Processing<br />
ÿ Marketing<br />
ÿ Research &<br />
Extension<br />
ÿ Credit provision<br />
ÿ Local improvements<br />
–feeder<br />
roads<br />
ÿ Production<br />
ÿ Marketing<br />
ÿ Training (technical-<br />
and businessmanagement-related)<br />
ÿ Farm Mapping<br />
ÿ Technical Backstopping<br />
ÿ Marketing<br />
ÿ Training<br />
ÿ Farm Mapping<br />
ÿ Technical Backstopping<br />
ÿ Production<br />
ÿ Marketing<br />
ÿ Promotion <strong>of</strong><br />
African cashews<br />
in regional<br />
and global<br />
markets<br />
ÿ Trade Development<br />
Services<br />
Potential<br />
cooperation<br />
with<br />
ACi<br />
Yes<br />
Yes<br />
Project<br />
has<br />
ended<br />
Implementing<br />
partner<br />
Yes<br />
Interest in<br />
cooperation<br />
with ACi<br />
All activities<br />
along<br />
<strong>the</strong> value<br />
chain<br />
All activities<br />
along<br />
<strong>the</strong> value<br />
chain<br />
Marketing<br />
Promotion<br />
<strong>of</strong> trade<br />
services<br />
Remarks<br />
Project<br />
ends in<br />
September<br />
2010<br />
Project<br />
ends<br />
in 2012<br />
Project<br />
ends in<br />
December<br />
2009<br />
No<br />
funds to<br />
continue<br />
cashew<br />
activities<br />
Project<br />
has<br />
ended<br />
Experience<br />
<strong>of</strong><br />
cooperation<br />
Cooperation<br />
with<br />
NGOs in<br />
farm mapping;training<br />
and extensionactivities<br />
Cooperation<br />
with<br />
CDP<br />
Cooperation<br />
with<br />
Technoserve/<br />
CDP<br />
Cooperation<br />
with<br />
CDP to map<br />
farms<br />
Cooperated<br />
with CDP<br />
Cooperation<br />
with<br />
ACi<br />
institutions most actively involved in cashew production and<br />
processing have been: Technoserve; Ricerca e Cooperazione;<br />
ADRA; West African Trade Hub (WATH); Ghana <strong>Export</strong><br />
Promotion Council (GEPC); MoAP (supported by GTZ); TIP-<br />
CEE (supported by USAID); and <strong>the</strong> African <strong>Cashew</strong> Alliance<br />
(ACA).<br />
Th rough collaboration between CDP, ADRA and TIPCEE,<br />
cashew farms are being mapped using Geographic Information<br />
Systems technology. Th is farm mapping is primarily<br />
aimed at facilitating extension delivery and forecasting yields,
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