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The Transformation of the Ghanaian Cashew Processing Industry

Presented by: Rowell Kutie Weyori December 2009

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Order of Presentation • • • • •

General Overview of Processing Industry ACi Support Financing Other Initiatives Plan for 2010

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General Overview Ghana is relatively small cashew producer but offers good conditions for cashew processing

Cashew Industry •Cashew Farmers : 35,000

Doing Business •Easy start up, free zone facility, tax holidays.

•Hectares under cultivation : 72,000 •Favorable labour policy •Yearly Production : 27,000 tons •Average Farm size : 0.8 - 2.5 ha

•Better Infrastructure, water, electricity, roads, port, etc.

•Average Yield : 2-3 kg/tree

•Good management people

•Productivity/ha : 250 kg/ha

•Workers are Hard working though expectation levels are high.

•Farm Gate price : $350/ton •Value Raw nuts : $11m

•Finance for Working Capital is not easy even at high interest rates

•Value processed Nuts : $19m •Local Processing : 2% •Yearly exports : 55 - 70000 tons

•Raw nut quality is good to support profitable processing


Cashew Processing at a glance ‌. Processor

Potential

Bottle Neck

Mim Cashews Goaso Municipality

1500 tons/year 530 acres plantation Cashew apple brandy

Workers training Expansion Quality Control

Kona Agro Processing Wenchi

1000 tons/year

Financing Management Complete TA

West African Market Link Techman

Project in pipeline (5000tons/year)

N/A

Cashfoods Ltd. Drobo

750 tons/year

Financing Management Complete TA

Winker Investments Lda. Afeinha (Volta region)

150 tons/year Local market oriented

Expansion Financing Complete TA

Muskaan Ghana Limited

A new investor 1000 tons capacity plant in Nsawkaw

New kick off Financing Complete TA

Bole , Sampa, Kabile, Nsawkaw (4 small plants)

100 tons/year each Local Market oriented

Expansion Financing Complete TA

Facility Location

Plantation

Processing Plant

Apple Plant 4


ACi is Providing Technical assistance for three existing plant, Expansion for 2 existing plant and one new in pipeline • Technical assistance to MIM Cashew & Agri products Ltd. and Winker Investments Limited: Systems to control production loss and traceability tools are in progress. Technology up-grading and training on quality. • Financing for Kona Agro Processing, installation of machinery for 2010 • Discussions on MOU for CRIG processing plant at Bole: Complete Technical Assistance will be given by 2010, February. • Expansion plans for Mim, Winker, CRIG - Bole and Kona Agro processing. • One New client is receiving base line assistance to kick off a plant in 2010. (Muskaan Ghana Limited, Nsawkaw) • Business Plans • Layout designs • Environmental and social Impact study • One potential client is in the pipeline.


Financing is a critical issue in revitalizing old closed processing plants as well as for new start ups. Banks and financial institutions are not prepared for financing cashew sector • Introduced cashew processing to the banks as banks have hardly any experience of it: some banks show a positive response, a step forward to help cashew processors. • Various introductory meetings with many banks, ADB, Ecobank, Amal Bank: Root Capital has assisted in visits to some processors. • Ecobank and Root Capital is working on some proposals. Other banks are still reluctant to finance cashew processing. • New processors are also motivated and investing a good part of investments from their pockets.


Other Initiatives Creating a Direct Linkage between farmer groups and Processors and introducing tools to measure for premium payments • Work with FMS and GTZ to introduce farmer associations, groups, cooperatives to processors. • Training program for these farmer groups in evaluation of their product quality, post harvest handlings. • Set up tools for processors as well as for farmer associations on premium base. (Mutually agreed by farmers as well as processors) • Creating one brand for processors to export


Plan for 2010, Next steps.. • Continuous Technical assistance to MIM, Winker in their expansion phase • Trainings for future managers, supervisors and workers, Academic and hands on approach on cashew processing and controls • Installation and Commissioning on equipment for 2010 processors, maintenance schedule for equipment • Assist Kick off processing for 2010 processors, install all control systems in place • Quality control at each stage of process, Hygiene and workers health • Assessment of certification need and preparation for certification • Farmer linkage with the processors, introducing tools to measure premiums. • New client search and set up. • Holding company base line as services provider as AIA in Mozambique, address brand needs


Thank You

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Cashew processing in Ghana 2009  

Cashew processing in Ghana 2009

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