Hon Akwasi Gyamfi Onyina-Acheampong
Kwabre East

Mr Speaker, the cashew industry in Ghana is vital to the country’s agriculture sector, greatly contributing to export earnings and rural communities.

The industry is regulated by the Tree Crops Development Authority under the TCDA Act, 2019 (Act 1010). Cashew trees grow in seven of Ghana’s sixteen regions; however, they are mostly cultivated in Bono, Bono East, Ahafo, Northern, and Savannah Regions. The cashew season runs from December to June, with the peak from March to May, which is considered the main season. Sampa, Techiman, Wenchi, Drobo, Nkrankwanta, Kameseikrom, Bole, Dormaa, Japeikrom and Bamboi are known for cashew farming.

Mr Speaker, over 300,000 farmers are directly involved in cashew cultivation, supporting a network of about 200,000 people working as buying agents, dealers, transporters, and retailers. Ghana is currently the third-largest exporter of raw cashew nuts worldwide, exporting an estimated 180,000 metric tonnes annually and earning approximately US$300 million in export revenue. Significant volumes of cashew also come from neighbouring La Côte d’Ivoire and Burkina Faso, with the former supplying close to 50 per cent of the exports between March and May.

Mr Speaker, a well-regulated cashew industry has numerous advantages, including: Stable Market Prices. A regulated industry can help stabilise market prices, reducing fluctuations and uncertainty for farmers, processors, and exporters. This stability can lead to increased investor confidence and more predictable income for industry stakeholders.

Increased Export Earnings. By ensuring consistent quality and quantity, Ghana can increase its export earnings from the cashew industry. This can contribute to the country's foreign exchange reserves and improve its balance of payments.

Industrialisation. A well-regulated cashew industry can lead to the development of processing industries, creating value-added products and increasing the industry’s contribution to Ghana’s Gross Domestic Product (GDP). This can also lead to the transfer of technology and skills, promoting industrialisation and economic growth.

Job Creation. The cashew industry can create employment opportunities for people in rural areas, both in farming and processing. Jobs are also created through the cashew value chain with job openings created in purchasing, drying, quality checking, and shipment. This helps to reduce unemployment and poverty, contributing to improved living standards.

Income Generation. A well-regulated cashew industry can generate income for farmers, processors, and exporters, improving their livelihoods and contributing to local economic development. A regulated industry also helps to stabilise income for processors, reducing the risks associated with market fluctuations. This can lead to increased investment in processing infrastructure and improved product quality.

Improved Farmer Welfare. By providing support and resources to farmers, a well-regulated industry can improve their welfare and productivity. This can lead to increased farmer incomes, better working conditions, and improved livelihoods.

Traceability and quality standards. Traceability and quality standards reassure consumers about the safety and quality of cashews. Industry stakeholders reduce the risk of product recalls, fines, and reputational damage.

Traceability and quality standards help streamline processes, reducing waste and improving productivity. Reduced Post-Harvest Losses. By implementing best practices and standards, a well-regulated industry can reduce post-harvest losses, increasing the quantity and quality of cashews available for processing and export. This can lead to increased efficiency, reduced waste, and improved profitability for industry stakeholders.

Mr Speaker, notwithstanding the potential of the cashew industry, the industry faces numerous structural and operational challenges that threaten its growth. One of the most urgent issues is the sharp decline in production, with a 30 per cent drop recorded in 2024 compared to the previous year, decreasing from 230,000 metric tonnes in 2023 to 161 ,000 metric tonnes in 2024. This decline has partly been caused by disease and pest infestations, along with inadequate extension services and a lack of knowledge among farmers about improved farming techniques. These issues have hampered productivity and lowered both the quality and quantity of yields.

Mr Speaker, additionally, market access remains limited, and farmers face price instability at the farm gate level. While the Tree Crop Development Authority (TCDA) has set the current market price at GH₵15.00 per kilogram (minimum), farmers received as low as GH₵ 7 in 2024, down from GH₵8.50 in 2023. This wide gap between farm gate and market prices discourages farmers and exposes them to exploitation and income insecurity.

Mr Speaker, the industry also struggles with low local processing capacity, with only about 6 per cent of raw cashew nuts processed domestically. Most raw cashew is exported to countries like Vietnam and India for processing, missing out on the value addition that could significantly boost national revenue. Analysts estimate that increased investment in local processing could generate over US$700 million for the Ghanaian economy. Furthermore, smuggling and poor post-harvest handling practices further reduce the industry's profitability and international competitiveness.

Mr Speaker, unregulated buyers, also known as briefcase buyers, pose a significant challenge to the cashew industry in Ghana. These buyers, typically foreign merchants, offer high prices for raw cashew nuts (RCN), drawing supplies away from local processors and buyers. This practice not only undermines government policies but also distorts the markets, undermines Ghana's value addition agenda like and threatens the local cashew processing industry.

Most of these buyers do not even have the required permits to work in Ghana and are often chased by immigration officials along the borders. The Association of Cashew Processing Processors Ghana (ACPG) warns that unregulated exports could lead to the collapse of the local cashew processing industry, resulting in job losses and economic instability.

Mr Speaker, it is important to note that Ghana’s Cashew Industry faces several sustainability issues that impact its longterm viability and environmental footprint. Some of the challenges include: Environmental concerns. Pesticide misuse and greenhouse gas emissions from cashew production and processing are significant environmental concerns.

For instance, thousands of tons of cashew nuts are wasted annually, contributing to substantial greenhouse gas emissions. Social Issues. Inadequate rural infrastructure, rural poverty, child labour, and insufficient empowerment of women are some of the social challenges facing Ghana’s Cashew Industry. Women play a critical role in cashew production, processing, and packaging, but often lack support and resources. Climate Change. Climate change has an impact on the agriculture sector, and the cashew Industry is no exception. Rising temperatures, excessive droughts, and changing weather conditions significantly reduce cashew yield and impact the farmers' livelihood. There are also no formalised farming training programs that training programs to educate farmers on the best farming practices that promote organic farming, agroforestry, and climate-smart agriculture. There is also little or no additional or alternative livelihood programs for the cashew farming activities.

To unlock the full potential of the cashew sector, a multi-faceted approach is necessary to: Invest in Extension Services and Farmer Training: Strengthening agricultural extension services and training farmers in modern farming and post-harvest handling techniques are crucial for boosting productivity and improving product quality. Enhance Local Processing Capacity. Ghana must prioritise investments in processing infrastructure to keep more of the cashew value chain within the country.

The 2024 partnership between Ghana and La Côte d’Ivoire offers a promising opportunity to scale up joint processing and marketing strategies. Strengthening the regulatory role of the TCDA. Mechanisms should be put in place to ensure fair and predictable prices for farmers. The laws governing the regulation of the cashew industry must be enforced. This will help address pricing disparities and limit the power of middlemen or reduce the activities of unregulated operators (briefcase operators) Improve Market Access and Combat Smuggling. Expanding domestic and international market connections through trade promotion, certification schemes, and anti-smuggling efforts can help stabilise supply chains and safeguard farmer incomes. Promote Research and Development. Investing in research to develop disease and pest-resistant cashew varieties and improve farming practices will enhance resilience and long-term productivity.

In conclusion, Mr Speaker, I suggest forming a special board to oversee and regulate Ghana's Cashew Industry, similar to how we control Ghana Cocoa Board (COCOBOD) and Ghana Gold Board (GOLDBOD). While Ghana's cashew industry has great promise, achieving its full potential will require coordinated efforts among the government, industry stakeholders, and development partners. With the right policies and targeted investments, the cashew sector can become a powerful engine for rural development, export diversification, and economic growth.