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  • MIM Limited Reacts To MOTI’s Directive On Raw Cashew Nut Export

    Mar 22nd, 2016

    According to MIM Cashew & Agricultural Products Limited, there were 12 processors in operation prior to June, 2014, 10 of which are owned by Ghanaians and 2 foreign owned.

    “As published in some of the media in 2015, only 1 remained in operation in 2015 with an extra new comer.”

    It said, in simple Economy of a vibrant cashew processing industry, every 5,000 metric tons of raw cashew nuts exported is no more than USD5 million, saying that, if the same volume is processed in Ghana, it will provide USD8.5 million as foreign currency into the country.

    “In addition, there will be approximately 1,200 workers required to process the 5,000 metric tons. The minimum income to the 1,200 family will be GHS4,200,000 and Ghana Revenue Authority will receive GHS200,000 in the form of income tax. Ghana produces 60,000 metric tons of Raw Cashew Nuts, the benefit to process this in Ghana is enormous, 12 times the figure stated above.”

    On Uncontrolled Export of Raw Cashew Nuts, MIM noted that the result of this as 85% of the processors were forced to close down, with thousands of badly needed jobs vanished.

    “As we noticed in the Directive, every player is allowed to purchase the Raw Cashew Nuts without any state intervention. The Raw Nuts are to remain in the country until a certain time, this gives the local processors a chance to purchase the nuts, from the traders as well. We experienced this during the period when the Directive was in force, we received 10 times more than our usual in-take of Raw Cashew Nuts. AT the same time, we maintained the price as before the introduction of the Directive. This is a real example of the benefit and purpose of the Export Window. Our position on the latest issues raised by Parliament are:

    a) There is never a case of the processors monopolizing the purchase of the Raw Cashew Nuts. During the period of the Directive, everyone involved in the procurement are still buying and the competition remain very strong.

    b) Export Window leading to drop in prices –The price reduction raised in the Parliament is definitely not from us, the processors. This GHS2.50 per kilo mentioned is totally unrealistic and is clearly introduced by the traders with the view to create the fear to the farmers. We have announced in and around the entire cashew belt where we are buying from that we maintain the current price of GHS4.00 per kilo at farm gate.

    c) In the Cashew Industry, all parties to the value chain are important partners. If there is loss of income and hardship for farmers, the industry will lose the supply of the only raw material in the chain, then there will be no industry left to speak about. Ghana is not the first country that introduces the similar policy. All the cashew producing countries are having some kind of policy to encourage/promote processing as the benefit of processing is all very clear to see.”

    It said, the most successful country in this industry is Kenya where the processing capacity exceed the production of raw cashew nuts leading to total export ban on raw cashew nuts, averring that there is clear evidence that policies introduced by all the other countries do not lead to loss of income and hardship for farmers.