Editorial: Volatility in global cashew market dims production targets

Published 2024년 9월 10일

Tridge summary

The African Cashew Alliance (ACA) has highlighted concerns over recent volatility in the global cashew market, which may lead to hesitation among kernel buyers and impact production targets in Ghana, a key producer of high-quality cashew nuts. Prices surged to US$3.80/lb in early 2023 but have since dropped to around US$3.25/lb, causing market uncertainty and contract renegotiations. This instability, along with adverse weather conditions, has led to a 25-30% reduction in Ghana's 2024 production estimates. The situation is further complicated by competition for raw cashew nuts, which are vital for Ghana's Non-Traditional Export Sector, providing significant revenue and livelihoods, especially in the Brong Ahafo Region.

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Original content

Recent volatility in the global cashew market may cause many kernel buyers to stand back, the African Cashew Alliance (ACA) has cautioned. Indeed, ACA believes the situation may well dim production targets of local producers, even in Ghana. The Ghanaian cashew industry is widely considered by many cashew industry experts as one of the most promising in Africa. Ghana currently produces about 200,000 tonnes of raw cashew nuts (RCN) and is among the best quality cashew nuts producers in the world, according to official data from the Ministry of Food and Agriculture (MoFA). The sharp rise in prices in first-quarter of the year, well beyond even short-term sustainable levels, created a period of panic as cashew kernel prices hit US$3.80/lb – but fell back quickly to levels around US$3.25/lb from Vietnam, where they remain today. According to ACA, the fall has created a situation in which buyers may believe that further falls are imminent, as most are now waiting to see the next stage. ...

Source: Thebftonline