Mozambique: Liberalization of Cashew Nut Export Lesa Indústria Nacional

Published 2021년 2월 16일

Tridge summary

Olam, a multinational agricultural company, is withdrawing from the cashew nut processing industry in Mozambique due to the liberalization of raw nut exports, which has led to unfair competition for its processing businesses. The global market shift and the COVID-19 pandemic have negatively impacted the export of processed nuts, with Mozambique facing customs tariffs in India and Vietnam, key markets. Domestic challenges, such as reduced processing levels, have further complicated the situation. The Confederation of Economic Associations of Mozambique (CTA) is now involved in discussions to address the challenges and foster the industry's growth, affecting an unspecified number of workers and producers.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The liberalization of raw nut exports may be damaging the competitiveness of the processing industries in Mozambique. This is at least the idea that comes from the decision announced a few days ago by the multinational in the agricultural sector Olam, which decided to divest in the processing of nuts in the country. The company considers that the liberalization of the export of raw nuts has placed its companies in a situation of unfair competition, which made business continuity in Mozambique unsustainable. In a virtual meeting with the Confederation of Economic Associations of Mozambique (CTA), Olam pointed out as the main reasons for the closure of the cashew nut factories the transformation of the global market, which started to negatively influence the export of processed nuts in Mozambique, which placed 30% of its production in India and Vietnam. According to data announced at the meeting, as of 2019, Mozambican production ceased to have access to these markets, following the ...

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