By Felicia Imohimi
The National Cashew Association of Nigeria (NCAN) has urged the Federal Government to provide incentives for cashew farmers and processors to enable them maximise benefits and harness the full potential of the cashew value chain.
Dr Joseph Ajanaku, National President of the association, made the call on Monday in Abuja at the Extraordinary General Meeting of the association.
He said the intervention would enable Nigeria to compete favourably in the global market.
The meeting, he added, was aimed at updating stakeholders and the public on current developments in the industry.
Ajanaku, who decried the high cost of cashew production, storage, and processing, emphasised that without government support, farmers and processors would be unable to realise tangible profits.
He specifically urged the government to provide processors with special agro-processing loans at single-digit interest rates of between three and five per cent.
“Through such incentives, our processors can break even and compete favourably in the global market,” he said.
According to him, processors are currently burdened by high interest rates on loans, ranging between 25 per cent and 35 per cent, as well as rising energy costs, which have made profitability difficult.
He added that the cashew industry currently employs over five million Nigerians, warning that restrictive policies could threaten these jobs while creating significantly fewer opportunities in processing.
The NCAN president noted that the industry, which employs over five million people, currently produces about 350,000 metric tonnes annually.
According to him, most Nigerian cashew farmers operate on less than one hectare of land and already face high production and logistics costs, leaving them with limited profit margins.
“Our farmers cannot be made to subsidise processing in disguise. The only incentive for production is price. If you shut them out from accessing competitive markets, you are reducing their earnings,” he said.
He recalled that a drop in cashew prices in 2017 led many farmers to cut down their trees, a trend the association had to reverse through sustained interventions.
“Nigeria was once a global leader in cashew production, recording about 700,000 metric tonnes annually, but output has since declined to between 350,000 and 400,000 metric tonnes.
“Meanwhile, countries like Côte d’Ivoire have surged ahead, producing over one million metric tonnes,” he said.
Ajanaku stressed that while value addition remained important, it must translate into improved income for farmers and be implemented sustainably.
“If we want to process over 350,000 metric tonnes of cashew produced in Nigeria, we cannot employ more than 35,000 people.
“So, why do we want to displace five million workers to employ just 35,000?
“The best approach is for government to support farmers to boost production, while also providing incentives for processors to compete globally,” he said.
He further emphasised that boosting value addition in the cashew industry required adequate support for farmers to improve their income levels.
Ajanaku also decried the logistical challenges faced by farmers, noting that many travel between five and 15 kilometres to harvest their produce and incur additional labour costs.
He urged the government to support farmers with logistics and other interventions to ease production costs.
“Such measures will go a long way in ensuring that farmers receive a fair share of the value from their production,” he said. (NAN)(www.nannews.ng)
Edited by Tosin Kolade
