An Examination Of The Supply Chain Of Cashew In Ghana. A Case Study Of The Upper West Region

Abstract

This research is to examine the state of the cashew nut supply chain in Ghana, thus from production to consumption using the Upper West Region as a case study. To have an in depth understanding of all actors along the cashew nut supply chain, a qualitative research approach was adopted. The cashew nut supply chain comprised of cashew farmers, middlemen or aggregators and cashew exporting companies. The method of data collection used in this paper included semi-structured interviews and observations and was carried out with the use of detailed interview guides administered to a selected sample of each population (farmers, aggregators, and exporters) to participate in the study. Five communities in the Dafiiama-Bussie-Issa district were selected for the study. The various sample sizes included 50 farmers, 10 Middlemen or Aggregators, and 1 official from each of the exporting companies, giving a total sample size of 62 participants employed in the study. After having recognized the economic potential of cashew nuts the government of Ghana implemented an economic recovery program in the 1990s to revamp the cashew sub sector in Ghana. Since then, cashew nuts have undoubtedly contributed massively to the socio-economic wellbeing of people who are into the cashew business and especially amongst small holder cashew farmers. Reduction in poverty, creation of employment especially for women, increase in income amongst others are some of the advantage’s cashew farmers and other actors in the supply chain benefit from this cash crop. The Ministry of food and agriculture carried out a research to identify potential areas in Ghana with arable land suitable for the production of cashew nuts and they included Brong Ahafo, Bono East, Northern region, Volta and the Upper west region, to mention a few. However, production of cashew nuts in the Bono east and Ahafo regions have been buoyant, hence these regions are considered the hub of Ghana’s cashew nuts. Yet Ghana is unable to meet demand in the international market, though other regions in the country have been marked as potential cashew growing areas. The research revealed that cashew farmers from the Upper West Region are facing some difficulties and that is hampering their production of cashew nuts. They mentioned issues of lack of storage, Extension service Officers, ineffective cashew plants and so on. However, one major challenge that was common among all three populations was the issue of pricing. Nevertheless, some recommendations on how to improve operations and as such increase production of cashew nuts were made. One of the exporting companies beckoned on government to resource the Tree Crop Development Authority to make it actively operational so that issues especially relating to price instability can be curbed. The research is organized in seven chapters: introduction of the study, context of the study, literature review, methodology, data analysis and presentation, discussions and finally, conclusions and recommendations respectively.