Ghana processes less than 6% of cashew output as farmers face price plunge

Ghana's cashew sector is grappling with price instability and weak local processing, resulting in minimal capture of value from the crop. In 2025, less than six percent of the country's estimated annual production of 262,000 metric tonnes was processed domestically, with over 94 percent of raw cashew nuts exported or traded without processing.

A new study by Nitidae, supported by ACPG, GIZ, and the European Union, highlights the volatility of cashew prices and their impact on farming households. Prices plummeted from GH¢16 per kilogramme in January to around GH¢7 per kilogramme by May 2025, raising concerns about farmers' vulnerability. The decline underscores the risks associated with Ghana's reliance on raw cashew exports, as the country exports more raw nuts than it produces.

Despite producing 262,000 tonnes annually, Ghana exported 444,000 tonnes in 2025, mainly to Vietnam and India, major cashew-processing nations. The study suggests that a stronger domestic processing industry could stabilize markets for farmers and reduce dependence on international buyers of raw nuts. Existing high investment and operating costs, such as expensive imported machinery and production inputs, limited industrial support, and high interest rates, discourage investment in Ghana's cashew-processing industry.