Cashew crisis: Usibras imports Ivorian kernels to save Ghanaian jobs

In a concerning shift, Ghanaian cashew processor Usibras has started importing semi-processed cashew kernels from Côte d'Ivoire to keep its factory running, according to recent reports. This move is a response to soaring domestic farm-gate prices and aggressive foreign buying, which has made it difficult for local raw cashew nut procurement to be competitive.

To keep its factories operational, Usibras has resorted to importing borma kernels, which are pre-shelled and dried but still have their inner skin. This sudden change highlights a significant operational mismatch between the plant's processing capacity and the availability of raw materials. In the last harvest season, Usibras managed to acquire only 6,500 tonnes of raw cashew nuts, which is just 19 percent of its total processing capacity of 35,000 tonnes per year.

This situation has put the facility under immense financial strain, threatening the viability of one of West Africa's largest cashew processing investments. The crisis is attributed to significant regulatory gaps, with Usibras pointing out that raw cashew nuts can be exported from Ghana without much restriction. This situation allows foreign buyers to purchase raw nuts directly from farming communities at aggressive prices, without having to bear manufacturing overheads, power tariffs, or labor costs.

Consequently, foreign buyers can outbid domestic processors, who bear the heavy capital expenditure of local manufacturing. The economic fallout of the procurement shortfall has led to the reduction of Usibras' workforce by 50%, from 700 to 350 employees. The company has warned that further job cuts may become necessary if conditions in the domestic raw cashew market do not improve.

If Usibras were to exit the Ghanaian raw cashew nut market in 2027, it could result in an estimated US$17 million in lost direct purchases.