Creating Sustainable Income through the Cashew Nuts Value Chain (Evidence from Ghana)

Document Type : Research Article


1 Department of Agricultural Department of Agricultural Economics, Agribusiness and Extension, University of Energy and Natural Resources, Sunyani, Ghana

2 School of Metallurgy and Environment, Central South University, Changsha, China

3 Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

4 Department of Agricultural Economics, Agribusiness and Extension, University of Energy and Natural Resources, Sunyani, Ghana

5 Forestry Commission, Kumasi, Ghana


The study assessed the actors along the Cashew value chain and their influence in making the income derived from cashew sustainable. Primary data for the study were collected from 210 actors using a structured questionnaire. The gross margin and the Herfindahl-Hirschman Index (HHI) were used to determine the revenue margin and market competitiveness (concentration) among the various actors along the cashew value chain. The results revealed that most of the actors were male and had between 6-10 years of experience in cashew production. Also, the actors’ resort to loans in financing their operations was an interest rate of 24%. Producers had the lowest net margin on revenue of 16.95%, and they indicated that fluctuation in pricing and bushfires were challenges faced in production. Purchasing clerks pointed out that inadequate storage facilities and the high cost of transportation were their challenges. Moreover, processors indicated that lack of government support, high interest on loans, and low demand for processed cashew nuts were their challenges. According to cashew nuts exporters, their significant challenges are high cost of transport and high cost of storage facilities. Furthermore, the Herfindahl-Hirschman index showed that the cashew industry in the study area was highly concentrated. The study recommended that government efforts should be focused on developing a cashew Development Board to enhance marketing and price regulation.


African Cashew Alliance (2015) African Cashew Alliance Annual Report Accra.
Practical Action (2013) Poor people's energy outlook 2012: Energy for earning a living, Practical Action Publishing.
Azam-Ali S, Judge E (2001) Small-scale cashew nut processing. Coventry (UK): ITDG Schumacher Centre for Technology and Development Bourton on Dunsmore.
Camp WG, Heath-Camp B (2015) Managing our Natural Resources, Nelson Education.
Chopra S, Meindl P (2007) Supply chain management. Strategy, planning and operation. Das summa summarum des management, Springer. 265-275.
Cochran WG (2007) Sampling techniques, John Wiley & Sons.
Dinakara Adiga J, Kalaivanan D (2013) Influence of dwarf rootstocks on growth and vigour of popular cashew cultivars. Journal of Plantation Crops. 41(3), 428-432.
Duke JA (1983) Handbook of energy crops. Centre for New Crops and Plant Products, Purdue University.
Edoga MO, Fadipe L, Edoga RN (2006) Extraction of polyphenols from cashew nut shell. Leonardo Electronic Journal of Practices and Technologies. 9, 107-112.
FAOSTAT (2017) Agriculture Organization of the United Nations Database. The agricultural production. http://www. apps. fao. org. Accessed on 20 June 2021.
Fileccia T (2017) GMOs: A good but battered means for sustainable production intensification. International Journal of Horticultural Science and Technology. 4(1), 1-20.
Fitzpatrick J (2019) Competitiveness of the African cashew sector. Gates Open Res 3.
Florian L (2014) Measuring competition in banking: A critical review of methods." CERDI Working Papers.
Gilleo J, Jassey K, Yeager Sallah J (2011) Cashew Business Basics. The Gambia river basin Cashew Value Chain Enhancement Project. International Relief and Development.
Goujon P, Lefebvre A, Leturcq P, Marcellesi A, Praloran J (1973) Etudes sur l'Anacardier. Bois & Forets des Tropiques. 151, 27-53.
Heinrich M, (2012) Case study of the African cashew initiative–focus: Ghana. Donor Committee for Enterprise Development, Lessons from working with new and multiple partners–emerging results. Accra, Ghana.
ISSER (2008) The State of the Ghanaian Economy, Institute of Statistical, Social, and Economic Research Report, University of Ghana.
Jaffee S (1994) Private Sector Response to Market Liberalization: The Experience of Tanzania's Cashew Nut Industry, World Bank Publications.
Jekayinfa S, Bamgboye A (2006) Estimating energy requirement in cashew (Anacardium occidentale L.) nut processing operations." Energy. 31(8-9), 1305-1320.
Kielland A, Tovo MC (2006) Children at work: Child labor practices in Africa, Lynne Rienner Publishers Boulder, CO.
MoFA (2008) Agriculture in Ghana. Facts and Figures. Statistics, Research and Information Directorate (SRID). Accra.
Oro K, Pritchard B, (2011) The evolution of global value chains: displacement of captive upstream investment in the Australia–Japan beef trade. Journal of Economic Geography. 11(4), 709-729.
Orwa C, Mutua A, Kindt R, Jamnadass R, Simons A (2009) Agroforestree Database: a tree reference and selection guide. Version 4. Agroforestree Database: a tree reference and selection guide. Version 4.
Osei A, Pandey P, Spiro D, Nielson J, Shrestha R,Talukder Z, Quinn V, Haselow N (2010) Household food insecurity and nutritional status of children aged 6 to 23 months in Kailali District of Nepal. Food and Nutrition Bulletin. 31(4), 483-494.
Porter ME, Kramer MR (1985) Advantage. Creating and Sustaining Superior Performance, Simons.
Sarpong PK (2011) An assessment of the contribution of cashew production to local economic development: a case study of the Brong Ahafo Region.
Srivastava SK (2007) Green supply‐chain management: a state‐of‐the‐art literature review." International Journal of Management Reviews. 9(1), 53-80.
Tamarack LM (2004) Prevalence and Attitudes Towards Illegal Piracy of Entertainment Media, University of South Carolina.
Telascrêa M, Leão AL, Ferreira MZ, Pupo HFdF, Cherian BM, Narine S (2014) Use of a cashew nut shell liquid resin as a potential replacement for phenolic resins in the preparation of panels–a review. Molecular Crystals and Liquid Crystals. 604(1), 222-232.