Guinea-Bissau’s cashew marketing campaign in 2024 achieved a five-year high, with average producer prices nearly double the minimum. Although production fell short of expectations, the initiative resulted in significant state revenues through exports. Prime Minister Barros and Minister Vegas emphasized the economic importance of cashews, while challenges in financing and value addition remain critical issues for the sector.
In 2024, Guinea-Bissau experienced its most successful cashew marketing campaign in five years, with average prices offered to producers reaching almost double the established minimum. According to Lusa, the average price was 570 CFA francs (US$0.90) per kilogram, which is 87.5% above the minimum set at 300 CFA francs (US$0.48). While production did not meet the anticipated 200,000 tons, the campaign was financially beneficial for both producers and the state, as noted by the Director-General of Commerce, Lassana Faty.
The 2024 cashew marketing drive commenced on March 15 and will conclude on February 5, 2025. It involved a network of 49 companies and over 1,700 intermediaries who purchased directly from producers. The initiative helped increase state revenues through heightened export contracts, as nearly 92% of the 178,000 tons harvested were exported to various markets in Asia, Europe, and the Middle East.
Prime Minister Rui Duarte Barros highlighted the significance of cashew nuts to the nation’s economy, stating, “Cashew nuts are not just an agricultural product; they are a source of livelihood for thousands of families and the backbone of Guinea-Bissau’s economy.” Commerce Minister Orlando Mendes Vegas further emphasized this point, asserting that cashew nuts are the most critical economic activity, contributing to 90% of total exports.
Despite the successful campaign, there were notable challenges in financing, which was the most significant hurdle according to Saliu Bá, the interim secretary-general of CCIAS. The limited financial support from the national banking sector stemmed from issues such as difficulty in securing guarantees, an inefficient justice system for dispute resolution, and government price volatility.
To address long-term challenges, local value addition is essential. By producing cashew-derived products like syrups, wines, and cheeses, Guinea-Bissau could potentially increase revenues beyond what is achieved through raw cashew exports, enhancing economic sustainability and reducing vulnerability.
In summary, Guinea-Bissau’s 2024 cashew marketing campaign was marked by high prices and substantial exports, despite facing production shortfalls and financing challenges. The cashew sector plays a pivotal role in the nation’s economy, necessitating strategies for local production diversification to strengthen economic resilience.
Original Source: macaonews.org
