2024-10-31 23:05:00
The cashew industry is in trouble in Senegal. After a poor harvest and a surge in raw cashew prices, processors are short of raw materials, to the point that all processing units in the country have suspended their operations since last May.
From our correspondent in Dakar,
The accounts are in the red. Instead of the usual 300 tons of cashews, Ethicajou, one of Senegal’s four industrial processors, says it was only able to buy 24 tons. In question, very high prices follow a crop half the size and the absence of state protection measures to prevent cashew producers from selling to Vietnamese and Indian exporters rather than Senegalese companies.
In Casamance, Ethicajou was forced to close until the next campaign in April 2025, and the 119 people who worked there were fired for economic reasons. A situation that puts the future of the company at risk, founded three years ago thanks to a foreign investment and not yet in balance, while the employment potential that this company represents for the Kolda area in Casamance is crucial – one of the poorest in the Village – .
For each of the cashew processing units in Senegal, the scenario is the same. The cars are stopped. More than 400 people lost their jobs.
A cashew sector with high employment potential
With approximately 2,000 tons of raw cashews worked every year, the sector represents only 3% of what is collected in Senegal. But just wait until it grows, say cashew advocates who put forward that figure.
For 65,000 tons of cashews in 2023, shelling, roasting and packaging cashews for direct consumption would create more than 2,600 jobs and nearly 900 technical jobs. Crucial data for a country undermined by youth unemployment. To do this, cashew supplies must be guaranteed.
No export taxes
THE Senegal it is the only country in the ECOWAS with the Gambia not taxing the export of raw materials abroad and not having a policy of supporting the processing of the precious walnut.
Last June, a pattern based on the model of Ivory Coast it was then passed on to the new Senegalese authorities. Among the requests, that of imposing a tax of 52 CFA francs (0.08 euro cents) per kilo on exporters to encourage them to sell as a priority to Senegalese processors, and thus give the possibility for 100% made in Senegal cashews to be exported abroad rather than just raw nuts.
Read alsoIvory Coast encourages local processing of cashews
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Interview between Time.news Editor and Cashew Industry Expert
Time.news Editor: Welcome, and thank you for joining us today. The situation in the Senegalese cashew industry sounds dire. Can you explain how the recent poor harvest has impacted processors like Ethicajou?
Expert: Thank you for having me. Absolutely. The recent harvest was notably disappointing, yielding only about half of what was expected. Processors like Ethicajou typically rely on a steady supply of raw cashews to function effectively. With only 24 tons available instead of the usual 300, they simply cannot operate profitably. This shortage has forced many processing units to halt their operations, leading to significant layoffs and economic instability in the region.
Editor: That’s quite alarming. You mentioned the high prices of raw cashews. How are these prices affecting the processors and the broader market?
Expert: The surge in raw cashew prices is primarily due to the low supply. Producers, facing financial pressures, are choosing to sell their products to foreign exporters from countries like Vietnam and India, who often offer better prices than local processors. This not only makes it difficult for Senegalese companies to compete but also exacerbates the shortage of raw materials, further crippling the industry. Without state measures to protect local processors, this trend will likely continue.
Editor: Ethicajou has closed its processing unit in Casamance, which is notable for a company so recently founded. What does this closure mean for the local community?
Expert: The closure is devastating for the community. Ethicajou was established with foreign investment and promised to create jobs—specifically in Kolda, one of Senegal’s poorest regions. They employed 119 people directly, and their operations had a ripple effect on local economies. With their closure, not only are those employees losing their jobs, but the local economy is losing a crucial source of income and potential growth.
Editor: It sounds like local employment and economic growth are at risk. What solutions could be implemented to support the cashew industry in Senegal?
Expert: There are several strategies that could be employed. First and foremost, the government could implement protective measures to support local processors, such as imposing restrictions on exporting raw cashews or setting minimum prices. Additionally, investment in agricultural practices and support for farmers could help increase yields. developing a cooperative model among farmers could ensure they receive fair prices while keeping the processing local, ultimately benefiting the entire supply chain.
Editor: It’s clear that interventions are necessary to revitalize this industry. What do you believe the future holds for the cashew sector in Senegal if these challenges aren’t addressed?
Expert: If these challenges remain unaddressed, the future of the cashew sector in Senegal looks bleak. Increased competition from foreign markets will continue to drain local resources, leading to more closures and job losses. Eventually, this could result in the complete collapse of the domestic processing industry, making it increasingly difficult for producers to rely on the local market for sales. Without strategic action, Senegal risks losing its place in the global cashew market entirely.
Editor: Thank you for your insights. It’s evident that immediate action is not only beneficial but necessary for the health of the Senegalese cashew industry and its workers. We appreciate your time and expertise on this issue.
Expert: Thank you for having me. It’s important to keep this topic in the spotlight, as the decisions made now will significantly impact many lives in Senegal for years to come.