Guyana’s potential as a large cashew nut producer is huge

Cashews rank third in world production of edible nuts that are traded globally. World trade in edible nuts has experienced relatively rapid growth, averaging about 2.7 per cent per year since the early 1970s and increasing in value from US $1.94 in 1980 to US $2.84 billion in 1990 (United Nations Yearbook of International Trade Statistics).

Worldwide, trade in cashews exceeds US$2 billion and demand is increasing. Of the total world supply, 110 000 tonnes are traded on international markets. India (60 percent) and Brazil (31 percent) are major exporters.

As a major importer of cashew, the USA has a strong influence over the world price, which is fixed in US$ per pound (1 pound = 0.45kg). The price of W320 grade (320 kernels per pound) over the last 15 years has ranged from US$2.73 to US$3.18. The 1999 price for W320 grade was US$3.30 per lb (US$7.2 per kg) FOB.

In the early 1970s, the majority of global cashew production (68 percent of total) took place in African countries, in particular, Mozambique and Tanzania. Over the following thirty years, production trends shifted, with Asian countries emerging as the world leaders in cashew production. Today, India commands about 40 percent of the international market in cashew production. Other Asian countries, particularly Vietnam and Indonesia, are beginning to expand their production capacities. Currently, the four main cashew producing regions are India, Brazil, Nigeria and Tanzania.

World production of cashew nuts grew rapidly during the 1950s and 1960s, reaching a peak of 624 000 tonnes of raw nuts in 1973. Three countries – India, Mozambique and Tanzania accounted for the majority of this production, while smaller industries had developed in Brazil, Kenya and several other African countries. In 1975-76, there was a sharp decline in world production, which continued into the 1980s. This decline was largely due to decreased production in Mozambique and Tanzania, since production in India during that period remained static (Jaffee and Morton, 1995). The Table in Appendix A1 summarises trends in average global cashew production over a forty year period. During the late 1980s and continuing into the 1990s, production picked up and continued to increase gradually. In 2000, world cashew production exceeded 1.2 million tonnes. Asian and African countries produced 0.6 million and 0.4 million tonnes respectively.

Overall cashew production in Africa steadily increased during the 1950s and 1960s, until the mid-1970s when that continent was the prime producer of cashew nuts. The year 1975 was the start of a fifteen year period of decline in production throughout the continent due to a combination of biological, agronomic and socio-political factors. The decline in prices at the end of the 1970s, combined with lower levels of production, dissuaded many farmers from improving cultivation techniques and replanting their cashew plantations (Andrighetti et al, 1998).

Since the early 1990s, production has recovered and has continued to increase steadily over the last decade. Today, Africa accounts for about 36 percent of world cashew production. (Source: FAO)

Historically, Mozambique and Tanzania were the main cashew-producing countries in Africa, with smaller amounts produced in a number of other countries. During the last five to ten years Nigeria has emerged as a leading producer of cashew nuts in Africa.

Guyana has the potential to become a major player in the cashew nut industry, particularly the Rupununi which ideally suited for its cultivation as it has vast lands and the right type of soil.

The development of the industry would not only help diversify the agriculture sector and enhance the national economy but would also be a good way of tackling poverty in that part of Guyana.

It is therefore good news to learn that NARI is working towards boosting cashew nut production in Lethem by the establishment of a three-acre demonstration plot to support expansion of the activities of farmers of that community.

According to NARI’s Director, Dr. Oudho Homenauth, the orchard will be constructed primarily to boost the work of the Helping Hands Women’s Group there. This is a step in the right direction as we strive towards the empowerment of women.

In addition, Dr. Homenauth pointed out that, recently, farmers in the Region Nine community and NARI technicians benefited from a brief training exercise conducted by experts from the Brazilian Agricultural Research Corporation (EMBRAPA), to enhance their skills in this regard.

While small-scale community production is a good start the long term objective should be to make Guyana an exporter of cashew nuts which the above data shows there is a global market for it. And with the imminent operation of the Takutu Bridge as the Georgetown/Lethem road the prospects look more exciting.

Therefore no effort should be spared to push production to a large-scale one.

SHARE THIS ARTICLE :
Facebook
Twitter
WhatsApp

Leave a Comment

Your email address will not be published. Required fields are marked *

All our printed editions are available online
emblem3
Subscribe to the Guyana Chronicle.
Sign up to receive news and updates.
We respect your privacy.