Accra: Ghana's cashew industry is grappling with significant challenges, including price instability, inadequate local processing, and a heavy reliance on exporting raw nuts. This follows a notable decline in farm-gate prices in 2025.
According to Ghana Web, Ghana produces hundreds of thousands of tonnes of cashew nuts annually. However, the country captures only a small portion of the crop's value, with over 94 percent of raw cashew nuts being exported or traded without local processing. A recent independent study on Ghana's cashew industry revealed that in 2025, the country processed only about 15,000 metric tonnes of raw nuts, accounting for less than six percent of its estimated annual production of 262,000 metric tonnes.
The findings have spurred calls for urgent government intervention to transform the industry from a raw-export business to a competitive agro-processing sector. This transformation could create jobs, generate tax revenue, stabilize markets for farmers, and retain more value within the country. The report, titled "Ghana Cashew Processing Sector and Roadmap for a Supportive Cashew Public Policy," was conducted by international agricultural economics consultancy Nitidae, with support from the Association of Cashew Processors of Ghana (ACPG), GIZ, and the European Union Delegation to Ghana.
The study highlights the volatility of cashew prices and its impact on farming households. In 2025, farm-gate prices started at around GHS16 per kilogram in January, rising to approximately GHS20 per kilogram in February, before dropping sharply to about GHS7 per kilogram by May. This significant decline underscores the vulnerability of farmers, who rely heavily on cashew sales as a primary income source. The report suggests that a stronger domestic processing industry could provide more stable markets for farmers while reducing dependence on international buyers.
Ghana's cashew sector faces the paradox of exporting more raw nuts than it produces. In 2025, the country exported approximately 444,000 tonnes of raw cashew nuts, mainly to Vietnam and India, despite an estimated production of 262,000 tonnes. The discrepancy is largely due to approximately 165,000 tonnes of raw cashew nuts imported informally from neighboring countries and exported through Ghana's Tema Port.
The limited local processing has economic implications beyond the export of raw nuts. The study notes that a modern processing factory could employ numerous full-time and daily workers, creating thousands of direct and indirect jobs. However, much of the processing and economic activity occurs outside Ghana. Antonio Manuel Caramelo Raposo, President of the ACPG, emphasized the economic opportunities lost through raw exports, highlighting the study's roadmap for aligning Ghana's industrial ambitions with necessary investment conditions.
High investment and operating costs remain major obstacles to the growth of Ghana's cashew-processing industry. Establishing a modern processing factory in Ghana is nearly twice as expensive as in Vietnam, compounded by high electricity costs, expensive machinery, limited industrial support, and high borrowing costs. These factors undermine the financial appeal of investing in Ghana's processing industry.
Despite consistent growth in cashew production since 2016, Ghana's processing sector remains small. The study identified only one major industrial processing facility alongside smaller processors, emphasizing a value chain focused on raw nut exportation rather than industrialization. The ACPG is urging the government to prioritize cashew processing within its economic and export development agenda.
The study cautions against a blanket ban on raw cashew exports, recommending instead a balanced policy package supporting processors while protecting farmers. Recommendations include a levy on raw exports, establishing a Cashew Development Fund, and developing agro-industrial parks.
For Ghana's cashew industry, the challenge is transforming increased production into lasting industrial and economic value, raising questions about the country's readiness to pivot from exporting raw commodities to building a robust manufacturing economy. Stakeholders are urging the government to implement evidence-based policies to make local processing competitive and unlock the sector's full potential.