In a recent analysis, Bright Simons highlights the stark economic realities of Ghana's cashew industry, where local prices reflect gross markups of 40 to 80 times. Cashew nuts are purchased from farmers at approximately $500 per ton, only to be sold by roasters and retailers for between $20,000 and $40,000 per ton. This striking disparity raises questions about the fairness and sustainability of the current market structure [b05cd24a].
The situation is further complicated by the presence of imported Thai cashews, which retail for around $33,000 per ton despite incurring high tariffs and logistics costs. This competition poses a significant challenge for local producers, who struggle to compete against cheaper imports while facing high operational costs and inflation [b05cd24a].
Simons also critiques the World Bank's Doing Business Report, which was influential in shaping economic policies from 2003 to 2021 but was ultimately shelved due to allegations of geopolitical manipulation. The recent Business Ready report indicates that Ghana's business climate is only average compared to other African nations, hampered by high inflation, poor investor facilitation, and ineffective digital services [b05cd24a].
Economist Ha-Joon Chang advocates for a shift away from neoliberal policies, emphasizing the need for a robust industrial policy to support local industries like cashew production. He argues that the current neoliberal framework has failed to address the structural issues facing Ghana's economy, particularly in the agricultural sector [b05cd24a].
As the cashew industry grapples with these challenges, the need for effective government interventions becomes increasingly evident. Without strategic support and policies aimed at enhancing competitiveness, Ghana's cashew farmers may continue to struggle against both local and international market pressures [b05cd24a].