The Federal Government has urged the stakeholders in the cashew processing sector to ensure 30 per cent value addition on the product before export.
Speaking at the Annual General Meeting and Stakeholders Meeting of the National Cashew Association of Nigeria (NCAN) in Lagos on Tuesday, the Deputy Director in the Industrial Development Department (IDD) Ministry of Trade, Industry and Investment, Mrs. Olumuyiwa Ajayi-Ade, said the Federal Government is ready to transform the country’s cashew sector from largely raw commodity export industry into a value adding competitive and industrialised ecosystem that delivers share prosperity.
Ajayi-Ade said the cashew sector stands as one of Nigeria’s most viable non oil value chains with the capacity to create thousands of jobs, stimulate rural industrialisation, earn foreign exchange and deepen economic diversification.
She said: “Despite our natural endowment and growing global demand, Nigeria continues to export her cashew in raw form leaving value, jobs and income on the table for other nations to grapple.
“The reality underscores an urgent truth that business as usual is no longer an option. It is in response to this dilemma and the need to diversify the economy that present administration of President Bola Tinubu is pushing for at least 30 per cent value addition on cashew before export.
“This is were the capacity to create jobs for our youths lies. Therefore, the Federal Ministry of Trade, Industry and Investment is performing its duty as the MDA saddled with industrialisation, investment promotion a d trade facilitation is very interested in the development in the Nigeria Cashew Policy Roadmap.
“The roadmap represents a deliberate shift from.fragumented interventions to a coordinated long term and result-oriented framework for developing the cashew value chain from farm to factory and from the domestic market to global competitiveness with a strong emphasis on value addition and industrial growth.”
In his welcome address, the President of NCAN, Mr Ademola Adesokan, said the association is ready to work with relevant government agencies to strengthen the sector and protect livelihood.
He said cashew export prices this season should be around a thousand dollars. “This is not negativity but this is responsibility.
“We saw what happened in cocoa this season, sharp rise in price followed by a painful crash in price.
“Let us not repeat the same mistake with cashew. Cashew is not a get rich quick business, it is a serious business that feeds families, sustains communities and support national economy.
“So, we must protect price stability, trade responsibly and think beyond today,” he said.
On his part, the Chief Executive Officer of the National Agricultural Land Development Authority (NALDA), Olusegun Adebayo, said the Federal Government want the cashew processors to carry out backward integration.
Adebayo said the body has applied for 18,000 hectares in Kwara State to be cleared and allocated to people that have verified processing facilities.
He said: It is expensive to set up a facility and it is also very expensive to stock cashew for the processing cycle of the year. So it is wise that some of them also support small holder farmers by producing their own cashew.
“The old NALDA plantations in Ogun and Kwara states will undergo tree replacement drive for the existing farmers on those farm estates. We are replacing the existing cashew trees with high-improved seedlings to increase production.
“Our target is not to stay at number two on non oil export products but to push out the cocoa traders out of number one. It is possible and I want the best for the association and we are going to do our best.”
