Business News of Monday, 21 April 2008

Source: GNA

Cashew farmers call for commodity price

Sunyani (B/A), April 21, GNA-Cashew Farmers in Brong-Ahafo have called on the government to provide a commodity price at the national level and set up an institution that will promote the crop as done to cocoa, coffee and sheanut.

The farmers made the call at an advocacy dialogue meeting of stakeholders in cashew production in Sunyani after a study on the crop's production that had necessitated finding effective methods of improving yield and removing constraints affecting farmers.

The meeting, sponsored by the Business Sector Advocacy Challenge Fund (BUSAC) was attended by cashew associations at Wenchi, Techiman, Nkoranza, and Jaman North and South districts.

The farmers further appealed to the government to set up a processing factory for the commodity, which they noted, "has great potential as a foreign exchange earner".

They said it was unfortunate that whilst the government had set up a cashew development project to support farmers to increase production, "it has left the farmers at the mercy of buyers who determine what price the crop should be bought".

"Some private agencies and buyers often cunningly complain of the low quality of the crop and fix low prices to their advantage but to the disadvantage of farmers", they stated.

The farmers stressed that, as a result of high operational costs they could not repay loans secured from the cashew development project and financial institutions.

Mr. Samuel Kwame Seiy, acting regional chairman of the association explained that per kilo price for the crop fluctuated between as high as GHC 0.60p to GHC 0.20.

"The unstable nature of pricing during the season is not dependent on the quantity available for purchase or on World market price but mostly on the whims and caprices of buyers", he stated.

The acting regional chairman said the cashew crop had a lifespan of 70 years and its fruits and nuts had high economic values and could provide oil, juices, animal feed, among others when processed.

Mr. Seiy called on the government to put in place or use an existing body such as COCOBOD to regulate the sale and purchase of the crop in the short term and to take charge of the organization for its promotion from cultivation to the marketing stage in the long term.

Mr. Michael Mensah, Chief Executive Officer of Simida Consults, development service consultancy in Sunyani and service providers of BUSAC noted that Brong-Ahafo had been a leading producer of cashew in Ghana over the past years and urged the government to pay particular attention to the farmers to help increase production.