Ivory Coast's Cashew Sector Faces Export Crisis Amid Production Surge

2025-05-08 04:07:49

(MENAFN- The Arabian Post)

Ivory Coast has revised its 2025 cashew production forecast upward to 1.3 million metric tons, an increase from the earlier estimate of 1.15 million tons. This adjustment is attributed to intensified efforts to curb smuggling to neighboring countries and favorable climatic conditions. However, the sector confronts significant challenges due to prospective U.S. tariffs and a depreciating dollar, which have led to a sharp decline in exports and a substantial accumulation of unsold stock.

Vietnamese buyers, traditionally accounting for approximately 80% of Ivory Coast's raw cashew exports, have drastically reduced their purchases to 200,000 tons this year, a significant drop from the 700,000–800,000 tons acquired in 2024. This downturn is primarily due to anticipated U.S. tariffs of up to 21% on Ivorian exports and potentially 46% on Vietnamese exports if no resolution is reached by July. The weakened U.S. dollar has further complicated contract terms and driven down local producer prices from 425 CFA francs to 200 CFA francs per kilogram.

Approximately 200,000 tons of unsold cashews are currently at risk of spoilage, despite local buyers having already purchased over 650,000 tons-more than double the volume acquired last year. The Cotton and Cashew Council is now considering support measures to absorb the remaining stock.

In response to these challenges, the Ivorian government has implemented measures to bolster the local cashew processing industry. An exclusive supply period from January 24 to March 15 has been established, granting local processors priority access to raw cashews before exports are permitted. Additionally, the government has secured USD 28.7 million in investments from international firms, including TORQ Commodities , Zantye Agro Industries , Münzer , and Agricas Global , aimed at enhancing local processing capabilities.

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Despite these initiatives, only 21% of the cashew harvest is currently processed locally, falling short of the government's target of 50% by 2030. The sector's expansion has also raised environmental concerns, with reports indicating that the rapid growth of cashew orchards has contributed to deforestation and food insecurity in certain regions.

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