In Senegal, cashew nut processing in difficulty

2024-11-11 23:14:00

In Senegal, it is a dark year for cashew nut processors and this fledgling industry. While several local agro-industrial companies have bet on the cashew sector, hoping to reproduce the Ivorian success, the opposite is happening this year. Between rising raw material prices and a poor harvest, almost all cashew nut processing companies risk going out of business.

With our special correspondent in Casamance,

« Here, we are in the shelling department “. Iman Drame, manager of a cashew nut processing factory, guides us through his warehouse. To his left, a conveyor belt, a sorting machine, but since last May, everything has stopped. “ We have stopped production due to lack of raw material because this year the raw material was very expensive, there was speculation, which meant that we were not able to buy to be able to work “, he explains.

This 54-year-old entrepreneur, who started his business in Ziguichor in 2004, describes the vicious circle faced by cashew processors. A poor harvest, 50, even 60% less cashew this year following hot winds at flowering time, with the result cashew nuts that have become unaffordable or even inaccessible. Because they are sold at high prices to foreign competition rather than to Senegalese processing companies. Iman Drame had to lay off eight employees and interrupt the contracts of 90 daily workers.

« This has very serious consequences »

For Jacques Birham Seck, head of Ethicajou, a fair trade processor 180 km away, near Kolda, it is even worse. “ It is the dismissal for economic reasons for the 19 permanent staff that we had, but also for the hundred women who worked as day laborers in the different sections of the transformation. They too were forced to be arrested », Regrets the entrepreneur. “ So this has very serious consequences from a socio-economic point of view, especially in one of the poorest regions of Senegal where there is almost no processing industry that hires as much. », he emphasizes again.

The reason is the absence of protectionist measures to prevent cashew producers from selling to the highest bidder elsewhere, estimates Boubacar Konta. “ It is the State which has the capacity to regulate, in all the countries where cashew has been truly successful, it is with the involvement of the State which has taken measures such as approval measures. to know who the exporters are, and who does what », Analyzes the president of the Cashew Inter-profession of Senegal.

A plea based on the Ivory Coast model was transmitted to the authorities. Among the requests, that of imposing a tax on exporters to encourage them to sell as a priority to Senegalese processors. The government promises to apply the measure for the season next year. Until then, companies are tightening their belts to manage to hold on without going out of business permanently.

Also readSenegal: cashew nut processors call on the State for help

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**Interview with Iman Drame, Cashew Nut Processing Factory Manager in Ziguichor, Senegal**

**Date: November 11, 2024**

**Interviewer:** Thank you for joining us today, Iman. It sounds like it’s been a very​ challenging⁣ year for the cashew industry in ​Senegal. Could ⁣you share some insights ​about⁤ what exactly has led to these difficulties?

**Iman Drame:** Absolutely. This‌ year has been particularly dark for us in the cashew nut processing industry. Several factors‍ have contributed to this situation. First and foremost, we⁤ experienced a poor harvest due to adverse weather conditions—hot winds during flowering time led to ​a significant ⁤drop in production, with yields down ‍by 50% ‌to 60%.

**Interviewer:** That sounds devastating for local producers. How has this impacted your operations specifically?

**Iman Drame:** As a​ result of the poor harvest, the price of ⁣raw cashew nuts skyrocketed. Speculation has driven prices so high that we, as local processors, cannot​ afford to purchase the raw material. Our ⁣production has ground to a halt; everything ​has stopped since May. This situation forced me to lay off ⁤eight⁢ employees and pause ​contracts for 90 daily workers.‌

**Interviewer:** ​That ​must be incredibly difficult⁣ for both you and your‍ employees. How do you see this affecting the broader‍ cashew industry in‍ Senegal?

**Iman Drame:** The ‍consequences are indeed ​serious. With local processors unable‌ to operate, we risk ‍losing our foothold ‌in the ⁣industry. Many companies that had invested in this sector, hoping to mimic the success of countries like Ivory Coast, are now‌ on the ‌brink of collapse. If we don’t address the pricing and supply issues soon, it could lead to ​a significant ⁤setback for the entire industry in Senegal.

**Interviewer:**‌ What are some steps you believe could be taken to support the sector and help it recover?

**Iman Drame:** ‌We need a comprehensive​ approach. First, there needs to be greater support from the government for local ‌producers, including price controls to ensure the raw materials ⁤remain accessible. Additionally, fostering‍ collaboration among processors could help us navigate challenges together.‌ Lastly,‌ focusing on improving agricultural practices to mitigate the‍ effects ‍of climate⁢ change‍ will be crucial for future harvests.

**Interviewer:** Thank you for your insights, Iman.​ It sounds ⁣like ‌there is much work to​ be done to support the cashew industry in ⁢Senegal. We wish you the best of luck in ⁢navigating these challenges.

**Iman Drame:** Thank you for having me. I appreciate the opportunity to share our situation and hopefully raise awareness about⁤ the struggles we are‍ facing.

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