Mozambique’s Association of Cashew
Industralists (AICAJU) said in a statement on Monday that it estimates its
members will process around one third less this year compared to 2019. “AICAJU
estimates that cashew processing this year will not reach 35,000 tonnes,
compared to around 52,000 tonnes processed last year,” the document reads. The
country currently has less than 10 primary processing plants in operation, with
some expected to suspend working by August due to lack of raw material, adds
AICAJU. “This drop reflects the impact of a negative marketing trend in recent
years, with the national industry has been processing less and less cashew
since 2017,” the statement says, noting that in 2018 around 60,000 tonnes were
processed in the country. As reasons for the drop, it cites “the particularly
adverse context in which the nation’s industrialists are operating.” The
scenario described is one of “growing aggressive and protected competition from
international players such as India and Vietnam and the lack of updated
measures to respond domestically.” AICAJU argues that Asian processors are able
to buy raw materials in Mozambique at “unfair” prices, so “distorting the
market with a negative impact on the national industry, the processing value
chain and, finally, state coffers.”
This year’s harvesting and marketing effort
has also been affected by the Covid-19 pandemic, it said, “resulting in a
significant drop in the sector”: the price of cashew nuts has fallen by more
than 15% since the start of the crisis and by 25% from a year ago. AICAJU
describes as critical “the fostering of training mechanisms and support to
producers for the development of cashew trees”, otherwise production will
suffer further.
AICAJU represents 10 major plants and seven
small and medium-sized industrial units.
It is estimated that the industry sustains
around 1.4 million families in the country.
Cashew was in 2018 Mozambique’s 11th export
product in terms of revenue, at $14.8 million (€13.6 million), according to data
from the country’s National Statistics Institute (INE). Despite the current
difficult situation, AICAJUsays that it is “confident in the work that the
government is doing and believes that, through consultation between the State,
private sector and producers, it will be possible, in a timely manner, to
implement measures to defend the sector, which will allow a fair 2020 operation
for all stakeholders.”
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