India: Labour hits Palasa cashew units

Despite switching to the steam-boiling method, cashew operators at Palasa near here are yet to begin operations as workers still prefer units with the drum roasting system.

A worker earns Rs 6 for breaking a kg of cashew nut and can break around 20 kg nuts in a day in the drum roasting method thereby earning around Rs 120 per day. However, in the boiler system, a worker can break only 7-8 kg of nuts a day and, therefore, earns only Rs 40-50 a day.

“Though we are offering Rs 3 more on each kg of nuts, workers still prefer the drum roasting units as they offer better revenue,” K Nooka Raju, former president, Palasa Cashew manufacturers Association, said.

Though the pollution control board had directed all the units to switch to steam-boiling method, a few operators are still using the drum roasting method. “Pollution department officials are taking stringent action against operators in Palasa if they do not convert their processing systems. However, no action is being taken on operations with drum roasting system in other areas of the district,” he said.

There are about 300 cashew processing units in Srikakulam district, of which about 170 are located in Palasa.

In order to check the emission levels caused by the cashew units here, the Andhra Pradesh pollution control board had advised the operators to change the processing system from roasting to steam-boiling. It has also started issuing closer notices to the units failing to comply with the order.

Following this, cashew processing units gradually started switching to the boiler method with the assistance from the government, which is offering a subsidy of 25 per cent on conversion costs.

“Cashew processing units have to invest Rs 5-10 lakh in each unit to change to the boiler method. But now, the units are lying idle due to unavailability of labour even though new crop has started arriving from the last four weeks,” Nooka Raju said.


Source: business-standard.com

Publication date: 5/6/2009

Kenya sees cashew nuts as goldmine; plans to prohibit raw cashew exports

The Kenyan government plans to bring about a regulation on the exportation of raw cashew nuts in order to encourage the progress of local industries and processing factories as well as for the purpose of creating jobs.

For the past several years, the exportation of unprocessed nuts had caused the destabilization of local production and processing, William Ruto, the Agriculture Minister, said.

“This is an industry that used to employ 5,000 Kenyans. Today all those jobs have been lost because we allowed the export of raw nuts. It is against public interest to export unprocessed nuts and that’s why we are seriously considering regulating the exportation of nuts in such a state,” he added.

He did not give a clarification on exactly how this is going to be done; however, it can be safely believed that sale of raw nuts will take place only when the requirement comes up.

Last year, the export of raw cashew nuts had been put under a ban by the government; however, according to the farmers, this was not a sensible move, as they pointed out that the lack of adequate processing capacity in the country would prove that the move, after all, produced no impact.

This was after the downfall of the Kilifi Cashew Nuts Processing Factory (at present the factory has just 20 staff, down from the earlier 3,000) in the early 1990s and the sale that followed to a private company in vague circumstances. This led to a situation where the farmers did not have access to a structured market to sell their produce and, hence, they had to turn to middlemen.

Kenya has about two million cashew nuts trees, and the country’s overall cashew nut production touches a volume of 10,000 Metric Tonnes (MT). Yet, 50 percent of these nuts are marketed in their raw form and only about six percent undergoes local processing.

Ruto, however, reiterated that the government is committed to bringing about a sea change in the nuts industry which has immense potential. The industry is a virtual goldmine waiting to be tapped in that it is capable of producing 120,000 Metric Tonnes of cashew nuts and thus contributing Sh3 billion to the country’s treasury every year. Kenya’s cashew production industry consists of approximately 60,000 farmers, and they are at present getting about Sh260 million in a year from the plantations of the cash crop on 30,000 hectares of land.

For this purpose, the Minister announced that a taskforce consisting of five members will be set up in order to incorporate the views and advices of the stakeholders on the way ahead.


Source: foodbizdaily.com

Publication date: 4/16/2009

Kenya to ban raw cashew nuts exports

The government will regulate the exportation of raw cashew nuts as a way of encouraging the development of local industries, processing factories and job creation.

Agriculture Minister William Ruto told reporters on Thursday that the exportation of unprocessed nuts had for many years undermined local production and processing.

“This is an industry that used to employ 5,000 Kenyans. Today all those jobs have been lost because we allowed the export of raw nuts. It is against public interest to export unprocessed nuts and that’s why we are seriously considering regulating the exportation of nuts in such a state,” he said.

Although he did not specify how this would be done, it is believed that sale of raw nuts will only be done when the need arise.

The government had imposed a ban on raw nuts export last year but this did not go down well with farmers who argued that the move would not have any impact since the country lacks the processing capacity.

This followed the collapse of the Kilifi Cashew Nuts Processing Factory (which now has 20 staff down from 3,000) in the early 1990s and the consequent sale to a private company in unclear circumstances. This meant that the farmers were deprived of a structured market for their produce and they therefore turned to middlemen.

Total cashew nut production stands at 10,000 Metric Tonnes (MT) and comes from approximately two million cashew nuts trees. However, 50 percent of these nuts are sold in raw form while only about six percent is process locally.

Ruto however reiterated the government commitment to turn around the nuts industry which has the potential to produce 120,000 MT and contribute Sh3 billion annually to the country’s coffers. About 60,000 farmers are engaged in the production and they are currently fetching about Sh260 million annually from the cash crop which is planted on 30,000 hectares of land.

Towards this end, the Minister announced the setting up of a five-member taskforce to consolidate stakeholders’ views and advice on the way forward.

The team, which was given two weeks to come up with the recommendations, is among other things expected to propose how the government can own a stake in the Kilifi factory with a view to streamlining its operations.

“They should discuss with the current owners (of the factory) how to create a public private partnership so that government can buy into the plant,” he directed the taskforce members who were present at the press briefing.

The government has in the past put in place measures such as the provision of spraying equipment to farmer and staff training on cashew nut management to revive the industry which have not borne fruits.

Stakeholders however reckon that there is a need to develop a cashew nut policy to guide production, processing and marketing of the crop as well as promote cottage industries in order to add value to the produce.


Source: capitalfm.co.ke

Publication date: 4/29/2009

Mozambique: Cashew nut processing factory expects to double production

Mozambican cashew nut processing factory, Macia Castanha Moçambique (MCM), located in Macia, in Mozambique’s Gaza province, expects this year to process 1,000 tonnes of cashew nuts, the factory’s owner said.

Speaking to Mozambican newspaper Notícias, Mussá Cassamo Mussá said that the unit currently had capacity to process 1,000 tonnes of cashews per year, but that by acquiring electrical machinery production could be doubled.

At the moment MCM has over 500 tonnes of cashews in its warehouses.

He said that the only problem was a lack of work force, adding that this had led to production dropping and contracts not being signed with foreign buyers.

“This is affecting production, and so due to this difficulty I cannot close deals with foreign nut buyers, as we cannot meet the demand from other markets,” said Mussá.

Every year the company exports 100 tonnes of cashew nuts to foreign markets, which is a small amount due to low levels of production.

As well as exporting to South Africa, MCM sells its production on the local market, particularly to wholesalers.

Mussá said that this season had been overshadowed by exporters of unprocessed cashews entering the market, as they had led producers to raise their prices, which makes it difficult for factories to acquire the raw materials.

He added that this year the price of raw cashews had risen substantially, and now stood at 13.5 meticals per kilo.


Source: macauhub.com.mo

Publication date: 4/29/2009

India: Cashew export dips 22% in March

The cashew kernel exports in March declined by 22 per cent to 8,783 tonnes due to slackening demand from the US amid the global slowdown. Exports during March 2008 stood at 11,201 tonnes, according to Cashew Export Promotion Council (CEPC) data.

Cashew exports are affected mainly on account of global economic crisis, as it does not fall under essential commodity, CEPC Secretary, Mr K Sasi Varma said.

The demand has come down considerably from the US, which is battling recession since December 2007, he added.

India exports about 45 per cent of the nut to the US. In terms of value also exports dipped by about 10 per cent to Rs 230.46 crore from Rs 255.72 crore in the same month last year.

In terms of volume, exports for 2008-09 dipped by 5.43 per cent to 1.08 lakh tonnes compared with 1.14 lakh tonnes in the previous fiscal. In value terms it was up by 29 per cent at Rs 2,950.24 crore against Rs 2,288.90 crore a year ago.

To promote the interests of cashew producers and boost consumption of the nut across the world, CEPC is sending a five-member delegation to the US to discuss the modalities for setting up a Global Cashew Alliance, Mr Varma said.

The delegation will also attend the Annual Convention of Association of Food Industries (AFI) at Naples, Florida, from April 30 to May 2.


Source: thehindubusinessline.com

Publication date: 5/1/2009

Kenya: Cashewnut industry set for revival

The government has set up a taskforce to look into ways of revamping the ailing cashew-nut industry in the country.

Agriculture Minister William Ruto who spoke in his office, said the cashew-nut, sub-sector fell victim to unplanned liberalization of the agriculture sector 15 years ago, leading to the collapse of the sub-sector.

Ruto said following the closure of the Kilifi Cashew Nut Factory in Mombasa, over 3,000 jobs were lost together with revenue to the government.

"The cashewnut industry has the potential to employ some 5,000 people and at the same time contribute over Kshs 5 billion to the exchequer," said Ruto.

He said the cashew-nut sub-sector had a turnover of Kshs 2 billion 15 years ago and currently just manages some Kshs 160 million.

Ruto said the sector has the potential to contribute some Kshs 5 billion to the exchequer if well managed. the Minister appointed former MP and Managing Director of Kilifi Cashew Nut Factory, John Safari Mumba to the taskforce.

The others are; Nancy Kabeyeka Abisai, Francis Muniu, Margaret Kavenge Masaku and Nasaro Hada. The taskforce has 14 days in which to present the report to the Minister who said it is the intention of the government to see cashew nut factories up and running before the end of the year.

The Cashew Nut sub-sector met its waterloo following a government policy decision to allow the export of raw cashew-nuts, in effect leading to the closure of the then vibrant Kilifi Cashew Nut Factor in Coast province with others following suit.

The sub-sector has currently 2 million trees that produce 10,200 metric tonnes of cashew nuts this translates into 5.1 kilogram per tree, compared to 30 kilogram per tree if well managed.

80 per cent of the trees are said to be suffering from mildew. Other challenges include lack of a policy for the sub-sector.

Among a raft of proposals the Minister said the government intends to regulate the cashew nut industry by first regulating the sale of nuts.

"traders will not be allowed to export raw cashew nuts, they will only be allowed to sale the produce from farmers to local factories for processing," said the Minister.


Source: kbc.co.ke

Publication date: 5/4/2009