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Cashew kernel processors in Ivory Coast have called on the government for support to help protect the local cashew industry from strong competition from Asian importers and processors, many of whom have stronger financial capacity.
Local Factories Are Short of Raw Cashew Nuts
The shortage of raw cashew nuts for local processing became more serious in 2021. The Ivory Coast Cashew Industry Group (GTCI), which represents 15 major cashew processors in the country, said that domestic cashew processing companies were only able to purchase around 37,000 tons of raw cashew nuts during the season, equal to about 15% of their total factory capacity.
=> Read more: Ivory Coast Aims to Triple Cashew Kernel Processing in 2022
Strong Demand for Raw Cashew Nuts from Asia
GTCI also noted that the shortage of raw cashew nuts was mainly driven by a sudden increase in demand from cashew processors in Asian countries.
This concern reflects the current situation in Ivory Coast’s cashew sector. Many Asian importers, especially from Vietnam and India, are able to offer higher prices to farmers because they operate at a larger scale and have stronger financial resources. As a result, local processors in Ivory Coast often struggle to compete for raw material supply.
Vietnam and India are among the largest buyers of Ivory Coast’s annual raw cashew nut output, importing a significant share of the country’s production for further processing into cashew kernels.
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