News Agriculture

Cashew Processors in Senegal Fear Repeat of 2024 Crisis

Cashew Processors in Senegal Fear Repeat of 2024 Crisis
Friday, 16 May 2025 13:02
  • Cashew processors in Senegal are raising concerns over access to raw nuts despite recent government support

  • In 2024, only 3% of the country’s cashew harvest was processed locally, causing losses and job cuts

  • Processors warn of repeat risks unless a promised stock of 7,000 tons is secured quickly

Cashew processors in Senegal are sounding the alarm over challenges facing their industry. Nearly two months into the 2025 cashew marketing campaign, industry players continue to struggle with serious supply difficulties that are hindering their processing operations.

"Traders are still buying and exporting all the raw nuts before the rainy season, depriving local processors of the essential raw material for their operation. Meanwhile, processors, despite facing growing demand for processed products, remain idle, unable to operate due to lack of stock," stated the association of processors in a press release published on Thursday, May 15.

These concerns come a month after the government announced new measures to support the processing sector. On April 5, Prime Minister Ousmane Sonko unveiled several interventions for the sector, including the establishment of an export tax on raw nuts at 32 FCFA/kg, a processing premium, the creation of a safety stock of 7,000 tons, and the facilitation of access to financing.

Industrialists have broadly welcomed these measures, but express doubts about their real-world implementation. "It is imperative to act quickly to secure a stock of 7,000 tons of raw nuts for the processors, as announced, but which is slow to materialize on the ground. Without this, the sector risks losing another year, with disastrous consequences for jobs, businesses, and the local economy," warn the processors.

In addition to limited nut availability, the industrialists identify other obstacles, such as the absence of a formally organized system of nut collection that prioritizes local processors, the need for modernization of equipment, tough access to financing, and poor coordination among value chain stakeholders.

It's worth noting that in 2024, processors already encountered difficulties procuring raw materials. Preliminary estimates by the independent trade advisory service N'kalô in its October 31 briefing on the African raw material market suggest that Senegal only processed about 1,500 tons of cashew nuts, or barely 3% of the national harvest, estimated at 66,500 tons in 2024.

This weak performance in processing activities led to severe consequences, including financial losses, layoffs, shutdown of processing plants, and the loss of international business contracts for some operators.

In Senegal, the cashew sector directly employs nearly 1,000 people and is estimated to be a source of income for over 100,000 people, according to official data. However, most of the value created in the processing segment is lost, with the country exporting almost its entire harvest of between 65,000 and 75,000 tons each year in raw form.

According to Senegal's association of processors, a ton of raw nuts sold generates about CFA700,000 (around $1,200), compared to over CFA1.4 million for a ton processed. This value-added difference makes processing a strategic lever for industrialization and rural employment.

This issue becomes more critical given that the country received $92 million in cashew nut export earnings, of which only $476,000 came from processed nuts, according to data compiled by the Trademap platform.

On the same topic
Key Highlights: • Olam Agri to onboard 5,000 small-scale farmers in Kwara State under a new soybean supply initiative. • Partnership with IDH and...
Key Highlights: • Kenya allocates $27 million to renovate 19 tea factories as part of sector reforms.• Producers can now sell tea directly on...
Rwanda targets $335.4 million in private capital to strengthen climate resilience in agriculture The plan aims to support 170,200 farmers and...
From July 14, 2025, palm oil importers in Ghana must register and obtain permits The move aims to stabilize the domestic market and protect local...
Most Read
01

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
02

Egypt signs deals to import up to 290 LNG cargoes over 30 months, starting in July Trafigura,...

Egypt secures 290 LNG shipments ahead of peak summer electricity demand
03

(AfDB)-Egypt's first integrated solar and battery storage plant will deliver dispatchable clean ener...

AfDB, EBRD and BII support pioneering solar and battery storage project in Egypt with $476 million loan
04

Lion Group to explore and exploit gold, copper, and manganese in Algeria Malaysian firm plans...

Algeria, Lion Group sign mining and metals investment deal
05

This launch is a significant milestone that highlights Rwanda's ongoing digital transformation. With...

MTN Rwanda Launches 5G Network in Kigali, Paving Way for Nationwide Expansion
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.