Part One
(A two-part series)
By Unekwuojo Augustine Edime
Meet Achor Akowe, a cashew farmer in Itakpe, Kogi State. For him, a single season’s harvest determines whether his children go to school or go hungry. Millions of Nigerian farmers face the same stakes. Yet, some processors are pushing for a raw cashew export ban. The question is stark: should those who produce the nuts carry the cost of processor inefficiency?
Nigeria’s Cashew Paradox
Nigeria produces over 350,000 metric tons (MT) of raw cashew nuts (RCN) annually, ranking fourth globally. More than 85% of this output is exported, generating substantial foreign exchange and sustaining millions of rural households. Beneath this success, however, lies a troubling paradox: if policymakers yield to calls for raw export bans or artificially suppressed farm-gate prices, the financial burden will fall squarely on farmers and exporters, while underfunded processors remain insulated from risk.
Farmers: The Backbone of the Industry
Cashew farming is highly labor-intensive. Producing 1 MT of cashew requires at least 10 workers. With 350,000 MT produced annually, the sector directly sustains about 3.5 million people. Farmers face rising input costs, long transport distances, and volatile prices, yet they remain the foundation of the entire cashew value chain.
In 2025, the farm-gate price is approximately ₦1.8 million per MT—far above the ₦900,000 per MT requested by some processors during industry meetings. A farmer producing 2 MT would earn ₦3.6 million. If the proposed cut were enforced, that income would be halved, threatening livelihoods. Across thousands of farms, losses could reach ₦25–₦35 billion per season.
Poverty and the Moral Question
At ₦1.8 million per MT, farmers are only just sustaining their costs. A price cut to ₦900,000 would push millions further into poverty. Such a policy would reduce farmers’ ability to hire labor, invest in orchards, and sustain production. Using poor farmers as the cost-bearers for processor inefficiency is short-sighted and morally indefensible.
Processors often claim ESG commitments, yet proposals to halve farm-gate prices expose a contradiction: how can livelihoods be improved by cutting incomes below production costs?
The Scale of Farmers’ Investment
Nigeria’s 350,000 MT annual production comes from about 358,000 hectares of farmland. Establishing one hectare costs roughly ₦1.7 million, with ₦935,000 required annually for upkeep. Over 20 years, this amounts to ₦20.4 million per hectare. Collectively, farmers’ stake in cashew cultivation is estimated at ₦7.3 trillion ($4.9–$5.2 billion).
Processors, by comparison, often cite total investments of just $100 million—barely 2% of the farmers’ commitment. Yet, export bans and artificial pricing would unfairly shift the costs of inefficiency onto the very farmers who built the foundation of the industry.
In Part Two, we will examine indigenous versus foreign processors, the risk of export bans, and the sustainable path forward for Nigeria’s cashew industry.
Unekwuojo Augustine Edime is a Cashew Master Trainer (MTP) and Agro-Industrial Strategist dedicated to transforming Nigeria’s cashew industry. With hands-on experience in farming, processing, and enterprise development, he empowers farmers, drives innovation, and champions value addition across the national cashew value chain.
