Bono Cashew Farmers call for fixed annual producer price to protect incomes

Cashew farmers in the Bono Region are urging the government to introduce a fixed annual producer price for raw cashew nuts (RCNs), arguing that the current system of setting only a minimum price leaves them vulnerable to exploitation by aggregators.

Farmers contend that adopting a pricing model similar to the cocoa sector would stabilise incomes and curb opportunistic underpricing, ensuring producers earn fair returns.

Currently, the Tree Crops Development Authority (TCDA), the sector regulator, announces a minimum producer price ahead of each harvest, which buyers are legally required to follow. However, farmers report that aggregators often pay prices well below the benchmark, especially when supply is abundant.

The call for pricing reform emerged during a training session for leaders of cashew farmer cooperatives under the ‘Amplifying the Voices of Cashew Farmers’ project, implemented by Cashew Watch Ghana. The programme, held at Sampa in the Jaman North District, focused on strengthening advocacy, leadership, and negotiation skills to enable cooperatives to influence sector policies and value-chain governance.

Daniel Munufie, Chairman of the Bono Cashew Farmers Cooperative, said a fixed price would allow farmers to plan operations and improve income predictability amid rising global demand for RCNs. “For the 2024/2025 season, the minimum price was set at GH¢15 per kilogramme, yet some aggregators pushed prices down to as low as GH¢5/kg without justification,” he noted.

Mr. Munufie also highlighted weighing-scale manipulation, particularly by itinerant buyers, as a widespread issue that shortchanges farmers. Despite legal restrictions requiring RCN aggregation by licensed firms, unregistered buyers continue to operate in parts of the market, contributing to income losses and even theft of cashew nuts, which are reportedly sold to illegal aggregators for quick profit.

He called on the TCDA to intensify enforcement, clamp down on illegal buyers, and ensure the use of standardised, certified weighing scales to protect farmers and restore confidence in domestic trading.

Speaking at the training, Francisca Adorkor-Khein, Bono Regional Director of the Department of Cooperatives, urged cooperative leaders to act as reliable representatives, engage effectively with institutions, and promote participatory decision-making, trust, and mutual benefit within their groups.

Raphael Godlove Ahenu, National Coordinator of Cashew Watch Ghana, emphasised that enhancing leadership capacity among cashew farmers is crucial to improving livelihoods. He noted that volatile prices, limited market information, and weak bargaining power continue to challenge producers, making targeted training essential for advocating sector reforms.