MASDAR
International
Consultants
2001: AFDB/MOFA Agro Industry Study 2001
2003: Technoserve Ghana
Cashew Processing
Aquaculture
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So Cashew: Where does it all start?
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How is the value added …..
Basic processing Post-processing
7.
1.Steaming 2.Air drying 3.Shelling 4. Oven 5. Peeling 6. Sorting
Packaging
drying
25
25lbs
50 lbs
•Raw nuts •Dried, to •Nuts are •Kernels •Kernels •Sorted •Kernels
are make shell cracked are are and are CO2-
steamed brittle and to free oven- peeled graded flushed
under easy to crack the dried and
high kernel vacuum-
pressure packed
Outturn ~ 20%
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What does a cashew processing operation look like?
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Global production for cashews has grown at an average rate of
4.4%* over the past 40 years
World cashew raw nut production, 1961-2001
Metric tons, millions
2
1.8 CAGR*
1961-2001
1.6 4.4%
1.4
1.2
1
0.8
0.6
0.4
0.2
0
1961 1971 1981 1991 2001
*Compound annual growth rate 4
Source: FAO (Food & Agricultural Organization of the UN)
Vietnam has now become a major player, it shows what can be done!
% %
Other 4 4
Other
East Africa 12 Vietnam 17
Global annual Global annual
production is West Africa 20 production of
Brazil 18 kernel is of the
of the order of
1.5m MT. order of 300k
Vietnam 13 MT.
Brazil 16
India 61
India 34
Raw Nut Pre-processed bulk
Source: Samsons Trading Company; The Market for Cashew Nuts and its Relevance to African
Production, 1999.
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The EU and the US consume the lions share!
% Global Cashew Kernel Consumption
Brazil 2.6
Rest 2.6
Oceania 2.6
Japan 2.6
West Asia 2.6
US /
34.3 Canada
China 10.5
India 21.1
21.1
Europe
Source: Samsons Trading Company; MAN Production – Edible nut market report
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Long-term real prices have been stable with a typical slight decline
World cashew raw nut price, 1971-2003*
USD per metric ton, indexed to 1990 CPI
2000
1800
1600
1400
1200
1000
800
Long-term
600 price trend**
400
200
0
1971 1981 1991 2001
*2003 indicative price based on initial harvest price of $620-650/Mt from Guinea Bissau
**Excluding 1980-81 7
Source: Cashew Board of Tanzania (“CBT”), FAO, Industry sources
Historic prices, are somewhat volatile but solid over time
World Market Cashew Kernel Prices
(Grade W320)
3.5
3
2.5
US$/lb
2
1.5
1
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Cashew production in Ghana is set to further expand over the next few
years with the assistance of the AfBD funded Cashew Development
Project
Ghana Raw Cashew Nut Production
6000
5000
4000
MT
3000
2000
1000
0
1992 1993 1994 1995 1996 1997 2000 2001 2002
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Virtually all cashew production in Ghana is exported out of Ghana in
raw nut form!
MT/Year Price/MT Value $m
4500 480 1.8
Raw cashew
nuts
1.0594214
50 3500 0.175
Value added
in Ghana
Source: TNS Cashew Team
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We are beginning to see an evolution in product flows
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To:
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In 5 years time 50% of the cashew nuts could be processed in Ghana
7000
6000
harvested
5000
4000
Metric
3000
Tons
2000 processed
1000
0
2004 2005 2006 2007 2008
Year
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Minimum efficient scale business unit size needs to be 1000 tons
of raw nuts processed per year producing 200 tons kernel
3500
3000
2500
2000 Third
Raw Nuts
Second
processed 1500 First plant
1000
500
0
2004 2005 2006 2007 2008
Ramp up: 500,750,1000 mt/yr
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Based on the assumptions total value of cashew exports can
increase from $2m to $3.3m in 5 years and create at least 750 real jobs!
MT/Year Price/MT Value $m
3000 480 1.2
Raw cashew
nuts
1.0594214
3000 = 600 kernel 3500 2.1
Value added
in Ghana
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Cashew processing is labour, not capital intensive.
Cashew Processing Plant
Buildings 30
Estimated Investment $,000
Equipment 50
Vehicle & Other
40
Total capital
investment 120
Raw nuts 150
Salaries 50
Other 50
Total Working
250
Capital
Total investment 370
Processing 500 metric tons in first year, 10 tons nuts per week!
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But cost structure is critical
P&L per Kg Raw Nuts
Revenue/Kg Raw Nuts 0.79
Nut cost 0.37
Labour 0.12
Processing/Overheads 0.06
Packing/Distribution 0.06
Profit BIT/Kg 0.17
500mt/annum factory, $/kg
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So what are the building blocks critical to success?
Entrepreneur
Management
Scale
Infrastructure
Economies
Good
Quality Productivity Training
Raw Nuts
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Who can help develop my business idea?
MOFA Cashew Development Project (launched April 2003)l
•Increase cashew production and production in Ghana
•$13m provided by African Development Bank/GOG
•$4.8m credit facilities available to private sector
•6 year implementation period, 5 regions.
•Contact CDP on 021 662472
Technoserve
Experience of cashew in Mozambique, Tanzania and Ghana
Knowledge and Information of International Cashew Industry
Market Linkages
Business Development Skills
Contact us on 021 763675
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• There is a future in farming fish!
November 2003 20
Large scale commercial aquaculture is
less than 30 years old. By 2030 almost all
fish consumed will be farmed!
CAGR* since 1990
Wild
Supply
Meat Production
2003
Wild Supply 1950
Fish Farming
0% 5% 10% 15%
* Compound Average Growth Rate 21
Fish farming is now a major source of fish
Global Fish Consumption 2000
100 80%
90 produced in
80
low intensity
70
60 systems for
M MT
50 local
40 consumption
30
20
10
0
wild fish farmed
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the local pond
• Current catch (350 MT) is at max. sustainable level
• Fish imports in 2000 were estimated at $150m
• Fish represents 70% of animal protein consumed
• Fish is the major source of protein in most dishes
• Demand is growing with population increase
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the EU fish supper
• Technoserve Market Study 2003 looked at the
opportunity to export tilapia from Ghana to EU
– EU fish market huge and growing
– Existing tilapia suppliers making slow inroads
– Need to educate customers to potential
– New suppliers should focus on fresh sector
– Cost of product delivered critical (€6/Kg)
– Regulations complex
– Duty free access
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what about the American diner?
Frozen Whole:
China
Taiwan
Indonesia
$2.60/Kg Fresh Whole
Ecuador
Costa Rica
Honduras
Future:
Fresh Fillets
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prices in real terms for fresh fish have
increased three fold in the last 50 years
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on the home front?
• Urban market for tilapia worth $20m
• Target customers: hotels, restaurants, supermarkets,
middle class homes
Distribution outlet Price (US$/kg)
Average wholesale price of imported frozen tilapia 2.00
Average lake-side (farm gate) price of fresh tilapia 2.20
Average retail price frozen tilapia 2.80
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the catch
• Ponds: rejuvenation, improvements, new ponds
• Inland water bodies, particularly Volta Lake
• New Technology: Cages
– Wide span of water surface
– Gentle breeze and a gentle current
– Water quality (pH, temp, O2, Ca)
– Depth of water (6-8m)
• Volta Lake has some ideal sites.
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model cage farm
• 1000 tons Tilapia annually
• 180 days from hatching to harvesting
• Production cycle to produce 20 tons a week
• Consume 2,500 tons extruded feed
• Employ 40 full time staff
• Analysis suggested this is an attractive investment
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issues
• Site location
• Need stock with high genetic potential
• High quality feed
• Technical/management expertise
• Environmental management plan
• Security
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conclusion
• Strong local market for tilapia
• Suitable natural resources
• Technology proven
• Financially viable
• Management/Knowledge Critical
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Give a man a fish and he
will eat for a day
Teach a man to fish and he
will eat for life
Help that man to build a fish
farm then he can feed a
nation!
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Contact Details
• Presentations: www.masdar.com
• Internet: www.technoserve.org
• Email : tns@tnsgh.org
• Tel Accra 021 763675
• Tel Kumasi 051 60264
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