Unlocking the Potentials of Cashew Nuts Value Chain in Kogi State

By Sanda Yusuf

Kogi State is located in the Middle Belt region of Nigeria, it is highly endowed with vast agricultural resources in commercial quantity, top amongst them is cashew nuts, Kogi state is the highest producer of cashew nuts in Nigeria.

Cashew nuts in Kogi State is mainly grown in the Eastern part of the state spreading across several local governments which include: Dekina, Igalamela /Odolu, Ofu, Idah local government areas.

The cashew nut processors in partnership with RMRDC and Kogi State government, has the capacity to propel potentials of cashew nuts to contribute significantly to the economy of Kogi State but it is faced with several challenges. Therefore, this article explores the potentials of the cashew nut value chain in Kogi state.

CASHEW NUT:

Cashew nuts are the seeds of the cashew tree (Anacardium occidentale), native to Brazil and now cultivated in many tropical countries.
Cashew nuts are rich in: protein, fibre, healthy fats (monounsaturated and polyunsaturated), antioxidants (vitamin E, selenium) and minerals (magnesium, copper, zinc). Images are shown below:

PRODUCTION STAGE:

Kogi state is the leading producer of cashew nuts in Nigeria, the specie in Kogi state has high quality index. Its quality and properties are in a class of its own, thereby, giving it world class recommendation/recognition as the best specie on demand in various industries, ranging from the Pharmaceutical industry, Cosmetic industry, even in the Technological and Automobile industry.

However, production is largely done by small-scale farmers, who engage in production manually. As a result, they are faced with challenges, ranging from limited access to quality seeds/ hybrid seedlings, fertilizers and pest control measures.

PROCESSING STAGE:

The processing stage, is quite critical in the cashew nut value chain. Our case study, Kogi State, has most of the cashew processing done manually, from harvest stage to subsequent stages. This manual processing usually results in low efficiency and low quality of the processed products. Though there are two processing factories in the state, they operate below capacity due to inadequate funding and lack of technical expertise.

In a bid to boost the cashew nuts production industry, the Raw Materials Research and Development Council (RMRDC), stepped in, to collaborate with Kogi State University, to establish the Kogi State University processing factory in the year 2018.

The aim and objective of this joint initiative by RMRDC and Kogi State University processing factory is to:

1. Process high quality cashew products e.g., roasted cashew nut, cashew kernel, cashew butter, cashew flour, cashew oil etc., for local and international market.
2. Provide training and employment opportunity for students/local communities.

The factory has the capacity to produce up to 1000kg per day with Daily Cash flow estimated at #2,500,000.00.

MARKETING STAGE:

This is another hurdle in the value chain of the cashew nut in Kogi state, most farmers here sell their products to middlemen who exploit them by offering very low prices.

In this regard, there is need for a standard marketing system that can connect farmers directly to buyers and even to global markets for a sustainable development of the marketing system.

CHALLENGES:

1. Limited access to finances.
2. Inadequate technical expertise.
3. Exploitation by middlemen.

OPPORTUNITIES:

1. Access for collaborative initiative with RMRDC as a sister agency.
2. High demand for cashew nuts globally with an annual cash flow of #14billion yearly.
3. Potential for value addition through processing.

TARGET MARKET/AUDIENCE:

Cosmetic industries, Pharmaceutical industries, Biotech industries, Technological/Automobile industries.

CONCLUSION:

The cashew nut industry in Kogi state has wide range of potentials but requires substantive support from the government through agencies like RMRDC to unlock its full potentials, adress the challenges and leverage on opportunities which can make the cashew nut industry a significant contributor to the state’s economy.