SeGaBi Cashew Market Information

In July, we didn’t record many sales of RCN because there was no more production by SeGaBi cooperatives. Only 115 tons were recorded during the month in the three countries. Since the beginning of the campaign, this work has enabled us to record and validate 105.971 MT, including 80.643 MT in Guinea-Bissau, 20.807 MT in Senegal, and 4.521 MT in Gambia. With this result, we have achieved the overall FY24 indicator at 106% of target. Better still, each country has met and exceeded its target.

On the other hand, due to the good quality of prices in all three countries, the performance observed in terms of sales value is more significant.

It should also be noted that, with the high price of RCN this year, all factories have had difficulty in obtaining raw material. In Senegal, out of eight companies, only SEPT and KOR et FRERES are producing. Even these two companies will run out of raw material in two months’ time.
We also took part in two meetings in Senegal, one with cashew stakeholders and the other with the Senegalese cashew interprofessional (ICAS).
The aim of the meeting with stakeholders was to:

• Establish a coordination platform: Create a platform where all stakeholders can exchange information, share resources and collaborate on common projects.

• Define common objectives: Identify shared priorities for the development of the cashew sector and avoid redundancies.

• Promote collaboration: Encourage partnerships and collaborations between different stakeholders to achieve meaningful and sustainable results.

For the ICAS meeting, the aim is to identify the limits and areas for improvement of the interprofession statutory texts.

The cashew season is drawing to a close. Rains were noted in July. In Fatick namely in Sokone, small quantities of NCR are still being purchased in villages and on weekly markets. Some intermediaries are still active, but are no longer in a position to collect large quantities, as NCR arrivals have become very low. Wholesale prices in the town of Sokone are around 900 FCFA/kg and 1,000 FCFA/kg in the past month, while farm prices vary between 750 and 825 FCFA/kg.   In southern Casamance (Ziguinchor, Sédhiou, Kolda), the cashew season is almost over. Growers are busy with agricultural work and the upkeep of their cashew plantations. In Sédhiou and Ziguinchor, the rare stocks are still held by a few traders, who are selling between 600 and 750 FCFA/kg. Deliveries to the city of Ziguinchor are between 750 and 800 FCFA/kg.

Regarding The Gambia

Rainy season is now progressing in all producing regions of the country and farmers are busy planting their subsistence and cash crops. There is very little cashew fruit left in the trees, and the few that are picked by farmers are taking longer to dry due to the high ambient relative humidity. Most buyers have concluded their contracts with traders, and only a few middlemen can be seen collecting fruit for those pressing to top up previously contracted volumes. The main activity during this period is the conditioning (drying, picking and bagging) of warehouse stocks for containerization and export. Some collection stores are still making very limited purchases, between 70 and 95 GMD/kg depending on quality.

However, the cashew production for the 2024 season is not as impressive as compared to the previous year, 2023, due to hot weather conditions affecting the cashew trees. Currently, the farm gate price for a kilogram of RCN ranges from D77.00, with warehouse prices ranging from D77.00 to D80.00, depending on the location and quantity of cashew nuts. The price of cashew is likely to continue increasing due to high demand in the market from both local traders and exporters. Additionally, coaches are collecting data from cooperatives on the total volume of RCN supply and sales value. As part of our efforts to connect cooperatives with local buyers and exporters, the team organized an online meeting between the European company Inter Snack and the CEO of the Gambian company MUNDUK TRADING ENTERPRISE, Mr. Barrow. During the meeting, Mr. Barrow presented the history of his company and assured the Inter Snack staff of his company’s organization, experience, and ability to efficiently export raw cashew nuts (RCN) with impeccable quality. Negotiations are still underway to sign a contract.

To date of this report, 953.30 metric tons of raw cashew nuts (RCN) have been collected by cooperatives in The Gambia. 15 saes contracts have also been signed between cooperatives and buyers.

Source: LIFFT Cashew Field Staff (Trade Pronotion & CMA Team)

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SFL‘s LIFFT-Cashew project is here to create a durable and strong cashew value chain in Senegal, Guinea-Bissau and the Gambia. Contact us for more information.

For Guinea Bissau

Because of the rainy season, the market remains stable, and prices are around 750 FCFA/Kg and 850 FCFA/Kg. In Guinea-Bissau, the 2024 campaign is very different from the last two years. Growers are very satisfied with the competitive market price, despite reports of low productivity in some areas. Good prices compensate for the low production in some areas.  If we analyze the evolution of the 2024 cashew marketing year, we see that, starting from the base price of XOF 300.00/kg, set by the government, price monitoring measures were put in place throughout the country. Given the low level of productivity, demand has risen, thus encouraging higher prices for producers. On the other hand, pressure from buyers at the border pushed prices even higher. As a result of this situation:

• Producers benefit from the higher price, which has risen from 300 to 650 CFA francs;
• Processors find it more difficult to build up stocks to a very high value, due to a structure of high production costs and reduced margins on the sale of the processed product;
• Exporters have difficulty obtaining a contract with a certain profit margin;
• The importer encounters difficulties in selling cashew nuts to processing plants in India, Vietnam, China, or Brazil, due to the price of kernels on the international market.

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SeGaBi Cashew Farms Georeferenced

In Senegal, 2,238 farms have been mapped, 3,687 in Guinea-Bissau, and 1,800 in Gambia. The purpose of this project is to map the plantations of farmers who have been trained in organic certification. This information will speed up the organic certification process, leading to greater financial gains for processors, cooperatives and international export partners. It also provides an overview of the cashew fields of producers in partnership with SFL in the SeGaBi zone.