South-South (& Triangular) Cooperation within the Cashew Value Chain Mary Adzanyo; Director Private Sector Development Brussels Development Briefings; October 27, 2015 Presentation Outline Reason for South-South cooperation in the Cashew Sector The African Cashew initiative – ACi – in a Nut Shell The African Cashew initiative – Results in Brief South-South (& Triangular) Cooperation within the Cashew Value Chain 2 South-South cooperation is essential: Almost 50% of cashew is produced, only 10% of the nuts are processed in Africa Production • Africa produces over 45% of global cashew production and therefore belongs to the major players in the market. Growing tendency. Processing • Less than 10% of African raw cashew production undergoes further processing in Africa Consumption • More than 90% of global cashew is consumed outside Africa with a growing trend (~10%) – the main consumers are North America, India and the EU. Major consumers Minor consumers Major producers Minor producers 3 ACi works in five countries along the Cashew Value Chain: From Farm to Fork, A Win - Win Situation for all Budget Size $97 mio in total $52 mio in cash $45 mio in-kind ACi in South-South & Triangular cooperation along the cashew value chain from inception of the project 4 ACi Vision until April 2016: Enhancing productivity and thereby increasing the annual income of small-scale farmers and processors. 430.000 farmers increase their family income by $600 ($110 net) annually from cashew production; creating an accumulative additional income of $250 Million ($100 net) until April 2016 Objective Objective Objective Objective Production Processing ‘Increasing raw cashew nut production and quality’ ‘Increasing quantity and quality of African cashew kernel and cashew byproduct processing’ Supply Chain Linkages Sector organization Calculations based on net income using 2010 as baseline ‘Establish and expand sustainable links to the global market place’ ‘Advocate policies that favor cashew production and processing’ 5 A Strategic Alliance of Private and Public Partners ensures sustainable and market-driven implementation of activities Funding, Contributing and Implementing Partners (16) Public Private CSO / NGO Other partners (100+) Matching Fund and Processing Partners – most South-South Cooperation 10+ National Research Institutions, Universities and Extension Organisation 30+ Buyers, Traders, Processors, Farmers Organisations 10+ international Research Institutions 20+ national and international business associations 30+ National and International NGO’s and development partners 6 ACi shows visible and remarkable achievements until today in employment and production …. • 100.000+ direct employments in processing and production • 380,000+ cashew farmers trained • 22% of them women • $120 million+ accumulated net incomes • $120 + net income per farmer 7 and in processing…. • 5,800 jobs created in 20 supported processing companies • 75% being women • $6 million+ accumulated wage • $620 annual max. wage per worker • Processing in Africa increased from 5 % to 10 % (2014). 8 Encouraging public-private dialogue and sector advocacy – a basis for south-south cooperation • Stakeholder meetings • Cashew Sector Planning and policies involving private sector; employment relevance • Support to national and supra-national organisations and conferences • South-south cooperation and exchange 9 Africa has a knowledge gap – in research, extension, processing. Thus south South cooperation is the basis for ACi´s capacity development strategy • Africa – India and Brazil/ EMBRAPA: exchange on agricultural research on improved cashew planting material development • ACi did a worldwide study about equipment in cashew processing in Brazil, Vietnam and India • West-Africa – Tanzania: exchange on research experience • West-Africa – Mozambique: exchange on processing experience • Within West-Africa: learning networks among cashew processors (incubation model) • Côte d´Ivoire - Vietnam, ACi partner - the Cashew and Cotton Board is in a cooperation with Ho Chi Minh City University for a processing equipment school; ACi technical support 10 To develop the sector, knowledge and Information exchange are key among the cashew growing, producing and consumption countries, • Global Cashew Council unites Indian, Vietnamese, Brazilian and African members with global industry players • ACA conference unites industry participants from India, Brazil, Vietnam and China and vice versa • Brazilian company (IRACEMA) was a member of the African Cashew Alliance advisory board • Exchange visits among cashew producing and processing countries 11 For More information on the African Cashew initiative: Please visit: ACi Website www.africancashewinitiative.org ACi Facebook Page www.facebook.com/africancashewinitiative ACi on Youtube www.youtube.com/AfricanCashewIn Contact: mary.adzanyo@giz.de 12