Analysis of the Cashew Value Chain in Burkina Faso African Cashew initiative
Published by:Deutsche Gesellschaft fürInternationale Zusammenarbeit (GIZ) GmbHFondations internationalesPostfach 5180, 65726 Eschborn, GermanyT +49 61 96 79-1438F +49 61 96 79-80 1438E [email protected] www.giz.de
Place and date of publication:Burkina Faso, February 2010
Authors:Nasser Kankoudry Bila; Ousmane Djibo; Philippe Constant; Boureima Sanon
Responsible editor:Peter Keller (Director African Cashew initiative)African Cashew initiative (ACi)32, Nortei Ababio Street Airport Residential AreaAccra, GHANAT + 233 302 77 41 62 F + 233 302 77 13 63
Contact: [email protected]
Acknowledgement:This study has been implemented as part of the African Cashew initiative (ACi), a project jointly financed by various private companies, the Federal German Ministry for Economic Cooperation and Developmentand the Bill & Melinda Gates Foundation. ACi is implemented by the African Cashew Alliance (ACA), the German Development Cooperation GIZ, as a lead agency as well as FairMatchSupport and Technoserve.
This report is based on research funded by the Bill & Melinda Gates Foundation. The findings and conclusions contained within are those of the authors and do not necessarily reflect positions or policies of the Bill & Melinda Gates Foundation.
Design:creative republic // Thomas Maxeiner Visual Communikations, Frankfurt am Main/GermanyT +49 69-915085-60 I www.creativerepublic.net
Photos:© GIZ/ Rüdiger Behrens, Thorben Kruse, Claudia Schülein & iStock, Shutterstock, creative republic, Thomas Maxeiner
African Cashew Initiative is funded by:
and private partners
In cooperation with:Implemented by:
COOPERATIONBURKINA FASO
FEDERAL REPUBLIC OF GERMANY
4 Table of contents
List of Tables ......................................................................................................4List of Figures ....................................................................................................5
Summary ...............................................................................................................8
1 Introduction .................................................................................................9
1.1 BriefoverviewofcashewproductionandprocessinginBurkinaFaso............................ 18
2 Analysis of the Value Chain ...............................................................18
2.1 IntroductiontothehistoryofcashewproductioninBurkinaFaso...................... 18
2.2 Illustrationofthevaluechainandmarketing....... 182.3 Descriptionofthecashewproductionsystem....... 222.4 Detaileddescriptionofcashewprocessing............ 242.5 Analysisofvaluechainserviceproviders.............. 262.5.1 Overviewofvaluechainserviceproviders............ 262.5.2 Overviewofcashewvaluechainfinancial
serviceproviders.................................................... 282.6 Institutionalandpolicygovernancechain............ 292.7 Cashewvaluechainstrengths,weaknesses,
opportunitiesandthreats...................................... 302.8 Overviewoforganisationshelpingtopromote
thecashewvaluechaininBurkinaFaso............... 31
3 Recommendations ....................................................................................34
List of Acronyms ...............................................................................................36Annex I: Documentation ................................................................................38
List of Tables
Table 1.1.1: Importanceofthecashewvaluechainforthenationaleconomy.................... 13
Table 1.1.2:Thegrowers................................................... 14
Table 1.1.3a:Theprocessingindustry............................... 14
Table 1.1.3b:Overviewofprocessingunits...................... 15
Table 1.1.4:Tradersandtheiractivities........................... 16
Table 1.1.5:Policyframeforpromotionofthecashewvaluechain.................................................. 16
Table 2.2.1:CoststructureofdealersinrawnutsinCFAF(Source:SNVreport)....................... 21
Table 2.3.1: Totalnumberofcashewtrees,householdsandtotaloutput.............................................. 22
Table 2.4.1: Overviewofprocessingunits........................ 24
Table 2.5.1: Evaluationoftheneedforservicesamongthevaluechain’sstakeholders................................. 26
Table 2.5.2: Overviewofcashewvaluechainserviceproviders................................................................. 27
Table 2.5.3.:Overviewoftheorganisationoffinancialsupportforagriculturalactivities.................... 28
Table 2.6.2: Nationalpolicyaffectingvaluechainperformance............................................................. 29
Table 2.7.1:Summaryofstrengths,weaknesses,opportunitiesandthreats(SWOTanalysis)...................... 30
Table 2.8.1: Playershelpingtopromotethecashewvaluechain...................................................... 31
Table 3.1:Missinginformation........................................ 34
5 List of Figures
Figure 2.2.1:Thestakeholdersinthecashewvaluechain.................................................. 18
Figure 2.2.2: Illustrationandquantificationoftheexistingmarketingchain......................................... 21
Figure 2.2.3: Illustrationofthegrower,marketing,processingandexportprice............................................... 22
Figure 2.3:Mapofcashew-growingareasinBurkinaFaso................................................................. 23
Figure 2.4.1:Cashewproductsandtargetmarket............ 24
Figure 2.7.1: Illustrationofthedifficultiesfacingthecashewvaluechain...................................................... 30
Summary
ThisanalysisofthecashewsectorhasbeencarriedoutfortheACiproject.ThefederativeprojectisfundedbytheBill & Melinda Gates FoundationandimplementedinfiveAfricancountriesthatpro-duceandexportcashewnutswithlittlevalueaddedThelaunchofaprojectofthisscoperequiresustotakestockofwhatisknownaboutproduction,processing,marketingandexportinthepartici-patingcountries.TheaimofthisanalysisisthereforetoenhanceunderstandingofthecashewvaluechaininBurkinaFaso.
CashewtreeswerenotwellknowntothegeneralpublicinBurkinaFasobeforeindependence.Thefirstplantationswereintroducedaround1960bytheTropical Forest Technical Centre.Cashewtreeswerelongconsideredtobeaspeciesofforesttreeratherthanafruittree.Theywerefirstreallyusedforeconomicgainin1980,aspartoftheProjet Anacarde.In1997,thegovernmentlaunchedacashewsectordevelopmentprogrammewhoseobjectivewastoplant1,000,000trees.
AccordingtodatafromtheGeneral Agricultural Census,about45,000householdsinBurkinaFaso havetenormorecashewtrees;97%arelocatedinCascades,Sud-Ouest,Hauts-BassinsandCentre-Ouestregions,whichhave17,500,14,220,10,000and2,200growersrespectively.Theplantationsvaryinsizefrom0.5to50ha,withmostbetween2and5haor5and10ha.Mostcashewgrowersaremembersofvillageassociations,groups,unionsorcooperativesthathavewidelydifferingdegreesofactivity.Growersarenotasyetrepresentednationally.
8
9
Cashewtradingandmarketingistheleastwell-knownlinkinthecashewchain.Theharvestseasonlastsaboutfourmonths(JanuarytoMay).Marketinginvolvesavarietyofplayers:commercialcom-panies,localdealersandtheoccasionalforeignbuyer.ThecommercialcompaniesareusuallybranchofficessetupinBurkinaFasobyinternationaltradingcompaniesthatsellthecashewsdirectlytousersandbrokersinEurope,AsiaandAmerica.Localdealersarewholesalers;theyarefewinnumber(lessthan15),areknowntohaveconsiderablefinancialresourcesandlogisticalmeans,andhaveaperma-nentstaff.TheoccasionalforeignbuyersusuallycometoBurkinaFasofromMali,Guinea,GhanaandCôted’Ivoiretotopuporders.
Twootherimportantactorsareso-calledpisteursandcollecteurs.Whiletheformertravelroundtheproductionareasinsearchofnutstofillbuyerorders,thelatterarebasedinthevillages.Pisteursandcollecteursusuallysupplywholesaledealers,occasionalbuyersandexporters.Theyhavetieswithallthoseinvolvedinmarketing.
ProcessingisbasicallycarriedoutinsixunitsinCascadesandHauts-Bassinsregions.ThelargestcompanyisSOTRIABinBanfora,whichhasaprocessingcapacityofabout1,000t.Twootherunitswillbeoperationalin2010:one,basedinBoboDioulasso(Anatrans),istohaveaprocessingcapacityof3,500t;theother,basedinKampti,willbethefirstinSud-Ouestregionandwillhaveacapacityof400t.Inadditiontotheprocessingunits,numerousgroupsofsmall-scaleprocessorshavelongexistedintheDiéri,OrodaraandBoboDioulassoareas,andmorerecentlyinSissiliprovinceandSud-Ouestregion.
Three groupsareinvolvedinexportingcashews.Thefirst comprisesgebana AfriqueandBurkina-ture,whicharebasedinOuagadougouandhavechieflyEuropeanclients;theyexportcertifiedproducts(organicand/orfairtrade).The secondexportsstandardwhitekernels.Itcomprisesforthemostpartforwarderswhodelivertheoutputoftheprocessingunitstothecustomers;somecustomersbuythekernelsex-worksandarrangetheirowntransport.The thirdgroupexportsrawcashewnuts.Itconsistsessentiallyofwholesalers/exportersbasedinBoboDioulassoandOuagadougouwhoworkwiththecollecteurstostorethenutsanddeliverthemtoportusingtheirownmeansorviaforward-ers.Mostofthenationaloutput(roughly90%)isexportedintheformofrawnuts;verylittleisprocessedand/orconsumedlocally.
InBurkinaFaso,oneofthebiggestchallengesfacinggrowersistoimproveyields.Thismeansmasteringpreandpost-harvestproductiontechniques.Varietalresearchisneededandseedsmustbemadeavailable.
Themainquestionatmesolevelistheintegrationofservicesintothesector,withaviewtoprofessionalisingtheplayersandtoreachingtheminlargenumberseasilyandrapidly.Trainingaidsmustbepooled.Thisdoesnotmeanthatallaidsshouldbeidentical,butratherthattheyshouldcomplementeachotherandthattrainingapproacheshavetobestandardised.
Oneofthesector’smaindifficultiesremainsaccesstofinancing.Processorsstarteachseasonwithlessandlessoperatingfunds,oftenbecausetheyhavedifficultyrepayingexistingloansorevenbecausethefinancialinstitutionshavelittleinsightintoagriculturalactivities.Thebankswillingtograntsuchloansarefewandfarbetween.Investmentcreditseemsmorereadilyavailable,becausetheequipmentconstitutesaformofcollateral,buthereagain,veryfewbanksarewilling.Themaindifficultyfacinggrowersistoobtainseasonalcreditenablingthemtotendtheirplantationsandharvestthenuts.
12 1 Introduction
TheaimofthisanalysisofthecashewvaluechaininthecountriesparticipatingintheACiprojectistosynthesiseandsystematicallyexaminealltheinformationavailableoncash-ewsinordertoenhanceunderstandingoftheactivitiescarriedoutinthesector,gaugetheirimportanceforthenationalecono-myandmeasuretheirimpactonpovertyreduction,income-generationforsmall-scalegrowers,jobcreationandthesector’sintegrationintotheglobalmarket.
Theideaisthustobuildonthereferencedataavailableattheoutsetoftheprojectinordertoensurethevariousdevelopmentstructuresdonotduplicatetheiractivitiesandtofostersyner-gyandtherebyeffectiveness.Specifically,thestudyaimsto:
ÿ analysethecashewvaluechainatnationallevel,focusingontheproduction,processingandtradeofcashewnuts;
ÿ analyseongoingactivitiesandbringtolightnewpriorityactivities.
ThestudyisbasedontheGIZ ValueLinksapproachandthedataandexperiencesoftheAgricultural Development Programme (PDA).
Itwasconductedby:ÿ collectingthedocumentsavailableonthesubjectfrom
publicandprivateinstitutions(researchinstitutes,uni-versities,developmentprojectsandprogrammes,ministrytechnicaldepartments,processingandtradingunits,growerorganisationsatvariouslevels,etc.);
ÿ collectingadditionalinformationfromresourcepersonsandcashewsectorstakeholders;
ÿ analysing,weighingandcollatingthedataobtained(documentreviewandinterviews).
ThestudyalsointegratestheresultsoftheRapport de l’atelier sur la promotion des chaînes de valeur ajoutée de la filière anac-arde (Nasser Kankoudry, Ousmane Djiba, Philippe Constant, PDA-GIZ, May 2008)andtheDiagnostic de la filière anacarde au Burkina Faso pour une analyse des chaînes de valeurs (Nasser Kankoudry, PDA-GIZ, April 2008).
TheACiprojectcooperatescloselywiththePDA,whichisassistedbyGIZandhasidentifiedgrowthsectorsinneedofaid.ThecashewsectorisonethosereceivingsubstantialPDAPhase IIsupport.TheACiprojectthusconsolidatesandbroadensthePDAinitiativetoheightenthecompeti-tivenessoftheBurkinabecashewsector.
TheACihasalreadycarriedoutanumberofactivitiesinBurkinaFaso.Ithasprovidedsupportfortheimplementationoftrainingactivitiesinpost-harvesttechniquesforprocessingunitsthroughoutthecountry(TechnoServetraininginMay2009).OthertrainingprovidedbyTechnoServetoprocessingunitsaimedtoexplainthetechnicalsettingsofmachinesandimprovetheunits’management(June2009).Lastly,inJuly2009,theACiheldaplanningworkshopinwhichallthoseconcerned(PDA, ACi, ACA)participated.
Table 1.1.1: Importance of the cashew value chain for the national economy
Cashews Source
Human development index (global rank )
177 (out of 182)2009 Human Development Report (United Nations Development Programme)
GDP in US$US$ 17.96 billion (2008 estimate)
CIA World Factbook, 2008
Agricultural GDP in US$US$ 3.77 billion (2008 estimate)
CIA World Factbook, 2008
Agricultural GDP/ national GDP in %
29.1% CIA World Factbook, 2008
Total volume of cashews (raw cashew nuts) grown in Burkina Faso in t (2006)
25,000 t of cashew nuts
Total volume of cashews (raw cashew nuts) exported by Burkina Faso in t (2008)
Raw cashew nuts: net weight - 13,523 t; value - CFAF 1,294,957,386
White kernels: net weight - 259 t; value - CFAF 128,570,852
Customs services for 2008
Total volume of cashews (raw cashew nuts) produced worldwide in t (2007)
2.1 million (estimate for 2008: 2 million t) Red River Foods, Inc. (2008)
Cultivated land in ha 4 291 885 ha 65,800 haGeneral Directorate for Agricul-tural Forecasts and Statistics, 2007–2008
Total population (2008) 15 746 232 45,000 households CIA World Factbook, 2008
Population living under the poverty threshold in % (2004)
46.4% Not known CIA World Factbook, 2008
13 1.1 Brief overview of cashew production and processing in Burkina Faso
Table 1.1.2: The growers
Information on the growers Sources
Total number of cashew growers
45,076
of whom 97% are in the Cascades (17,500), Sud-Ouest (14,200), Hauts-Bassins (10,000) and Centre-Ouest (2,200) regions
Information provided by the specialised public agencies, notably the Agriculture Ministry, via the 2006 RGA
Plantation size by householdbetween 0.5 and 50 hamost are between 2-5 ha or 5-10 ha
2006 RGAFarmgate price for raw nuts (grower price) [USD/t] US$ 250 – US$ 875/t
Cashew-related income[in US$/year/ha]
US$ 150 – US$ 450/year/ha
Cashew revenues in terms of total income [as a % of total income]
No data
Cashew intercropping Cotton, karite, tubers, maize, vegetables
Data collected from the stakeholders
Other sources of incomeAnimal husbandry, trade, black-eyed peas, timothy grass, vegetables
Harvest period January to May
Number of cashew trees 13,194,223
2006 RGA
Productivity per cashew tree [in kg per tree
4 kg – 10 kg/tree
Average age of cashew trees [in years]
15 years
Cashew certification: certification system
ECOCERT and FLO
Inputs usedStandard: manure; triple fertiliserOrganic: organic manure; neem seed fertiliser; sawdust
Cost of inputs per ha (CFAF)Standard: CFAF 63,625 – CFAF 149,350/haOrganic: CFAF 57,500 – CFAF 96,500/ha
Land available for the expansion of cashew plantations [in terms of product competitiveness]
Strong potential
Table 1.1.3a: The processing industry
Information on the processing industry Sources
Processing capacity of all processing units in Burkina Faso
Currently used [in t /year]: 1,750 t
Data collected from the processors and stakeholders
Potential: 8,200 t/year
Processing units
Large, over 1,000 MT: ÿ Anatrans ÿ Sotriab
Medium-sized, between 500 and 1,000 MT
Small, less than 500 MT: ÿ UTASO ÿ UTAK ÿ Union Yanta ÿ UTAB ÿ ECLAcla
14
Tabl
e 1.1.3b
: O
verv
iew of p
roce
ssin
g un
its
Nam
e of
pro
cess
ing
fact
ory
Curr
ent
proc
essi
ng
capa
city
in
tonn
es
raw
cas
hew
nut
s
Pote
ntia
l pr
oces
sing
ca
paci
ty in
to
nnes
raw
cas
hew
nu
ts
Tech
nolo
gies
us
ed
Empl
oym
ent
Serv
ices
pr
ovid
ed to
grow
ers
Mar
ket
Owne
rSo
urce
of
fina
ncin
g
Supp
ort
rece
ived
from
Men
Wom
en
COOP
AKE
50 t
200
tBr
azilia
n
and
loca
l15
130
Yes
Asi
a, E
urop
eCo
oper
ativ
ePA
DL2
PDA
3
SOTR
IAB
1,00
0 t
2,50
0 t
Braz
ilia
n,
Indi
an,
Euro
pean
3329
8Asi
a, E
urop
e,Afr
ica
Join
t st
ock
com
pany
UTA
SO40
0 t
Loca
l
2018
0
No
Asi
a, E
urop
e
EIG
1
PDA
3 ; Pu
blic
-Priva
te
Part
ner-
ship
UTA
K40
0 t
2018
0Oxf
am
UNIO
N YA
NTA
200
t40
0 t
793
Uni
on
UTA
B40
0 t
600
t31
594
Yes
EIG
1
ANAT
RANS
3,50
0 t
Indi
an50
0Gl
obal
Tra
ding
ECLA
120
t20
0 t
Loca
l10
0No
Asi
a, E
urop
e EC
LA
1)G
roup
emen
td’In
térê
tÉco
nom
ique
2)P
rogr
amm
ed’
App
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oppe
men
tLoc
ald
esp
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aba
etK
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Pro
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me
Dév
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ultu
re
15
Table 1.1.4: Traders and their activities
Name of the company
Annual estimated turnover(CFAF/MT)
Cashew-related turnover(CFAF/MT)
Number of employees
Estimated annual sales in tonnes
Intermediary and presence in the country
Target market
Ham Co. 430 250 30 2,500 Yes Ghana, India
Sucotrop 700 400 50 3,500 Yes India
Safcod 650 450 60 3,500 Yes Benin, India
Watan - 500 64 4,000 Yes Inde, Ghana
Table 1.1.5: Policy frame for promotion of the cashew value chain
Sector policyPrice regulation
Export tax raw nuts
Export tax kernels
LabelExchange rate stability
Trade agreements and preferences
No No No No No EURO
United States African Growth Opportunity Act (AGOA)
French Accords de Partenariats Economiques (APE)
West African Economic and Monetary Union (WAEMU)
Economic Community of West African States (ECOWAS)
16
Someoftheagentsinterviewedappearedreluctanttoprovideinformationontheirincomeandcashew-relatedrevenuesandontheircustomers’names.Theyalldealinnotonlycashews
butalsootherlocalproducts,butdonotkeepseparateaccountsonthem.
18 2 Analysis of the Value Chain
2.1 Introduction to the history of cashew production in Burkina Faso
CashewtreeswerenotwellknowntothegeneralpublicinBurkinaFasobeforeindependence.Thefirstplantationswereintroducedaround1960bytheTropical Forest Technical Centre.Cashewtreeswerelongconsideredtobeaspeciesofforestratherthanfruittree,andthenutswereneverreallyharvestedforprofituntiltheProjet Anacarde.TheProjet Anacarde usedseedsimportedfromCasamanceandnorthernCôted’Ivoire.Itlastedfrom1981to1991andwasfinancedbytheFrench Development Agency(FDA)andtheCaisse de Stabilisation des Prix des Produits Agricoles (CSPPA).Inordertoobtainaddedvaluefromthesector,theprojectconductedworkshoptrialsofsimpleprocessingtechniquestoextractthekernelsanddevelopedshellingpliers.Thisledtotheestablishmentofthefirstvillageprocessingworkshop.ThewomenweretrainedtoshellthenutsusingrecycleddrainageoilinwhatwasBurkinaFaso’sfirstexperienceofcashewprocessing.In1997,thegov-ernmentlaunchedacashewsectordevelopmentprogrammewhosegoalwastoplant1,000,000trees.Thishasresultedinaproductionincreasesince2001–2002.Ofthetotaltargetof1,000,000trees,about500,000wereplantedinthewestandsouth-west.
2.2 Illustration of the value chain and marketing
Thecashewvaluechainhasmanyanddiversestakeholders,andtherelationsbetweenthemaretenuous.ThestakeholdersinvolvedinthefivemainlinksinBurkinaFaso’scashewsector(inputs,production,marketing/trading,processingandexport)aredescribedbelow.
Specific inputs
Thislinkappearsattwopointsinthechain:beforetheproduc-tionlink(classicinputssuchasseedsandplants)andaftertheprocessinglink(packaging,materialforprocessingunits,etc.).Growersobtainplants:eitherfromtheDRECVandDPECVnurseriesintheirareas,fromtheINERAstationinBanforaorfromseedlinggrowers;ortheygrowtheseedlingsthem-selves.INERAlaunchedamassselectionprojectforseeds,butlackofresourcespreventeditfromcoveringallareasofproduction.Growersselectseedsthemselvesorinsomecasesbuythemintheborderareas(Côted’IvoireandGhana).Asconcernspackaging,onlycartonscanbeproducedlocally;thebagsneededtovacuumpackkernelsareimported.AnumberofsuppliersinBérégadougou,BanforaandBoboDioulassomanufactureboilers,autoclaves,shellingtables,bladesandAtestadryersforsmallunits.Unitswithmorecapacitytendtogettheirequipmentfromabroad(GuineaBissau,India,Europe).
Production
Aswithmostagriculturalproducts,thislinkcoversthelargestnumberofstakeholders.AccordingtoRGAdata,about45,000householdsinBurkinaFasohavetenormorecashewtrees.Thisonlygivesafairlyapproximateideaoftherealnumberofgrowers,however(onecannotspeakofproductionifthehouseholdhasonly10or16trees).
Ofthe45,000growersreportedtoexistinBurkinaFaso,97%arelocatedinCascades,Sud-Ouest,Hauts-BassinsandCentre-Ouestregions,whichhave17,500,14,220,10,000and2,200growersrespectively.Theplantationsvaryinsizefrom0.5to50ha,withmostbetween2and5haor5and10 ha.Mostcashewgrowersaremembersofvillageassocia-tions,groups,unionsorcooperativesthathavewidelydifferingdegreesofactivity.Growersarenotasyetrepresentednational-ly.Inthepastseveralyears,verylargeplantations(upto300ha)havebeenestablishedbyagrofoodbusinesses.MostoftheseplantationsarelocatedinZiroandSissiliprovinces(Centre-Ouestregion);theirtotalnumberandsurfaceareaisunknown.
Marketing/ trading
Thisisthelinkthatisperhapsleastwellknown.Collecteurs havealwaysworkedasmiddlemen,collectingandtransportingtherawnutsfromtheregionsinwhichtheyaregrowntoGha-na,Côted’IvoireandBenin.Theyalsooffertheirservicestolocalwholesaleexportersofrawnuts,lessfrequentlytoproces-singunits.Thecollecteursalsocomefromneighbouringcountrieswhenthesupplyinthosecountriesfallsshortofdemand.
Therearevariousstakeholders:so-calledpisteurs andcollect-eurs,whoactasmiddlemenbetweenthegrowersandthegroupsofwholesaledealersandexporters;wholesaledealers,whooftenvisitthevillagestobuydirectlyfromthegrowers;nationalexportersandtherepresentativesofinternationalcompanies,whoarelesslikelytovisitthevillages;occasion-alsubregionalbuyers,whousuallycomefromMali,Guinea,GhanaandCôted’IvoiretotopupordersinBurkinaFasoandwhoalsobuyfromscout-agentsandwholesaledealers;occasionalinternationalbuyers,usuallyIndians.
Processing
In2009,processingwascarriedoutmainlyinsixunitsinCascadesandHauts-Bassinsregions.ThelargestcompanyisSOTRIAB,inBanfora,whichhasaprocessingcapacityofabout1,000t.Twootherunitswillbeoperationalin2010:one,basedinBoboDioulasso(Anatrans),istohaveaprocessingcapacityof3,500t;theother,basedinKampti,willbethefirstintheSud-
19 Figure 2.2.1: The stakeholders in the cashew value chain
Ouestregionandwillhaveacapacityof400t.Inadditiontotheseprocessingunits,numerousgroupsofsmall-scaleproc-
essorsas,andmorerecentlyinSissiliprovinceandSud-Ouestregion.
Intrants spécifiques Production Commercialisation Transformation Exportation
Semences sélectionnées localement ou importées
Pépinières privées
Pépinières DPECVa
Pépinière INERAb Banf.
Producteurs individuels
Collecteurs Exportateur d’amandes :Gebana Afrique,
Burkinature
b
Importateurs d’amandes :
Unités de trans-formation sous-
régionalesGrossistes
internationaux
Fournisseurs d’emballages locaux
et internationaux
Équipementierslocaux et internationaux
Exportateurs locaux de noix brutes :
Ets Velegda, SCEO, SUCOTROP, ADI
Products, Hamza et Cie…
Importateurs de noix brutes :Unités de trans-
formation du Bénin, de RCI et du Ghana
Compagnies indiennes
INERA, DRAHRH, DRECV, PADL/CLK, SNV, Helvetas BFd IRSATe, TechnoServe
INADES BFfINADES BFf
MEBF, ACA BF, PDA-GIZ, WOUOL, BKF 012, Gebana Afrique, Anatrans Génèse, SOTRIAB, consultants,
Ecocert, Flo-Cert, Services financiers, iCAg
MEBF, ACA BF, PDA-GIZ, WOUOL, BKF 012, Gebana Afrique, Anatrans Génèse, SOTRIAB, consultants,
Ecocert, Flo-Cert, Services financiers, iCAg
Services des douanes Services des douanes
MAHRH (DGPER, DGPV, DOPAIR, SP/CPSA) MCAPE /ONAC (Fasonorm, Tradepoint)h
CNRST/MESSRSi CNRST/MESSRSi
MCEV CNRST/MESSRSj MEF CNRST/MESSRSk
MACRO
MÉSO
MICRO
Plantation commune(Union Yanta)
Organisations de producteurs
Unité de trans formation : SOTRIAB , UTAB, UTAK, COOPAKE,
ECLA, YANTA (ANATRANS,
UTASO)c
Marché local
Transformatrices artisanales :
Bobo, Orodara, Diéri, Toussiana, Banfora,
Léo, Gaoua…
a)DPECVDirectionProvincialedel’EnvironnementetduCadredeVieb)INERAInstitutdel’EnvironnementetdesRecherchesAgricolesc)SOTRIABSociétédeTransformationIndustrielledel’AnacardeduBurkina;UTABUniondesTransformateursdel’AnacardedeBérégadougou;UTAKUnitedeTransfor-mationdel’AnacardeduKenedougou;UTASOUniondeTransformationdel’Ana-cardeduSud-Ouestd)INERAInstitutdel’EnvironnementetdesRecherchesAgricoles;DRAHRHDirectionProvincialedel’Agriculture,del’HydrauliqueetdesRessourcesHalieutiques;DRECVDirectionRégionaledel’EnvironnementetduCadredeVie;PADL/CLKProgrammed’AppuiauDéveloppementLocaldesprovinces;SNVSociétéNéerlandaisedeDéveloppemente)INADESBFInstitutAfricainpourleDéveloppementÉconomiqueetSocialf )IRSATInstitutdeRechercheenSciencesAppliquéesetTechnologiesg)MEBFMaisondel’EntrepriseduBurkinaFaso;ACABFAfricanCashewAlliance(AllianceAfricaineduCajou);PDA-GIZProgrammeDéveloppementdel’Agriculture/DeutscheGesellschaftfürTechnischeZusammenarbeit(CoopérationTechniqueAlle-mande);WOUOLsignifie«entraidemutuelle»enlanguelocaleTurka;BKF012NaturalResourceManagementintheBoboDioulassobasin,LuxembourgAgencyfor
DevelopmentCooperationProject;SOTRIABSociétédeTransformationIndustrielledel’AnacardeduBurkina;EcocertOrganismedeContrôleetdeCertificationpourl’AgricultureBiologique;iCAInitiativeduCajouAfricainh)MAHRHMinistèredel’Agriculture,del’HydrauliqueetdesRessourcesHalieu-tiques;DGPERDirectionGénéraledelaPromotiondel’EconomieRurale;DGPVDirectionGénéraledesProductionsVégétales;DOPAIRDirectiondel’OrganisationdesProducteursetdel’AppuiauxInstitutionsRurales;SP/CPSASecrétariatPerma-nentdelaCoordinationdesPolitiquesSectoriellesAgricoles;MCAPE/ONACMinis-terduCommerce,del’ArtisanatetdelaPromotiondel’Entreprise/OfficeNationalduCommerceExterieuri)CNRST/MESSRSCentreNationaldelaRechercheScientifiqueetTechnique/Min-istèredesEnseignementsSecondaires,SupérieursetdelaRechercheScientifiquej)MCEVCNRST/MESSRSMinisteredel’EnvironementETDUCadredeVie/CentreNationaledelaRechercheScientifiqueetTechniquek)MEFCNRST/MESSRSMinistèredel’ÉconomieetdesFinances/CentreNationaledelaRechercheScientifiqueetTechnique
Table 2.2.1: Cost structure of dealers in raw nuts (in CFAF)
Cost element Buyer, pisteur/collecteur Dealer, Wholesaler Export company
Purchase price 170 195 205
Misc. costs 12.56 7.5 2475
Transit costs 0 0 60
Cost price 182.56 202.5 289.75
Sale price (FOB) 195 205 305
Margin 12.44 2.5 15.25
Margin as a % of the sale price 6.38% 1.22% 5%
Source: SNV report/survey results
20 Export
Three groups areinvolvedinexportingcashews:ÿ Thefirst comprisesgebanaAfriqueandBurkinature,which
arebasedinOuagadougouandhavechieflyEuropeanclients;theyexportcertifiedproducts(organicand/orfairtrade),especiallywhitekernels.
ÿ Thesecond exportsstandardwhitekernels.Itcomprisesforthemostparttransitagentswhodelivertheoutputoftheprocessingunitstothecustomers;somecustomersbuythekernelsex-worksandarrangefortheirowntransport.
ÿ Thethird groupexportsrawcashewnuts.Itconsistsessentiallyofwholesalers/exportersbasedinBoboandOuagadougouwhoworkwiththecollecteurstostorethenutsanddeliverthemtoportbytheirownmeansorviatransitagents.
Thecustomsservicesprovidethefollowingexportfiguresfor2008:
ÿ rawcashewnuts–netweight:13,523t;value:CFAF1,294,957,386
ÿ whitekernels–netweight:259t;value:CFAF128,570,852
Theharvestseasonlastsaboutfourmonths(JanuarytoMay),buttherawnutsaremarketedallyearlong.Thislinkcom-prisesseveraltypesofstakeholder.Theygenerallydealinlocalproduceand,dependingontheseason,marketcashewsandotherproductssuchaskariteand/orcereals.Theycomeinthreemaincategories:commercialcompanies,localoperatorsandforeignoccasionalplayers.
ThecommercialcompaniesareusuallybranchofficessetupinBurkinaFasobyinternationaltradingcompanies.TheysellthecashewsdirectlytousersandbrokersinEurope,AsiaandAmerica.Theyusuallyhavesubstantialfinancialresources,logisticalmeansandsoundknowledgeoftheinternationalmarket.Theyaresuppliedmainlybylocalwholesalerswho
havesetupshopinsmalltownsintheproductionareaorinmajorurbancentres.Thewholesalersreceiveadvancepay-mentsfromthecompaniestoharvestandmarkettheproducts.Thelocaldealersarewholesalersandarefewinnumber(lessthan15).Theyareknownfortheirsubstantialfinancialre-sourcesandlogisticalmeans.Theycanmarketover1,000tperharvestseasonandemploypermanentstaff.
Theoccasional foreign buyersgenerallycomefromMali,Guinea,GhanaandCôted’IvoiretotopupordersinBurkinaFaso.TheyareusuallyIndianswhodonotbelongtotheexportcom-paniesalreadypresentbutwhotravelthroughBurkinaFasoontheirwaytoCôted’Ivoire.Theyalsobuyfromthepisteursandcollecteurs andwholesaledealers.
Lastly,thepisteurstravelroundtheproductionareasinsearchofnutstofillbuyerorders,andthecollecteursarebasedinthevillages.Theyusuallysupplywholesaledealers,occasionalbuy-ersandexporters.Theyhavetieswithallthoseinvolvedinmarketing.
Thereportonthe SNV sector study calculatedoperatingcostssoastoestablishprofitmarginsandaboveallthecostsgener-atedateachlevel.Thereporttakesaccountofthevarioustypesofstakeholderinvolvedinmarketing(pisteurs,groupsofcol-lecteurs,semi-wholesalers,occasionalbuyers,wholesalersandexportcompanies)andofthevariousoperationstheyconduct.
ThecompaniesexportingstandardcashewkernelstendtobebranchesofinternationaltradecompaniesandareoftenestablishedinneighbouringcountrieslikeCôted’IvoireandGhana.TheysellthekernelsdirectlytousersandtradersinEurope,AsiaandAmerica.Organic/fairtradekernelsareessentiallyproducedforexport,andonlyonecompany,gebana Afrique,hasinvestedintheirexportinBurkinaFaso.ThekernelsareexportedtothecountriesofEurope.
Processing units in Europe, America & Asia
Processing units in Europe, America & Asia
Small-scale processors & processing units in Burkina Faso
Processing units
8%
Collecteurs
91%
90%
ca. 9%
100%Cashew growers
90%
Export white kernels
Export raw nuts
Export white kernels
Local consumption
1%
< 1% < 1% < 1%
9%
90%
9% < 1%
Raw nuts brutes
Kernels
Worldwide consumers Worldwide consumers
Small-scale processors
21
Thefigure belowquantifiesthemarketingchaininBurkinaFaso.Mostoftheoutputisexportedintheformofrawnuts;verylittleisprocessedandconsumedlocally.
Figure 2.2.2: Illustration and quantification of the existing marketing chain
Grower raw nuts Marketing Export trade Export
Sale price/kg of kernels (CFAF) CFAF 170/kg CFAF 195 – 205/kg CFAF 1,470.50 – 2,500 CFAF 2,500 – 3,500
Production and farmgate sales
Middlemen and sales to wholesalers
Collecting and export sales
Loading and export
22
2.3 Description of the cashew production system
BurkinaFasocurrentlyhasabout200haofcertifiedorganiccashewplantationstendedbyfivegroupsofabout160growers.TheplantationsarelocatedinCascadesregionandallthegroupsaremembersoftheWOUOL association.Thegroupshaveonlyonecustomer,UTAB,aprocessingunitsetupinBérégadougou,Comoéprovince,thathasinvestedintheproductionoforganickernels.
Table 2.3.1 on page 23indicatesthetotalnumberofplantsandhouseholdsbyregion(plantationswithmorethan10trees).PhaseIoftheRGAdoesnotconsidersurfaceareasandyield,
butthesecanbeestimatedonthebasisoftwohypotheses:thefirstcalculatesthesurfaceareaontheprincipleof200plants/ha;thesecondestimatesaverageyieldat400kg/ha.Theofficialaverageyield,datingfromtheProjet Anacarde,isestimatedat600kg/ha,butcaution,andthefactthatthefieldsarenowpoorlytended,dictatesanestimatedyieldof400kg/ha.
2.3.1 Water and land factors Likemostagriculturalproducts,cashewsneedrain.Thesocio-culturalcontextdetermineshowtheplantationisrun,althoughanewnationallawwasadoptedonlandtenureinJune2009.
2.3.2 Cashew necessities Seedsarereadilyavailable,butlackofaccesstobankcreditremainsanobstacletoagriculturalinvestment.
2.3.3 Average size and spread of fields Theaverageplantationsizenationwideis2.9ha,withsomeaslargeas100ha.
2.3.4 Yield Nationwideyieldvariesbetweenanaverageof400and600kg/ha.
2.3.5 Harvest and between-harvest period TheharvestseasonrunsfromJanuarytoApril,thebetween-harvestperiodfromMaytoDecember.
2.3.6 Ecological impact of cashew production Usedforreforestation,cashewshelppreservetheenvironmentandsoilfertilitywithouttheneedforpesticides.Therearenostudiesontheenvironmentalimpactofprocessing.
2.3.7 Income and labour distribution by sex Theproductionlinkismadeupessentiallyofmen,whereastheprocessingunitsemploy,asapriorityandforthemostpart,women.
2.3.8 Use of cashew income Incomefromcashewgrowingisusedfirstforfamilyexpenses;later,dependingontheamount,someisinvestedinthefarm.
2.3.9 Relevance of poverty to the farms Dependingonthearea,cashewgrowingisthemainpoverty-reductionactivity.
2.3.10 Membership of grower organisations Therearemanysmallgroupsororganisationsatgrassrootslevelinthevillages,butnonationalcentralorganisation.
Figure 2.2.3: Illustration of the grower, marketing, processing and export price
Table 2.3.1: Total number of cashew trees, households and total output
Region Number of plants Households Surface area (ha) Output (t)
Boucle du Mouhoun 32,115 357 161 64
Cascades 5,561,964 17,575 27,810 11,124
Centre 42,924 122 215 86
Centre-Est 16,640 96 83 33
Centre-Nord 2,958 34 15 6
Centre-Ouest 256,859 2,217 1,284 514
Centre-Sud 17,838 183 89 36
Est 11,139 144 56 22
Hauts-Bassins 2,849,241 10,065 14,246 5,698
Nord 2,902 38 15 6
Plateau Central 558 14 3 1
Sahel 1,328 11 7 3
Sud-Ouest 4,367,761 14,220 21,839 8,736
Burkina Faso 13,194,223 45,076 65,821 26,328
Sources: preliminary results of the RGA: Phase 1/calculations
23
Figure 2.3.1: Map of cashew-growing areas in Burkina Faso
Theprimeregionsecologicallyforcashewsaretherefore:Cascades,Sud-Ouest,Hauts-BassinsandCentre-Ouest,inparticularZiroandSissiliprovinces.
Table 2.4.1: Cashew products and target market
Product Market
Standard fresh kernels Regional and international market (Ghana, Côte d’Ivoire, Asia, Europe, United States, Canada)
Certified organic fresh kernels
International market (Europe)
Roasted kernelsNational, subregional and international market
Cashew paste National and subregional market
Caramel Local market
Shell and kernel oils Being tested
Soap Local market
Table 2.4.2: Overview of processing units
Name of processing factory
Current processing capacity in
tonnes raw cashew
nuts
Potential processing capacity in
tonnesraw cashew
nuts
Technologies used
EmploymentServices
provided to growers
Market Owner
Source of financing
Support received
fromMen
Wom-en
COOPAKE 50 t 200 tBrazilian and local
15 130
Yes
Asia, Europe
Cooper-ative
PADLPDA
SOTRIAB 1,000 t 2,500 tBrazilian,
Indian, European
33 298Asia,
Europe,Africa
Joint stock
company
UTASO 400 t
Local
20 180
No Asia, Europe
EIG
PDA
UTAK 400 t 20 180 Oxfam
UNION YANTA 200 t 400 t 7 93 Union
UTAB 400 t 600 t 31 594
Yes
EIG
ANATRANS 3,500 t Indian 500Global
Trading
ECLA 120 t 200 t Locale 100 NoAsia,
EuropeECLA
24
ThecashewsareprocessedessentiallyinHauts-BassinsandCascadesregions.Womenplayanimportantpart,eitherassmall-scaleprocessorsorasworkersintheprocessingunits.Therearevariousproducts,eachonewithitsmarket,as set out below.
Small-scaleprocessingistheworkofwomeneitherasindivid-ualsororganisedinassociations.Thewomenobtainthenutsdirectlyfromthegrowers.Themainstepsinsmall-scaleprocess-ingare:heatembrittlementusingdrainageoilorsteam;shelling,orkernelextraction;peelingandcooking;seasoning.Thewomenperformeverystepoftheprocess.Thetechnologyusedisbasic.
Thewhiteorblanchedandseasonedkernelsaresoldonthemarketingrowingareastopackagersfromthebigtownsortoprocessingcompaniesanddealersthatexportthem.Locallysoldwhitekernelsaresubsequentlycookedbyotherwomenwhosupplythesamemarketsasthesmall-scaleprocessors.
Therearetwotypesofprocessingunit:semi-skilledandsemi-industrial.Thesemi-skilledunitsusefewmachinesandlocallymanufacturedmaterial.Thesemi-industrialunitsusesomefairlyadvancedtechnologyimportedfromthecountriesoftheNorth.TherawnutsareboughtfromgrowersorcomefromplantationsrentedfromtheStatewitharightofuseforthenuts.Thetable belowgivesanoverviewofindustrialprocess-inginBurkinaFaso.
2.4 Detailed description of cashew processing
25 Processingunitsusealmostthesameprocessasthesmall-scaleprocessors.Thedifferencesaretobefoundinthemate-rialemployed.Forexample,whereasthesmall-scaleproces-sorsembrittlethenutsinpots,thesemi-industrialunitsusevatsconnectedtoboilers.Theyshellthenutsusingsemi-mechanicalshellersthatarehandorhand-and-footoperated.Theyuseovensfordrying,butapplythesameapproachtopeeling.Sortingandweighinghavebeenautomatedinsomeunits.Theunitsemploybetween40and500workers;over90%arewomen,whoshell,peel,sortandpackagethekernels.Thewomenreceivepieceworkremunerationinlinewiththeiroutput.
Thereisarelativelywidegapbetweentheoreticalprocessingcapacityandrealoutput.Thereasonsare:therelativeinabilityoftheprocessorstofinanceproduction;poormasteryofop-timumproductiontechniques;littlecapacitytoprospecttheinternationalmarket.
Onlyoneunit–UTAB,inBérégadougou–hasenteredintotheproductionoforganickernels,anditsoutputisestimatedatnearly100t.Ithasonlyonecustomer,theexportcompanygebanaAfrique,inOuagadougou.ThetwobiggestunitsareUTABandSOTRIAB.
RecapitulationoftheprocessingindustryinBurkinaFaso:
2.4.1 Structure of the industry Theprocessinglinkcomprisesalargenumberofsmall-scalewomenprocessorsandsemi-industrialunits.Mostaremicroandsmallbusinesses(lessthan500t/year),exceptSOTRIAB(1,000t/year)and ,whichhasannouncedaneventualcapacityof3,500t/year.
2.4.2 Geographical distribution of processing units throughout the country
TheunitsareconcentratedinCascadesandHauts-Bassinsregions.
2.4.3 Market leaders and their market TheWOUOLnetworkandSOTRIABarethenationalleadersintermsofoutputandtechnique.
2.4.4 Ownership MostoftheunitsbelongtoEIGssuchasSOTRIABorjointstockcompanies.SOTRIABisalsoajointstockcompany.
2.4.5 Processing capacity Thepotentialprocessingcapacityoflocalunitsvariesfrom50to3,500tofrawnutsperyear.
2.4.6 Employees Mostoftheemployeesarewomen;staffsizevariesbetween100toover600people.
2.4.7 Technology used ThetechnologyisIndian,BrazilianandEuropeaninoriginbutisheavilyadaptedonsite.
2.4.8 Cooperation between units and growers Thegrowersusuallyhavetieswithunitsintheirareas.
2.4.9 Strategy for guaranteeing supply Suppliesareprovidedontrustandoralcontracts,butarealsorelatedtocollecteuropportunities
2.4.10 Strategy for guaranteeing quality Certainunitshavequalityagentsandprefercertaingrowingareas.
2.4.11 Processors’ experiences of cooperation with growers
Good,butalsosomebadexperiencesofcommitmentsnotkept.
2.4.12 Logistics, transportation and marketing InternationallogisticsfirmssuchasBOLLOREandMAERSKarehiredtotransporttheproductstotheports.
2.4.13 About gender and processing Theunitscompriseanoverwhelmingmajorityofwomenworkers.Womenaccountformorethan90%oflabourinthesector.
2.4.14 Economic evaluation of sustainability, competitiveness and scope for expansion
Thereissizeablescopeforexpandingprimaryandsecondaryproduction,andtheoptimalprocessinglevelhasyettobeattained.Atthesametime,alargepartoftheglobalmarketremainsaccessible.
MICRO
Input supplier Production Processing Export
ÿ variety recognition test
ÿ a greater number of competitive varieties
ÿ varietal research
ÿ training: growing techniques, plantation maintenance, harvesting and storing nuts
ÿ supplies of equipment (saws, pliers and jute bags)
ÿ support for harvest onset activities
ÿ training in management, contract performance
ÿ training in market prospection
ÿ training in leadership, negotiation and lobbying
ÿ harmonisation of means of acting on the production link
Training in maintenance
ÿ training in management tools and processing techniques
ÿ training in quality standards
ÿ support for the con version of by-products
ÿ training in the establishment of business plans
ÿ support for formalisation and structuring
ÿ training in advocacy and lobbying
ÿ establishment of guarantee funds for loans
ÿ promotion of joint packaging – harmonisation of means of acting on the production
ÿ structuring (certification process)
ÿ introduction of export certification
ÿ promotion of joint packaging
ÿ heightened awareness of the quality approach
26 2.5 Analysis of value chain service providers
2.5.1 Overview of value chain service providers
InBurkinaFaso,oneofthebiggestchallengesfacinggrowersistoimproveyields.Thismeansmasteringpreandpost-harvestproductiontechniques.Varietalresearchisneededandseedsmustbemadeavailable.Inthecurrentcontext,inwhichthereareenoughplantations,anewvarietycanbeintroducedusinggraftingtechniques.Inordertocontrolcosts,andgiventhatthecontextismoreorlessthesamethroughoutthesubregion,varietalresearchshouldbeconductedtogetherwithothercountries.Masteringcropmanagementalsoimpliesathoroughgroundinginproductionequipment.Trainingkitsshouldgohandinhandwiththeoreticalandpracticaltraining.
Growersandprocessorsmustbeinstructedinoutputcontrol,managementtechniquesandmarketresearch,forthosearetheskillstheyneedtopenetratemarkets,especiallythehighlydemandingexternalmarket.
Theconceptofexportcertificationappliesinthemediumtermandrequireswork.Itinvolvesconcertedactionbyandunder-standingbetweenthestakeholders,whohavetoadoptbetterstructurestodefendtheircommoninterests.
Themainquestionatthemesolevelistheintegrationofservicesintothesector,withaviewtoprofessionalisingtheplayersandtoreachingtheminlargenumberseasilyandrapidly.Trainingaidsmustbepooled.Thisdoesnotnecessarilymeanthatallaidshavetobesystematicallyretooledtobeidentical,butratherthattheyshouldcomplementeachotherandthattrainingapproacheshavetobestandardised.
Thetable 2.5.2 on page 27providesanoverviewofcashewvaluechainserviceproviders.
Table 2.5.1: Evaluation of the need for services among the value chain’s stakeholders
Table 2.5.2: Overview of cashew value chain service providers
Service supplier Research Grower or-ganisation
Quality control
Information on the market
Business manage-
ment
Technology
TechnoServe x x x
CNRST; Institute of Scientific and Food Research; INERA
x x x
MECV; National Centre for Forest Seeds
x
MAHRH; National Seed Service x
ACA, Burkina Faso x x x x
ONAC; FASONORM x
ONAC; Tradepoint x
ECOCERT x x
FLO x x
WOUOL ASSOCIATION x x x
DRAHRH x x
DRECV x x
MAHRH; DOPAIR x
GIZ PDA x x x x x
PADL/CLK x x
Federation of Processing and Agrofood Industries of Burkina Faso
x x x
RONGEAD-INADES x x x
gebana Afrique x x x x
Anatrans Genèse x x x x x
Private consultants x x x x x x
27
Table 2.5.3.: Overview of the organisation of financial support for agricultural activities
Name of the financial institution Target group ProductExperience in the cashew sector
Regional Solidarity BankDealers Processors
Seasonal creditInvestment credit
UTASO, SOTRIAB, UTAK, UTAB
Banque Agricole et Commerciale du Burkina Dealers Processors Growers
Seasonal creditInvestment credit
No
National Federation of Credit Unions of Burkina Faso
Banque Commerciale du Burkina Dealers, Processors, Growers
Bank of Africa
Dealers Processors Growers
Seasonal creditInvestment credit
Sahel-Sahelian Bank for Investment and Commerce
ECOBANK
Banque internationale du Burkina (United Bank of Africa group)
28 2.5.2 Overview of cashew value chain financial service providers
Oneofthesector’smaindifficultiesremainsaccesstofinanc-ing.Processorsstarteachseasonwithlessandlessoperatingfunds,oftenbecausetheyhavedifficultyrepayingexistingloansorbecausethefinancialinstitutionshavelittleinsightintoagriculturalactivities.Thebankswillingtograntsuchloansarefewandfarbetween.Investmentcreditseemsmorereadilyavailable,becausetheequipmentconstitutesaformofcollateral,buthereagain,veryfewbanksarewilling.
Themaindifficultyfacinggrowersistoobtainseasonalcreditenablingthemtotendtheirplantationsandharvestthenuts.OneofthefewfinancialinstitutionswillingtoprovidesuchcreditistheNational Federation of Credit Unions of Burkina Faso.Thebigproblemhereistheavailabilityofguaranteefundsforgrowers.Thesameproblemarisesfororganisedgroupssuchasgrowerorganisationsthatwanttobuytheirmembers’outputinordertoresellit.
Thereareseveralexamplesofbestpracticeamongthefinan-cialinstitutions.TheRegional Solidarity Bank,forexample,partiallyfinancedtheestablishmentofunitssuchasthenewUTASOandUTAK.BothunitsarenetworkedwiththeWOUOLAssociation in Bérégadougou,whichhasfouryearsofexperienceincashewprocessing.UTASOwasf inancedaspartofapublic-privatepartnershipbetweenthePDA,theexportcompanygebana Afriqueandtheowneroftheprocessingunit.Itreceivedsupportforthesubmis-sionofafinancingrequesttothebank,whichapprovedthe
requestandprovidedCFAF30millionfortheconstructionofabuildingandsomeoftheequipment.Theunit,whichhasatheoreticalcapacityof400tofrawnuts,shouldbeoperationalverysoon.
UTAKreceivedthesameamountforconstructionandequip-ment.Therepaymentperiodisthreeyearsandtheinterestrate11%.Eachoftheseunitsaimstoimprovetheincomeofabout200people,90%ofwhomarewomenwithinthefirm,andtoobtainsuppliesfromanetworkofonethousandloyalgrowerswhoseincomeandproductioncapacityaretherebyalsoimproved.Thisexamplecanbeusedtoappreciatethemean-ingofatrueprivateinitiativeandtoreviewcertainmodesoffinancingusedbytheprocessingunitswhennegotiatingwiththebanks.
ThepartnershipbetweentheNGO GenèseandGlobal Trading,whichcanbeconstruedasforeignfinancing,isinfactcon-ductedwithlocalbanksandfacilitatedtheestablishmentofAnatrans,whichistheindustrialarmofGenèseandhasanannouncedcapacityof3,500tperyear.AnatransisajointventurebetweenGlobal TradingandtheformerBurkinabefirmSOPRAL.Itisbuildingaprocessingunitwithastoragewarehousethatcancontain3,500tofcashewnuts.Inthemeantime,Anatransbuysrawnutsfromthegrowersunderitswingsandsendsthemtofactoriesinneighbouringcoun-tries.Genèsetakescareoftrainingandprovidessupportforgrowerorganisationandcapacitybuilding.Global Tradingisengagedinapublic-privatepartnershipwithGIZwithregardtothecapacity-buildingaspect.
Table 2.6.2: National policy affecting value chain performance
Policy Description Implication for the value chain
Rural Development Strategy (SDR, 2003)
Burkina Faso’s vision with regard to: greater food security, higher revenues in rural areas, sustainable management of natural resources and stakeholder accountability.
Any strategy promoting the cashew sector must be aligned with the SDR objectives.
Sector Programme for Productive Rural Development
Programme arising from the Paris Declaration on harmonisation and alignment. It is to lead to a Medium-Term Expenditure Framework aimed at a shared basket so as to make support more efficient and effective.
Close cooperation between the technical and financial partners and harmonisation of approaches.
Coordination Framework for Rural Development Partners
Coordination framework for rural development partners based on key sector issues (financing, sector, action); priority of the Strategic Poverty-reduction Frame.
Close cooperation between the technical and financial partners and harmonisation of approaches. Common programme.
29 2.6. Institutional and policy governance chain
In1991BurkinaFasoembarkedonafar-reachingprogrammeofeconomicreformaimedatlayingthegroundworkforafree-marketeconomyinwhichtheprivatesectorwouldbethemainengineofgrowth.Themeasurestakentofulfilthatobjectiveare:
ÿ reformoftheagriculturalsector,notablybyredefiningtheroleoftheStateandadoptingastrategicorientationdoc-ument,astrategicoperationalplanforthedevelopmentoftheagriculturalsector(plantproduction)andaplanofactionandprogrammeofinvestmentinanimalhusbandry;anoil-seedcropactionplanwasalsodrawnup;
ÿ promotionoftheprivatesectorthrougheconomicliber-alisation(improvedregulatory,legalandcorporatetaxframework,adoptionofanindustrialdevelopmentstrategy,adoptionofatradesdevelopmentstrategy,etc.);
ÿ measurestoeasethebusinesstaxburdenontheformalsector;
ÿ theadoptionoftheInvestmentCode,whichisintendedtopromoteproductiveinvestmenttofurtherBurkinaFaso’seconomicandsocialdevelopment;advantagesrelatingto
businesscreation,investmentandoperationaregrantedtobusinessesrequestingthem;
ÿ intermsofexportpolicy,a2003studyfinancedbytheJoint Integrated Technical Assistance Programme (JITAP) forlessdevelopedandotherAfricancountries,onthede-velopmentofasectorstrategytodevelopandpromoteexportsandanationalexportmarketingplanforsesame,karite,groundnutsandcashewsinBurkinaFaso.Thisstrategy,whichisimplementedbyONAC,hasprovidedfreshmomentumoverallfortheoil-seedplantsector,whichincludescashews.
Giventhemanydimensionsofprivatesectordevelopment,thegovernmentoptedforaglobalstrategyreconcilingneedsforstructuralreformandeconomicrecoverywithaviewtobusinesscompetitiveness.Thoseprinciples,whichunderpineconomicpolicyonprivatesectorpromotion,strivetopro-moteeconomicgrowthandenhanceincomedistributionforlastingsocialstability.
Sincetheliberalisationoftheoil-seedproductsector,theexportofcashewnutsandkernelsisnolongertheobjectofspecialattentiononthepartofthecustomsservices.
Table 2.7.1: Summary of strengths, weaknesses, opportunities and threats (SWOT analysis)
Strengths Opportunities
ÿ Most cashew plantations are young or in full production; 25,000 t available
ÿ Existence of ties to the European market ÿ Support structures exist ÿ Labour available
ÿ Growing international demand ÿ Stakeholder enthusiasm to improve practices ÿ Presence of financing structures ÿ Government interest in the sector ÿ New financing
Weaknesses Threats
ÿ Relatively poor organisation of stakeholders ÿ Instability of raw nut prices ÿ Insufficient quality of raw nuts ÿ At times, lack of knowledge of good growing
and processing practices ÿ Little synergy between support structures ÿ Limited availability of operating funds ÿ Poor quality inputs ÿ Low processing capacity
ÿ Falling prices for raw nuts ÿ Slump in sales of raw nuts if development
of the processing link lags behind production ÿ Fluctuating needs for raw nuts for export
30 2.7 Cashew value chain strengths, weaknesses, opportunities and threats
The figure belowshowsthemaindifficultiesfacingthecashewvaluechain.
Figure 2.7.1: Illustration of the difficulties facing the cashew value chain
MACRO
MESO
MICRO
Inputs Production Marketing Processing Export
Nurseries, local equipment
suppliersRaw nut growers Collecteurs
Processing units, small-scale
processors
Kernel exporters
Raw nut exporters
INERA, DRAHRH, DRECV, PADL/CLK, SNV, Helvetas BF IRSAT, TechnoServe
INADES BF INADES BF
MEBF, ACA BF, PDA-GIZ, WOUOL, BKF/012, gebana Afrique, Anat-rans Genèse, SOTRIAB, consultants, ECOCERT,
FLO, financial services, ACi
MEBF, ACA BF, PDA-GIZ, WOUOL, BKF/012, gebana Afrique, Anatrans Genèse, SOTRIAB, consultants, ECOCERT,
FLO, financial services, ACi
Customs services Customs services
MAHRH (DGPER, DGPV, DOPAIR, SP/CPSA) MCAPE/ONAC (FASONORM, Tradepoint)
CNRST/MESSRS CNRST/MESSRS
MECV MEF
Table 2.8.1: Players helping to promote the cashew value chain
Programme/project/ organisation
Main partners (govern-ment, NGO, donors)
Geographical area Main activities to promote the cashew value chain Remarks
PDA GIZSud-Ouest and Est regions
ÿ Production ÿ Processing ÿ Marketing ÿ Support for initiatives intended to improve
the circulation of information among private and public players
Supports ACi
PAMER NGO
Hauts-Bassins, Cascades, Boucle du Mouhoun, Est and Centre Est regions
ÿ Support for processing micro-enterprises in the form of training and advice intended to build capacity and improve ties to other links in the chain
MEBF NGO Nationwide ÿ Facilitate access to business support
services available on the market
BAME Bobo Dioulasso ÿ Production ÿ Processing ÿ Marketing
SNV ÿ Support for stakeholders at all links in the
form of training, advice on organisational and institutional capacity building
PADL/CLK ÿ Support (training, advice) for input suppliers
and growers
Christian Relief and Development Organisation (Organisation Chrétienne de Secours et de Dévelop-pement) CREDO
NGOSissili and Ziro provinces
ÿ Support for all links in the chain
ECOCERT ÿ Specialised in organic/fair trade certification
INADES
NGO, food sovereign-ty, fair trade
ÿ Training ÿ Peasant communication ÿ Support for control of agricultural sectors ÿ Organisation ÿ Structuring of the rural world ÿ Market access ÿ Technical capacity building ÿ Financing in the rural world ÿ Work to influence policies
31 2.8 Overview of organisations helping to promote the cashew value chain in Burkina Faso
SeveralNGOanddonorinitiativesandprogrammesareintendedtopromotethecashewsector,ruraldevelopmentorruralmicro-businesses.Cooperationbetweenthevarious
programmesandprojectscancreatesynergyandfosterde-velopmentofthecashewvaluechain.The table belowgivesanoverviewofthemostextensiveprojectsandprogrammes.
34
ÿ thelegalvacuumandabsenceofregulatoryprovisionsinrespectofagriculturalsectors;
ÿ poorcoordinationbetweenindirectplayers:supportstructuresactingonthevaluechainhavenoframeofreferenceforcoordinationamongthemselvesorwiththestakeholders;theresultingincoherentactioncaninturnhavenegativerepercussionsonsectorperformance;
ÿ growerunawarenessoforfailuretousecropmanagementtechniquesandlackoftechnicalguidanceforstakehold-ers(i.e.,thesequenceofoperationsapplicabletocashewtrees;thetechniqueforregeneratingplantationsviaprun-ing;theapplicationoforganicmanure;failuresystemati-callytoclearscrubfromtheplantations,whichoftenresultsinbushfiresthataredetrimentaltothequalityofsurvivingnuts;thepoorpost-harveststorageconditionsofnutsbygrowersandwholesaledealers;lackofknow-ledgeandknow-howaboutprotectingplantationsfromphytopathologiesandparasites;thelowproductivityofthevarietiesused;problemsofaccesstosuitableinputsandequipment;failuretomakeproductiveuseofby-products;thestakeholders’poormanagementcapacity);
ÿ theinabilityofnationalstakeholderstoearnremunerativepricesbecausenutsfromplantationsinBurkinaFasoareconsideredsmallbythemajorinternationalbuyers(thesizealsoinfluencesthesizeandweightofthekernelsobtained);
ÿ lackofsteamembrittlementequipmentamongsmall-scaleprocessors;
ÿ thestakeholders’failuretoincorporatequalityasagoal;ÿ problemsofaccesstoappropriatepackagingmaterials;ÿ slumpingsalesandpoorcirculationoftradeinformation.
3 Recommendations
TheentirecashewvaluechaininBurkinaFasocurrentlysuf-fersfromanumberofinformationgaps.Asconcernsgrowers,reliabledataismissingoneconomicpotentialandproductionfigures(realsurfaceareaofplantations,treeproductivitybyagroecologicalarea).Whenitcomestotradeandexport,theflowofnutsfromorleavingneighbouringcountriesisuncon-trolled,bothintermsofquantityandquality.Likewisetheturnoverofdealersandexportersandtheirexactnumberremainunknown,aboveallbecauseoftheinformalnatureofthesector.
Table 3.1: Missing information
Value chain stakeholders
Missing information
Growers
ÿ Plantation surface area ÿ Productivity of trees by agroecological
area ÿ Qualitative typology of products by
agroecological area ÿ Characteristics of existing varieties
and their performance
Processing industry
ÿ Ecological impact of processing (water consumption, energy, roads, environmental impact)
Dealers and exporters
ÿ Flow of nuts from or leaving neighbouring countries
ÿ Number of dealers
Lastly,activitiesintendedtosupportthecashewvaluechaincouldtacklethefollowingshortcomings:
ÿ thestakeholders’lackoforganisation,whichisanim-pedimenttocoordinationandtodecisionsandactiononsharedmeasuresonpricesandmarketentryandexitconditions;
36 List of Acronyms
ACA AfricanCashewAlliance
ACI AfricanCashewinitiative
AGOA AfricanGrowthOpportunityAct
BAME Officeforthepromotionofmicro-enterprises
BKF/012 NaturalResourceManagementintheBoboDioulassoBasin,LuxembourgAgencyfor
DevelopmentCooperationproject
CFAF FrenchCommunityofAfricafranc
CNRST NationalCentreforScientificandTechnicalResearch
CREDO ChristianReliefandDevelopmentOrganisation
DGPER GeneralDirectorateforthePromotionoftheRuralEconomy
DGPV GeneralDirectorateforPlantProduction
DOPAIR DirectoratefortheOrganisationofGrowersandforSupportforRuralInstitutions
DPECV ProvincialDirectoratesfortheEnvironmentandEnvironmentalLivingConditions
DRAHRH RegionalDirectoratesforAgriculture,WaterandHalieuticResources
DRECV RegionalDirectoratesfortheEnvironmentandEnvironmentalLivingConditions
ECLA Êtrecommelesautres,cashewprocessingunit
ECOCERT Controlandcertificationbodyfororganicproduce
EIG EconomicInterestGrouping
FASONORM DirectorateforStandardisationandQualityPromotion
FLO FairtradeLabellingOrganisationsInternational
FOB Freeonboard
GDP Grossdomesticproduct
GIZ DeutscheGesellschaftfürTechnischeZusammenarbeitGmbH
ha hectare
INADES AfricanInstituteforEconomicandSocialAdvancement
INERA InstituteontheEnvironmentandAgriculturalResearch
IRSAT InstituteofResearchinAppliedScienceandTechnology
37 MAHRH MinistryofAgriculture,WaterandHalieuticResources
MCAPE MinistryofCommerce,TradesandBusinessPromotion
MEBF Maisondel’EntrepriseduBurkinaFaso
MECV MinistryoftheEnvironmentandEnvironmentalLivingConditions
MEF MinistryoftheEconomyandFinance
MESSRS MinistryofSecondaryandPost-secondaryEducationandScientificResearch
MT Metrictonnes
NGO Non-governmentalorganisation
ONAC NationalExternalTradeOffice
PADL/CLK ProgrammetoSupportLocalDevelopment/Comoé,LérabaandKénédougouprovinces
PAMER RuralMicro-enterpriseSupportProject
PDA AgriculturalDevelopmentProgramme
RGA GeneralAgriculturalCensus
SNV NetherlandsDevelopmentOrganisation
SOTRIAB BurkinaFasoIndustrialCashewProcessingCompany
SP/CPSA PermanentSecretariat,CoordinationofAgriculturalSectorPolicies
t Tonnes
UTAB UnionofBérégadougouCashewProcessors
UTAK KénédougouCashewProcessingUnit
UTASO Sud-OuestCashewProcessingUnit
WOUOL "mutual aid"inthelocalTurkalanguage
38
Notes
ÿ Rapport de l’atelier sur la promotion des chaînes de valeur ajoutée de la filière anacarde (NasserKankoudry,OusmaneDjiba,PhilippeConstant),PDA–GIZ,May2008.
ÿ Diagnostic de la filière anacarde au Burkina Faso pour une analyse des chaînes de valeur(NasserKankoudry),PDA–GIZ,April2008.
ÿ Study of the cashew value chain in Burkina Faso;SNV,July2006. ÿ Recensement général d’agriculture: résultats préliminaires, Phase 1;MAHRH,2008. ÿ Market study of the dynamics of the output of cashew nut processing in the area;coveredbyPAMER. ÿ Report on the study of the organisation of growers in four sectors;PDA,May2007.
Annex I : Documentation