In Mali, the eighth-largest cashew producer in West Africa, commercial promotion of this product is booming. On the ground, it is difficult to comply with the minimum purchase price set by the government at 390 CFA francs/kg (0.64 USD/kg). Local producers, lacking information, often tend to sell at lower prices.
Compliance with the minimum price: A major challenge
On March 13, Daniel Kelema, Mali’s Minister of Agriculture, proclaimed a minimum purchase price of 390 CFA francs/kg. This price, the third highest in the sub-region, was intended to revitalize the sector. However, according to the business consulting agency N’kalô, this rate is not being observed. According to N’kalô in its March 27 bulletin, “the majority of transactions took place during the past week at prices ranging between 350 and 375 CFA francs/kg in the weekly markets of Sikasso, Kadiolo, Kolondièba, Yanfolila, and Bougouni“.
This situation is partly due to the poor organization of sector stakeholders. They have limited access to market data. Furthermore, there is no government authority dedicated to regulating the cashew sub-sector.
Improving information and organization among stakeholders
The Malian Cashew Industry Interprofessional Organization (IPROFAM) could play a decisive role. Experts suggest that it should strengthen its members by providing them with frequent information. This would give them better control over the factors that impact prices. Local producers are often less well-informed than international buyers.
This would allow them to sell their stocks at higher prices. “By better understanding the factors that impact prices and their variations, they believe that stakeholders in the chain could benefit more from the market.” The report highlights that end buyers such as foreign importers or wholesalers often have better market knowledge than local producers, allowing them to sell their goods at higher prices to other countries in the sub-region.
Reviving the Malian Cashew Industry
This year, Mali aims to revitalize its cashew industry. The 2024 season was not successful, recording a production of 92,750 tons. This figure has decreased from 105,000 tons the previous year.
Improving communication and organization among stakeholders is crucial. This would facilitate the achievement of this objective, as is the case with the cashew industry in Côte d’Ivoire.
Specific measures to implement
To strengthen regulation of the cashew industry in Mali, the government could consider several specific measures.
Creation of a State Regulator
Establish a strong public entity to regulate domestic cashew marketing. This would allow for better price control and ensure compliance with the minimum price.
Training and Awareness-Raising
Organize training and awareness-raising sessions on good agricultural, manufacturing, and hygiene practices for all stakeholders involved in the industry. This would improve product quality and compliance with international standards.
Harmonization of Standards
Harmonize national standards with international guidelines to facilitate exports and improve the competitiveness of Malian products on the global market.
Development of Local Processing
Encourage local cashew processing to increase added value and reduce dependence on raw cashew exports. This could be achieved through projects such as PAFAM.
Protection Policies
Consider policies to prohibit or limit the export of raw cashews to promote local processing and protect national interests.
Financial Support
Allocate specific funds to support stakeholders in the sector, particularly small producers and processors, to strengthen their capacity to produce and market quality products.
