The Liberalization of raw cashew exports may be hurting the competitiveness of the processing industries in Mozambique.
This is at least the idea that emerges from the decision announced a few days ago by the multinational agribusiness Olam, which decided to disinvest in the processing of cashew in the country.
The company considers that the liberalization of raw cashew exports has put its companies in a situation of unfair competition, which made the continuity of business in Mozambique not very sustainable.
In a virtual meeting with the Confederation of Economic Associations of Mozambique (CTA), Olam pointed out as the main reasons for the closure of the cashew factories the transformation of the global market, which started to negatively influence the export of cashew processed in Mozambique, which used to place 30% of its production in India and Vietnam.
According to data announced at the meeting, as of 2019, Mozambican production no longer has access to these markets, following the imposition of customs tariffs by the two countries to protect their industry, a situation that was aggravated by the negative impacts of the Covid-19 pandemic.
According to the source, internally there is the crisis that has been shaking the sub-sector with the reduction of processing levels, from about 60 thousand tons, approximately three years ago, to less than ten thousand tons currently. At the end of the meeting, the president of the CTA, Agostinho Vuma, manifested the interest in finding answers to the constraints of the cashew sub-sector and to assure the opening and development of the industry.
“We are certain that the Cashew Industrialists Association can play a major role in defining concrete proposals so that the Government can adopt and implement bolder and more favorable policies for the development of this subsector,” Agostinho Vuma said on his official Instagram page.
Recently, Olam announced that it will close its cashew nut factories
cashew in the country due to “global trends and dynamics in the market,” a measure that will affect thousands of workers. The memo makes no reference to the number of workers and nut producers who will be affected by the measure, but on its official website Olam notes that it employs 500 permanent and 1250 seasonal employees in three factories in the country.
The paralysis of activity in Mozambique is also due to difficulties in access to cashew nuts of sufficient quality and quantity. and in sufficient quantity. A Olam also operates units producing production units of edible oil in in Mozambique.
