Multinational agricultural company Olam is to close its cashew nut factories in Mozambique due to “global trends and dynamics in the market,” in a measure that will affect thousands of workers, a statement said.
The statement, affirms that the halting of activity in Mozambique was also due to difficulties in access to cashew nuts of sufficient quality and quantity.
“As an investor in the agricultural sector in Mozambique with over 22 years of activity and as the main participant and employer in the sector, we regret the cost that such adjustments bring to our employees and the farming communities that we have supported throughout this period,” the statement said.
The statement does not mention the number of workers and nut producers that will be affected by the measure, but on its official website, Olam notes that it employs 500 permanent and 1,250 seasonal workers at three factories in Mozambique.
Olam also operates cooking oil production units in Mozambique, but the statement does not mention whether the measure will affect this segment.
