INTRODUCTIONThe project ldquoCashew Sector Inventory in Enugu Staterdquo funded by Commercial Agricultural Development Project CADP (word bank Assisted) Ministry of Agriculture and Natural Resources Enugu is aiming to establish a strong network and a structure best adapted to support the development of a sustainable Cashew Value Chain System in Enugu State

The ultimate beneficiaries of the project are the cashew nut smallholders and thesmall- and medium-scale processors and exporters of the product The project is expected toimpact on the expansion of the direct export trade in raw and processed cashew nut fromEnugu State towards both developed and developing markets of the world

EXECUTIVE SUMMARYCashew farming in Enugu State has always been a smallholder activity with individualfarmers owning small numbers of trees of various ages under a wide range ofhusbandry standards Culturally cashew nuts are intercropped with mangoescoconuts or food crops such as millets and maize

Liberalization has exposed the farmers to a marketing environment withcompletely unpredictable prices which led them to neglect their trees and the crop asa whole Lack of credit for purchasing farming equipment and inputs for pests anddisease control has aggravated the situation

The main cashew disease in Nigeria is the powdery mildew which has becomeendemic in most parts of the growing States including Enugu State

Shortages or lack of resources for research and extension services is acommon phenomenon cashew farmers are not being attended to or supported byanybody technically or financially

The main stakeholders of the sector are the farmers themselves some smallscale traders who buy the unprocessed nuts at the farm gate or rural markets and resellthem to exporters and the exporters who ship the nuts to India for processing

Enugu State Ministry of Agriculture and Natural Resources is responsible for the development of the sector but to date they have not put in place any specific development plans Again Enugu State Produce Inspection Services Ministry of Commerce and Industry has the statutory function of grading raw cashew nuts for export but still nothing tangible has been done to that effect

Premier Cashew Company owned by the State government had in the past set up a processing plant that commenced operation but collapsed as a result of lack of raw materialsTo improve cashew nut production priority would have to be given tocontrolling diseases and pests and to improving husbandry by enhancement of inputsuppliesTraining of farmers and supervision by the field extension service personnel

should be reinstated This short-term strategy will result in increasing yields of theexisting trees The longer-term strategy should be a structured replanting programmeusing improved germplasmA restructured marketing system should be installed in order to give thefarmers confidence providing for primary local processing before exporting Thesedevelopments would require financial resources from both the public and the privatesectors

Chapter 1 STRUCTURE ORGANISATION AND DEVELOPMENTSTRATEGY11 Historical perspectiveCashew is among the oldest cash crops in Kenya The tree yielding even inpoor soils has excellent cash crop prospects for areas where other productive cropscannot grow wellThe tree is indigenous to Central and South America and was introduced intoEast Africa during the sixteenth Century by the Portuguese Its Swahili name isKanju a recognisable variation of Acaju name given by the Tupi of South AmericaOne of the first mentions of the cashew in Kenya comes from the Swahili Dictionaryof Dr Ludwig Krapf a missionary who arrived at Mombasa in 1844 and thereafterestablished a mission at Rabai Apart from the name of the tree Krapf quotes Dungethe nut when green and before the apple is formed) Kanju (the fruit) and Korosho(the ripened nut)Cashew tree bears fruit after three years but the first crop do not exceed 4kgtree A good average crop for a mature plantation tree is around 10 kgyear Thisis harvested from the end of October to January A smaller harvest is obtained inFebruary and MarchIn Krapfs days the apple was used to make jam and jelly as well as abeverage The tree yielded a gum and the bark was used medicinally The nut apartfrom being a food when crushed yields through extraction an oil of excellent qualityIn Kenya processing of cashew nuts started in a very small way at Kilifi in1930 with roasting and cracking the nuts under a mango tree Following a visit toIndia in 1935 the late Mr WG Lilywhite introduced a primitive type of drum roasterwhere shelling peeling and grading was done by hand in an open shed In 1950 animproved type of drum roaster was installed and new drying ovens were built Thisgranted a great deal of economic stability to Kilifi District which did not have a cashcrop previouslyMr WG Lilywhite showed small holders how to grow cashew and providedthe seed When the trees began to bear his vans collected the nuts and farmers werepaid in cash One of Mr Lilywhitersquos advantages was that he had no need toexperiment with packing materials During the 1930s in Kenya petrol and kerosenewere marketed in four-gallon cans (debes) By a simple conversion debe tops werealtered to include a circular opening When steamed the containers were ideal forexporting cashew kernels By then about 400 tons were being processed annually7Between 1960 and 1963 the processing was taken over by Mitchell CottsCashew Limited They increased processing capacity to 800 tons per year In 1964 the

Government took over the business and placed it under the National Cereals andProduce Board (NCPB) of the Ministry of Agriculture The Industrial andCommercial Development Corporation (ICDC) the Industrial Development Bank(IDB) and the Kilifi District Cooperative joined later NCPB as ownersThe factory was able to process 1500 tons annually and employed a permanentlabour force of 385 people During this time production of cashew nuts from the threemain producing districts of Coast province namely Kilifi Kwale and Lamu wasstepped considerably through the extension service of the Ministry of AgricultureNearly 70 of the raw cashew nuts were exported to India for processing a smallpercentage of which was returned to this country after processingKenya Cashew Nut Limited commenced operations on 5th August 1975 andstarted by processing 5 tons per day At full capacity it was processing 60 tons perday and employing a labour force of 2000 people (1200 women and 800 men)The demand for cashew nut from Kenya was considerable The main exportmarkets were North America Japan Middle East Europe and Australia All raw nutswere supplied by the Kilifi District Cooperative Union to Kenya Cashew NutsLimited through the National Cereals and Produce Board The cashew Nut ShellLiquid (CNSL) was a by-product of the roasting process Through polymerisationthis oil is yields a friction modifier used further in the production of brake liningsThe factory was privatised in 1993 and continued under the same name Thecrop was marketed through farmersrsquo cooperative societies traders and agents TheLiberalisation of marketing of cashew nuts took place in 19971998 The factoryclosed down in 1998 and it is now under receivership12 Structure and organisationCashew nut farming in Kenya is a smallholder activity and there are no largeplantations Individual holdings vary from a few trees to a few acres per farmerAccording to a recent survey growing of cashew nuts is confined to the agroecological zones I II III of the Coast Province of Kenya The districts are KwaleKilifi and Lamu A few patches within Mombassa District contain some cashew nuttrees that are not really cared for The definition of zones is based on distance fromthe Indian Ocean Coast line Zone I lies 0 to 15 km from the Coast Line zone II at 15to 35 km and zone III at 35 km and beyond (see map 1)The main characteristics of cashew nut growing areas in Kenya are shown in tablebelowTable 1 Characteristics of cashew nut growing Areas in KenyaZone Rainfall in mm Area in ha Tree populationper hectareI 900-1200 18500 70II 600-900 7500 50III 400-600 5000 108Source Baseline study by M Rabu 2001 Jaetzold and Schmidt (1983) CoastProvincial Directorate of Agriculture Annual Report 1999The season for harvesting cashew nuts starts in October and ends in MarchHowever depending on the onset of the short rains and the arrival of the long rainsthis pattern can fluctuate back and forth by one or two months It is common to find

the season extending its duration to the month of May The main harvesting peak is inDecember- January and a minor one in March - April The main harvesting periodcoincides with the peak import demand in India the heavy buying taking place inMarchNearly all the existing cashew trees are very old receive very little attentionby the owners and are therefore characterised by low yields The baseline study byMRabu etal conducted in 2001 revealed that average yield of 477 kgha while theaverage yield per mature tree was 32 kghaTable 2 Cashew nut yields in Kenya by districtDistrict Yield (kgha) Yield (kgtree)Kilifi 615 31Kwale 242 21Malindi 47 41Source EM Rabu 2001The trees are not uniformly distributed and the spacing is very variable Themean number of cashew trees per acre is six while the district means are 5 6 and 8for Kilifi Kwale and Malindi respectively Besides cashew farmers grow other fruittrees such as coconut mangoes and citrusAs stated previously farmers do not apply any inputs such as fertilizers orproducts to control pest disease The pruning of trees is not done This explains whyyields are low and very variableNuts are mainly harvested after natural fall onto the ground Some farmerswould harvest the ripe apples still carrying the nut and manually separate them thendry the nuts on mats or Hessian cloth under the sunOne factor which has contributed to lack of serious cashew nut farming apartfrom poor prices is the land tenure problem Most of the currently producing trees arefound in the ecological zone I where the land tenure system has not been clearlydefined Most of the people living in this zone (some of whom have been settled therefor over 100 years) are called squatters and do not yet have title to the land despitethe fact that the original owners can no more be tracedBefore independence the land along the ten-miles strip used to be referred toas Protectorate and owned by the Sultan of Zanzibar Therefore most of the so-called9owners were Arabs who lived in the towns of Mombassa Malindi and Lamu Thesepeople did not care very much about what was going on or who lived on their landBecause of the good soils availability of water from wells and good rainfallmost of the Mijikenda people moved from CGEZ III and settled in CGEZ I andstarted planting cashew among other tree crops Some of the trees just germinated ontheir own hence the large numbers of trees that are very closely planted with both thebranches and roots touching and a very intense competition for food and light As aresult production is negatively affected and the land cannot be used for anything elsebecause of the thick coverage by the treesLand ownership patterns are of three main types in the three districts namely1048766Freehold1048766Clan1048766Leasehold

Farm ownership patterns have an effect on the confidence for secondaryinvestments such as for perennial cash cropsStatus of land ownership in Kilifi Kwale and Malindi DistrictsDistricts With title deeds() Without title deeds()Kilifi 80 20Kwale 45 55Malindi 24 76Processing of Cashew nutsPan roasting of cashew nuts has always existed in all cashews - growing areasHowever the failure of the Kilifi processing unit led to the proliferation ofmicroprocessors mainly in Kwale Kilifi and Malindi districts The operations arebeing managed by farmer groups self help groups and individuals who used to workat the processing factory Over the last few years the Community-BasedOrganizations (CBOs) have found it difficult to access markets Their operations facean uncertain future unless the marketing problems are addressed13 MarketingBefore liberalization of the marketing of raw cashew nuts the crop wasmarketed through farmersrsquo cooperative societies agents and traders agents and wasfinally purchased by Kilifi Cashew Limited the only major processor in the countryThe farmerrsquo marketing problems have been made worse by the collapse of themarketing system after liberalisationCases of mismanaged co-operatives led to farmers being paid late or deniedtheir dues outright The farmers have always considered the prices offered for theircrop too low compared to their expectations The fluctuating nature of prices resultedin the discouragement of smallholders and the consequent neglect of their casheworchards10The liberalisation of cashew nut marketing coincided more or less with theclosure of the main processing factory Kenya Cashew Nuts Limited in 1998 It wasexpected that the liberalization of cashew nut marketing would allow competition in abuyers market The scenario pertaining since 1998 has made the farmers even moreperplexed Following the El Nino phenomenon in 199798 the 19981999 crop seasonwas the best seen for many years There was an unprecedented influx of buyers fromIndia the crop was large of a good quality and highly priced because of theabundance of buyers (up to 70 KShs kg)During the 199900 season only few exporters showed up as the demand forexport was low The prices offered were nowhere near the previous years levels Inthe following 20002001 the situation was even worse with prices falling to 30-35KShskg (the current exchange rate is 78 Kshs for one dollar)The export of unprocessed nuts has obviously exacerbated the potential forestablishing a viable export industry within the country The Ministry of Agriculturehas recently attempted to reintroduce some guidance on the way forward but it is tooearly to determine what will happenCurrent marketing and processingMarketing aspects comprise outlets mode of transport pricing the effects ofthe closure of the processing factory and the value addingprocessing aspects Existing

market outlets include neighbourhood shopkeepers and agentsmiddlemen Agentsmiddlemen are the most common buyers of nuts in Kenya undertaking about 952of the trade in Kilifi some 835 in Kwale and 646 in MalindiPricing is a big issue in the cashew sector because of the prevalence ofexploitation of farmers farm prices being set by external forces Recent prices varybetween 10 and 20 Kshskg across the three districts Because of the disorganizednature of marketing most of the crop is bought at farm gate While there may bemarket days raw cashews are not the main commodity on saleMarketing of raw nuts is not organised as there are no viable farmers groupswith bargaining power Consequently there is a lot of uncertainty in the market Thenumber of buyers and their areas of operation are unknown and the prices offeredvery variable and unpredictable A small sample survey conducted by Kenya NutCompany Ltd came up with the figures shown below for farm gate and rural marketsspot prices for raw cashewsCurrent raw cashew producer prices by districtIn Kshskg and (US centsKg)DistrictMeanLowHighKilifi 2450 (32) 1380 (18) 3730 (48)Kwale 2010 (26) 1900 (24) 2945 (38)Malindi 2570 (33) 2130 (27) 3345 (43)Source Field survey by Kenya Nut Co LtdExchange rate Kshs 78 for one dollar1114 Development strategyThe economic development of the Coast Province has been relatively slowcompared to other regions of Kenya Rural poverty stands at 57 among theestimated 25 million people in the province despite its high agricultural potentialparticularly in CGEZ I and in some parts of the CGEZ IIIMore than 56 of the inhabitants derive their income from tree crops ofwhich cashew is among the most important Cashew nuts grow along the Coastal beltfrom Lunga Lunga in the south to Lamu in the North East of the Province coveringKwale Kilifi Malindi and Lamu Districts The total area under cashew nutcultivation is estimated at 30921 hectares (M Rabu 2001)In CGEZ I where planting of cashew first started trees are old and crowdedNothing can be grown in between them nor can spraying be done efficiently Land isgetting very scarce and therefore on a small scale in some areas trees are beingthinned pruned to make room for the alternative cultivation of annual crops and forpest and disease control Cashew in this zone is threatened by other more profitableenterprises such as dairy and vegetable productionIn CGEZ II covering the area between 15 and 35 km inland cashew orchardsare not as crowded as in CGEZ I but do not produce economic yields or meet qualityrequirements for the export industry The Kenya Government has therefore initiatedpolicy guidance for farmers community based organisations and private investors to

revive the cashew nut sector Small scale processing shall be encouraged in the shortterm through Community Based Organisations as they own some trees and some arealready processing their crops Assistance needed include locally fabricated roastingpans as processing technologies to improve on qualityThe Government institutions operating in the cashew growing zones namelythe Coast Development Authority and the Kenya Agricultural Research Station inMtwapa have recently commenced some activities in this lineChapter 2SECTOR PERFORMANCE21 ProductionWorld cashew nut production has fluctuated considerably during the last 20years The average annual output dropped from 407000 tonsyear during the 1969 ndash1971 period to 390000 tonsyear in 1978-81 and rose again to 471300 tonsyear in1989-91The major world producers are India Brazil Mozambique and TanzaniaAfrican producers accounted for some 78 of the world production in 1970 butreduced their shares to only 40 in 197981 and 244 in 198991 Kenya outputdeclined from an annual average of 24000 tonsyear in 1969 -71 (59 of worldproduction) to 16500 tonsyear (42 percent of world production) in 1979-81 and to10300 tonsyear in 198991 (a mere 2 of the world production) Recent outputs areshown in the following table12The above production pattern has continued to prevail up to the present timeThe factors attributable to the containing decline are largely associated with thecollapse of the marketing system consequential loss of interest by farmers due toprice instability and the lack of production support services These includedevelopment policy guidance and lack of adequate research and extension servicesTable 3 - Kenya cashew nut area and production 1990 to 2000Year Surface (ha) Production (tons)1990 37668 222241991 31952 190621992 32051 103631993 32126 199201994 32272 103761995 32318 128021996 30872 101731997 30893 91821998 30850 109861999 30921 14615Although cashew represents only one percent of the total Kenyan agriculturalproduction in value it is an important crop because it is grown in an areas with fewalternative cash cropsThere is room for establishment of new plantations and improvement ofexisting orchards through a proper management CGEZ III covers the area beyond35km that includes Ganze Vitengeni and Bamba in Kilifi district Samburu andNavaya in Kwale Lango Mbaya Marafa and Chakama in Malindi There is a big

potential for expansion of cashew plantations People are moving into these areasbecause land is still cheap This is an area where natural vegetation is being destroyedand cashew could serve as an agro forestry speciesProduction in Coast Province is characterised by low productivity per tree andunit area and large fluctuations from year to year This situation has come aboutbecause the estimated 30000 hectares of mainly old trees were established frommaterial of low potential and are currently poorly maintained or totally neglectedThe liberalisation of cashew nut marketing was expected to result in increasedbusiness confidence among the various stakeholders including the small holderstraders and small processors which should have led to dynamic changes in the sectorThis was however not the case Prices have continued to be unpredictable andunsatisfactoryMarket information plays a major role in guiding planning production andproviding feedback on the performance of products in the market place This isfundamental in the production and marketing of raw cashew nuts Smallholdersusually the most uninformed in the chain of activities related to the disposal of theircrop Price levels are determined elsewhere without their involvement Thecooperative societies traders or agents announce the new prices at the beginning of13the harvesting season but farmers do not dispose of a mechanism ascertaining thegenuineness of the price levels set This problem is complicated by the lack of anaccurate and acceptable method of determining the correct farm- gate price for theproducerThe lack of a regulatory body for the cashew sector has made the situationworse Raw cashew nut marketing is dependent on external marketing forces mainlyemanating from India It is generally understood that the Indian government isstriving to produce enough raw cashew locally in order to meet the local processingdemand rather than to rely on imports At the same time other new producers ofcashew nuts outside traditional areas are expanding their cropKenya needs to gradually move towards more local processing of cashew nutsand develop appropriate strategies for improving the domestic output and processingThis would minimize the exploitation of the farmers while the socio-economicbenefits are too important to ignore in terms of value - addition and creation ofemployment Reliance on the traditional systems of disposal of the crop will becomeincreasingly risky for smallholders in particular and the cashew sector in generalCashew production includes a wide array of operations ranging from mediumsized private factories and small-scale units to smallholder producers andmicroprocessors Small scale and microprocessors (mainly women groups) have beenengaged in this business for sometime but their share in the sector has not yet beendeterminedResearch and DevelopmentOne research and development objective which needs full support is a study ofthe production system and practices by farmers with a view to identify priorities andmatch the research findings with farmers needs There is also a need to developcultivars adapted to specific ecological zones as well as the corresponding farmingpractices and to make available to farmers new high-yielding planting material at

reasonable pricesResearch centres that develop new commercial varieties of cashew are inMtwapa Matuga and Msabaha Cashew seeds from selected trees in Matuga wereestablished at Mtwapa in 1958 In 1963 hundred and one trees were chosen from 300trees available and their yields were recorded during the period a long period

Pest and disease controlSeveral diseases and pests are attacking cashew and causing considerablelosses The main diseases are powdery mildew and anthracnose The main pests arecored bug cashew nut bugs cashew bark borer and cashew stem girdler Majomotoants (Oecophilla sp) colonize the cashew to feed on other insectsPowdery mildew caused by Odium anacardii is the most important cashewdisease A study conducted by Oltremare in 1982 in cashew growing areas showed thefollowing levels of attack Chonyi North (46) (Mariakani 16) Kambe Ribe(50) (Gede (9) and Witu (18) Considering the low resulting yields obtainedthe attack levels might have been even higher The assessment of powdery mildewinfestation revealed that application of fungicides significantly reduced theinfestation Yields were increased by six times over untreated trees through theapplication of fungicidesOngoing workA ldquoCashew management improvement projectrdquo is being currentlyimplemented and has the following activities1048766 identification of high yielding cashew trees in farmer fields1048766 introduction of cashew upgrading techniques in farmer fields and evaluation offungicides for control of powdery mildew in Kwale and Malindi DistrictsMaintenance of recurrent selection and clonal evaluation trials started in 1980 arecontinuing and propagation trials are being undertaken at the station A recurrentselection programme was initiated on the basis of the selected trees The highestyieldingtrees in each plot from each of the best progenies a second cycle be startedwithin 6 years Seeds from this trial could be issued to farmers The eight persistentlyhigh-yielding trees identified were propagated vegetatively by budding ontorootstocks The resulting clonal varieties were planted in 1980 The selections differin raw nut characters The raw nuts were tested at the Kenya Cashew Nuts Ltd inKilifiNut characteristics percentage recovery of nut components and quality ofprocessed kernels were studied The overall length of raw nuts from the 14 sampleswas slightly higher than the reported mean value for Kenya This was also true forwidth and thickness kernel weights and recovery of nuts components Other aspectsinvestigated included moisture contents of raw nuts and components and the influenceof humidification and roasting on nut width moisture contentsRecommendations on cultural practicesFrom a spacing trial planted in 1970 testing populations of 4469111135 and278 trees ha yields per ha varied from 134 to 600kg raw of raw of raw nuts Yieldsper tree responded very clearly to the various populationsMore space per cashew tree (fewer trees per ha) were not improved by thenumber of trees per ha To avoid loss of fruiting surface per ha of land two measures

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

should be reinstated This short-term strategy will result in increasing yields of theexisting trees The longer-term strategy should be a structured replanting programmeusing improved germplasmA restructured marketing system should be installed in order to give thefarmers confidence providing for primary local processing before exporting Thesedevelopments would require financial resources from both the public and the privatesectors

Chapter 1 STRUCTURE ORGANISATION AND DEVELOPMENTSTRATEGY11 Historical perspectiveCashew is among the oldest cash crops in Kenya The tree yielding even inpoor soils has excellent cash crop prospects for areas where other productive cropscannot grow wellThe tree is indigenous to Central and South America and was introduced intoEast Africa during the sixteenth Century by the Portuguese Its Swahili name isKanju a recognisable variation of Acaju name given by the Tupi of South AmericaOne of the first mentions of the cashew in Kenya comes from the Swahili Dictionaryof Dr Ludwig Krapf a missionary who arrived at Mombasa in 1844 and thereafterestablished a mission at Rabai Apart from the name of the tree Krapf quotes Dungethe nut when green and before the apple is formed) Kanju (the fruit) and Korosho(the ripened nut)Cashew tree bears fruit after three years but the first crop do not exceed 4kgtree A good average crop for a mature plantation tree is around 10 kgyear Thisis harvested from the end of October to January A smaller harvest is obtained inFebruary and MarchIn Krapfs days the apple was used to make jam and jelly as well as abeverage The tree yielded a gum and the bark was used medicinally The nut apartfrom being a food when crushed yields through extraction an oil of excellent qualityIn Kenya processing of cashew nuts started in a very small way at Kilifi in1930 with roasting and cracking the nuts under a mango tree Following a visit toIndia in 1935 the late Mr WG Lilywhite introduced a primitive type of drum roasterwhere shelling peeling and grading was done by hand in an open shed In 1950 animproved type of drum roaster was installed and new drying ovens were built Thisgranted a great deal of economic stability to Kilifi District which did not have a cashcrop previouslyMr WG Lilywhite showed small holders how to grow cashew and providedthe seed When the trees began to bear his vans collected the nuts and farmers werepaid in cash One of Mr Lilywhitersquos advantages was that he had no need toexperiment with packing materials During the 1930s in Kenya petrol and kerosenewere marketed in four-gallon cans (debes) By a simple conversion debe tops werealtered to include a circular opening When steamed the containers were ideal forexporting cashew kernels By then about 400 tons were being processed annually7Between 1960 and 1963 the processing was taken over by Mitchell CottsCashew Limited They increased processing capacity to 800 tons per year In 1964 the

Government took over the business and placed it under the National Cereals andProduce Board (NCPB) of the Ministry of Agriculture The Industrial andCommercial Development Corporation (ICDC) the Industrial Development Bank(IDB) and the Kilifi District Cooperative joined later NCPB as ownersThe factory was able to process 1500 tons annually and employed a permanentlabour force of 385 people During this time production of cashew nuts from the threemain producing districts of Coast province namely Kilifi Kwale and Lamu wasstepped considerably through the extension service of the Ministry of AgricultureNearly 70 of the raw cashew nuts were exported to India for processing a smallpercentage of which was returned to this country after processingKenya Cashew Nut Limited commenced operations on 5th August 1975 andstarted by processing 5 tons per day At full capacity it was processing 60 tons perday and employing a labour force of 2000 people (1200 women and 800 men)The demand for cashew nut from Kenya was considerable The main exportmarkets were North America Japan Middle East Europe and Australia All raw nutswere supplied by the Kilifi District Cooperative Union to Kenya Cashew NutsLimited through the National Cereals and Produce Board The cashew Nut ShellLiquid (CNSL) was a by-product of the roasting process Through polymerisationthis oil is yields a friction modifier used further in the production of brake liningsThe factory was privatised in 1993 and continued under the same name Thecrop was marketed through farmersrsquo cooperative societies traders and agents TheLiberalisation of marketing of cashew nuts took place in 19971998 The factoryclosed down in 1998 and it is now under receivership12 Structure and organisationCashew nut farming in Kenya is a smallholder activity and there are no largeplantations Individual holdings vary from a few trees to a few acres per farmerAccording to a recent survey growing of cashew nuts is confined to the agroecological zones I II III of the Coast Province of Kenya The districts are KwaleKilifi and Lamu A few patches within Mombassa District contain some cashew nuttrees that are not really cared for The definition of zones is based on distance fromthe Indian Ocean Coast line Zone I lies 0 to 15 km from the Coast Line zone II at 15to 35 km and zone III at 35 km and beyond (see map 1)The main characteristics of cashew nut growing areas in Kenya are shown in tablebelowTable 1 Characteristics of cashew nut growing Areas in KenyaZone Rainfall in mm Area in ha Tree populationper hectareI 900-1200 18500 70II 600-900 7500 50III 400-600 5000 108Source Baseline study by M Rabu 2001 Jaetzold and Schmidt (1983) CoastProvincial Directorate of Agriculture Annual Report 1999The season for harvesting cashew nuts starts in October and ends in MarchHowever depending on the onset of the short rains and the arrival of the long rainsthis pattern can fluctuate back and forth by one or two months It is common to find

the season extending its duration to the month of May The main harvesting peak is inDecember- January and a minor one in March - April The main harvesting periodcoincides with the peak import demand in India the heavy buying taking place inMarchNearly all the existing cashew trees are very old receive very little attentionby the owners and are therefore characterised by low yields The baseline study byMRabu etal conducted in 2001 revealed that average yield of 477 kgha while theaverage yield per mature tree was 32 kghaTable 2 Cashew nut yields in Kenya by districtDistrict Yield (kgha) Yield (kgtree)Kilifi 615 31Kwale 242 21Malindi 47 41Source EM Rabu 2001The trees are not uniformly distributed and the spacing is very variable Themean number of cashew trees per acre is six while the district means are 5 6 and 8for Kilifi Kwale and Malindi respectively Besides cashew farmers grow other fruittrees such as coconut mangoes and citrusAs stated previously farmers do not apply any inputs such as fertilizers orproducts to control pest disease The pruning of trees is not done This explains whyyields are low and very variableNuts are mainly harvested after natural fall onto the ground Some farmerswould harvest the ripe apples still carrying the nut and manually separate them thendry the nuts on mats or Hessian cloth under the sunOne factor which has contributed to lack of serious cashew nut farming apartfrom poor prices is the land tenure problem Most of the currently producing trees arefound in the ecological zone I where the land tenure system has not been clearlydefined Most of the people living in this zone (some of whom have been settled therefor over 100 years) are called squatters and do not yet have title to the land despitethe fact that the original owners can no more be tracedBefore independence the land along the ten-miles strip used to be referred toas Protectorate and owned by the Sultan of Zanzibar Therefore most of the so-called9owners were Arabs who lived in the towns of Mombassa Malindi and Lamu Thesepeople did not care very much about what was going on or who lived on their landBecause of the good soils availability of water from wells and good rainfallmost of the Mijikenda people moved from CGEZ III and settled in CGEZ I andstarted planting cashew among other tree crops Some of the trees just germinated ontheir own hence the large numbers of trees that are very closely planted with both thebranches and roots touching and a very intense competition for food and light As aresult production is negatively affected and the land cannot be used for anything elsebecause of the thick coverage by the treesLand ownership patterns are of three main types in the three districts namely1048766Freehold1048766Clan1048766Leasehold

Farm ownership patterns have an effect on the confidence for secondaryinvestments such as for perennial cash cropsStatus of land ownership in Kilifi Kwale and Malindi DistrictsDistricts With title deeds() Without title deeds()Kilifi 80 20Kwale 45 55Malindi 24 76Processing of Cashew nutsPan roasting of cashew nuts has always existed in all cashews - growing areasHowever the failure of the Kilifi processing unit led to the proliferation ofmicroprocessors mainly in Kwale Kilifi and Malindi districts The operations arebeing managed by farmer groups self help groups and individuals who used to workat the processing factory Over the last few years the Community-BasedOrganizations (CBOs) have found it difficult to access markets Their operations facean uncertain future unless the marketing problems are addressed13 MarketingBefore liberalization of the marketing of raw cashew nuts the crop wasmarketed through farmersrsquo cooperative societies agents and traders agents and wasfinally purchased by Kilifi Cashew Limited the only major processor in the countryThe farmerrsquo marketing problems have been made worse by the collapse of themarketing system after liberalisationCases of mismanaged co-operatives led to farmers being paid late or deniedtheir dues outright The farmers have always considered the prices offered for theircrop too low compared to their expectations The fluctuating nature of prices resultedin the discouragement of smallholders and the consequent neglect of their casheworchards10The liberalisation of cashew nut marketing coincided more or less with theclosure of the main processing factory Kenya Cashew Nuts Limited in 1998 It wasexpected that the liberalization of cashew nut marketing would allow competition in abuyers market The scenario pertaining since 1998 has made the farmers even moreperplexed Following the El Nino phenomenon in 199798 the 19981999 crop seasonwas the best seen for many years There was an unprecedented influx of buyers fromIndia the crop was large of a good quality and highly priced because of theabundance of buyers (up to 70 KShs kg)During the 199900 season only few exporters showed up as the demand forexport was low The prices offered were nowhere near the previous years levels Inthe following 20002001 the situation was even worse with prices falling to 30-35KShskg (the current exchange rate is 78 Kshs for one dollar)The export of unprocessed nuts has obviously exacerbated the potential forestablishing a viable export industry within the country The Ministry of Agriculturehas recently attempted to reintroduce some guidance on the way forward but it is tooearly to determine what will happenCurrent marketing and processingMarketing aspects comprise outlets mode of transport pricing the effects ofthe closure of the processing factory and the value addingprocessing aspects Existing

market outlets include neighbourhood shopkeepers and agentsmiddlemen Agentsmiddlemen are the most common buyers of nuts in Kenya undertaking about 952of the trade in Kilifi some 835 in Kwale and 646 in MalindiPricing is a big issue in the cashew sector because of the prevalence ofexploitation of farmers farm prices being set by external forces Recent prices varybetween 10 and 20 Kshskg across the three districts Because of the disorganizednature of marketing most of the crop is bought at farm gate While there may bemarket days raw cashews are not the main commodity on saleMarketing of raw nuts is not organised as there are no viable farmers groupswith bargaining power Consequently there is a lot of uncertainty in the market Thenumber of buyers and their areas of operation are unknown and the prices offeredvery variable and unpredictable A small sample survey conducted by Kenya NutCompany Ltd came up with the figures shown below for farm gate and rural marketsspot prices for raw cashewsCurrent raw cashew producer prices by districtIn Kshskg and (US centsKg)DistrictMeanLowHighKilifi 2450 (32) 1380 (18) 3730 (48)Kwale 2010 (26) 1900 (24) 2945 (38)Malindi 2570 (33) 2130 (27) 3345 (43)Source Field survey by Kenya Nut Co LtdExchange rate Kshs 78 for one dollar1114 Development strategyThe economic development of the Coast Province has been relatively slowcompared to other regions of Kenya Rural poverty stands at 57 among theestimated 25 million people in the province despite its high agricultural potentialparticularly in CGEZ I and in some parts of the CGEZ IIIMore than 56 of the inhabitants derive their income from tree crops ofwhich cashew is among the most important Cashew nuts grow along the Coastal beltfrom Lunga Lunga in the south to Lamu in the North East of the Province coveringKwale Kilifi Malindi and Lamu Districts The total area under cashew nutcultivation is estimated at 30921 hectares (M Rabu 2001)In CGEZ I where planting of cashew first started trees are old and crowdedNothing can be grown in between them nor can spraying be done efficiently Land isgetting very scarce and therefore on a small scale in some areas trees are beingthinned pruned to make room for the alternative cultivation of annual crops and forpest and disease control Cashew in this zone is threatened by other more profitableenterprises such as dairy and vegetable productionIn CGEZ II covering the area between 15 and 35 km inland cashew orchardsare not as crowded as in CGEZ I but do not produce economic yields or meet qualityrequirements for the export industry The Kenya Government has therefore initiatedpolicy guidance for farmers community based organisations and private investors to

revive the cashew nut sector Small scale processing shall be encouraged in the shortterm through Community Based Organisations as they own some trees and some arealready processing their crops Assistance needed include locally fabricated roastingpans as processing technologies to improve on qualityThe Government institutions operating in the cashew growing zones namelythe Coast Development Authority and the Kenya Agricultural Research Station inMtwapa have recently commenced some activities in this lineChapter 2SECTOR PERFORMANCE21 ProductionWorld cashew nut production has fluctuated considerably during the last 20years The average annual output dropped from 407000 tonsyear during the 1969 ndash1971 period to 390000 tonsyear in 1978-81 and rose again to 471300 tonsyear in1989-91The major world producers are India Brazil Mozambique and TanzaniaAfrican producers accounted for some 78 of the world production in 1970 butreduced their shares to only 40 in 197981 and 244 in 198991 Kenya outputdeclined from an annual average of 24000 tonsyear in 1969 -71 (59 of worldproduction) to 16500 tonsyear (42 percent of world production) in 1979-81 and to10300 tonsyear in 198991 (a mere 2 of the world production) Recent outputs areshown in the following table12The above production pattern has continued to prevail up to the present timeThe factors attributable to the containing decline are largely associated with thecollapse of the marketing system consequential loss of interest by farmers due toprice instability and the lack of production support services These includedevelopment policy guidance and lack of adequate research and extension servicesTable 3 - Kenya cashew nut area and production 1990 to 2000Year Surface (ha) Production (tons)1990 37668 222241991 31952 190621992 32051 103631993 32126 199201994 32272 103761995 32318 128021996 30872 101731997 30893 91821998 30850 109861999 30921 14615Although cashew represents only one percent of the total Kenyan agriculturalproduction in value it is an important crop because it is grown in an areas with fewalternative cash cropsThere is room for establishment of new plantations and improvement ofexisting orchards through a proper management CGEZ III covers the area beyond35km that includes Ganze Vitengeni and Bamba in Kilifi district Samburu andNavaya in Kwale Lango Mbaya Marafa and Chakama in Malindi There is a big

potential for expansion of cashew plantations People are moving into these areasbecause land is still cheap This is an area where natural vegetation is being destroyedand cashew could serve as an agro forestry speciesProduction in Coast Province is characterised by low productivity per tree andunit area and large fluctuations from year to year This situation has come aboutbecause the estimated 30000 hectares of mainly old trees were established frommaterial of low potential and are currently poorly maintained or totally neglectedThe liberalisation of cashew nut marketing was expected to result in increasedbusiness confidence among the various stakeholders including the small holderstraders and small processors which should have led to dynamic changes in the sectorThis was however not the case Prices have continued to be unpredictable andunsatisfactoryMarket information plays a major role in guiding planning production andproviding feedback on the performance of products in the market place This isfundamental in the production and marketing of raw cashew nuts Smallholdersusually the most uninformed in the chain of activities related to the disposal of theircrop Price levels are determined elsewhere without their involvement Thecooperative societies traders or agents announce the new prices at the beginning of13the harvesting season but farmers do not dispose of a mechanism ascertaining thegenuineness of the price levels set This problem is complicated by the lack of anaccurate and acceptable method of determining the correct farm- gate price for theproducerThe lack of a regulatory body for the cashew sector has made the situationworse Raw cashew nut marketing is dependent on external marketing forces mainlyemanating from India It is generally understood that the Indian government isstriving to produce enough raw cashew locally in order to meet the local processingdemand rather than to rely on imports At the same time other new producers ofcashew nuts outside traditional areas are expanding their cropKenya needs to gradually move towards more local processing of cashew nutsand develop appropriate strategies for improving the domestic output and processingThis would minimize the exploitation of the farmers while the socio-economicbenefits are too important to ignore in terms of value - addition and creation ofemployment Reliance on the traditional systems of disposal of the crop will becomeincreasingly risky for smallholders in particular and the cashew sector in generalCashew production includes a wide array of operations ranging from mediumsized private factories and small-scale units to smallholder producers andmicroprocessors Small scale and microprocessors (mainly women groups) have beenengaged in this business for sometime but their share in the sector has not yet beendeterminedResearch and DevelopmentOne research and development objective which needs full support is a study ofthe production system and practices by farmers with a view to identify priorities andmatch the research findings with farmers needs There is also a need to developcultivars adapted to specific ecological zones as well as the corresponding farmingpractices and to make available to farmers new high-yielding planting material at

reasonable pricesResearch centres that develop new commercial varieties of cashew are inMtwapa Matuga and Msabaha Cashew seeds from selected trees in Matuga wereestablished at Mtwapa in 1958 In 1963 hundred and one trees were chosen from 300trees available and their yields were recorded during the period a long period

Pest and disease controlSeveral diseases and pests are attacking cashew and causing considerablelosses The main diseases are powdery mildew and anthracnose The main pests arecored bug cashew nut bugs cashew bark borer and cashew stem girdler Majomotoants (Oecophilla sp) colonize the cashew to feed on other insectsPowdery mildew caused by Odium anacardii is the most important cashewdisease A study conducted by Oltremare in 1982 in cashew growing areas showed thefollowing levels of attack Chonyi North (46) (Mariakani 16) Kambe Ribe(50) (Gede (9) and Witu (18) Considering the low resulting yields obtainedthe attack levels might have been even higher The assessment of powdery mildewinfestation revealed that application of fungicides significantly reduced theinfestation Yields were increased by six times over untreated trees through theapplication of fungicidesOngoing workA ldquoCashew management improvement projectrdquo is being currentlyimplemented and has the following activities1048766 identification of high yielding cashew trees in farmer fields1048766 introduction of cashew upgrading techniques in farmer fields and evaluation offungicides for control of powdery mildew in Kwale and Malindi DistrictsMaintenance of recurrent selection and clonal evaluation trials started in 1980 arecontinuing and propagation trials are being undertaken at the station A recurrentselection programme was initiated on the basis of the selected trees The highestyieldingtrees in each plot from each of the best progenies a second cycle be startedwithin 6 years Seeds from this trial could be issued to farmers The eight persistentlyhigh-yielding trees identified were propagated vegetatively by budding ontorootstocks The resulting clonal varieties were planted in 1980 The selections differin raw nut characters The raw nuts were tested at the Kenya Cashew Nuts Ltd inKilifiNut characteristics percentage recovery of nut components and quality ofprocessed kernels were studied The overall length of raw nuts from the 14 sampleswas slightly higher than the reported mean value for Kenya This was also true forwidth and thickness kernel weights and recovery of nuts components Other aspectsinvestigated included moisture contents of raw nuts and components and the influenceof humidification and roasting on nut width moisture contentsRecommendations on cultural practicesFrom a spacing trial planted in 1970 testing populations of 4469111135 and278 trees ha yields per ha varied from 134 to 600kg raw of raw of raw nuts Yieldsper tree responded very clearly to the various populationsMore space per cashew tree (fewer trees per ha) were not improved by thenumber of trees per ha To avoid loss of fruiting surface per ha of land two measures

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

Government took over the business and placed it under the National Cereals andProduce Board (NCPB) of the Ministry of Agriculture The Industrial andCommercial Development Corporation (ICDC) the Industrial Development Bank(IDB) and the Kilifi District Cooperative joined later NCPB as ownersThe factory was able to process 1500 tons annually and employed a permanentlabour force of 385 people During this time production of cashew nuts from the threemain producing districts of Coast province namely Kilifi Kwale and Lamu wasstepped considerably through the extension service of the Ministry of AgricultureNearly 70 of the raw cashew nuts were exported to India for processing a smallpercentage of which was returned to this country after processingKenya Cashew Nut Limited commenced operations on 5th August 1975 andstarted by processing 5 tons per day At full capacity it was processing 60 tons perday and employing a labour force of 2000 people (1200 women and 800 men)The demand for cashew nut from Kenya was considerable The main exportmarkets were North America Japan Middle East Europe and Australia All raw nutswere supplied by the Kilifi District Cooperative Union to Kenya Cashew NutsLimited through the National Cereals and Produce Board The cashew Nut ShellLiquid (CNSL) was a by-product of the roasting process Through polymerisationthis oil is yields a friction modifier used further in the production of brake liningsThe factory was privatised in 1993 and continued under the same name Thecrop was marketed through farmersrsquo cooperative societies traders and agents TheLiberalisation of marketing of cashew nuts took place in 19971998 The factoryclosed down in 1998 and it is now under receivership12 Structure and organisationCashew nut farming in Kenya is a smallholder activity and there are no largeplantations Individual holdings vary from a few trees to a few acres per farmerAccording to a recent survey growing of cashew nuts is confined to the agroecological zones I II III of the Coast Province of Kenya The districts are KwaleKilifi and Lamu A few patches within Mombassa District contain some cashew nuttrees that are not really cared for The definition of zones is based on distance fromthe Indian Ocean Coast line Zone I lies 0 to 15 km from the Coast Line zone II at 15to 35 km and zone III at 35 km and beyond (see map 1)The main characteristics of cashew nut growing areas in Kenya are shown in tablebelowTable 1 Characteristics of cashew nut growing Areas in KenyaZone Rainfall in mm Area in ha Tree populationper hectareI 900-1200 18500 70II 600-900 7500 50III 400-600 5000 108Source Baseline study by M Rabu 2001 Jaetzold and Schmidt (1983) CoastProvincial Directorate of Agriculture Annual Report 1999The season for harvesting cashew nuts starts in October and ends in MarchHowever depending on the onset of the short rains and the arrival of the long rainsthis pattern can fluctuate back and forth by one or two months It is common to find

the season extending its duration to the month of May The main harvesting peak is inDecember- January and a minor one in March - April The main harvesting periodcoincides with the peak import demand in India the heavy buying taking place inMarchNearly all the existing cashew trees are very old receive very little attentionby the owners and are therefore characterised by low yields The baseline study byMRabu etal conducted in 2001 revealed that average yield of 477 kgha while theaverage yield per mature tree was 32 kghaTable 2 Cashew nut yields in Kenya by districtDistrict Yield (kgha) Yield (kgtree)Kilifi 615 31Kwale 242 21Malindi 47 41Source EM Rabu 2001The trees are not uniformly distributed and the spacing is very variable Themean number of cashew trees per acre is six while the district means are 5 6 and 8for Kilifi Kwale and Malindi respectively Besides cashew farmers grow other fruittrees such as coconut mangoes and citrusAs stated previously farmers do not apply any inputs such as fertilizers orproducts to control pest disease The pruning of trees is not done This explains whyyields are low and very variableNuts are mainly harvested after natural fall onto the ground Some farmerswould harvest the ripe apples still carrying the nut and manually separate them thendry the nuts on mats or Hessian cloth under the sunOne factor which has contributed to lack of serious cashew nut farming apartfrom poor prices is the land tenure problem Most of the currently producing trees arefound in the ecological zone I where the land tenure system has not been clearlydefined Most of the people living in this zone (some of whom have been settled therefor over 100 years) are called squatters and do not yet have title to the land despitethe fact that the original owners can no more be tracedBefore independence the land along the ten-miles strip used to be referred toas Protectorate and owned by the Sultan of Zanzibar Therefore most of the so-called9owners were Arabs who lived in the towns of Mombassa Malindi and Lamu Thesepeople did not care very much about what was going on or who lived on their landBecause of the good soils availability of water from wells and good rainfallmost of the Mijikenda people moved from CGEZ III and settled in CGEZ I andstarted planting cashew among other tree crops Some of the trees just germinated ontheir own hence the large numbers of trees that are very closely planted with both thebranches and roots touching and a very intense competition for food and light As aresult production is negatively affected and the land cannot be used for anything elsebecause of the thick coverage by the treesLand ownership patterns are of three main types in the three districts namely1048766Freehold1048766Clan1048766Leasehold

Farm ownership patterns have an effect on the confidence for secondaryinvestments such as for perennial cash cropsStatus of land ownership in Kilifi Kwale and Malindi DistrictsDistricts With title deeds() Without title deeds()Kilifi 80 20Kwale 45 55Malindi 24 76Processing of Cashew nutsPan roasting of cashew nuts has always existed in all cashews - growing areasHowever the failure of the Kilifi processing unit led to the proliferation ofmicroprocessors mainly in Kwale Kilifi and Malindi districts The operations arebeing managed by farmer groups self help groups and individuals who used to workat the processing factory Over the last few years the Community-BasedOrganizations (CBOs) have found it difficult to access markets Their operations facean uncertain future unless the marketing problems are addressed13 MarketingBefore liberalization of the marketing of raw cashew nuts the crop wasmarketed through farmersrsquo cooperative societies agents and traders agents and wasfinally purchased by Kilifi Cashew Limited the only major processor in the countryThe farmerrsquo marketing problems have been made worse by the collapse of themarketing system after liberalisationCases of mismanaged co-operatives led to farmers being paid late or deniedtheir dues outright The farmers have always considered the prices offered for theircrop too low compared to their expectations The fluctuating nature of prices resultedin the discouragement of smallholders and the consequent neglect of their casheworchards10The liberalisation of cashew nut marketing coincided more or less with theclosure of the main processing factory Kenya Cashew Nuts Limited in 1998 It wasexpected that the liberalization of cashew nut marketing would allow competition in abuyers market The scenario pertaining since 1998 has made the farmers even moreperplexed Following the El Nino phenomenon in 199798 the 19981999 crop seasonwas the best seen for many years There was an unprecedented influx of buyers fromIndia the crop was large of a good quality and highly priced because of theabundance of buyers (up to 70 KShs kg)During the 199900 season only few exporters showed up as the demand forexport was low The prices offered were nowhere near the previous years levels Inthe following 20002001 the situation was even worse with prices falling to 30-35KShskg (the current exchange rate is 78 Kshs for one dollar)The export of unprocessed nuts has obviously exacerbated the potential forestablishing a viable export industry within the country The Ministry of Agriculturehas recently attempted to reintroduce some guidance on the way forward but it is tooearly to determine what will happenCurrent marketing and processingMarketing aspects comprise outlets mode of transport pricing the effects ofthe closure of the processing factory and the value addingprocessing aspects Existing

market outlets include neighbourhood shopkeepers and agentsmiddlemen Agentsmiddlemen are the most common buyers of nuts in Kenya undertaking about 952of the trade in Kilifi some 835 in Kwale and 646 in MalindiPricing is a big issue in the cashew sector because of the prevalence ofexploitation of farmers farm prices being set by external forces Recent prices varybetween 10 and 20 Kshskg across the three districts Because of the disorganizednature of marketing most of the crop is bought at farm gate While there may bemarket days raw cashews are not the main commodity on saleMarketing of raw nuts is not organised as there are no viable farmers groupswith bargaining power Consequently there is a lot of uncertainty in the market Thenumber of buyers and their areas of operation are unknown and the prices offeredvery variable and unpredictable A small sample survey conducted by Kenya NutCompany Ltd came up with the figures shown below for farm gate and rural marketsspot prices for raw cashewsCurrent raw cashew producer prices by districtIn Kshskg and (US centsKg)DistrictMeanLowHighKilifi 2450 (32) 1380 (18) 3730 (48)Kwale 2010 (26) 1900 (24) 2945 (38)Malindi 2570 (33) 2130 (27) 3345 (43)Source Field survey by Kenya Nut Co LtdExchange rate Kshs 78 for one dollar1114 Development strategyThe economic development of the Coast Province has been relatively slowcompared to other regions of Kenya Rural poverty stands at 57 among theestimated 25 million people in the province despite its high agricultural potentialparticularly in CGEZ I and in some parts of the CGEZ IIIMore than 56 of the inhabitants derive their income from tree crops ofwhich cashew is among the most important Cashew nuts grow along the Coastal beltfrom Lunga Lunga in the south to Lamu in the North East of the Province coveringKwale Kilifi Malindi and Lamu Districts The total area under cashew nutcultivation is estimated at 30921 hectares (M Rabu 2001)In CGEZ I where planting of cashew first started trees are old and crowdedNothing can be grown in between them nor can spraying be done efficiently Land isgetting very scarce and therefore on a small scale in some areas trees are beingthinned pruned to make room for the alternative cultivation of annual crops and forpest and disease control Cashew in this zone is threatened by other more profitableenterprises such as dairy and vegetable productionIn CGEZ II covering the area between 15 and 35 km inland cashew orchardsare not as crowded as in CGEZ I but do not produce economic yields or meet qualityrequirements for the export industry The Kenya Government has therefore initiatedpolicy guidance for farmers community based organisations and private investors to

revive the cashew nut sector Small scale processing shall be encouraged in the shortterm through Community Based Organisations as they own some trees and some arealready processing their crops Assistance needed include locally fabricated roastingpans as processing technologies to improve on qualityThe Government institutions operating in the cashew growing zones namelythe Coast Development Authority and the Kenya Agricultural Research Station inMtwapa have recently commenced some activities in this lineChapter 2SECTOR PERFORMANCE21 ProductionWorld cashew nut production has fluctuated considerably during the last 20years The average annual output dropped from 407000 tonsyear during the 1969 ndash1971 period to 390000 tonsyear in 1978-81 and rose again to 471300 tonsyear in1989-91The major world producers are India Brazil Mozambique and TanzaniaAfrican producers accounted for some 78 of the world production in 1970 butreduced their shares to only 40 in 197981 and 244 in 198991 Kenya outputdeclined from an annual average of 24000 tonsyear in 1969 -71 (59 of worldproduction) to 16500 tonsyear (42 percent of world production) in 1979-81 and to10300 tonsyear in 198991 (a mere 2 of the world production) Recent outputs areshown in the following table12The above production pattern has continued to prevail up to the present timeThe factors attributable to the containing decline are largely associated with thecollapse of the marketing system consequential loss of interest by farmers due toprice instability and the lack of production support services These includedevelopment policy guidance and lack of adequate research and extension servicesTable 3 - Kenya cashew nut area and production 1990 to 2000Year Surface (ha) Production (tons)1990 37668 222241991 31952 190621992 32051 103631993 32126 199201994 32272 103761995 32318 128021996 30872 101731997 30893 91821998 30850 109861999 30921 14615Although cashew represents only one percent of the total Kenyan agriculturalproduction in value it is an important crop because it is grown in an areas with fewalternative cash cropsThere is room for establishment of new plantations and improvement ofexisting orchards through a proper management CGEZ III covers the area beyond35km that includes Ganze Vitengeni and Bamba in Kilifi district Samburu andNavaya in Kwale Lango Mbaya Marafa and Chakama in Malindi There is a big

potential for expansion of cashew plantations People are moving into these areasbecause land is still cheap This is an area where natural vegetation is being destroyedand cashew could serve as an agro forestry speciesProduction in Coast Province is characterised by low productivity per tree andunit area and large fluctuations from year to year This situation has come aboutbecause the estimated 30000 hectares of mainly old trees were established frommaterial of low potential and are currently poorly maintained or totally neglectedThe liberalisation of cashew nut marketing was expected to result in increasedbusiness confidence among the various stakeholders including the small holderstraders and small processors which should have led to dynamic changes in the sectorThis was however not the case Prices have continued to be unpredictable andunsatisfactoryMarket information plays a major role in guiding planning production andproviding feedback on the performance of products in the market place This isfundamental in the production and marketing of raw cashew nuts Smallholdersusually the most uninformed in the chain of activities related to the disposal of theircrop Price levels are determined elsewhere without their involvement Thecooperative societies traders or agents announce the new prices at the beginning of13the harvesting season but farmers do not dispose of a mechanism ascertaining thegenuineness of the price levels set This problem is complicated by the lack of anaccurate and acceptable method of determining the correct farm- gate price for theproducerThe lack of a regulatory body for the cashew sector has made the situationworse Raw cashew nut marketing is dependent on external marketing forces mainlyemanating from India It is generally understood that the Indian government isstriving to produce enough raw cashew locally in order to meet the local processingdemand rather than to rely on imports At the same time other new producers ofcashew nuts outside traditional areas are expanding their cropKenya needs to gradually move towards more local processing of cashew nutsand develop appropriate strategies for improving the domestic output and processingThis would minimize the exploitation of the farmers while the socio-economicbenefits are too important to ignore in terms of value - addition and creation ofemployment Reliance on the traditional systems of disposal of the crop will becomeincreasingly risky for smallholders in particular and the cashew sector in generalCashew production includes a wide array of operations ranging from mediumsized private factories and small-scale units to smallholder producers andmicroprocessors Small scale and microprocessors (mainly women groups) have beenengaged in this business for sometime but their share in the sector has not yet beendeterminedResearch and DevelopmentOne research and development objective which needs full support is a study ofthe production system and practices by farmers with a view to identify priorities andmatch the research findings with farmers needs There is also a need to developcultivars adapted to specific ecological zones as well as the corresponding farmingpractices and to make available to farmers new high-yielding planting material at

reasonable pricesResearch centres that develop new commercial varieties of cashew are inMtwapa Matuga and Msabaha Cashew seeds from selected trees in Matuga wereestablished at Mtwapa in 1958 In 1963 hundred and one trees were chosen from 300trees available and their yields were recorded during the period a long period

Pest and disease controlSeveral diseases and pests are attacking cashew and causing considerablelosses The main diseases are powdery mildew and anthracnose The main pests arecored bug cashew nut bugs cashew bark borer and cashew stem girdler Majomotoants (Oecophilla sp) colonize the cashew to feed on other insectsPowdery mildew caused by Odium anacardii is the most important cashewdisease A study conducted by Oltremare in 1982 in cashew growing areas showed thefollowing levels of attack Chonyi North (46) (Mariakani 16) Kambe Ribe(50) (Gede (9) and Witu (18) Considering the low resulting yields obtainedthe attack levels might have been even higher The assessment of powdery mildewinfestation revealed that application of fungicides significantly reduced theinfestation Yields were increased by six times over untreated trees through theapplication of fungicidesOngoing workA ldquoCashew management improvement projectrdquo is being currentlyimplemented and has the following activities1048766 identification of high yielding cashew trees in farmer fields1048766 introduction of cashew upgrading techniques in farmer fields and evaluation offungicides for control of powdery mildew in Kwale and Malindi DistrictsMaintenance of recurrent selection and clonal evaluation trials started in 1980 arecontinuing and propagation trials are being undertaken at the station A recurrentselection programme was initiated on the basis of the selected trees The highestyieldingtrees in each plot from each of the best progenies a second cycle be startedwithin 6 years Seeds from this trial could be issued to farmers The eight persistentlyhigh-yielding trees identified were propagated vegetatively by budding ontorootstocks The resulting clonal varieties were planted in 1980 The selections differin raw nut characters The raw nuts were tested at the Kenya Cashew Nuts Ltd inKilifiNut characteristics percentage recovery of nut components and quality ofprocessed kernels were studied The overall length of raw nuts from the 14 sampleswas slightly higher than the reported mean value for Kenya This was also true forwidth and thickness kernel weights and recovery of nuts components Other aspectsinvestigated included moisture contents of raw nuts and components and the influenceof humidification and roasting on nut width moisture contentsRecommendations on cultural practicesFrom a spacing trial planted in 1970 testing populations of 4469111135 and278 trees ha yields per ha varied from 134 to 600kg raw of raw of raw nuts Yieldsper tree responded very clearly to the various populationsMore space per cashew tree (fewer trees per ha) were not improved by thenumber of trees per ha To avoid loss of fruiting surface per ha of land two measures

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

the season extending its duration to the month of May The main harvesting peak is inDecember- January and a minor one in March - April The main harvesting periodcoincides with the peak import demand in India the heavy buying taking place inMarchNearly all the existing cashew trees are very old receive very little attentionby the owners and are therefore characterised by low yields The baseline study byMRabu etal conducted in 2001 revealed that average yield of 477 kgha while theaverage yield per mature tree was 32 kghaTable 2 Cashew nut yields in Kenya by districtDistrict Yield (kgha) Yield (kgtree)Kilifi 615 31Kwale 242 21Malindi 47 41Source EM Rabu 2001The trees are not uniformly distributed and the spacing is very variable Themean number of cashew trees per acre is six while the district means are 5 6 and 8for Kilifi Kwale and Malindi respectively Besides cashew farmers grow other fruittrees such as coconut mangoes and citrusAs stated previously farmers do not apply any inputs such as fertilizers orproducts to control pest disease The pruning of trees is not done This explains whyyields are low and very variableNuts are mainly harvested after natural fall onto the ground Some farmerswould harvest the ripe apples still carrying the nut and manually separate them thendry the nuts on mats or Hessian cloth under the sunOne factor which has contributed to lack of serious cashew nut farming apartfrom poor prices is the land tenure problem Most of the currently producing trees arefound in the ecological zone I where the land tenure system has not been clearlydefined Most of the people living in this zone (some of whom have been settled therefor over 100 years) are called squatters and do not yet have title to the land despitethe fact that the original owners can no more be tracedBefore independence the land along the ten-miles strip used to be referred toas Protectorate and owned by the Sultan of Zanzibar Therefore most of the so-called9owners were Arabs who lived in the towns of Mombassa Malindi and Lamu Thesepeople did not care very much about what was going on or who lived on their landBecause of the good soils availability of water from wells and good rainfallmost of the Mijikenda people moved from CGEZ III and settled in CGEZ I andstarted planting cashew among other tree crops Some of the trees just germinated ontheir own hence the large numbers of trees that are very closely planted with both thebranches and roots touching and a very intense competition for food and light As aresult production is negatively affected and the land cannot be used for anything elsebecause of the thick coverage by the treesLand ownership patterns are of three main types in the three districts namely1048766Freehold1048766Clan1048766Leasehold

Farm ownership patterns have an effect on the confidence for secondaryinvestments such as for perennial cash cropsStatus of land ownership in Kilifi Kwale and Malindi DistrictsDistricts With title deeds() Without title deeds()Kilifi 80 20Kwale 45 55Malindi 24 76Processing of Cashew nutsPan roasting of cashew nuts has always existed in all cashews - growing areasHowever the failure of the Kilifi processing unit led to the proliferation ofmicroprocessors mainly in Kwale Kilifi and Malindi districts The operations arebeing managed by farmer groups self help groups and individuals who used to workat the processing factory Over the last few years the Community-BasedOrganizations (CBOs) have found it difficult to access markets Their operations facean uncertain future unless the marketing problems are addressed13 MarketingBefore liberalization of the marketing of raw cashew nuts the crop wasmarketed through farmersrsquo cooperative societies agents and traders agents and wasfinally purchased by Kilifi Cashew Limited the only major processor in the countryThe farmerrsquo marketing problems have been made worse by the collapse of themarketing system after liberalisationCases of mismanaged co-operatives led to farmers being paid late or deniedtheir dues outright The farmers have always considered the prices offered for theircrop too low compared to their expectations The fluctuating nature of prices resultedin the discouragement of smallholders and the consequent neglect of their casheworchards10The liberalisation of cashew nut marketing coincided more or less with theclosure of the main processing factory Kenya Cashew Nuts Limited in 1998 It wasexpected that the liberalization of cashew nut marketing would allow competition in abuyers market The scenario pertaining since 1998 has made the farmers even moreperplexed Following the El Nino phenomenon in 199798 the 19981999 crop seasonwas the best seen for many years There was an unprecedented influx of buyers fromIndia the crop was large of a good quality and highly priced because of theabundance of buyers (up to 70 KShs kg)During the 199900 season only few exporters showed up as the demand forexport was low The prices offered were nowhere near the previous years levels Inthe following 20002001 the situation was even worse with prices falling to 30-35KShskg (the current exchange rate is 78 Kshs for one dollar)The export of unprocessed nuts has obviously exacerbated the potential forestablishing a viable export industry within the country The Ministry of Agriculturehas recently attempted to reintroduce some guidance on the way forward but it is tooearly to determine what will happenCurrent marketing and processingMarketing aspects comprise outlets mode of transport pricing the effects ofthe closure of the processing factory and the value addingprocessing aspects Existing

market outlets include neighbourhood shopkeepers and agentsmiddlemen Agentsmiddlemen are the most common buyers of nuts in Kenya undertaking about 952of the trade in Kilifi some 835 in Kwale and 646 in MalindiPricing is a big issue in the cashew sector because of the prevalence ofexploitation of farmers farm prices being set by external forces Recent prices varybetween 10 and 20 Kshskg across the three districts Because of the disorganizednature of marketing most of the crop is bought at farm gate While there may bemarket days raw cashews are not the main commodity on saleMarketing of raw nuts is not organised as there are no viable farmers groupswith bargaining power Consequently there is a lot of uncertainty in the market Thenumber of buyers and their areas of operation are unknown and the prices offeredvery variable and unpredictable A small sample survey conducted by Kenya NutCompany Ltd came up with the figures shown below for farm gate and rural marketsspot prices for raw cashewsCurrent raw cashew producer prices by districtIn Kshskg and (US centsKg)DistrictMeanLowHighKilifi 2450 (32) 1380 (18) 3730 (48)Kwale 2010 (26) 1900 (24) 2945 (38)Malindi 2570 (33) 2130 (27) 3345 (43)Source Field survey by Kenya Nut Co LtdExchange rate Kshs 78 for one dollar1114 Development strategyThe economic development of the Coast Province has been relatively slowcompared to other regions of Kenya Rural poverty stands at 57 among theestimated 25 million people in the province despite its high agricultural potentialparticularly in CGEZ I and in some parts of the CGEZ IIIMore than 56 of the inhabitants derive their income from tree crops ofwhich cashew is among the most important Cashew nuts grow along the Coastal beltfrom Lunga Lunga in the south to Lamu in the North East of the Province coveringKwale Kilifi Malindi and Lamu Districts The total area under cashew nutcultivation is estimated at 30921 hectares (M Rabu 2001)In CGEZ I where planting of cashew first started trees are old and crowdedNothing can be grown in between them nor can spraying be done efficiently Land isgetting very scarce and therefore on a small scale in some areas trees are beingthinned pruned to make room for the alternative cultivation of annual crops and forpest and disease control Cashew in this zone is threatened by other more profitableenterprises such as dairy and vegetable productionIn CGEZ II covering the area between 15 and 35 km inland cashew orchardsare not as crowded as in CGEZ I but do not produce economic yields or meet qualityrequirements for the export industry The Kenya Government has therefore initiatedpolicy guidance for farmers community based organisations and private investors to

revive the cashew nut sector Small scale processing shall be encouraged in the shortterm through Community Based Organisations as they own some trees and some arealready processing their crops Assistance needed include locally fabricated roastingpans as processing technologies to improve on qualityThe Government institutions operating in the cashew growing zones namelythe Coast Development Authority and the Kenya Agricultural Research Station inMtwapa have recently commenced some activities in this lineChapter 2SECTOR PERFORMANCE21 ProductionWorld cashew nut production has fluctuated considerably during the last 20years The average annual output dropped from 407000 tonsyear during the 1969 ndash1971 period to 390000 tonsyear in 1978-81 and rose again to 471300 tonsyear in1989-91The major world producers are India Brazil Mozambique and TanzaniaAfrican producers accounted for some 78 of the world production in 1970 butreduced their shares to only 40 in 197981 and 244 in 198991 Kenya outputdeclined from an annual average of 24000 tonsyear in 1969 -71 (59 of worldproduction) to 16500 tonsyear (42 percent of world production) in 1979-81 and to10300 tonsyear in 198991 (a mere 2 of the world production) Recent outputs areshown in the following table12The above production pattern has continued to prevail up to the present timeThe factors attributable to the containing decline are largely associated with thecollapse of the marketing system consequential loss of interest by farmers due toprice instability and the lack of production support services These includedevelopment policy guidance and lack of adequate research and extension servicesTable 3 - Kenya cashew nut area and production 1990 to 2000Year Surface (ha) Production (tons)1990 37668 222241991 31952 190621992 32051 103631993 32126 199201994 32272 103761995 32318 128021996 30872 101731997 30893 91821998 30850 109861999 30921 14615Although cashew represents only one percent of the total Kenyan agriculturalproduction in value it is an important crop because it is grown in an areas with fewalternative cash cropsThere is room for establishment of new plantations and improvement ofexisting orchards through a proper management CGEZ III covers the area beyond35km that includes Ganze Vitengeni and Bamba in Kilifi district Samburu andNavaya in Kwale Lango Mbaya Marafa and Chakama in Malindi There is a big

potential for expansion of cashew plantations People are moving into these areasbecause land is still cheap This is an area where natural vegetation is being destroyedand cashew could serve as an agro forestry speciesProduction in Coast Province is characterised by low productivity per tree andunit area and large fluctuations from year to year This situation has come aboutbecause the estimated 30000 hectares of mainly old trees were established frommaterial of low potential and are currently poorly maintained or totally neglectedThe liberalisation of cashew nut marketing was expected to result in increasedbusiness confidence among the various stakeholders including the small holderstraders and small processors which should have led to dynamic changes in the sectorThis was however not the case Prices have continued to be unpredictable andunsatisfactoryMarket information plays a major role in guiding planning production andproviding feedback on the performance of products in the market place This isfundamental in the production and marketing of raw cashew nuts Smallholdersusually the most uninformed in the chain of activities related to the disposal of theircrop Price levels are determined elsewhere without their involvement Thecooperative societies traders or agents announce the new prices at the beginning of13the harvesting season but farmers do not dispose of a mechanism ascertaining thegenuineness of the price levels set This problem is complicated by the lack of anaccurate and acceptable method of determining the correct farm- gate price for theproducerThe lack of a regulatory body for the cashew sector has made the situationworse Raw cashew nut marketing is dependent on external marketing forces mainlyemanating from India It is generally understood that the Indian government isstriving to produce enough raw cashew locally in order to meet the local processingdemand rather than to rely on imports At the same time other new producers ofcashew nuts outside traditional areas are expanding their cropKenya needs to gradually move towards more local processing of cashew nutsand develop appropriate strategies for improving the domestic output and processingThis would minimize the exploitation of the farmers while the socio-economicbenefits are too important to ignore in terms of value - addition and creation ofemployment Reliance on the traditional systems of disposal of the crop will becomeincreasingly risky for smallholders in particular and the cashew sector in generalCashew production includes a wide array of operations ranging from mediumsized private factories and small-scale units to smallholder producers andmicroprocessors Small scale and microprocessors (mainly women groups) have beenengaged in this business for sometime but their share in the sector has not yet beendeterminedResearch and DevelopmentOne research and development objective which needs full support is a study ofthe production system and practices by farmers with a view to identify priorities andmatch the research findings with farmers needs There is also a need to developcultivars adapted to specific ecological zones as well as the corresponding farmingpractices and to make available to farmers new high-yielding planting material at

reasonable pricesResearch centres that develop new commercial varieties of cashew are inMtwapa Matuga and Msabaha Cashew seeds from selected trees in Matuga wereestablished at Mtwapa in 1958 In 1963 hundred and one trees were chosen from 300trees available and their yields were recorded during the period a long period

Pest and disease controlSeveral diseases and pests are attacking cashew and causing considerablelosses The main diseases are powdery mildew and anthracnose The main pests arecored bug cashew nut bugs cashew bark borer and cashew stem girdler Majomotoants (Oecophilla sp) colonize the cashew to feed on other insectsPowdery mildew caused by Odium anacardii is the most important cashewdisease A study conducted by Oltremare in 1982 in cashew growing areas showed thefollowing levels of attack Chonyi North (46) (Mariakani 16) Kambe Ribe(50) (Gede (9) and Witu (18) Considering the low resulting yields obtainedthe attack levels might have been even higher The assessment of powdery mildewinfestation revealed that application of fungicides significantly reduced theinfestation Yields were increased by six times over untreated trees through theapplication of fungicidesOngoing workA ldquoCashew management improvement projectrdquo is being currentlyimplemented and has the following activities1048766 identification of high yielding cashew trees in farmer fields1048766 introduction of cashew upgrading techniques in farmer fields and evaluation offungicides for control of powdery mildew in Kwale and Malindi DistrictsMaintenance of recurrent selection and clonal evaluation trials started in 1980 arecontinuing and propagation trials are being undertaken at the station A recurrentselection programme was initiated on the basis of the selected trees The highestyieldingtrees in each plot from each of the best progenies a second cycle be startedwithin 6 years Seeds from this trial could be issued to farmers The eight persistentlyhigh-yielding trees identified were propagated vegetatively by budding ontorootstocks The resulting clonal varieties were planted in 1980 The selections differin raw nut characters The raw nuts were tested at the Kenya Cashew Nuts Ltd inKilifiNut characteristics percentage recovery of nut components and quality ofprocessed kernels were studied The overall length of raw nuts from the 14 sampleswas slightly higher than the reported mean value for Kenya This was also true forwidth and thickness kernel weights and recovery of nuts components Other aspectsinvestigated included moisture contents of raw nuts and components and the influenceof humidification and roasting on nut width moisture contentsRecommendations on cultural practicesFrom a spacing trial planted in 1970 testing populations of 4469111135 and278 trees ha yields per ha varied from 134 to 600kg raw of raw of raw nuts Yieldsper tree responded very clearly to the various populationsMore space per cashew tree (fewer trees per ha) were not improved by thenumber of trees per ha To avoid loss of fruiting surface per ha of land two measures

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

Farm ownership patterns have an effect on the confidence for secondaryinvestments such as for perennial cash cropsStatus of land ownership in Kilifi Kwale and Malindi DistrictsDistricts With title deeds() Without title deeds()Kilifi 80 20Kwale 45 55Malindi 24 76Processing of Cashew nutsPan roasting of cashew nuts has always existed in all cashews - growing areasHowever the failure of the Kilifi processing unit led to the proliferation ofmicroprocessors mainly in Kwale Kilifi and Malindi districts The operations arebeing managed by farmer groups self help groups and individuals who used to workat the processing factory Over the last few years the Community-BasedOrganizations (CBOs) have found it difficult to access markets Their operations facean uncertain future unless the marketing problems are addressed13 MarketingBefore liberalization of the marketing of raw cashew nuts the crop wasmarketed through farmersrsquo cooperative societies agents and traders agents and wasfinally purchased by Kilifi Cashew Limited the only major processor in the countryThe farmerrsquo marketing problems have been made worse by the collapse of themarketing system after liberalisationCases of mismanaged co-operatives led to farmers being paid late or deniedtheir dues outright The farmers have always considered the prices offered for theircrop too low compared to their expectations The fluctuating nature of prices resultedin the discouragement of smallholders and the consequent neglect of their casheworchards10The liberalisation of cashew nut marketing coincided more or less with theclosure of the main processing factory Kenya Cashew Nuts Limited in 1998 It wasexpected that the liberalization of cashew nut marketing would allow competition in abuyers market The scenario pertaining since 1998 has made the farmers even moreperplexed Following the El Nino phenomenon in 199798 the 19981999 crop seasonwas the best seen for many years There was an unprecedented influx of buyers fromIndia the crop was large of a good quality and highly priced because of theabundance of buyers (up to 70 KShs kg)During the 199900 season only few exporters showed up as the demand forexport was low The prices offered were nowhere near the previous years levels Inthe following 20002001 the situation was even worse with prices falling to 30-35KShskg (the current exchange rate is 78 Kshs for one dollar)The export of unprocessed nuts has obviously exacerbated the potential forestablishing a viable export industry within the country The Ministry of Agriculturehas recently attempted to reintroduce some guidance on the way forward but it is tooearly to determine what will happenCurrent marketing and processingMarketing aspects comprise outlets mode of transport pricing the effects ofthe closure of the processing factory and the value addingprocessing aspects Existing

market outlets include neighbourhood shopkeepers and agentsmiddlemen Agentsmiddlemen are the most common buyers of nuts in Kenya undertaking about 952of the trade in Kilifi some 835 in Kwale and 646 in MalindiPricing is a big issue in the cashew sector because of the prevalence ofexploitation of farmers farm prices being set by external forces Recent prices varybetween 10 and 20 Kshskg across the three districts Because of the disorganizednature of marketing most of the crop is bought at farm gate While there may bemarket days raw cashews are not the main commodity on saleMarketing of raw nuts is not organised as there are no viable farmers groupswith bargaining power Consequently there is a lot of uncertainty in the market Thenumber of buyers and their areas of operation are unknown and the prices offeredvery variable and unpredictable A small sample survey conducted by Kenya NutCompany Ltd came up with the figures shown below for farm gate and rural marketsspot prices for raw cashewsCurrent raw cashew producer prices by districtIn Kshskg and (US centsKg)DistrictMeanLowHighKilifi 2450 (32) 1380 (18) 3730 (48)Kwale 2010 (26) 1900 (24) 2945 (38)Malindi 2570 (33) 2130 (27) 3345 (43)Source Field survey by Kenya Nut Co LtdExchange rate Kshs 78 for one dollar1114 Development strategyThe economic development of the Coast Province has been relatively slowcompared to other regions of Kenya Rural poverty stands at 57 among theestimated 25 million people in the province despite its high agricultural potentialparticularly in CGEZ I and in some parts of the CGEZ IIIMore than 56 of the inhabitants derive their income from tree crops ofwhich cashew is among the most important Cashew nuts grow along the Coastal beltfrom Lunga Lunga in the south to Lamu in the North East of the Province coveringKwale Kilifi Malindi and Lamu Districts The total area under cashew nutcultivation is estimated at 30921 hectares (M Rabu 2001)In CGEZ I where planting of cashew first started trees are old and crowdedNothing can be grown in between them nor can spraying be done efficiently Land isgetting very scarce and therefore on a small scale in some areas trees are beingthinned pruned to make room for the alternative cultivation of annual crops and forpest and disease control Cashew in this zone is threatened by other more profitableenterprises such as dairy and vegetable productionIn CGEZ II covering the area between 15 and 35 km inland cashew orchardsare not as crowded as in CGEZ I but do not produce economic yields or meet qualityrequirements for the export industry The Kenya Government has therefore initiatedpolicy guidance for farmers community based organisations and private investors to

revive the cashew nut sector Small scale processing shall be encouraged in the shortterm through Community Based Organisations as they own some trees and some arealready processing their crops Assistance needed include locally fabricated roastingpans as processing technologies to improve on qualityThe Government institutions operating in the cashew growing zones namelythe Coast Development Authority and the Kenya Agricultural Research Station inMtwapa have recently commenced some activities in this lineChapter 2SECTOR PERFORMANCE21 ProductionWorld cashew nut production has fluctuated considerably during the last 20years The average annual output dropped from 407000 tonsyear during the 1969 ndash1971 period to 390000 tonsyear in 1978-81 and rose again to 471300 tonsyear in1989-91The major world producers are India Brazil Mozambique and TanzaniaAfrican producers accounted for some 78 of the world production in 1970 butreduced their shares to only 40 in 197981 and 244 in 198991 Kenya outputdeclined from an annual average of 24000 tonsyear in 1969 -71 (59 of worldproduction) to 16500 tonsyear (42 percent of world production) in 1979-81 and to10300 tonsyear in 198991 (a mere 2 of the world production) Recent outputs areshown in the following table12The above production pattern has continued to prevail up to the present timeThe factors attributable to the containing decline are largely associated with thecollapse of the marketing system consequential loss of interest by farmers due toprice instability and the lack of production support services These includedevelopment policy guidance and lack of adequate research and extension servicesTable 3 - Kenya cashew nut area and production 1990 to 2000Year Surface (ha) Production (tons)1990 37668 222241991 31952 190621992 32051 103631993 32126 199201994 32272 103761995 32318 128021996 30872 101731997 30893 91821998 30850 109861999 30921 14615Although cashew represents only one percent of the total Kenyan agriculturalproduction in value it is an important crop because it is grown in an areas with fewalternative cash cropsThere is room for establishment of new plantations and improvement ofexisting orchards through a proper management CGEZ III covers the area beyond35km that includes Ganze Vitengeni and Bamba in Kilifi district Samburu andNavaya in Kwale Lango Mbaya Marafa and Chakama in Malindi There is a big

potential for expansion of cashew plantations People are moving into these areasbecause land is still cheap This is an area where natural vegetation is being destroyedand cashew could serve as an agro forestry speciesProduction in Coast Province is characterised by low productivity per tree andunit area and large fluctuations from year to year This situation has come aboutbecause the estimated 30000 hectares of mainly old trees were established frommaterial of low potential and are currently poorly maintained or totally neglectedThe liberalisation of cashew nut marketing was expected to result in increasedbusiness confidence among the various stakeholders including the small holderstraders and small processors which should have led to dynamic changes in the sectorThis was however not the case Prices have continued to be unpredictable andunsatisfactoryMarket information plays a major role in guiding planning production andproviding feedback on the performance of products in the market place This isfundamental in the production and marketing of raw cashew nuts Smallholdersusually the most uninformed in the chain of activities related to the disposal of theircrop Price levels are determined elsewhere without their involvement Thecooperative societies traders or agents announce the new prices at the beginning of13the harvesting season but farmers do not dispose of a mechanism ascertaining thegenuineness of the price levels set This problem is complicated by the lack of anaccurate and acceptable method of determining the correct farm- gate price for theproducerThe lack of a regulatory body for the cashew sector has made the situationworse Raw cashew nut marketing is dependent on external marketing forces mainlyemanating from India It is generally understood that the Indian government isstriving to produce enough raw cashew locally in order to meet the local processingdemand rather than to rely on imports At the same time other new producers ofcashew nuts outside traditional areas are expanding their cropKenya needs to gradually move towards more local processing of cashew nutsand develop appropriate strategies for improving the domestic output and processingThis would minimize the exploitation of the farmers while the socio-economicbenefits are too important to ignore in terms of value - addition and creation ofemployment Reliance on the traditional systems of disposal of the crop will becomeincreasingly risky for smallholders in particular and the cashew sector in generalCashew production includes a wide array of operations ranging from mediumsized private factories and small-scale units to smallholder producers andmicroprocessors Small scale and microprocessors (mainly women groups) have beenengaged in this business for sometime but their share in the sector has not yet beendeterminedResearch and DevelopmentOne research and development objective which needs full support is a study ofthe production system and practices by farmers with a view to identify priorities andmatch the research findings with farmers needs There is also a need to developcultivars adapted to specific ecological zones as well as the corresponding farmingpractices and to make available to farmers new high-yielding planting material at

reasonable pricesResearch centres that develop new commercial varieties of cashew are inMtwapa Matuga and Msabaha Cashew seeds from selected trees in Matuga wereestablished at Mtwapa in 1958 In 1963 hundred and one trees were chosen from 300trees available and their yields were recorded during the period a long period

Pest and disease controlSeveral diseases and pests are attacking cashew and causing considerablelosses The main diseases are powdery mildew and anthracnose The main pests arecored bug cashew nut bugs cashew bark borer and cashew stem girdler Majomotoants (Oecophilla sp) colonize the cashew to feed on other insectsPowdery mildew caused by Odium anacardii is the most important cashewdisease A study conducted by Oltremare in 1982 in cashew growing areas showed thefollowing levels of attack Chonyi North (46) (Mariakani 16) Kambe Ribe(50) (Gede (9) and Witu (18) Considering the low resulting yields obtainedthe attack levels might have been even higher The assessment of powdery mildewinfestation revealed that application of fungicides significantly reduced theinfestation Yields were increased by six times over untreated trees through theapplication of fungicidesOngoing workA ldquoCashew management improvement projectrdquo is being currentlyimplemented and has the following activities1048766 identification of high yielding cashew trees in farmer fields1048766 introduction of cashew upgrading techniques in farmer fields and evaluation offungicides for control of powdery mildew in Kwale and Malindi DistrictsMaintenance of recurrent selection and clonal evaluation trials started in 1980 arecontinuing and propagation trials are being undertaken at the station A recurrentselection programme was initiated on the basis of the selected trees The highestyieldingtrees in each plot from each of the best progenies a second cycle be startedwithin 6 years Seeds from this trial could be issued to farmers The eight persistentlyhigh-yielding trees identified were propagated vegetatively by budding ontorootstocks The resulting clonal varieties were planted in 1980 The selections differin raw nut characters The raw nuts were tested at the Kenya Cashew Nuts Ltd inKilifiNut characteristics percentage recovery of nut components and quality ofprocessed kernels were studied The overall length of raw nuts from the 14 sampleswas slightly higher than the reported mean value for Kenya This was also true forwidth and thickness kernel weights and recovery of nuts components Other aspectsinvestigated included moisture contents of raw nuts and components and the influenceof humidification and roasting on nut width moisture contentsRecommendations on cultural practicesFrom a spacing trial planted in 1970 testing populations of 4469111135 and278 trees ha yields per ha varied from 134 to 600kg raw of raw of raw nuts Yieldsper tree responded very clearly to the various populationsMore space per cashew tree (fewer trees per ha) were not improved by thenumber of trees per ha To avoid loss of fruiting surface per ha of land two measures

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

market outlets include neighbourhood shopkeepers and agentsmiddlemen Agentsmiddlemen are the most common buyers of nuts in Kenya undertaking about 952of the trade in Kilifi some 835 in Kwale and 646 in MalindiPricing is a big issue in the cashew sector because of the prevalence ofexploitation of farmers farm prices being set by external forces Recent prices varybetween 10 and 20 Kshskg across the three districts Because of the disorganizednature of marketing most of the crop is bought at farm gate While there may bemarket days raw cashews are not the main commodity on saleMarketing of raw nuts is not organised as there are no viable farmers groupswith bargaining power Consequently there is a lot of uncertainty in the market Thenumber of buyers and their areas of operation are unknown and the prices offeredvery variable and unpredictable A small sample survey conducted by Kenya NutCompany Ltd came up with the figures shown below for farm gate and rural marketsspot prices for raw cashewsCurrent raw cashew producer prices by districtIn Kshskg and (US centsKg)DistrictMeanLowHighKilifi 2450 (32) 1380 (18) 3730 (48)Kwale 2010 (26) 1900 (24) 2945 (38)Malindi 2570 (33) 2130 (27) 3345 (43)Source Field survey by Kenya Nut Co LtdExchange rate Kshs 78 for one dollar1114 Development strategyThe economic development of the Coast Province has been relatively slowcompared to other regions of Kenya Rural poverty stands at 57 among theestimated 25 million people in the province despite its high agricultural potentialparticularly in CGEZ I and in some parts of the CGEZ IIIMore than 56 of the inhabitants derive their income from tree crops ofwhich cashew is among the most important Cashew nuts grow along the Coastal beltfrom Lunga Lunga in the south to Lamu in the North East of the Province coveringKwale Kilifi Malindi and Lamu Districts The total area under cashew nutcultivation is estimated at 30921 hectares (M Rabu 2001)In CGEZ I where planting of cashew first started trees are old and crowdedNothing can be grown in between them nor can spraying be done efficiently Land isgetting very scarce and therefore on a small scale in some areas trees are beingthinned pruned to make room for the alternative cultivation of annual crops and forpest and disease control Cashew in this zone is threatened by other more profitableenterprises such as dairy and vegetable productionIn CGEZ II covering the area between 15 and 35 km inland cashew orchardsare not as crowded as in CGEZ I but do not produce economic yields or meet qualityrequirements for the export industry The Kenya Government has therefore initiatedpolicy guidance for farmers community based organisations and private investors to

revive the cashew nut sector Small scale processing shall be encouraged in the shortterm through Community Based Organisations as they own some trees and some arealready processing their crops Assistance needed include locally fabricated roastingpans as processing technologies to improve on qualityThe Government institutions operating in the cashew growing zones namelythe Coast Development Authority and the Kenya Agricultural Research Station inMtwapa have recently commenced some activities in this lineChapter 2SECTOR PERFORMANCE21 ProductionWorld cashew nut production has fluctuated considerably during the last 20years The average annual output dropped from 407000 tonsyear during the 1969 ndash1971 period to 390000 tonsyear in 1978-81 and rose again to 471300 tonsyear in1989-91The major world producers are India Brazil Mozambique and TanzaniaAfrican producers accounted for some 78 of the world production in 1970 butreduced their shares to only 40 in 197981 and 244 in 198991 Kenya outputdeclined from an annual average of 24000 tonsyear in 1969 -71 (59 of worldproduction) to 16500 tonsyear (42 percent of world production) in 1979-81 and to10300 tonsyear in 198991 (a mere 2 of the world production) Recent outputs areshown in the following table12The above production pattern has continued to prevail up to the present timeThe factors attributable to the containing decline are largely associated with thecollapse of the marketing system consequential loss of interest by farmers due toprice instability and the lack of production support services These includedevelopment policy guidance and lack of adequate research and extension servicesTable 3 - Kenya cashew nut area and production 1990 to 2000Year Surface (ha) Production (tons)1990 37668 222241991 31952 190621992 32051 103631993 32126 199201994 32272 103761995 32318 128021996 30872 101731997 30893 91821998 30850 109861999 30921 14615Although cashew represents only one percent of the total Kenyan agriculturalproduction in value it is an important crop because it is grown in an areas with fewalternative cash cropsThere is room for establishment of new plantations and improvement ofexisting orchards through a proper management CGEZ III covers the area beyond35km that includes Ganze Vitengeni and Bamba in Kilifi district Samburu andNavaya in Kwale Lango Mbaya Marafa and Chakama in Malindi There is a big

potential for expansion of cashew plantations People are moving into these areasbecause land is still cheap This is an area where natural vegetation is being destroyedand cashew could serve as an agro forestry speciesProduction in Coast Province is characterised by low productivity per tree andunit area and large fluctuations from year to year This situation has come aboutbecause the estimated 30000 hectares of mainly old trees were established frommaterial of low potential and are currently poorly maintained or totally neglectedThe liberalisation of cashew nut marketing was expected to result in increasedbusiness confidence among the various stakeholders including the small holderstraders and small processors which should have led to dynamic changes in the sectorThis was however not the case Prices have continued to be unpredictable andunsatisfactoryMarket information plays a major role in guiding planning production andproviding feedback on the performance of products in the market place This isfundamental in the production and marketing of raw cashew nuts Smallholdersusually the most uninformed in the chain of activities related to the disposal of theircrop Price levels are determined elsewhere without their involvement Thecooperative societies traders or agents announce the new prices at the beginning of13the harvesting season but farmers do not dispose of a mechanism ascertaining thegenuineness of the price levels set This problem is complicated by the lack of anaccurate and acceptable method of determining the correct farm- gate price for theproducerThe lack of a regulatory body for the cashew sector has made the situationworse Raw cashew nut marketing is dependent on external marketing forces mainlyemanating from India It is generally understood that the Indian government isstriving to produce enough raw cashew locally in order to meet the local processingdemand rather than to rely on imports At the same time other new producers ofcashew nuts outside traditional areas are expanding their cropKenya needs to gradually move towards more local processing of cashew nutsand develop appropriate strategies for improving the domestic output and processingThis would minimize the exploitation of the farmers while the socio-economicbenefits are too important to ignore in terms of value - addition and creation ofemployment Reliance on the traditional systems of disposal of the crop will becomeincreasingly risky for smallholders in particular and the cashew sector in generalCashew production includes a wide array of operations ranging from mediumsized private factories and small-scale units to smallholder producers andmicroprocessors Small scale and microprocessors (mainly women groups) have beenengaged in this business for sometime but their share in the sector has not yet beendeterminedResearch and DevelopmentOne research and development objective which needs full support is a study ofthe production system and practices by farmers with a view to identify priorities andmatch the research findings with farmers needs There is also a need to developcultivars adapted to specific ecological zones as well as the corresponding farmingpractices and to make available to farmers new high-yielding planting material at

reasonable pricesResearch centres that develop new commercial varieties of cashew are inMtwapa Matuga and Msabaha Cashew seeds from selected trees in Matuga wereestablished at Mtwapa in 1958 In 1963 hundred and one trees were chosen from 300trees available and their yields were recorded during the period a long period

Pest and disease controlSeveral diseases and pests are attacking cashew and causing considerablelosses The main diseases are powdery mildew and anthracnose The main pests arecored bug cashew nut bugs cashew bark borer and cashew stem girdler Majomotoants (Oecophilla sp) colonize the cashew to feed on other insectsPowdery mildew caused by Odium anacardii is the most important cashewdisease A study conducted by Oltremare in 1982 in cashew growing areas showed thefollowing levels of attack Chonyi North (46) (Mariakani 16) Kambe Ribe(50) (Gede (9) and Witu (18) Considering the low resulting yields obtainedthe attack levels might have been even higher The assessment of powdery mildewinfestation revealed that application of fungicides significantly reduced theinfestation Yields were increased by six times over untreated trees through theapplication of fungicidesOngoing workA ldquoCashew management improvement projectrdquo is being currentlyimplemented and has the following activities1048766 identification of high yielding cashew trees in farmer fields1048766 introduction of cashew upgrading techniques in farmer fields and evaluation offungicides for control of powdery mildew in Kwale and Malindi DistrictsMaintenance of recurrent selection and clonal evaluation trials started in 1980 arecontinuing and propagation trials are being undertaken at the station A recurrentselection programme was initiated on the basis of the selected trees The highestyieldingtrees in each plot from each of the best progenies a second cycle be startedwithin 6 years Seeds from this trial could be issued to farmers The eight persistentlyhigh-yielding trees identified were propagated vegetatively by budding ontorootstocks The resulting clonal varieties were planted in 1980 The selections differin raw nut characters The raw nuts were tested at the Kenya Cashew Nuts Ltd inKilifiNut characteristics percentage recovery of nut components and quality ofprocessed kernels were studied The overall length of raw nuts from the 14 sampleswas slightly higher than the reported mean value for Kenya This was also true forwidth and thickness kernel weights and recovery of nuts components Other aspectsinvestigated included moisture contents of raw nuts and components and the influenceof humidification and roasting on nut width moisture contentsRecommendations on cultural practicesFrom a spacing trial planted in 1970 testing populations of 4469111135 and278 trees ha yields per ha varied from 134 to 600kg raw of raw of raw nuts Yieldsper tree responded very clearly to the various populationsMore space per cashew tree (fewer trees per ha) were not improved by thenumber of trees per ha To avoid loss of fruiting surface per ha of land two measures

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

revive the cashew nut sector Small scale processing shall be encouraged in the shortterm through Community Based Organisations as they own some trees and some arealready processing their crops Assistance needed include locally fabricated roastingpans as processing technologies to improve on qualityThe Government institutions operating in the cashew growing zones namelythe Coast Development Authority and the Kenya Agricultural Research Station inMtwapa have recently commenced some activities in this lineChapter 2SECTOR PERFORMANCE21 ProductionWorld cashew nut production has fluctuated considerably during the last 20years The average annual output dropped from 407000 tonsyear during the 1969 ndash1971 period to 390000 tonsyear in 1978-81 and rose again to 471300 tonsyear in1989-91The major world producers are India Brazil Mozambique and TanzaniaAfrican producers accounted for some 78 of the world production in 1970 butreduced their shares to only 40 in 197981 and 244 in 198991 Kenya outputdeclined from an annual average of 24000 tonsyear in 1969 -71 (59 of worldproduction) to 16500 tonsyear (42 percent of world production) in 1979-81 and to10300 tonsyear in 198991 (a mere 2 of the world production) Recent outputs areshown in the following table12The above production pattern has continued to prevail up to the present timeThe factors attributable to the containing decline are largely associated with thecollapse of the marketing system consequential loss of interest by farmers due toprice instability and the lack of production support services These includedevelopment policy guidance and lack of adequate research and extension servicesTable 3 - Kenya cashew nut area and production 1990 to 2000Year Surface (ha) Production (tons)1990 37668 222241991 31952 190621992 32051 103631993 32126 199201994 32272 103761995 32318 128021996 30872 101731997 30893 91821998 30850 109861999 30921 14615Although cashew represents only one percent of the total Kenyan agriculturalproduction in value it is an important crop because it is grown in an areas with fewalternative cash cropsThere is room for establishment of new plantations and improvement ofexisting orchards through a proper management CGEZ III covers the area beyond35km that includes Ganze Vitengeni and Bamba in Kilifi district Samburu andNavaya in Kwale Lango Mbaya Marafa and Chakama in Malindi There is a big

potential for expansion of cashew plantations People are moving into these areasbecause land is still cheap This is an area where natural vegetation is being destroyedand cashew could serve as an agro forestry speciesProduction in Coast Province is characterised by low productivity per tree andunit area and large fluctuations from year to year This situation has come aboutbecause the estimated 30000 hectares of mainly old trees were established frommaterial of low potential and are currently poorly maintained or totally neglectedThe liberalisation of cashew nut marketing was expected to result in increasedbusiness confidence among the various stakeholders including the small holderstraders and small processors which should have led to dynamic changes in the sectorThis was however not the case Prices have continued to be unpredictable andunsatisfactoryMarket information plays a major role in guiding planning production andproviding feedback on the performance of products in the market place This isfundamental in the production and marketing of raw cashew nuts Smallholdersusually the most uninformed in the chain of activities related to the disposal of theircrop Price levels are determined elsewhere without their involvement Thecooperative societies traders or agents announce the new prices at the beginning of13the harvesting season but farmers do not dispose of a mechanism ascertaining thegenuineness of the price levels set This problem is complicated by the lack of anaccurate and acceptable method of determining the correct farm- gate price for theproducerThe lack of a regulatory body for the cashew sector has made the situationworse Raw cashew nut marketing is dependent on external marketing forces mainlyemanating from India It is generally understood that the Indian government isstriving to produce enough raw cashew locally in order to meet the local processingdemand rather than to rely on imports At the same time other new producers ofcashew nuts outside traditional areas are expanding their cropKenya needs to gradually move towards more local processing of cashew nutsand develop appropriate strategies for improving the domestic output and processingThis would minimize the exploitation of the farmers while the socio-economicbenefits are too important to ignore in terms of value - addition and creation ofemployment Reliance on the traditional systems of disposal of the crop will becomeincreasingly risky for smallholders in particular and the cashew sector in generalCashew production includes a wide array of operations ranging from mediumsized private factories and small-scale units to smallholder producers andmicroprocessors Small scale and microprocessors (mainly women groups) have beenengaged in this business for sometime but their share in the sector has not yet beendeterminedResearch and DevelopmentOne research and development objective which needs full support is a study ofthe production system and practices by farmers with a view to identify priorities andmatch the research findings with farmers needs There is also a need to developcultivars adapted to specific ecological zones as well as the corresponding farmingpractices and to make available to farmers new high-yielding planting material at

reasonable pricesResearch centres that develop new commercial varieties of cashew are inMtwapa Matuga and Msabaha Cashew seeds from selected trees in Matuga wereestablished at Mtwapa in 1958 In 1963 hundred and one trees were chosen from 300trees available and their yields were recorded during the period a long period

Pest and disease controlSeveral diseases and pests are attacking cashew and causing considerablelosses The main diseases are powdery mildew and anthracnose The main pests arecored bug cashew nut bugs cashew bark borer and cashew stem girdler Majomotoants (Oecophilla sp) colonize the cashew to feed on other insectsPowdery mildew caused by Odium anacardii is the most important cashewdisease A study conducted by Oltremare in 1982 in cashew growing areas showed thefollowing levels of attack Chonyi North (46) (Mariakani 16) Kambe Ribe(50) (Gede (9) and Witu (18) Considering the low resulting yields obtainedthe attack levels might have been even higher The assessment of powdery mildewinfestation revealed that application of fungicides significantly reduced theinfestation Yields were increased by six times over untreated trees through theapplication of fungicidesOngoing workA ldquoCashew management improvement projectrdquo is being currentlyimplemented and has the following activities1048766 identification of high yielding cashew trees in farmer fields1048766 introduction of cashew upgrading techniques in farmer fields and evaluation offungicides for control of powdery mildew in Kwale and Malindi DistrictsMaintenance of recurrent selection and clonal evaluation trials started in 1980 arecontinuing and propagation trials are being undertaken at the station A recurrentselection programme was initiated on the basis of the selected trees The highestyieldingtrees in each plot from each of the best progenies a second cycle be startedwithin 6 years Seeds from this trial could be issued to farmers The eight persistentlyhigh-yielding trees identified were propagated vegetatively by budding ontorootstocks The resulting clonal varieties were planted in 1980 The selections differin raw nut characters The raw nuts were tested at the Kenya Cashew Nuts Ltd inKilifiNut characteristics percentage recovery of nut components and quality ofprocessed kernels were studied The overall length of raw nuts from the 14 sampleswas slightly higher than the reported mean value for Kenya This was also true forwidth and thickness kernel weights and recovery of nuts components Other aspectsinvestigated included moisture contents of raw nuts and components and the influenceof humidification and roasting on nut width moisture contentsRecommendations on cultural practicesFrom a spacing trial planted in 1970 testing populations of 4469111135 and278 trees ha yields per ha varied from 134 to 600kg raw of raw of raw nuts Yieldsper tree responded very clearly to the various populationsMore space per cashew tree (fewer trees per ha) were not improved by thenumber of trees per ha To avoid loss of fruiting surface per ha of land two measures

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

potential for expansion of cashew plantations People are moving into these areasbecause land is still cheap This is an area where natural vegetation is being destroyedand cashew could serve as an agro forestry speciesProduction in Coast Province is characterised by low productivity per tree andunit area and large fluctuations from year to year This situation has come aboutbecause the estimated 30000 hectares of mainly old trees were established frommaterial of low potential and are currently poorly maintained or totally neglectedThe liberalisation of cashew nut marketing was expected to result in increasedbusiness confidence among the various stakeholders including the small holderstraders and small processors which should have led to dynamic changes in the sectorThis was however not the case Prices have continued to be unpredictable andunsatisfactoryMarket information plays a major role in guiding planning production andproviding feedback on the performance of products in the market place This isfundamental in the production and marketing of raw cashew nuts Smallholdersusually the most uninformed in the chain of activities related to the disposal of theircrop Price levels are determined elsewhere without their involvement Thecooperative societies traders or agents announce the new prices at the beginning of13the harvesting season but farmers do not dispose of a mechanism ascertaining thegenuineness of the price levels set This problem is complicated by the lack of anaccurate and acceptable method of determining the correct farm- gate price for theproducerThe lack of a regulatory body for the cashew sector has made the situationworse Raw cashew nut marketing is dependent on external marketing forces mainlyemanating from India It is generally understood that the Indian government isstriving to produce enough raw cashew locally in order to meet the local processingdemand rather than to rely on imports At the same time other new producers ofcashew nuts outside traditional areas are expanding their cropKenya needs to gradually move towards more local processing of cashew nutsand develop appropriate strategies for improving the domestic output and processingThis would minimize the exploitation of the farmers while the socio-economicbenefits are too important to ignore in terms of value - addition and creation ofemployment Reliance on the traditional systems of disposal of the crop will becomeincreasingly risky for smallholders in particular and the cashew sector in generalCashew production includes a wide array of operations ranging from mediumsized private factories and small-scale units to smallholder producers andmicroprocessors Small scale and microprocessors (mainly women groups) have beenengaged in this business for sometime but their share in the sector has not yet beendeterminedResearch and DevelopmentOne research and development objective which needs full support is a study ofthe production system and practices by farmers with a view to identify priorities andmatch the research findings with farmers needs There is also a need to developcultivars adapted to specific ecological zones as well as the corresponding farmingpractices and to make available to farmers new high-yielding planting material at

reasonable pricesResearch centres that develop new commercial varieties of cashew are inMtwapa Matuga and Msabaha Cashew seeds from selected trees in Matuga wereestablished at Mtwapa in 1958 In 1963 hundred and one trees were chosen from 300trees available and their yields were recorded during the period a long period

Pest and disease controlSeveral diseases and pests are attacking cashew and causing considerablelosses The main diseases are powdery mildew and anthracnose The main pests arecored bug cashew nut bugs cashew bark borer and cashew stem girdler Majomotoants (Oecophilla sp) colonize the cashew to feed on other insectsPowdery mildew caused by Odium anacardii is the most important cashewdisease A study conducted by Oltremare in 1982 in cashew growing areas showed thefollowing levels of attack Chonyi North (46) (Mariakani 16) Kambe Ribe(50) (Gede (9) and Witu (18) Considering the low resulting yields obtainedthe attack levels might have been even higher The assessment of powdery mildewinfestation revealed that application of fungicides significantly reduced theinfestation Yields were increased by six times over untreated trees through theapplication of fungicidesOngoing workA ldquoCashew management improvement projectrdquo is being currentlyimplemented and has the following activities1048766 identification of high yielding cashew trees in farmer fields1048766 introduction of cashew upgrading techniques in farmer fields and evaluation offungicides for control of powdery mildew in Kwale and Malindi DistrictsMaintenance of recurrent selection and clonal evaluation trials started in 1980 arecontinuing and propagation trials are being undertaken at the station A recurrentselection programme was initiated on the basis of the selected trees The highestyieldingtrees in each plot from each of the best progenies a second cycle be startedwithin 6 years Seeds from this trial could be issued to farmers The eight persistentlyhigh-yielding trees identified were propagated vegetatively by budding ontorootstocks The resulting clonal varieties were planted in 1980 The selections differin raw nut characters The raw nuts were tested at the Kenya Cashew Nuts Ltd inKilifiNut characteristics percentage recovery of nut components and quality ofprocessed kernels were studied The overall length of raw nuts from the 14 sampleswas slightly higher than the reported mean value for Kenya This was also true forwidth and thickness kernel weights and recovery of nuts components Other aspectsinvestigated included moisture contents of raw nuts and components and the influenceof humidification and roasting on nut width moisture contentsRecommendations on cultural practicesFrom a spacing trial planted in 1970 testing populations of 4469111135 and278 trees ha yields per ha varied from 134 to 600kg raw of raw of raw nuts Yieldsper tree responded very clearly to the various populationsMore space per cashew tree (fewer trees per ha) were not improved by thenumber of trees per ha To avoid loss of fruiting surface per ha of land two measures

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

reasonable pricesResearch centres that develop new commercial varieties of cashew are inMtwapa Matuga and Msabaha Cashew seeds from selected trees in Matuga wereestablished at Mtwapa in 1958 In 1963 hundred and one trees were chosen from 300trees available and their yields were recorded during the period a long period

Pest and disease controlSeveral diseases and pests are attacking cashew and causing considerablelosses The main diseases are powdery mildew and anthracnose The main pests arecored bug cashew nut bugs cashew bark borer and cashew stem girdler Majomotoants (Oecophilla sp) colonize the cashew to feed on other insectsPowdery mildew caused by Odium anacardii is the most important cashewdisease A study conducted by Oltremare in 1982 in cashew growing areas showed thefollowing levels of attack Chonyi North (46) (Mariakani 16) Kambe Ribe(50) (Gede (9) and Witu (18) Considering the low resulting yields obtainedthe attack levels might have been even higher The assessment of powdery mildewinfestation revealed that application of fungicides significantly reduced theinfestation Yields were increased by six times over untreated trees through theapplication of fungicidesOngoing workA ldquoCashew management improvement projectrdquo is being currentlyimplemented and has the following activities1048766 identification of high yielding cashew trees in farmer fields1048766 introduction of cashew upgrading techniques in farmer fields and evaluation offungicides for control of powdery mildew in Kwale and Malindi DistrictsMaintenance of recurrent selection and clonal evaluation trials started in 1980 arecontinuing and propagation trials are being undertaken at the station A recurrentselection programme was initiated on the basis of the selected trees The highestyieldingtrees in each plot from each of the best progenies a second cycle be startedwithin 6 years Seeds from this trial could be issued to farmers The eight persistentlyhigh-yielding trees identified were propagated vegetatively by budding ontorootstocks The resulting clonal varieties were planted in 1980 The selections differin raw nut characters The raw nuts were tested at the Kenya Cashew Nuts Ltd inKilifiNut characteristics percentage recovery of nut components and quality ofprocessed kernels were studied The overall length of raw nuts from the 14 sampleswas slightly higher than the reported mean value for Kenya This was also true forwidth and thickness kernel weights and recovery of nuts components Other aspectsinvestigated included moisture contents of raw nuts and components and the influenceof humidification and roasting on nut width moisture contentsRecommendations on cultural practicesFrom a spacing trial planted in 1970 testing populations of 4469111135 and278 trees ha yields per ha varied from 134 to 600kg raw of raw of raw nuts Yieldsper tree responded very clearly to the various populationsMore space per cashew tree (fewer trees per ha) were not improved by thenumber of trees per ha To avoid loss of fruiting surface per ha of land two measures

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

15were tested an initial high density planting at 6mx6m (278 trees per ha) later reducedto 12mx12m (69 trees per ha) Establishment of a low number of trees per ha (at12mx12m or at 15mx15m) did not prove satisfactory although canopy surface andyield per tree increased at lower populations These measures did not lead to higherproductivity per ha It was suggested that establishment of cashew trees in closelyplanted rows and ample inter-row spacing should provide more canopy surface per haof orchard until when the space between rows is taken up by the developed canopiesWhen cashews are established in narrowly planted rows (2 to 3m) to formhedgerows a more rapid build up of fruit - bearing surface is realised depending onthe distance allowed between treesHedge rows planted at 15m inter-row spacing can yield up to 3170 kghawhile hedge rows planted at 9m yield more (4100 kgha) but the canopies closefaster Rejuvenation has to be done 9 years after planting Yields are 3100 kg ha andrejuvenation would have to take place 14 years after planting for hedge rows plantedat 12mCashew yields decline due to loss of canopy surface induced by interminglingof branches from neighbouring cashew trees A drop in the productivity of canopysurface is also noted in trees beyond ten years The rejuvenation of orchard can beobtained by replacement of the old stands by new cashew trees or by rejuvenation ofexiting treesReplacement of trees by newly sown material would cause farmers to rescindincome from the cashew orchard for at least 3 years Some income could be generatedby sale of firewood or of charcoal It is estimated that some 450 bagsha of charcoalcould be obtained if 278 trees were planted per ha Replacement of old trees could beaffected by removing alternate lines at two or three year intervalsAnother option is to rejuvenate trees through removal of canopies by cappingIt was established that if trees are cut at 30-150 cm from ground level a profusegrowth occurs If the cut occurs during the dry season a good proportion of thecoppice trees is likely to flower in the same yearThe main factors influencing production and harvesting performance arediseases (mainly mildew) the age of trees neglect by farmers drought and poor soilswithout any addition of fertilizers or proper pruningFarmers attribute their lack of interest in cashew cultivation to the high cost ofpesticides and fertilisers low prices of raw nuts lack of improved high-yieldingvarieties and the closure of the processing factory22 ProcessingAs previously stated the evolution of cashew processing has been based onindividual private investors who set up small processing units and engaged indirectpurchasing from farmers with little or no inputs to help them in production16The advent of independence in 1963 led to the involvement of the KenyaGovernment in the sector through the purchase of the existing factory owned byMitchell Cots - Cashew Nuts Ltd in 1964 This was followed by injection of funds tomodernise the factory The government funds were given through the wholly ownedIndustrial and Commercial Development Corporation (ICDC) the Industrial

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

Development Bank (IDB) and the National Cereals and Produce Board (NCPB) whoalso provided the management personnel The farmers were involved through theircooperative society the Kilifi District Cooperative UnionThe liberalisation of the sector led to the withdrawal of these institutions andthe sale of the factory to private operators Unfortunately the private operators haverun down the factory and it finally closed down after running up a heavy financialliability The assets have been cannibalised beyond repair Currently no cashewproducts are being processed in Kenya Microprocessors produce only raw kernelsThe reversion to the old technologies using crude pan roasting techniques is unableto produce quality productsTable 4 shows the evolution of cashew processing by the Kenya Cashew NutsLtd up to its closure in 19961997 Since the closure of the factory procurementfigures are difficult to obtain The data shows that production has been decliningTable 4 Raw cashew nuts processed by Kenya Cashew Nuts LtdThe main factors influencing the processing performance have been the lackof organisation and the prevalence of a chaotic marketing system characterised byirregular demand and low prices for raw cashew nuts Small-scale processors can onlyhandle about 10000 tons which would not meet export quality standards1723 ExportsAll the nuts processed by Kenya Cashew Nuts Ltd were exported largely theUnited Kingdom and to European destinationsThe recently established Kenya Nuts Company Ltd has not yet released itsexport statistics However based on its raw material purchases it processed 250 tonsof cashew in year 2000 and 300 tons in 2001Kenya does not produce any cashew nut by-productsCashew nut is not being considered as a major export crop despite thepotential that has been identified recently The lack of organisation and coordinationof the sector has impacted very negatively on is present status During its operativelife the now defunct Kenya Cashew Nuts Ltd used to meet the internationalstandards in grading and packaging of raw cashew nut kernelsChapter 3CONSTRAINTS TO EXPORT DEVELOPMENT31 Production and harvestingProduction and harvesting have been seriously affected by a host of factors includingbull Powdery mildew which decimates the yield by destroying the flowersbull The very old trees which have very low yields further decreased by lack offertiliser use lack of pruning and general neglectbull Low potential germplasmbull Farmersrsquo lack of knowledge relative to improved husbandry practices and lackof extension servicesbull Droughts and lack of irrigationbull Poor infrastructurebull Poor policy framework and lack of a comprehensive development plans32 ProcessingStakeholders considered the closure of the Kenya Cashew Nut Ltd a denied

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

guaranteed market outlet for the produce emphasized by declining and unstableprices of the commodity and the excessive exploitation of farmers by middlemenCashew nut processing is currently done on micro scale involving the use ofroasting pans followed by cleaning and packaging of the kernels Special roastingdrums have found their way in the area but are still insignificant in numbers Buyersof processed nuts include rural inhabitants and town dwellersPotential for export contract markets exists but farmers are not able to produce thequality and quantity to meet the importersrsquo demand1833 Export marketingLack of quality products and inadequate volumes have both impactednegatively on the export marketing potential Until these factors are resolved Kenyais unlikely to become a significant cashew nut exporterWhereas the production and trade policy for the cashew sector is to encourageprivate investment in farming and processing the political environment and the landpolicy in the growing areas are not yet conducive to investment inflowFarmers are offered inadequate extension services while the Governmentfailed to maintain rural roads and infrastructureResearch support is minimal if not totally absent due to lack of fundingFarmers therefore cannot access improved seed and planting material as well aspests and disease control products The cooperative movement which used to providecredit to cashew nut farmers in cash and kind has virtually collapsed and is thereforeineffectiveChapter 4IDENTIFICATION OF TECHNICAL ASSISTANCE PROJECTS41 Production and harvestingPublic SectorThe Kenya Government is in the process of reviving cashew nut researchactivities through the Kenya Agricultural Research Centre at Mtwapa A budgetaryproposal for the next 5 years is under preparationThe project will cover a short-term tree rehabilitation plan using testedtechnologies developed at the centre and its outstations It will also cover severalagronomic studies and the introduction and testing of new germplasmThe Coast Development Authority has indicated interest in setting up aproduction support projectPrivate sectorFarmers are being assisted by NGOrsquos such as ACTION AID and ChoiceHumanitarian through small input supply schemes or training on pruning and cashewcultivation techniques NGOrsquos are also helping in location of traders who pay fairprices for the raw nut if properly dried42 ProcessingThe only reported development in processing is the processing unit recentlyinstalled by Kenya Nut Company Ltd with an expected full-scale capacity of 5000tons of raw nuts19The company has established a raw material procurement scheme by setting

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

up purchasing centres in the rural growing areas of Kwale Mombasa and Kilifi Thenuts are paid for in cash and delivered to the upcountry factory for drying andprocessing The kernels are then roasted and packed ready-to-eat for exported or saleto local consumers through supermarketsThere are other much smaller operators who purchase cashew nuts and processthem at home pack them raw in polythene bags and sell them to local retailers43 Export marketingAt present there are no known projects aimed at assisting cashew exportmarketing except the one mentioned for Kenya Nut Company LimitedHowever recognising the need for revival of the sector the Ministry ofAgriculture has formed a stakeholders TASK FORCE whose mandate is to reviewthe sector and make proposals for a comprehensive development plan A ManagementCommittee has been formed to steer the activities of this task the first of which is tosolicit funds to enable the preparation of a short and medium term plan to revitaliseand improve productionThe Kenya Exports Promotion Council is a member of the Group and isexpected to assist in export promotion activities once cashew nut kernels of the rightquality and of substantial quantity become available This organisation is expected tocoordinate the regional cashew nut network that might be established in futureThe Kenya Nut Company is already involved in exports after adding value tokernels through roasting and packing for local and foreign supermarkets Thecompany has already established the recognised Hazard Analysis Critical ControlPoints (HACCP) quality control system and is also licensed as an organic processorby the Soil Association Certification Ltd a registered certifying body under theInternational Federation of Organic Agriculture Movements (IFOAM)CONCLUSIONThe cashew nut sector in Kenya has been rapidly declining for reasonsranging from poor crop husbandry rampant disease spread to endemic levels to thecomplete collapse of the marketing systemSome NGOrsquos are assisting farmers in crop husbandry improvement and farmgate marketing of unprocessed nuts Others are setting up the local production ofcrude pan roasting equipment unfortunately without any form of standardisation orquality control Therefore the product cannot be exportedAt present only raw nuts are exported to IndiaApart from the recently established small processing plant by a privatecompany there are no active programmes for improving the sub sector20The potential for cashew nuts production and export from Kenya is notexploited at present and should be examined with a view to attract private sectorparticipation The government should be more involved in the development of thesector by supporting research and extension services to farmers

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

Cashew Sector in Enugu StateCashew plantings worldwide have accelerated due to the optimistic price outlook of raw cashew nuts and its by-products exploitation potentials In Nigeria raw cashew nuts have assumed second position in the commodity exports after cocoa beansCashew is of considerable economic importance and Enugu State produces raw cashew nuts in reasonable quantity meaning a lot of money to cashew smallholders farmer co-operatives merchants and exporters Cashew farming in Enugu State is well practiced in many communities notably Udi Ezeagu Oji-river Isi-uzo Igbo-eze North Igbo-etiti and Udenu Enugu State had in the past witnessed influx of foreign buyers in the Raw Cashew Nuts trade which later dwindled to almost zero by the year 2007 due to poor quality Nuts in the local markets

General Charateristics Cashew farming is well adaptable to the soil conditions of the State Raw Nuts are produced in reasonable quantity Existing plantations are old and of wild strands and of less genetically

performing seeds plant varieties About 70 small-holders with over 75 poor quality harvest Low and declining productivity Inadequate knowledge skill and technology Non exploitation of value-added products operating at local

processing level Poor access to export markets Cashew trees are moribund and needs rehabilitation Productivity is on the decline and the quality is very poor Poor quality volume is put at over 75 of total state production Lack of awareness on the economic importance of cashew Present cashew production chain in Enugu State is trader-driven

The cashew sector in the State has been rapidly declining for reasonsranging from poor crop husbandry and quality inspection control and rampant disease spread resulting to poor quality and total collapse of the marketing systemThe potential for cashew nuts production and export from Enugu State is not

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)

exploited at present and there is need for the Government to begin to critically examine its policy thrust with a view to attract private sector participationHitherto inventory of the cashew sector in Enugu State has not been done officially conducted However deductions made from the available statistics of the State Produce Inspection Department puts the State total annual production of raw cashew nuts at 2700 tones The government should be more involved in the development of the sector by supporting research and extension services to farmers (underscored by total technology approach in Cashew production chain in relation to production processing and marketing)