The Cashew Value Chain in Mozambique: Analysis of Performance and Suggestions for Improvement

Abstract

The purpose of this paper is to explore opportunities to improve cashew value chain performance in Mozambique in ways that create income for smallholders and small and large scale processors. Considering the importance of the cashew industry for the national economy and for poverty reduction, the suggested improvements can be used by policy makers, investors, and donors to re-examine policy strategies, resource reallocation and the development of infrastructure. It may also trigger the interest of the private sector to develop new marketing strategies. The paper commences by giving the background to the cashew industry and its impact on rural development, followed by policy interventions and major activities. Then, a SWOT analysis, value chain mapping, strategic fit and drivers of profit are outlined. The Sunshine Nut company is presented as an example of an innovative business model in the cashew Industry. It is concluded that investment in market research, domestic value adding and balancing customer requirements may potentially enhance competitiveness and efficiency in the cashew value chain in Mozambique.