Cashew Watch Ghana (CWG), an advocacy organisation, has expressed concern over the 20 per cent reduction in cashew prices for the 2025/2026 season, warning that the decision could adversely affect the livelihoods of thousands of smallholder farmers across the country.

In December 2025, the Tree Crops Development Authority (TCDA) announced a new floor price of GH¢12 per kilogram, down from GH¢15 in 2024. The authority attributed the reduction to shifts in global market conditions and a prevailing Free On Board (FOB) price of US$1,400 per metric tonne.

Under the pricing formula, the indicative price stood at GH¢11.16 per kilogram; however, the authority rounded it up to GH¢12.

Cashew Watch Ghana noted that many farmers had already made significant investments in farm maintenance and post-harvest handling in anticipation of improved returns. The group cautioned that the price cut could discourage further investment, reduce productivity, and push vulnerable households into debt.

In a statement signed by its Steering Committee Chairman, Mr Simon Asore, the organisation said the development had come at a time when farmers were grappling with rising production costs, climate-related challenges, and limited access to affordable financing.

“The cashew sector remains a critical source of income for rural households, particularly in the Bono, Bono East, Northern and Savannah regions. Any significant drop in prices will worsen poverty levels and undermine ongoing efforts to promote decent livelihoods among cashew-producing communities,” the statement declared.

Cashew Watch Ghana has therefore called on the government and key stakeholders in the value chain to take a second look at the cashew pricing regime.

The organisation recommended the introduction of an annual fixed producer price for raw cashew nuts, strengthened market regulation to curb exploitative practices by middlemen, and increased support for domestic processing to reduce overreliance on raw nut exports.

It also urged the TCDA and the Ministry of Food and Agriculture to intensify engagement with farmer groups and private sector actors ahead of the buying season to ensure transparency, fairness, and stability in pricing.

In a related development, the Bono Regional Chairman of the Cashew Farmers’ Cooperative, Mr Daniel Munufie, said farmers had expected a better price than the approved floor price.

“If nothing at all, the TCDA should have maintained the GH¢15,” he stated.

Mr Munufie explained that farm maintenance and labour costs were at an all-time high, and that any reduction in income would erode profits and further compound the already precarious livelihoods of farmers, who remain the primary producers in the sector.

By Daniel Dzirasah, Sunyani