7/21/2019 Cashew Moz

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KEY SUPPORTERS

 TE CH NOSERVE SERV ICES PROVID E

IMPACT AT A GLANCEozambique was once the world’s leading

cashew nut producer until civil war and

poor policy decisions destroyed the

industry. By the late 1990s Mozambique

was shipping its reduced production of raw

cashew nuts to India for processing thus

forfeiting a lot of their value.

To revitalize the domestic industry and help itmeet the growing global demand for cashewnuts, in the late 1990s TechnoServe stepped into help entrepreneurs establish commerciallyviable processing plants and train farmers toproduce more and better nuts. As a result,

nearly 150,000 factory workers and farmersare now earning higher incomes, and there isan economic boom in rural villages. On apersonal level, it means that someone such asfactory worker Almeida Dos Santos is nowearning enough to pay his children’s schoolfees and build a home for his family.

This transformation had its roots in aTechnoServe industry study, which showed thata new labor-intensive processing model wouldmaximize benefits to the rural poor and thenational economy. A “model” processing facilitywas designed, ensuring at least minimum-wage salaries for all employees.

In 2002, TechnoServe partnered withentrepreneur Antonio Miranda to launch thepilot factory. TechnoServe business advisorshelped Miranda with business planning, factorydesign, supply chain organization, qualitycontrol, operational assistance and access tocapital. The first factory was successful enoughto give Miranda the confidence to open twomore factories; his three plants now employnearly 1,500 people.

TechnoServe helped Miranda’s success tospread throughout the region. Since 2002, ninemore cashew processing plants have opened inthe northern Nampula area alone.

These factories have created a reliable localmarket for tens of thousands of small-scalecashew producers. These farmers are now ableto sell directly to the factories, rather than tomerchants based in the city (wheretransportation costs and poor road conditionsate into profits). Processors are also trainingthe farmers to improve quality and yields,leading to higher incomes.As a result, farmers such as João Sekare are

investing in more cashew trees and using theprofits to diversify their investments tococonuts, oranges, peanuts and livestock. Healso runs a small shop which employs fourpeople. “Now neighbors are starting to plantcashews as well,” he says. “They come andtake branches from my trees to plant. Theywant to be like me.”

As the industry grew, TechnoServe helpedseveral plant owners to form AgribusinessIndustries Association (AIA), a private servicescompany. AIA manages internationalmarketing, providing quality control and brandmanagement. It has assumed TechnoServe’s

role of recruiting and supporting newprocessors. AIA reflects TechnoServe’scommitment to creating self-sustainingindustries that continue to thrive long afterTechnoServe departs.

The revitalized cashew industry is bringing cashinto rural communities and turning them intocommercial centers. Businesses such asconvenience stores, restaurants, hairdressersand bicycle repair shops are springing up tocater to the expanding demand, creating more

 job opportunities and reinforcing the cycle ofeconomic growth.

Long-term residents marvel at thetransformation of Namige, the site of Miranda’sfirst factory, from an outpost to a “lively town.”It has also attracted new residents, such asArtur José. He gave up the difficult life of afisherman to open a small store in Namige,after seeing the amount of new moneycirculating in the economy. His gamble paid off.He now plans to expand his establishment,after buying a car to cut down on transportationcosts.

Cashew Industry Brings New Prosperity to Mozambican Communities

In 2008, TechnoServe’s 14 cliecashew processing plants:

• Bought nuts from more tha102,000 small-scale producers;

• Had total sales revenues of mothan $9.7 million;

• Employed more than 6,100 futime employees and many patime staff; and

• Paid more than $1.7 million wages.

• Business planning

• Technical assistance and trainintechnology improvements

• Development of production mod

• Quality assurance

• Developing an enabling enviroment (government-backed loa

guarantees for cashew procesors, industry-specific wage guaantees)

• Market linkages

• Supplier linkages (linking procesors to farmers)

• Brand development: Zambique

U.S. Agency for International Develoment, the International Fund for Agcultural Development, Swiss StaSecretariat for Economic Affairs anIrish Aid

The cashew factories are creating jobs for

hundreds of local residents.