Guinea Bissau faces problems distributing cashew nut production

22 August 2012

Guinea Bissau is facing difficulties with distributing its cashew nut production to international markets, due to surplus production around the world, the spokesman for the transitional government, Fernando Vaz said in Bissau.

Speaking to Portuguese news agency Lusa, Vaz said that there were currently 90,000 tons of cashew nuts (one of Guinea Bissau’s main export products) standing in warehouses in Bissau waiting to be shipped.

Projections from the government overthrown in the Coup D’Etat of 12 April last were that the country would this year export 220,000 to 230,000 tons of cashews but the transitional government had to lower these projections to 180,000 to 190,000 tons.

Vaz explained that normal retraction of economic activities (normal at this time in Guinea Bissau) along with a lack of liquidity at retail banks are some of the reasons given for the difficulties faced in shipping the cashews out of guinea Bissau.

The spokesman said that this was added to the fact that India, the world’s main buyer of unprocessed cashew nuts, is not buying the product at the same rate as in previous years due to a surplus in production around the world, which is not just affecting Guinea Bissau, but also other countries.

According to the President of the National Cashew Institute, André Nanque, Guinea Bissau exported 174,000 tons of cashews in 2011, which was a record, and brought US$266 million into the public coffers. (macauhub)