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Investor Presentaiton

JICA Cashew processing Cashew processing & machinery in Côte d'Ivoire: Executive Summary Overview of cashew sector and key players Côte d'Ivoire is the largest producer of raw cashew nuts globally, but cashew processing is primarily done in India and Vietnam • Côte d'Ivoire is the largest producer of raw cashew nuts in the world, with 20% of the global production. India is second with 18.7% • Close to 90% of the Ivoirian cashew is processed abroad: 56% in Vietnam and 28% in India (as of 2018) • • Olam is the largest processor in the country, accounting for 40% of locally processed cashew (the remaining capacity is shared among dozens of small-scale players) There is limited opportunity for Japanese machinery suppliers, given that Japanese companies have little advantage due to lower level of sophistication required Challenges in the market • • Côte d'Ivoire raw cashew nuts processing cost is highest among peers, being ~3x as high as the one in Vietnam High cost of processing can be explained by lower labor productivity, cost of machinery and spare parts and limited demand for by products and lower quality of cashew nuts Cashew nut processing needs to be done at a high standard (at least 65% of whole cashew) to be more profitable than exporting raw cashew nuts Achieving high standard requires a skilled labor force and the use of processing machinery Actions taken by the Government and support from Development Partners • • The government has provided a series of benefits for companies who agree to process cashew locally, including tax credits and custom exemption on machinery and bonus of 400 FCFA per kilogram of exported processed cashew nut The world bank provided a 285M$ loan to support the development of the value chain including the increase of processing capacity 88
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