GCX HOLDS VIRTUAL MARKET COUNCIL MEETING ON CASHEW IN PARTNERSHIP WITH UNIDO
GCX HOLDS VIRTUAL MARKET COUNCIL MEETING ON CASHEW IN PARTNERSHIP WITH UNIDO
As part of efforts to introduce the trading of Cashew unto its electronic platform, the Ghana Commodity Exchange held a virtual meeting on the 29th of May, 2020. The consultation meeting was convened virtually as a result of current health and safety protocols issued by the Government, which restrict in-person interactions as well as gatherings in groups in order to curb the spread of the novel coronavirus (COVID-19) in the country.
The consultative meeting, which was conducted via a Zoom conference call, saw in attendance representatives from the Ghana Standards Authority (GSA), the Cashew Industry Association of Ghana, UNIDO and market actors of the Raw Cashew Nut industry.
The objective of the meeting was to discuss and agree on the draft Raw Cashew Nut contract to be listed on the Exchange.
As part of the itinerary, a brief overview of GCX was given, followed by a discussion on the draft Raw Cashew Nut contract.
Generally, the draft Cashew contract was well accepted as representing what pertains in the Cashew industry. A few concerns were however raised, one of which was that the tolerable limits for nut count of cashew be amended while maintaining high quality standards to enable them to be exportable. It was also suggested that the moisture content for Cashew should be increased from 10 per cent to 12 per cent and it was eventually agreed that GCX should maintain the 10% moisture across the various grades of Raw Cashew Nuts in accordance with the GSA standards and general export requirements.
A concern was also raised about the differing grading standards in existence and whether GCX uses these agencies to grade. In response to this, market actors were assured that the Exchange has trained grading staff who are capable of grading the commodities to all standards and that GCX has grading protocols which are effective.
All suggestions and concerns were gladly taken into account with the objective of ensuring a fruitful addition of Cashew unto the Ghana Commodity Exchange.
The Ghana Commodity Exchange is a modern marketplace for buyers and sellers of agricultural commodities to trade in an efficient and orderly manner. GCX currently trades agricultural commodities such as maize, soya, sorghum and sesame.
The introduction of Cashew unto the electronic trading platform of GCX will undeniably reap many benefits for Ghana’s cashew value chain as well as market actors involved in the cashew sector in Ghana. By trading through GCX, cashew farmers in Ghana will not have to worry about price fluctuations of cashew as a result of change in seasons. The open and accessible price discovery system offered by GCX will reduce the difficulty that farmers, processors and traders of cashew face when it comes to determining the price of cashew.
Additionally, GCX operates a number of certified warehouses across Ghana particularly in Afram Plains, Kumasi, Ejura, Kintampo, Wenchi, Tamale, Sandema, Tumu and Wa. Here, grains are deposited by farmers, after which they are stored, cleaned, dried, graded, weighed, and re-bagged into standard 50kg bags, in order to meet international quality standards. By having access to the services provided by GCX warehouses, the issue of mold and nut deterioration faced by many Ghanaian cashew farmers before export will be a thing of the past.
Some other benefits market actors of Cashew are guaranteed to enjoy through GCX includes the availability of a transparent electronic trading platform for buyers and sellers of cashew, significant reduction in post-harvest losses, access to warehousing receipt system, linking of farmers and traders to financial institutions and provision of a steady supply platform for both exporters and processors of cashew.
The virtual meeting turned out successful with constructive ideas which is believed will go a long way towards developing the value of Ghana’s Cashew chain and increase profitability of cashew production in Ghana.
