Comunicação - Imprensa

Olam Mozambique announces closure of cashew processing plants

It is yet another deep blow to the economy, with a tremendous impact among small producers. After 22 years as Mozambique’s main cashew processor and sector employer, Olam has announced that it is to close its processing factories in the country.

In a note to which ‘Carta’ had access, Olam justifies the measure with “global trends in the cashew nut markets and the recurring difficulties in accessing quality raw material in the necessary volumes”. The agricultural sector multinational announced in the same note that it will also wind up its “support scheme for small cashew producers”.

The matter is extremely serious. Olam is by far the largest cashew processor in the country, employing around 3,000 workers.

Olam does not specify the nature of the “global trends” mentioned in its note, but ‘Carta’ found that cashew prices and sales fell dramatically in 2020 as a result of the Covid-19 pandemic. China’s imports have also declined. The problem is not unique to Mozambique; Ghana and Vietnam are also affected.

Source : https://clubofmozambique.com/news/olam-mozambique-announces-closure-of-cashew-processing-plants-carta-183933/