Usibras Ghana plans exit over drop in raw cashew supply, high costs

By Praisebell Rosemond Larbi

Usibras Ghana Limited, one of the country’s largest cashew processing firms, says it may relocate operations to Ivory Coast after a year of severe raw material shortages and rising production costs crippled output.

The Brazilian-owned company, which has maintained a 24-hour production cycle for over a decade, disclosed that it secured only 7,000 metric tonnes (MT) of raw cashew nuts in 2025, barely 20 per cent of its 35,000 MT annual processing capacity.

Management also cited high electricity tariffs, escalating utility costs and unfavourable export duties, particularly the 15 per cent levy on products shipped to the United States, as key factors undermining profitability.

Economic and Social Fallout

Usibras has already reduced its 700-strong workforce after running out of raw nuts, with a full exit likely to leave hundreds of households without steady income.

Industry analysts warn that Ghana’s foreign exchange earnings could also be hit, as Usibras is one of the few cashew processors generating significant inflows through formal banking channels.

Cashew farmers, meanwhile, risk losing a major buyer, raising fears of price collapses and dampened production incentives.

The potential closure could further weaken the Association of Cashew Processors in Ghana, while contractors and service providers that depend on Usibras face sharp revenue losses.

Tax receipts from SSNIT contributions and PAYE would similarly shrink, dealing another blow to public finances.

Call for Government Action

Usibras management has urged the government to enforce regulations that prioritise local processors, adopt tax incentives akin to Ivory Coast’s, and establish a task force to regularise the cashew value chain.

“A factory with capacity to process 35,000 MT sourcing only 7,000 MT this year clearly signals a supply crisis,” the company warned in a statement, adding that without urgent intervention, investor confidence in Ghana’s agribusiness sector could erode.

Ivory Coast, which produces over a million metric tonnes of raw cashew annually and offers competitive tax policies, has emerged as an attractive alternative for processors facing supply and cost constraints.

Unless decisive measures are taken, Ghana risks losing not only a major employer and exporter but also the broader investment appeal of its cashew-processing industry.