The Cashew Project

LEAD International, at the request of local pastors, initiated research into the cashew sub-sector of the economy of Guinea-Bissau. As commodities markets are fluid due to changing demand and influences to production, LEAD developed a series of approaches to utilize cashew to create revenue streams to individuals interested in creating jobs.

Utilizing God-given Resources

Cashew apple and developing cashew fruit.

Our philosophy came from the idea that God had provided resources in country that could have the capacity to dramatically impact the economy. Seventy-two percent of the population of Guinea-Bissau is directly impacted by the raw cashew industry. Diversification in other agricultural products remains a primary objective of LEAD. At this time, however, Guinea-Bissau’s people on the whole lack opportunity to process any significant portion of the approximate 85,000 metric tons of cashew they produce each year.

At the mercy of the international market for which foreign buyers may or may not purchase their raw cashews, farmers need stabilization and diversification. Those who do not grow cashews can also benefit through being trained to run small cashew processing businesses. While we once thought international export would be where we should focus, we’ve come to realize local and regional markets can sustain these small businesses.

Training Program

LEAD/Djonde staff trainer shows new student how to properly split cashew husks.

LEAD International’s program is based on a comprehensive training process that begins with student selection, and ends with a trained and experienced mentor. In the process, students come with the recommendation of their church or community leadership, and are evaluated for their attitude and commitment track record. If they are selected, they are enrolled in our Cashew Processing Trade School. Upon successful completion of the technical aspects of cashew production, they are allowed to enroll in our business classes. If they complete the business classes and pass the final examination, they become candidates for LEAD’s business mentorship and capitalization program. Students who do not pass any phase of the education process are welcomed to try as many times as needed to move to the next phase.

Our new partners in small business start as owner-operators. Typically for the first year they do not hire anyone. They soon enjoy the benefits of new revenue and have to learn how to manage the resources they have, as well as their obligations. Over time as they become comfortable with business ownership LEAD mentors the entrepreneur in how to hire, and take on greater production risks and responsibilities.

Farmer Companies and Cooperatives

Seventy plus farmers join the No Djunta Mon for profit business cooperative and with it invest and share profit under LEAD’s oversight.

Farmers in Guinea-Bissau have suffered at the hands of those who purchase raw nuts, the officials who make determinations (often for personal gain) on the whole of the market, and by others who have given promises in exchange for cashews. LEAD has created an approach that not only empowers the farmers, but gives them ownership in collaborative processing. Each year a small percentage of their cashews are invested into a business they own. Our processors who may also have a share in this business provide their service, and finally those who market the cashews have their part. Everyone in this process risks, and everyone benefits from this kind of business. LEAD provides the business sense and integrity that helps these partners understand their roles and provides transparent accountability.

While other co-ops have been created by other organizations, none have been created in a way that includes farmer investment and ownership. Farmers will sign up, but when it comes to actual product, they want to be paid up front. LEAD found a way to make it possible for farmers to work together and do so with processors. Eventually LEAD International hopes to focus on alternative crops, but at this time just making the co-op work effectively is our aim.

Influence

LEAD is partners with National Farmers Association of Guinea-Bissau (ANAG) and as such is repeatedly asked to speak to key government officials. It should be noted that our approach is not in favor of government intrusion into the market. Governmental development approaches do not work effectively on the whole. We use private funds with a business model.

LEAD International has a vested interest in the international direction of the cashew industry and so we participate in all international conferences related to the cashew industry in Africa.

Antonio Nunes served for many years with ANAG. He is called “the lion” by some farmers who refused to allow him to resign. His work has been invaluable in establishing farmer legislation and creating a voice for all working families of Guinea Bissau. Shown here taking Mike Blondino and Mario Martinez throughout the cashew orchards near Mansoa. Antonio Nunes is one of the chief advisors to LEAD’s cashew projects.