From 12 to 14 November 2024, key stakeholders in the cashew nut sector in Côte d’Ivoire participated in a training course run by experts from the FAO Investment Centre, to gain a better understanding of how a commodities exchange works.
It was organized by the Cotton and Cashew Council, with funding from the Cashew Value Chain Competitiveness Project, in partnership with FAO and with support from the World Bank. This technical preparation was essential prior to the launch of a national agricultural stock exchange where cashew is planned to be listed, among other products.
During the three-day training course, participants learned more about the fundamental principles governing a commodities exchange, how to master the complex process of listing a commodity, how to identify and assess the risks involved in listing new commodities, and how to use market analysis tools to make informed decisions.
Côte d’Ivoire – whose economy is significantly based on the export of agricultural raw materials – wishes to create a commodities exchange where some twenty agricultural products will be traded. Cashew nuts, corn and kola nuts will be the first 3 products to be introduced, starting in spring 2025.
“The aim of a futures market is to improve price transparency for all participants, secure transactions and enable forward buying and selling to reduce the risks of the various parties involved. It’s a complex process, which brings about major needs for awareness-raising and training for the sectors’ stakeholders,” explains Didier Nedelec, Senior Agri Risk Management Specialist at the FAO Investment Centre, who noted the strong interest of the participants.
Mamadou Berte, Managing Director of the Cotton and Cashew Council, recalled the importance of cashew nuts for Côte d’Ivoire: “Apart from processing and marketing, the sector employs around 250 000 households, or 1.5 million individuals, mainly small-scale farmers. Cashew nut production has risen sharply in recent years, but the absence of cashew products on international stock markets exposes its players to the risks of volatility and misalignment between domestic and international prices.”
This training was therefore a timely opportunity to develop an understanding of the markets that govern this strategic sector for the country, and will enable the implementation of relevant and sustainable investments. FAO technical expert will continue to work alongside the Ivorian authorities to further develop and structure the sector.
