The Ghana Commodity Exchange (GCX) earlier this week undertook its maiden auction of raw cashew nuts on its trading floor.
Commenting on the sale, GCX’s CEO, Mrs. Tucci Ivowi said, “we decided to undertake this reserve cashew auction to demonstrate to the actors in the cashew value chain how the GCX structured trading concept which includes; commodity quality testing, grading, weighing, packaging and standardization operates and to prepare our cashew value chain market actors on how to trade on the Exchange as an alternative and a more structured market for trade.”
The Exchange currently trades maize, sesame seed, rice, soya beans, sorghum and is working on adding on cashew. With the growth of cashew production in the Bono, Bono East and Ahafo regions, cashew production in Ghana has recently been geared towards generating revenue through export.
Thus, 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.
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.
Mr. Robert Dowuona Owoo, the Chief Operations Officer had this to say, “We are grateful to you all for making time to be a part of GCX’s first Cashew Auction, as this signifies acceptance of the structured market that the Exchange hopes to bring into the Cashew value chain.”
The support from UNIDO as we work to develop the cashew value chain is overwhelming. From the facilitation of training sessions for warehouse managers, to training market actors and provision of cashew warehouse equipment is an illustration of the commitment on the part of UNIDO in developing the cashew value chain.
According to the sellers and buyers who participated in the trade, the auction was a simple, transparent and beneficial process. There was a deep satisfaction with the participants considering the fact that they received contracts for their trade, with the guarantee from GCX that the seller would receive his cash settlement within five working days of the trade and buyer could pick up commodity within two working days of the trade upon full payment. This is fully in line with GCX’s objectives to help farmers sell their products at fair and competitive prices by providing them with real time price and market information while while assuring buyers of high-quality commodities.
The seller of the 50,000kg raw cashew nut valued at GH¢280,000 sold at the auction is Kaksfour Commodities Ltd, a wholly Ghanaian private owned and licensed to undertake business in Cashew nuts trading and general Agri-business both in Ghana and internationally. The company is a registered Broker member of the Ghana Commodity Exchange (GCX) and the African Cashew Alliance (ACA) since 2019.
Mr. Francis Peprah the representative of KAKSFOUR expressed great satisfaction in being able to get a better price than he quoted for his commodities during the auction and mentioned he is looking forward to having more of such trades.