Economic restriction of cashew producers in rural communities in Guinea-Bissau during the COVID-19 pandemic – 2021

The study on the economic constraints of cashew producers in rural communities in Guinea-Bissau during the COVID-19 pandemic, carried out in 2021, was funded by several institutions, including PEP, Hewlett Foundation, IDRC, PEDL and the Government of Guinea-Bissau .

Until August 2021, Guinea-Bissau recorded few cases of COVID-19, with a low mortality rate. However, the pandemic has severely affected the economy, with GDP falling from 5% to -2.4% in 2020 due to the closure of borders and essential services, as well as severe restrictions.

The study focused on changes that occurred in rural cashew-producing areas before the third wave of the pandemic. Approximately 600 cashew farmers and local leaders were interviewed in 103 villages, as well as another 185 villages, to assess changes in sales, transactions and perceptions about the impact of COVID-19.

The results showed that the 2020 cashew marketing campaign was particularly difficult, with a 47% drop in revenues compared to 2019. This reduction was caused by disruptions to global value chains, pandemic restrictions and a poor harvest. Producers adjusted their strategies, diversifying their activities, seeking credit and selling other crops.

In addition to the economic impacts, the study also documented the perception of producers and leaders about the pandemic, who, despite direct exposure to the virus being low, experienced significant negative impacts due to the restrictions imposed and price volatility. Agricultural diversification has become an important strategy to mitigate the negative effects on cashew yields.