Guinea-Bissau depends on cashew nuts © IRIN News

The 64% contribution of agriculture to Guinea-Bissau's economy relies almost solely on a single cash crop - cashew nuts - which are sold to a single country, India, the monopsony buyer. Although the land is generally fertile and rainfall adequate, the lack of irrigation and other technology is such that the country is able to grow only about 60% of its need for staple rice. The centrality of the cashew crop to most Guinean livelihoods makes many people vulnerable to the interplay between the market prices of cashew and rice. Over 2007 and 2008 the price of cashew has softened whilst rice has rocketed. The result is described by the UN Food and Agriculture Organization as “chronic food insecurity”.

The government has reduced tariffs on rice imports, depriving it of income, whilst the World Food Programme supports almost a quarter of the population with food aid. All development plans refer to the need to diversify agricultural produce.

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