International Perspectives: An In-Depth Interview with Dan Phipps of Red River Foods
As the newest member of ACA’s Advisory Board, Red River Foods has emerged as a powerful advocate for the African cashew industry. In the following interview, Dan Phipps, Senior Vice President of Red River Foods, sheds light on the company’s decision to partner with ACA. Phipps communicates a commitment to quality, processing development, and sustainability that will guide Red River’s involvement in African cashew.
What prompted Red River Foods’ decision to join the ACA Advisory Board?
As Red River's role in the industry has evolved, we have worked to build a presence in the main cashew producing regions This allows us to maximize quality control and gives us unparalleled insight into the productivity of these regions. Our strong presence in Africa is a part of our long-term commitment to supply our customers with high quality products, while maintaining a sustainable business for the farmers in the growing areas. The African cashew industry could represent the single biggest opportunity for the international cashew market over the next two decades. With growing domestic consumption in India and China, the industry will need increased supplies, and Africa represents the greatest potential for additional cashew product. However, the African industry will need long-term investment and development: a complete value-added infrastructure from growing and harvesting to processing and marketing.
From a business perspective, what are the biggest challenges facing international cashew buyers looking to enter the African market, and how can the West African cashew market improve to continue to attract even more buyers such as yourself?
The lack of processing capacity is the biggest obstacle to industry growth in Africa. Two million African farmers grow about 40 percent of the world’s cashews. However, 90 percent of production is processed in India and Vietnam, and most of it is then shipped to European and American markets. Numerous parties are working to improve this and other segments of the African industry, and we plan to be an integral part of this progression. The ACA has done a tremendous job of invigorating and promoting the African cashew industry, with a particular focus on expanding the processing sector and improving quality.
What are some of your goals as an Advisory Board member, both for the ACA and the African cashew industry as a whole?
Early efforts to develop the African industry focused efforts on the agronomy side of the industry. We believe it is now important to shift the focus to the processing sector. Unless the processing component of the industry is developed, the work done to this point in developing the African seed component will fail to translate into a long term, sustainable and integrated industry such as those established in all other producing countries. Adding value and creating sustainable jobs for both the growing and processing sides of the industry will provide us with access to quality kernels and meet the goal of getting closer to origin.
How do you envision the expansion of Red River Foods’ operations in Africa, and what role will ACA play in these efforts?
Encouraging the expansion of independent African owned processing plants will help create sustainable business in Africa and benefit them in the long term. From our side, we can provide a larger market to the African cashew suppliers, provide global market perspective, and also give a voice for large and small cashew buyers in US and EU as majority of them do not have direct access to the African suppliers. As a member of the ACA Advisory Board, we will do our best to work on the above goals and also seek ACA’s help in establishing our presence in Africa. We believe the time is ripe for establishing a foothold in Africa and create a sustainable source for high-quality cashews for the future.
