Cashew Nut Season Starts in Tanzania With High Hopes

Published 2022년 10월 31일

Tanzania is one of the major raw cashew-producing and exporting countries in Africa. The local government strongly supports the production of the golden nut and has set a target to increase its raw cashew nut production to 400,000 mt in the 2022/2023 season, a YoY increase of 69%. The increasing importance of cashew nuts and rising production has increased confidence among the farmers, resulting in farmers rejecting the low prices offered by buyers for their cashews during the first auction of the season. It is likely that the majority of the cashews traded will be in the form of raw kernels in both the domestic and international markets.

The demand for processed cashew kernels is on a drastic rise, riding on the back of increased consumer awareness of the nut’s high nutrient value. In Asia, the nut is used as the main ingredient in various dishes, and in other countries, it is commonly consumed as a snack. Cashew nuts have become a popular ingredient in a variety of daily treats, such as energy bars, cookies, chocolates, and even ice cream. The raw nut is grown across several continents, but in order to consume it, the nut requires several rounds of processing. Tanzania is one of the major raw cashew-producing and exporting countries in Africa. Cashew is grown across the country, but 87% of the cashew nuts produced are in the Mtwara and Lindi regions. The local government strongly supports the production of the golden nut due to the high value it fetches in the global market, raw or processed.

The government is offering free agricultural inputs to cashew farmers across the country to boost production in the upcoming season. The Cashewnut Board of Tanzania has set a target to increase its raw cashew nut production to 400,000 mt in the 2022/2023 season from 236,000 mt previously, a YoY increase of 69%. The increasing importance of cashew nuts and rising production has increased the confidence among the farmers, who are now demanding high prices at the trading auctions. The first auction of the season was held on the 14th of October in the Mtwara region, where farmers rejected the low prices offered by buyers for their cashews. A collaborative auction held by Mtwara, Masasi and Nanyumbu Cooperative Union (MAMCU) saw a total of 6,500 mt (6.5 million kgs) cashews for sale at a minimum price of USD 0.77 per kg and maximum price of USD 0.86 per kg. The local farmers said the buyers should consider raising the prices to USD 1.29 per kg as maximum and USD 1.07 minimum price per kg of cashew nuts. As new crops come into the market, it is likely that the price expectations of the farmers will fall as there will be enough supply in the market. Even this year, it is likely that the majority of the cashews traded will be in the form of raw kernels in both the domestic and international markets.

In order to increase the price realisations and value generated from the cashew nut business, there is a need for adapting technology, training, and labor for smallholder farmers in Tanzania. This is a problem across the African subcontinent, with the region producing about 57% of the world’s raw cashew nuts but having a share of only 6.6% of the processed cashew export market. Even the small share of processed nuts is not on par with the international quality and fetches a lower price compared with the global average. Tanzania is currently doing a lot to make cashew become one of its key commodity crops through value addition by investing in processing facilities and infrastructure. The outlook for the Tanzanian cashew nut market is strong for the coming months and years, especially if the country manages to boost its production and processing volumes.