Tanzania Achieves Record Sh1.52 Trillion in Cashew Exports

Tanzania achieved record earnings of Sh1.52 trillion from cashew exports in the 2024/25 season, with a production of 528,260 tonnes. This reflects a substantial increase from previous years’ revenues. The government’s support through subsidies and improved logistical operations has played a vital role in this success. Future goals include raising production to one million tonnes by 2030 and focusing on quality and market expansion.

Tanzania has reached a significant achievement by generating over Sh1.52 trillion from cashew nut exports during the 2024/25 season, following the production of 528,260 tonnes of raw cashew nuts. This revenue figure, approximately $583.7 million, is expected to exceed $600 million based on the Bank of Tanzania’s February 2024 Monthly Economic Review. Comparatively, cashew earnings rose considerably from the previous year’s revenue of $221.3 million from 254,500 tonnes of raw cashew nuts, surpassing the prior record from the 2017/18 season.

In terms of production history, earnings from cashew nuts have experienced fluctuations over the past five years. For instance, in 2021 and 2022, the revenues were $282.1 million from 210,786 tonnes and $180.6 million from 240,158 tonnes, respectively. The current season’s production was bolstered by 410,000 tonnes exported through auctions, while an additional 118,262 tonnes were processed for domestic and international markets.

The Cashew Nut Board of Tanzania (CBT) credits the remarkable production increase to government subsidies, providing farmers with 41,263 tonnes of sulphur powder and 2.7 million litres of liquid pesticides. CBT Director General Francis Alfred noted that favorable weather conditions and strategic government interventions also contributed significantly to improved yields. Pricing at auctions for raw cashew nuts has ranged from Sh1,810 to Sh4,196 per kilogram.

Despite the successes, challenges arose in terms of logistics for collecting and transporting the increased volumes of raw cashew nuts. To mitigate these issues, the CBT has extended operating hours for cashew collection and facilitated transportation from storage to ports. The government aims for a production target of 700,000 tonnes by the 2025/26 season and one million tonnes by the 2030/31 season, alongside adequate chemical inputs for farmers.

Recent logistical improvements include a shipment of 9,202 tonnes of sulphur delivered to Mtwara Port, increasing total sulphur stock for farmers. The initiative has also involved hiring 500 youth graduates from Sokoine University of Agriculture to enhance local cashew farming management, from distributing subsidized inputs to coordinating sales.

In further efforts to bolster the cashew sector, CBT is enhancing operations at its various branches and developing an industrial park in Mtwara for cashew processing. The long-term goal remains the local processing of all raw cashew nuts by 2030, with relevant infrastructure already in development.

Economists have emphasized the importance of expanding cashew cultivation to maintain competitiveness against global competitors like India. Dr. Lutengano Mwinuka of the University of Dodoma stressed the need to enhance produce quality and promote domestic consumption to stabilize market prices. Concerns were also raised about past political interference, with Dr. Yohana Lawi from the Open University of Tanzania urging a focus on policy improvement rather than direct government involvement, advocating for better access to financing for farmers and exploration of new markets beyond local borders.

Additionally, enhancing economic diplomacy to access new markets in Asia, Europe, and China, along with advances in the research of Cashew Nut Shell Liquid (CNSL) for industrial use, were highlighted as ways to bolster the sector’s sustainability and profitability.

The record earnings from cashew nut exports in Tanzania underscore the significant progress in agricultural production and government support. With ambitious targets set for the future, it is crucial to enhance quality, expand cultivation, and minimize political interference to ensure the cashew industry remains vital to the economy. Strategically increasing research and accessing new markets will be essential for the sustainability and profitability of the sector moving forward.

Original Source: www.thecitizen.co.tz