Tanzania achieved a record Sh1.52 trillion from cashew exports in the 2024/25 season, producing 528,260 tonnes of raw cashew nuts. This significant revenue increase, surpassing past performances, was attributed to favorable weather, government subsidies, and logistical improvements. Experts call for enhanced quality and domestic consumption to secure market stability and competitiveness in the global context.
Tanzania has reached a remarkable achievement, earning Sh1.52 trillion from cashew exports during the 2024/25 season, owing to the production of 528,260 tonnes of raw cashew nuts (RCN). As reported in the Bank of Tanzania’s Monthly Economic Review for February 2024, provisional revenues equivalent to $583.7 million suggest a final amount could even surpass $600 million, indicating significant growth from last year’s $221.3 million from a lesser 254,500 tonnes of RCN. This achievement surpasses the prior record of $575 million noted in the 2017/18 season, when 313,000 tonnes were exported.
The recent surge in earnings has followed a trend of fluctuating figures over the past five years. For instance, the years 2021 and 2022 recorded $282.1 million and $180.6 million respectively, despite a total of 210,786 and 240,158 tonnes produced. The bumper harvest for the 2024/25 season was largely supported by the export of 410,000 tonnes through auctions; the remaining 118,260 tonnes were retained for local processing targeting both domestic and international markets.
The Cashew Nut Board of Tanzania (CBT) attributes this production increase directly to government subsidies, providing essential inputs such as 41,263 tonnes of sulphur powder and 2.7 million litres of pesticides to farmers. CBT’s director general, Francis Alfred, noted that improved weather conditions and proactive government interventions significantly contributed to the successful yields. Auction prices for RCN varied between Sh1,810 to Sh4,196 per kilogram.
However, the rapid increase in production has posed challenges in collection and transportation logistics, compelling CBT to extend hours for receiving cashew nuts and facilitate continuous transportation from storage to ports. The government anticipates production will reach 700,000 tonnes by the 2025/26 season and one million tonnes by the 2030/31 season, emphasizing the need for increased agricultural support, including an additional 40,000 tonnes of sulphur and three million litres of liquid pesticides.
In an effort to bolster these initiatives, a recent delivery of 9,202 tonnes of sulphur boosted total supplies to 22,826 tonnes, along with 994,504 litres of liquid pesticides. Mr. Alfred shared that youth graduates from Sokoine University of Agriculture (SUA) are being engaged under the Building a Better Tomorrow (BBT) program to oversee local cashew farming activities.
These graduates are responsible for managing farmer databases, distributing subsidized inputs, and coordinating cashew collection and sales. They are provided with motorcycles and communication allowances to enhance mobility and effectiveness. To further stimulate the cashew sector, CBT has improved operations across various branches, while also establishing an industrial park in Mtwara, designed for processing activities.
Currently, 354 acres of the park are under development, with warehouses capable of storing 10,000 tonnes each. The government aims for 100% local processing of RCN by 2030, supported by newly constructed infrastructure. Mr. Alfred advised farmers to adopt informed agricultural practices to sustain the industry’s growth, which plays a crucial role in the Tanzanian economy.
Dr. Lutengano Mwinuka from the University of Dodoma highlighted the necessity for enhancing cashew cultivation, noting competitive international factors. He stressed that improving product quality and promoting domestic consumption are vital to stabilizing the market and securing premium pricing. Dr. Mwinuka articulated that sustainability in the cashew industry depends on value addition, which would enhance productivity and farmer income.
Caution was raised by Dr. Yohana Lawi from the Open University of Tanzania regarding political interference in the cashew sector, citing prior interventions that detrimental effects on stakeholders. He praised the current government for not interfering and proposed increased research into expanding suitable areas for cashew farming beyond existing regions. Dr. Lawi proposed improving distribution networks for subsidized inputs and granting loans to small and medium-scale farmers for enhanced efficiency.
Furthermore, he encouraged strategizing economic diplomacy to access new markets in China, Asia, and Europe, along with promoting advanced research on Cashew Nut Shell Liquid (CNSL) which has diverse industrial applications beyond rust prevention, potentially yielding greater value than kernels.
In summary, Tanzania’s cashew export earnings for the 2024/25 season have reached a remarkable Sh1.52 trillion, a tremendous increase across the agricultural sector. Critical factors included government support in the form of subsidies, improved weather conditions, and robust logistical strategies. Experts emphasize the importance of advancing industry practices to ensure competitive positioning on the global stage, advocating for quality improvements and increased domestic consumption. Long-term goals aim for a fully local processing landscape by 2030, which is essential for sustaining the growth and profitability of the cashew industry in Tanzania.
Original Source: www.thecitizen.co.tz
