Tanzania has achieved an unprecedented Sh1.52 trillion in cashew export earnings for the 2024/25 season, fueled by a record production of 528,260 tonnes. This success surpasses previous records and is attributed to government subsidies, favorable weather, and strategic interventions. The government aims to further increase production while improving local processing capabilities and enhancing logistical support for farmers.
Tanzania has recently set a remarkable record for its cashew exports, generating over Sh1.52 trillion (approximately $583.7 million) during the 2024/25 season. This achievement is attributed to the production of 528,260 tonnes of raw cashew nuts (RCN), significantly higher than the previous year’s earnings of $221.3 million from 254,500 tonnes. The current earnings have surpassed the previous record of $575 million earned during the 2017/18 season, showcasing a promising trend for the country’s agricultural sector.
The increase in cashew production can be credited to various factors, including government-provided subsidies such as the distribution of sulphur powder and pesticides to farmers. Francis Alfred, the Cashew Nut Board of Tanzania (CBT) director general, mentioned that favorable weather conditions and strategic interventions have also contributed to the high yields. The auctions for RCN during the current season have seen prices range between Sh1,810 and Sh4,196 per kilogram.
Challenges in collecting and transporting RCN arose due to the production surge; however, CBT instituted extended operating hours for the handling of cashew nuts and implemented efficient logistics solutions. The government aims for further production increases, projecting 700,000 tonnes by the 2025/26 season and one million tonnes by 2030/31, alongside continued distribution of agricultural inputs.
Significant investments are being made in the sector, including the recent arrival of 9,202 tonnes of sulphur at Mtwara Port, contributing to a total stock of 22,826 tonnes. Moreover, the government has initiated the employment of 500 graduates from Sokoine University of Agriculture to enhance agricultural management at the local level, ensuring efficient distribution of inputs and organization of cashew collection and sales.
CBT is also working to improve local processing capabilities with plans for an industrial park in Mtwara, currently developing a 1,518-acre zone. Environmental developments such as roads, water, and electricity are being implemented, with a vision to localize the processing of all RCN by 2030. The organization continues to encourage farmers to adopt best practices to sustain cashew production.
Economists emphasize the importance of expanding cashew cultivation as global competition rises, particularly from countries like India. Dr. Lutengano Mwinuka from the University of Dodoma stresses the need for value addition and quality improvements in the cashew sector to ensure stability and higher prices, while Dr. Yohana Lawi from the Open University of Tanzania cautions against political interference, advocating for better distribution of agricultural inputs and access to loans for farmers.
To maximize cashew farming efficiency, enhancing research initiatives is paramount, including seeking alternative cultivation areas and exploring new markets in Asia and Europe. Initiatives regarding Cashew Nut Shell Liquid (CNSL), which has various industrial uses, are also recommended to improve the sector’s profitability and sustainability.
In conclusion, Tanzania’s record earnings from cashew exports reflect a successful agricultural strategy bolstered by government support and favorable conditions. The country aims to increase its production capacity and improve processing capabilities to compete on a global scale. Economists emphasize the importance of adding value to cashews and fostering robust market stability, with suggestions for minimizing political interference and enhancing farmer support to ensure sustained growth in this vital sector.
Original Source: www.thecitizen.co.tz
