Tanzania has achieved a record Sh1.52 trillion in cashew exports for the 2024/25 season, producing 528,260 tonnes. This revenue, projected to exceed $600 million, marks a considerable rise from last year’s figures and past records, attributed to government subsidies and improved farming practices. Experts recommend expanding production, enhancing quality, and minimizing political interference to ensure sustainable growth in the cashew sector.
Tanzania has set a historic record, attaining over Sh1.52 trillion from cashew exports in the 2024/25 season after producing 528,260 tonnes of raw cashew nuts. According to the Bank of Tanzania’s Monthly Economic Review for February 2024, the earnings, representing approximately $583.7 million, are projected to potentially surpass $600 million, significantly outpacing last year’s earnings of $221.3 million from 254,500 tonnes.
This achievement surpasses the prior record of $575 million earned in the 2017/18 season from 313,000 tonnes. Over the past five years, cashew export earnings have varied, with notable figures such as $180.6 million in 2022 from 240,158 tonnes and $282.1 million in 2021 from 210,786 tonnes. The current bumper harvest is attributed primarily to the auctioning of 410,000 tonnes, with 118,262 tonnes processed for domestic and international markets.
The increase in production is credited to governmental subsidies, which included 41,263 tonnes of sulphur powder and 2.7 million litres of liquid pesticides to farmers. CBT Director General Francis Alfred mentioned that the boost in yields was further supported by favorable weather conditions and strategic government interventions. During this season, auction prices for raw cashew nuts ranged between Sh1,810 and Sh4,196 per kilogramme.
Despite the sharp increase in production leading to challenges in collection and transportation, the Cashew Nut Board of Tanzania (CBT) responded by extending operational hours and facilitating continuous transportation from storage to ports. Alfred noted government forecasts predicting production levels of 700,000 tonnes by the 2025/26 season and one million tonnes by the 2030/31 season, alongside the anticipated use of 40,000 tonnes of sulphur and three million litres of pesticides.
A recent arrival of 9,202 tonnes of sulphur at Mtwara Port has raised total stock to 22,826 tonnes, complemented by 994,504 litres of liquid pesticides. The government has also employed 500 graduates from Sokoine University of Agriculture under the Building a Better Tomorrow (BBT) programme to enhance these agricultural initiatives. These graduates will manage farming activities and support farmers with subsidised inputs.
Enhancements in branch operations of CBT in various regions such as Tunduru, Lindi, Manyoni, and Tanga have been noted, along with the development of an industrial park in Mtwara for cashew processing. This park is intended to meet the long-term goal of exclusively processing Tanzania’s raw cashew nuts locally by 2030. CBT has initiated infrastructure improvements including road access, utility provisions, and ongoing construction of security measures.
Dr. Lutengano Mwinuka, an economist at the University of Dodoma, emphasized the need for expanded cashew cultivation, proposing the necessity to enhance quality and promote domestic consumption to stabilize market pricing. He expressed concern over major buyers like India entering the cashew sector, highlighting an urgent need for value addition.
Dr. Yohana Lawi, a senior lecturer at the Open University of Tanzania, cautioned against political interference in the cashew sector, underscoring the detrimental effect of previous government actions. He advocated for increased research to identify new cashew cultivation areas and for improving the distribution of subsidized inputs to cater to farmers’ needs. Furthermore, he suggested enhancing economic diplomacy to explore new markets in China, Asia, and Europe while advocating for advanced research into the industrial applications of Cashew Nut Shell Liquid (CNSL).
Tanzania’s record earnings from cashew exports underscore the vital role of agriculture in the nation’s economy. Significant production increases, supported by government intervention and subsidies, have notably bolstered export revenues. Nevertheless, experts advocate for continued growth in both cultivation and processing to enhance competitiveness and market stability. Addressing challenges such as political interference and improving distribution channels will be necessary for sustaining this upward trajectory in the cashew sector.
Original Source: www.thecitizen.co.tz
