Tanzania has achieved over Sh1.52 trillion in cashew exports for the 2024/25 season, producing 528,260 tonnes of raw cashew nuts. This represents a significant rise from previous years and breaks previous records. The growth is attributed to government initiatives, favorable weather, and strategic operational improvements. Key challenges remain, but the government aims for continued growth, with projections of one million tonnes by 2030.
Tanzania has reached a remarkable achievement in the agricultural sector, generating over Sh1.52 trillion from cashew exports in the 2024/25 season, following the production of 528,260 tonnes of raw cashew nuts (RCN). According to the Bank of Tanzania’s Monthly Economic Review for February 2024, this provisional revenue translates to approximately $583.7 million, with final figures potentially surpassing $600 million. This sum demonstrates a significant increase from the previous year’s revenue of $221.3 million from 254,500 tonnes of RCN.
This year’s export earnings mark a record-breaking moment for Tanzania, surpassing previous highs noted in the 2017/18 season when $575 million was gained from exporting 313,000 tonnes of RCN. Earnings have been inconsistent over the past five years, where 2022 recorded $180.6 million from 240,158 tonnes and 2021 brought in $282.1 million from 210,786 tonnes. The 2024/25 bumper harvest was fueled by the export of 410,000 tonnes through auctions, while the remaining 118,262 tonnes were processed for both domestic and international markets.
The Cashew Nut Board of Tanzania (CBT) credited this production increase to government support, including the provision of significant supplies such as 41,263 tonnes of sulphur powder and 2.7 million litres of liquid pesticides to farmers. CBT Director General Francis Alfred remarked that improved yields were also a result of favorable weather and strategic governmental interventions. The price of RCN at auctions fluctuated between Sh1,810 and Sh4,196 per kilogramme.
Despite the successes, challenges arose in the collection and transportation of RCN due to production spikes. To mitigate these issues, CBT extended operating hours for receiving cashews and facilitated 24/7 transportation from storage to ports. The government anticipates production levels to reach 700,000 tonnes by the 2025/26 season and estimates one million tonnes by the 2030/31 season, intending to use 40,000 tonnes of sulphur and three million litres of pesticides.
A recent shipment of 9,202 tonnes of sulphur via the African Dipper has raised the total sulphur stock to 22,826 tonnes, complemented by 994,504 litres of liquid pesticides. Additionally, the government has engaged 500 graduates from Sokoine University of Agriculture (SUA) under the Building a Better Tomorrow (BBT) initiative to oversee cashew farming operations, manage farmer databases, and ensure the distribution of subsidized inputs.
Mr. Alfred shared insights on infrastructure improvement efforts undertaken by CBT across several branches. This includes developing an industrial park in Mtwara to host cashew processing factories, with 354 acres currently under development to support industry growth. The long-term governmental objective is to achieve local processing of all RCN by 2030, with sizeable investments in infrastructure.
Economists, including Dr. Lutengano Mwinuka from the University of Dodoma, advocate for the expansion of cashew cultivation, urging a focus on quality enhancement and domestic consumption to stabilize markets amidst rising competition from major buyers such as India. Additionally, Dr. Mwinuka highlights the importance of research in improving the crop’s quality and economic impact.
Dr. Yohana Lawi from the Open University of Tanzania warned against political interference in the sector, noting that past governmental actions had resulted in losses for stakeholders. He emphasized the need for improved distribution systems for subsidized inputs and accessibility of loans for small and medium-scale farmers. Furthermore, he proposed fostering economic diplomacy to penetrate new markets in Asia and Europe and advancing research on Cashew Nut Shell Liquid (CNSL), which holds significant industrial potential.
In conclusion, Tanzania’s recent record-breaking achievement in cashew exports highlights the potential of the agricultural sector, driven by increased production and strategic government support. The successful collaboration between governmental initiatives and local farmers is crucial in sustaining this growth. Addressing challenges, enhancing quality, and expanding markets will be vital for the continued success of the cashew industry, as economists advocate for improved standards and diversification in the market.
Original Source: www.thecitizen.co.tz
