Tanzania’s cashew exports reached Sh1.52 trillion in 2024/25, surpassing previous earnings following a robust production of 528,260 tonnes. This growth was facilitated by government subsidies and strategic initiatives, as the country aims for even greater output in the coming years. Experts urge quality enhancement and market expansion to ensure sustainability in the sector.
Tanzania has reached a historic milestone by earning over Sh1.52 trillion from cashew exports in the 2024/25 season, following the production of 528,260 tonnes of raw cashew nuts. This achievement, highlighted in the Bank of Tanzania’s Monthly Economic Review for February 2024, translates to approximately $583.7 million, with projections indicating total revenues may surpass $600 million. This performance significantly exceeds last year’s earnings of $221.3 million from 254,500 tonnes.
The recent cashew export success marks a considerable evolution from the previous records, particularly surpassing the $575 million earned during the 2017/18 season with 313,000 tonnes. Cashew export earnings have experienced fluctuations over the past five years, with 2022 yielding $180.6 million and 2021 bringing in $282.1 million from 240,158 tonnes and 210,786 tonnes respectively. The impressive harvest for 2024/25 was bolstered by the export of 410,000 tonnes sold through auctions while 118,262 tonnes were processed domestically.
Attributing this production surge to government support, the Cashew Nut Board of Tanzania (CBT) distributed substantial amounts of subsidized inputs to farmers, including 41,263 tonnes of sulphur powder and 2.7 million litres of liquid pesticides. CBT Director General Francis Alfred stated that the higher yields were supported by favorable weather and strategic governmental interventions. Auction prices for raw cashew nuts varied between Sh1,810 and Sh4,196 per kilogram during the current season.
Challenges emerged concerning the collection and transportation of the increased quantity of raw cashew nuts, which CBT addressed by extending working hours for processing and facilitating 24-hour transportation. The government has ambitious production goals, forecasting an output of 700,000 tonnes in the 2025/26 season and one million tonnes by 2030/31, alongside the deployment of 40,000 tonnes of sulphur and three million litres of pesticides.
Recent logistics also saw the arrival of 9,202 tonnes of sulphur at Mtwara Port, increasing the total sulfur stock to 22,826 tonnes, complemented by 994,504 litres of liquid pesticides. Additionally, the government has employed 500 graduates from Sokoine University of Agriculture under the Building a Better Tomorrow program, tasked with overseeing local farming activities, distributing inputs, and managing the collection and sale of cashews.
To enhance operational efficacy, CBT has improved its offices across various regions and is in the process of developing a 1,518-acre industrial park in Mtwara dedicated to cashew processing. Currently, 354 acres are under development with plans for two warehouses. The government aims to achieve complete local processing of raw cashew nuts by 2030, with necessary infrastructure already being established.
Economists stress the need for continuous expansion of cashew cultivation, highlighting the importance of improving produce quality and domestic consumption to secure stable market prices. Dr. Lutengano Mwinuka from the University of Dodoma emphasized that prioritizing quality enhancement will significantly benefit the agricultural sector and the national economy.
Dr. Yohana Lawi from the Open University of Tanzania warned against political interference in the cashew sector, advocating for a focus on policy and investment environments. He advocated for increased research in suitable cashew farming areas and better distribution of subsidized inputs to meet individual farmer needs. Furthermore, he recommended strengthening economic ties to explore new markets in Asia and Europe while advancing research into Cashew Nut Shell Liquid (CNSL) for its varied industrial uses, potentially increasing its value beyond traditional kernels.
Tanzania’s cashew export sector has achieved record-breaking earnings, emphasizing the impact of government support, favorable conditions, and strategic initiatives. Continued investment in infrastructure, quality, and market expansion is essential to sustain and grow this vital sector. Experts stress the need for focused policies that prioritize farmers’ needs and research to ensure the industry’s long-term viability and contribute to the national economy.
Original Source: www.thecitizen.co.tz
