TANZANIA- A report by the Cashew Board of Tanzania (CBT) reveals cashew exports generated US$227 million in the 2023/2024 season from US$162 million in the 2022/2023 season.
The report also shows production increased by 115,900 metric tons in the 2023/2024 season, from 189,100 metric tons in the 2022/2023 season to 305,000 metric tons in the 2023/2024 season.
The cashew output is the largest in five years. The rise is attributed to subsidies provided by the government to the sector.
The Tanzanian government almost doubled subsidies provided to the sector to US$72.8 million in the 2023/2024 season, up from US$36.9 million in the prior season.
Francis Alfred, CBT director, said, “The government has been making various efforts to enhance cashew nut production in the country, including revitalizing the cashew nut farmers’ database.”
These subsidies were provided through the distribution of approved seeds to farmers.
The Tanzanian government also distributed subsidized inputs for farmers, enhanced its extension services, and trained farmers.
The expanded extension services have reached 75% of cashew farmers.
According to the report, the extension services include training on the proper use of pesticides.
However, the cashew industry in Tanzania still needs packaging issues- there is limited availability of empty sacks for cashew packaging.
There is also a growing dissatisfaction among farmers regarding the current cashew prices despite more favorable prices in the global cashew business.
The average cashew export price is US$1,094 per ton, while farmers receive an average of US$600 per ton.
The report recommends the expansion of the cashew export market to enhance competition and provide better prices for farmers.
CBT recommends leveraging online trading through platforms like TMX to broaden cashew exports’ reach worldwide and enhance the bidding process.
The government is expected to roll out the online cashew trading system in 2024/2025, propelling the boom further.
The uptake of online trading should follow structures that ensure prompt payment for a steady market environment.
However, some bottlenecks in the Tanzanian government’s subsidy program need addressing.
The report highlights some farmers provide false information regarding the size of their farms for personal gain.
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