COTE D’IVOIRE – Côte d’Ivoire, known for its significant cashew processing industry, has announced a temporary suspension on the purchase and export of raw cashew nuts.

The Ministry of Agriculture issued an information note on May 7, directing stakeholders in the marketing sector to adhere to the new regulations.

The directive emphasizes that only approved processors and buyers can purchase raw cashew nuts for supplying processing units. Export activities for raw cashew nuts are put on hold, except for products already authorized for export before the announcement.

“This decision aims to ensure a steady supply of raw materials to local processing units and aligns with our national policy for agro-industry development and promotion,” the ministry’s note stated.

The move comes amidst challenges faced by local operators in procuring cashew nuts. Competition from Asian markets, particularly India and Vietnam, offering higher prices to producers, has led to difficulties in sourcing nuts locally. Consequently, nine processing factories have closed since 2021 due to insufficient raw materials.

While the suspension might benefit local processors, it poses negotiation challenges for export players. The Association of Cashew Exporters of Côte d’Ivoire (AEC) has called for a meeting to discuss the potential impacts of this decision on their operations.

Tanzania’s cashew harvest reaches 5-year high

Meanwhile, as in Tanzania, the cashew sector celebrates a successful harvest season, marking its highest production level in five years. Cashew nuts are a vital cash crop in Tanzania, contributing significantly to the country’s merchandise export earnings.

The Cashew Council (CBT) reports a harvest of 305,000 tons of cashew nuts in the 2023/2024 season, a remarkable 61% increase from the previous year. This achievement is attributed to the government’s intensified support for the sector.

Tanzania has doubled its subsidy for agricultural inputs, investing 189 billion shillings (USD 73 million) in 2023/2024. Additionally, initiatives such as distributing improved seeds, enhancing extension services, and training farmers in best practices have significantly contributed to the sector’s growth.

The surge in production has translated into increased exports and revenue for Tanzania. Cashew shipments generated USD 227.1 million in revenue in 2023/2024, marking a notable rise from USD 162.3 million in the previous year.

These developments underscore the significance of government interventions in supporting agricultural sectors like cashew farming, ensuring sustainable growth and economic stability.

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