Maersk launches dedicated service for Tanzania’s cashew exports

TANZANIA – Tanzania’s growing cashew trade now has a dedicated ocean freight service, with Maersk introducing the ‘Korosho Express’ to cater specifically to cashew exports.

The service will run bi-weekly from the Port of Mtwara to markets in India, Vietnam, and China, starting at the end of October and lasting until February 2025.

Maersk’s Head of East African Market Division, Babafemi Jay Aderounmu, emphasized that the service is designed to meet the increasing demand for cashew exports.

“By offering reliable, scheduled services during the peak cashew season, we’re enabling more efficient trade flows and supporting the growth of this vital export commodity,” he stated.

Tanzania has seen significant growth in its cashew production, with annual yields ranging between 250,000 and 300,000 metric tonnes. The country has become a key player in the global cashew trade, facing competition from major producers like Côte d’Ivoire.

Tanzania’s production, particularly concentrated in regions like Mtwara, Lindi, and Tunduru, accounts for about 90% of the nation’s output.

While Tanzania is among the top African cashew producers, its raw cashew exports primarily go to processing hubs in Vietnam and India, where they are processed and re-exported to global markets.

The Korosho Express service is set to provide a direct shipping route to these regions, making Tanzania’s nut exports more efficient and competitive.

Tanzania’s timing in the global cashew market also offers an advantage. The country’s harvest occurs when major producers like Vietnam and India are off-season, allowing Tanzania to capitalize on better prices and market demand.

In the 2024/2025 season, the country is expected to see a 95% increase in production, bringing the total harvest to around 595,000 tonnes.

Despite being a major exporter, Tanzania struggles with domestic cashew processing. Currently, only about 10% of its cashews are processed locally, with the rest being exported raw. This leads to significant value loss.

Between 2008 and 2013, it’s estimated that the country lost around USD 551 million by not adding value domestically.

Efforts are being made to address this gap. The Tanzanian government has prioritized improving processing capacity and developing by-products from cashews.

Expanding cultivation areas to new regions like Morogoro and Dodoma further supports this initiative, alongside key areas like Mtwara and Lindi, which remain the heart of the industry.

With plans to increase production to over 1.7 million metric tonnes annually and improve processing capabilities, Tanzania is well-positioned to strengthen its role in the global cashew trade. However, challenges remain, including weather conditions and global price fluctuations.

Aderounmu expressed optimism about the future of Tanzania’s cashew sector, noting that the Korosho Express will play a crucial role in enhancing the efficiency of the country’s exports and supporting its long-term growth.

As the 2024/2025 season unfolds, all eyes will be on Tanzania’s cashew industry, which is set to reach new heights, thanks in part to Maersk’s timely introduction of this dedicated service.