Tanzania’s cashew nut production set to surge by 95% in 2024/2025 season

TANZANIA – Tanzania’s cashew nut production is expected to surge by 95% in the 2024/2025 season, setting the stage for a record-breaking year for the East African nation’s cashew industry.

This boost in production is projected to bring the total harvest to 595,000 tonnes, a significant leap from the 305,000 tonnes harvested in the previous season.

The first auction of the season, held on October 11 in the Newala district through the Tanzania Mercantile Exchange (TMX), has already shown promising signs for the cashew sector.

Approximately 3,857 tonnes of cashew nuts were traded at the auction, with prices ranging from 4,035 to 4,120 Tanzanian shillings per kilogram (USD 1.48 to USD 1.51).

These prices reflect a dramatic increase from the 2023 season, where the average price per kilogram ranged between 1,500 and 2,500 shillings (USD 0.55 to USD 0.91).

“The sharp rise in cashew prices is driven by strong international demand and limited supply on the global market,” said Francis Alfred, Director General of the Cashew Council (CBT). He added that these early indicators suggest a strong performance for the rest of the season.

The expected rise in production can be attributed to several factors. Notably, the Tanzanian government has invested in the early distribution of subsidized agricultural inputs to farmers in key growing regions, improving yields.

“We’ve seen significant gains in productivity thanks to timely input distribution,” commented Revelian Ngaiza, CBT’s commercial and quality control director.

The Tanzanian government has also expanded cashew cultivation into new regions, including Morogoro, Dodoma, Singida, and Tabora.

This expansion effort complements the established growing regions of Mtwara, Lindi, Ruvuma, Tanga, and Pwani, which already contribute significantly to the country’s cashew production.

Cashew nuts play a vital role in Tanzania’s agricultural sector and economy. In 2023, the country exported 219,000 tonnes of cashews, generating USD 206.4 million in revenue.

With production expected to rise by 95% this season, Tanzania’s export volumes are likely to increase, driving further economic benefits.

The listing of cashew nuts on the TMX in August 2024, following four years of successful auction trials, has provided farmers with better market access and pricing transparency. This has encouraged more farmers to engage in cashew cultivation, further fueling growth.

With a promising start to the 2024/2025 marketing season, Tanzania’s cashew industry is set to break new records, benefiting both farmers and the national economy.

The combination of high prices, increased productivity, and government support has created an optimistic outlook for the sector.

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