Tanzania’s cashew nut industry has experienced significant growth in recent seasons. In the 2023/2024 season, production reached 305,014 metric tons, up from 189,114 metric tons in the previous season. This increase was attributed to government initiatives such as the provision of subsidized agricultural inputs and improved farming practices.
For the 2024/2025 season, initial projections anticipated a substantial rise in production to 595,000 metric tons. However, the actual harvest amounted to 408,600 metric tons, representing a 34% increase from the prior season’s output. Despite falling short of the ambitious target, this growth underscores the positive trajectory of Tanzania’s cashew sector.
The introduction of an auction system for raw cashew nuts in the 2024/2025 season enabled producers to secure better prices. Early auction prices ranged from 4,035 to 4,120 Tanzanian shillings per kilogram (approximately USD 1.48 to USD 1.51), a significant increase from the previous season’s range of 1,500 to 2,500 shillings (USD 0.55 to USD 0.91).
By the seventh week of the 2024/2025 season, cashew farmers had earned approximately Tsh879.699 billion (USD 330.2 million), reflecting the enhanced trading environment and government support.
The Tanzanian government’s role in boosting the agriculture sector cannot be understated. Subsidies for agricultural inputs, such as fertilizers and seedlings, have been vital in supporting farmers. These efforts are helping to increase both the quantity and quality of the cashew nut harvest.
The Tanzania Mercantile Exchange (TMX) has played a pivotal role in transforming the cashew nut trade in Tanzania. Established to provide a structured platform for farmers, traders, and exporters, TMX facilitates access to both domestic and global markets. Its digital auction system enhances market transparency, price discovery, and payment security, thereby promoting fair competition for farmers’ produce.
The TMX system ensures that farmers receive payments directly from Cooperative Unions, bypassing intermediaries and reducing potential delays. This direct payment approach has been well-received by farmers, who appreciate the transparency and promptness in transactions.
Additionally, TMX has been instrumental in providing training to stakeholders, including farmers, cooperative unions, and buyers, on the digital auction process. This capacity-building initiative ensures that all participants are well-equipped to navigate the system effectively, further enhancing the efficiency and fairness of the cashew nut trade in Tanzania.
Tanzanian political leaders have expressed optimism and outlined strategic initiatives for the 2024/2025 cashew nut season. The Deputy Minister of Agriculture, Hon. David Silinde, unveiled the government’s agricultural transformative plan, emphasizing the removal of regulatory barriers to attract private sector investment. This initiative aims to scale up the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) model to other regions, promoting inclusive economic growth and agricultural commercialization.
The Director General of the Cashew Board of Tanzania (CBT), Mr. Francis Alfred, highlighted the significant increase in cashew nut sales early in the 2024/2025 season. He noted that within the first three weeks, 180,342 tons were sold, compared to 60,066 tons during the same period in the previous season. Mr. Alfred attributed this success to government support and stated, “The increase in production and the price of cashew nuts has brought motivation to farmers.”
Additionally, the CBT has set an ambitious target to increase cashew nut production to one million tons by 2030. This goal is part of a broader strategy to enhance the cashew industry’s contribution to Tanzania’s economy.
These statements reflect the Tanzanian government’s commitment to strengthening the cashew sector through strategic planning, investment in infrastructure, and supportive policies aimed at increasing production and farmer incomes.
In summary, Tanzania’s cashew nut industry has demonstrated robust growth in recent seasons, driven by increased production, favorable pricing mechanisms, and supportive government policies. The Tanzania Mercantile Exchange has significantly contributed to the advancement of the cashew nut industry by offering a transparent, efficient, and secure trading platform, ultimately benefiting farmers and other stakeholders across the value chain.
LICO Global company is working with stakeholders to source, process, and export high-quality cashew nuts from Tanzania. The company collaborates closely with farmers, cooperatives, and government institutions to ensure that Tanzanian cashew nuts meet international quality standards. LICO Global invests in modern processing facilities and sustainable farming practices, enabling local producers to enhance their yields and gain better access to global markets. By providing training, technical support, and fair trade opportunities, LICO Global is committed to strengthening the entire cashew nut value chain and improving the livelihoods of Tanzanian farmers.
