Exports of raw cashew nuts are projected to fall by 52.9 per cent in 2016.
Currently, 90 per cent of cashew nuts are exported in raw form.
Tanzania produces an average of 130,000 tonnes of cashew nuts annually and 117,000 tonnes of the produce are exported to India, Cashew nut Board of Tanzania (CBT) director general Mfaume Juma, said.
“We target to reduce exports of raw cashew nuts by 2016 with the capacity to process at least 100,000 tonnes locally a year. The CBT will build three factories in Mtwara and Lindi regions with the capacity to produce 30,000 tonnes of processed cashew nuts. These factories will begin to work in June this year,” he said.
The Tandahimba Newala Cooperative Union is also in the process of completing the construction of a factory for processing 30,000 tonnes of cashew nuts annually.
“According to our medium-term cashew nut processing plan, we are targeting to enhance value addition by increasing the volume of exporting processed cashew nuts. We want to change farmers’ mindset of selling raw cashew nuts. We want many smallholder cashew farmers to embark on small-scale processing of cashew nuts at household level,” Mr Juma said.
The cashew nut output has increased from 130,000 tonnes in 2013 to 189,000 tonnes in 2014. “In fact we are witnessing the biggest output this season compared with the rest of seasons in Tanzania’s history of cashew nut production. The reason is that the level of awareness on the warehouse receipt system has increased. It has impacted positively on data collection and incentives to farmers.”
The executive director of the Cashew nut Industry Development Trust Fund, Mr Seleman Lenga, said the process of acquiring a contractor for constructing three factories was going on well.
“The three factories will produce direct jobs to 10,000 residents of Lindi and Mtwara apart from 100,000 indirect jobs. These factories are also aimed at mobilising cashew nut farmers to embark on small-scale processing of cashew nuts.”
According to him, the fund is also working with the United Nations Industrial Development Organisation and Sokoine University researchers to ensure that more processes of value addition under the cashew nut industry is attained by processing more allied products such as lubricants and fuel.
Regarding the availability of markets, he said the local market for processed cashew nuts had expanded.
“Processed cashew nuts are sold locally in hotels, ceremonies, entertainment and the leisure industry. We hope that with more value addition cashew nut prices will increase to raise famers’ incomes,” he said.
He also spoke about the government efforts in seeking funds to revive the cashew nut processing factories to enhance the process of value addition with objectives of creating jobs, generating more incomes and absorbing new technology for cashew nut processing.
“The country has been losing by exporting raw cashew nuts to India in terms of exporting jobs, creating markets, losing incomes and associated new technology to produce new products.”
A 2013 report of the World Cashew Nut Alliance says African cashew nut producers had set a target of processing raw cashew nuts by 50 per cent in 2020 as currently most of producers from African countries sell raw cashew nuts by 90 per cent in India and Vietnam.
In September last year, the minister for Agriculture, Food Security and Cooperatives, Mr Christopher Chiza, was quoted as saying that the southern regions have the capacity to produce 154,000 tonnes of cashew nuts annually and that it is the aim of the government to reach 300,000 tonnes a year by 2015.
Up to last year the Export Processing Zones Agency had facilitated the establishment of 72 factories and 28,000 direct and 100,000 indirect jobs had been created.
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