Cashew boom: Subsidies drive record production and earnings

Dar es Salaam. Cashew production skyrocketed by 115,900 metric tonnes in the 2023/24 season, generating more earnings for farm-ers, the Cashewnut Board of Tanzania (CBT) has said.
Tanzania’s cashew nut production stood at 305,014 metric tonnes in the 2023/24 season, up from 189,114 metric tonnes in the 2022–23 season.
The rise was attributed to the provision of subsidised agriculture inputs, whose value doubled to Sh188.99 billion in 2023/24 season from Sh96.26 billion recorded in the 2022/23 season, according to CBT’s primary assessment.
As of March 2024, the crop generated $227.109 million (about Sh581.40 billion), up from $162.363 million (about Sh415.65 billion) in the 2022/23) season.
The volume produced in 2023/24 is the highest in five years, CBT director general Francis Alfred told The Citizen.
“The government has been making various efforts to enhance cashew nut production in the country, including revitalising the cashew nut farmers’ database,” said Mr Alfred.
Apart from distributing improved seeds, the government also distributes subsidised cashew nut inputs, strengthens extension services, and trains farmers on the best practices of cashew nut farming. In the first phase of the cashew nut farmers’ database revitalization process, Mr Francis said CBT was forecast to reach 3,569,523 acres, comprising 80,870,287 cashew trees in the Mtwara, Lindi, Ruvuma, Coast, and Tanga regions.
“At least 424,142 farmers have been reached and their information updated out of 563,932 anticipated growers, which is equivalent to 75 percent,” he said.
Mr Alfred said in the last three years, cooperative unions through the Korosho Cooperative Joint Enterprise Ltd. (KCJEL) managed to import and distribute 13,562 metric tonnes (2021/22), 14,937 metric tonnes (2022/23), and 39,275 metric tonnes (2023/24) of powder sulphur.
During the same period, 1,497,354 litres, 2,684,470 litres, and 1,989,238 litres of liquid inputs were also distributed to cashew farmers across the country.
“Government investment in the procurement and distribution of subsidised inputs to farmers kept increasing from Sh59.35 billion in 2021/22, Sh96.26 billion in 2022/23, and Sh188.99 billion in the 2023/24 season, respectively,” he said.
Furthermore, he said the government has also set a 50 percent pesticide spraying equipment subsidy, and a total of 6,216 sprayers have been delivered to farmers in 2022/23 and 2023/24, respectively. Additionally, Mr Alfred said in previous years that there was a significant chal-lenge regarding the availability of empty sacks for cashew nut packaging, especially during the trading season. He noted, however, that the challenge has been resolved starting from the 2022/2023 season.
 He said during this period the government has trained cashew farmers on the proper and safer use of pesticides, distributed 23,490 kilo-grammes of high-quality seeds, which is equivalent to an average of 3.3 million seedlings to 10 cashew-growing regions comprising 36 coun-cils, and strengthened the provision of extension services.

Speaking on the market situation in the last two years, Mr Alfred said farmers have expressed dissatisfaction with prices offered by buyers during auctions, despite the actual situation in the global RCN business.

“CBT is now planning to strengthen cashew prices and increase competition through the introduction of the online system. The use of bid boxes has been incurring avoidable costs for buyers, consuming more time, and demanding physical presence during auctions,” he said.

According to him, the introduction of online trading through TMX would provide room for buyers from different corners of the world to participate in the bidding process and final auctioning, therefore increasing competition.

The CBT is expected to work harder to improve the quality of cashew, so the offered price should reflect the quality of the product in the warehouse as described in the catalogues.

Players commend them for understanding the importance of increasing the uptake of cashew inputs for better yields and, therefore, providing farmers with subsidised inputs.

“However, farmers providing false information regarding the size of their farms for personal gain should be dealt with accordingly,” the Tandahimba Farmers Association (Taffa) chairman, Mr Faraji Njapuka, said over the phone.

“Resumption of cashew nut trading through the online system should go in line with timely payment. Delayed payments are among the challenges most farmers have been complaining about in the present system,” he added.

Cashewnut Processors Secretary General John Joseph seconded Mr Njapuka, saying that on top of providing subsidised inputs, the gov-ernment, through the Tanzania Research Institute (Tari), Naliendele, and CBT, should increase the provision of education to farmers to transform farming and increase efficiency.

He said farmers will still reap large benefits if they successfully increase the volume of cashews harvested.

“The online system is good for cashew trading as it allows transparency and competition. I have witnessed the same in sesame trading, though world prices cannot be altered by the arrangement,” he said.

Tunduru Agricultural Marketing Cooperative Union (Tamcu) Mussa Manjaule said subsidised inputs have attracted even frustrated farmers who abandoned their farms.

“Tamcu leaders, members, and stakeholders have positively received the intention to trade cashews through the online system in the 2024/25 season. We are going to organise ourselves and ensure the system is a success for the interest of farmers and the country in general,” he said.