Cashew processing capacity to hit 60pc

THE government is determined to increase domestic cashew processing capacity to 60 per cent come 2025/2026 in order to create sustainable impact in the cashews industry.

Director General of Tanzania Agricultural Research Institute (TARI) Dr Geoffrey Mkamilo made the revelation here, saying that only ten per cent of Tanzania’s cashews are currently being processed in the country.

“Basing on the statistics, it’s only ten per cent of the Tanzania’s cashew nuts that are being processed and for that matter, the government through Cashewnut Board of Tanzania (CBT) has set a target to increase the processing capacity to 60 per cent by initiating various measures,” he said.

Dr Mkamilo said the achievement of the set goal requires massive reforms to increase local Cashew processing.

One of such efforts according to Dr Mkamilo is building of local processing factories alongside introduction of new technology to ensure efficiency in processing the cashew nuts.

Other effort being made is increasing of raw cashew production from the 300,000metric tonnes to 700,000 by 2025 to ensure availability of cashews for domestic processing.

Speaking in an interview with the ‘Daily News’ recently, CBT Acting Director of Marketing and Quality Control Ms Domina Mkangara said domestic processing was the only sustainable way to ensure access to a reliable market in the country.

She said CBT has taken various steps including issuing licences to local processors to buy raw cashew nuts directly from farmers.

“So far we have issued licences to some 16 companies to buy raw cashews for local processing,” she said the licences were issued in the ongoing 2022/2023 trading season.

Before, local processors were forced to compete in the auctions with traders from in and outside the country.

The plan serves as an opportunity to improve cashew nuts processing in the country.

Other steps taken include the introduction of new cashew nuts processing industries set to start operation in this 2022/2023 cashew trading season.

During the six first auctions conducted in Mtwara and Lindi regions, the farmers refused to sell their raw cashews due to buyers’ bid prices, calling for the government intervention to ensure fair prices that cover production costs.

However, CBT said the low prices offered by buyers were due to global market trade on cashews.