Tanzania stands to gain significantly in export revenue if it moves from exporting raw cashews to processed products.
Nonetheless, much as this might look possible, lucrative and perhaps a solution that would guarantee cashew farmers the challenge remains to invest more in processing plants aligned with market standard.
As the cashew sector comes of an age and Tanzania being third in cashew production when compared to countries such as Côte d’Ivoire, Mozambique, the timing could have been better for us as we align out boosting sources of export earning inscribed on on-going industrialisation process in Tanzania.
Investors reportedly worried by Indian and Vietnamese market dominance might choose to diversify supply and start investing in African cashew production.
If successful, could be yet another good example of how locally-generated added value can create extra government revenue while also creating jobs opportunities and associated multiplier effect that the economy need most.
According to SIDO director general quoted recently insisted through SIDO plans are underway to employ over 100 small scale women entrepreneurs around Mtwara and Lindi.
Such good news has also been resounded by Deputy Minister Stella Manyanya who recently stated that already there are three groups who have signed memorandum of understanding (MOU) with the government to process cashew that would eventually create employment to over 500people in Mtwara region.
With the global cashew market was valued at up to $7.8 billion last year and is projected to grow by 15% first half of next year, plus yet another growing demand from China envisioned to sustain the vitality of the market, for Tanzania under bold initiatives initiated by 5th phase government championed by Dr John Pombe Magufuli could make the money just continue to grow on trees, ultimately benefiting more Tanzanians.
Apart from the fact that years ending in 1970, a milestone was grasped in production, data from Bank of Tanzania Annual Report 2016/2017 indicates that from 2007 to 2016 export tonnage has all it takes to make Tanzania benefit more should we capitalise on local processing and engage in first stage of value addition.
With time, second stage and third stage value addition for specific market segments could further not only create more jobs prospects in food and confectionary industry but earn government billions of earnings.
Source: Bank of Tanzania Annual Report 2016/2017 With right strategies and policies and if possible adopting Kaizen approach cashew nut sub-sector in Tanzania could be a benevolent to our nation. Kaizen approach for those might be unaware has numerous advantages.
With its focus on gradual improvement, Kaizen can create a gentler approach to change in contrast to big efforts that may be abandoned due to their tendency to provoke change resistance and abandonment.
Kaizen inspires scrutiny of processes so that mistakes and waste can be reduced. Kaizen, the concept of continuous enhancement, was initially executed by Japanese companies in the manufacturing sector following the Second World War.
Prior to executing this style of management in own cashew processing business as more entrants calls for new industrialist through SIDO or group of industrialist women that are looking in setting up a limited company or are already wellestablished, it’s vital in my view that we first understand whether marketing strategy is a smooth fit for your current business practices and market standards and supply chains.
In order to achieve a cashew nut processing-wide execution of the kaizen style, newly management responsible to oversee government initiatives to encourage local value addition needs to implement systems that make this process possible.
Having been in JICA for training and having had an opportunity to interact with JICA Survey Team for two step loans TSL looking to design financing stricture that could boost performance in manufacturing SME in Tanzania, have learnt benefits of kaizen style.
Kaizen systems embrace the identification of problems that need to be solved, the creation of strategies to tackle them and the conceptualisation of new ideas.
Meaning should cashew nut value addition embraces this style as plans to continue processing cashew in future promoter’s private or public sponsored need to follow key five ethics that lead to a successful implementation.
These five key steps translate to:- first sorting and separating what is not needed, such as removing obstacles to make work easier and preventing the accumulation of unwanted items along processing undertakings, secondly, arranging matters that are needed so that they’re ready to use, which will make the workflow easier, thirdly, placing processing flow swift to help preventing machinery and equipment from deteriorating and keeping the workplace safe and clean that could help meet food market standard.
Fourthly, maintaining high standards in the workplace and ensuring that all processes have a standard that could help cashew nuts from Tanzania to maintain its market taste niche and finally sustain processes by keeping the rules and performing proper training to help build capacity and experts incentivised with regular audits.
Kaizen can be incredibly beneficial to cashew nut processing business in Tanzania, since it can encourage the development of teamwork and self-autonomous groups; ultimately leading to improved cooperation in the workplace.
Furthermore, this management philosophy can be applied to other industry, not just manufacturing as first intended. Kaizen intends to put people at the forefront of business, rewarding efforts and achievements – the result is the feeling of engagement of all employees, as well as a sense of purpose within the organisation that I believe is all what we need in Tanzania.
Midst all ingenuities to increase local processing of cashew to value addition my main concern is whether, concurrently mechanisms that would allow benefiting from by-products after extracting cashew-nut kernel are being instituted.
The Cashew Nut Shell Liquid (CNSL) is a versatile raw material with wide industrial applications in the form of surface coatings, paints and varnishes, as well as the production of polymers.
Simultaneously harnessing shells from all processors could boost earning as currently going for minimum USD $250-400/ Metric Ton.
As nation, we need not to be enticed by kernel nut but remember that cashew nut shell liquid has industrial and medical application in the polymer based industries such as varnish, rubber compounding resins, cashew cements, foundry chemicals, friction etc.
Studies indicate that this liquid has a great demand in the international market and if Tanzania position well, we have all it takes to be one of major exporters of Nut shell oil.
We need to move away from that saying that states that the evergreen cashew tree is poor man’s crop and rich man’s food. We need, as nation to open our eyes, and time is NOW