Tanzania has plans to triple the cashews output to 1 million tons. The country aims to become the biggest exporter of the nuts in the next four to five years. Consequently, this plan would affect cashew nut pricing and supply chains.
The International Nut and Dried Fruit Council reported that between 2017-2018, the global output of cashew nuts was 3.3 million tons. Most of the cashew nuts are produced in African countries like Ivory Coast, Guinea Bissau, and Tanzania. India and Vietnam are also major producers.
Cashew production in Tanzania dropped to 225,000 tonnes from a peak of 313,223 tons last season. This was attributed to farmers halting sales in a protest against low prices.
The Tanzanian government blamed secretive trading processes for the unfavourable conditions for the farmers. Earlier in the year the government intervened and purchased 157,000 tons of cashew for $251 million, a 65% higher pay than the trader’s offers.
Mr Japhet Hasunga, Tanzania’s Agricultural minister, told Bloomberg that the government aims to grow cashew crops in at least 17 provinces. He further stated that the bids will be openly announced and the deal will be sealed once the farmers agree on the quoted price.
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