Projections for demand growth show the demand for cashew kernels will move up rapidly high before the end of the decade.The World needs an increase of 9% per year to meet demand and Africa, which produces 43% of Cashews, is the only region that can supply this. In terms of quality and value, research shows that Tanzania produces one of the best chashew nuts in the world which is exported to India.
This was said by Mr. Audax Rukonge, the Executive Director of the Agricultural Non State Actors Forum (ANSAF) at the Policy Forum's breakfast debate today at British Council Auditorium.
He said that 80-85% of Tanzanian cashews are sold in-shell and 99% of cashew produce in Tanzania goes to India which is currently the largest supplier of cashew in the world but amazingly the India imported price is much higher than the Tanzanian exported price.
Mr. Audax recommended that Tanzania explore new cashew markets in other countries and the Cashewnut Board Tanzania (CBT) take the driver's seat by enhancing transaprency in the auction system, rationalising costs in the marketing system especially Cooperative Unions and ensuring shell exports continue through the warehouse receipt system/auction. He advised Tanzanian processors to source directly from farmers, associations and primary cooperatives and as well emphasized the need for opening new markets for in shell, and prioritising cashew brand Tanzania as food safe and reliable.
He concluded by saying that once all these are met then at around 2020, Tanzania will be a major player in cashew production in the world and will create about 40,000 more jobs.
The discussant at the breakfast talk Mr. Mfaume Juma, Director General of Cashewnut Board of Tanzania (CBT) commented that the warehouse receipt system was introduced so that farmers get the right prices for their crops and said that if we recommend that it should be removed then farmers will suffer a lot. Instead, he therefore suggested, it should be improved and made more effective.
Please see the attached presentations below which were made at the event