- Tanzania sets up first Fairtrade-certified cashew nuts processing plant in Mtwara region.
- The country’s cashew nuts market is poised to reach $860.25 million by 2029.
- Cashew nut exports generate $227 million in 2023/2024.
Tanzania’s cashew nuts industry is getting a big boost with the construction of the first Fairtrade plant to add value to the produce within Mtwara region. The industrial park in Mtwara is poised to tap into the region’s massive production to boost the income of millions of farmers.
According to the Cashew Board of Tanzania (CBT), exports of the crop generated a total of $227 million in the 2023/2024 season, a significant increase from the $162 million realized during 2022/2023 period.
With the Tanzania cashew nuts market expected to reach $690.97 million this year and grow at an annual rate of 4.48 per cent to $860.25 million by 2029, this industrial park comes at an opportune time to complement growth.
The industrial park is been built in Maranje Village, Mtwara Region, where several factories will be set up with a combined annual processing capacity of 300,000 metric tonnes. “The goal is for Tanzania to export processed cashew nuts by the 2026/2027 period instead of raw cashews,” explained Director of Marketing and Quality Control at the Cashew Nuts Board of Tanzania (CBT), Mr Revelian Ngaiza.
Even though cashew nuts are one of the four traditional cash crops in Tanzania, others being coffee, tea, and cotton, the sector remains underdeveloped. Now, the government of Tanzania is looking to increase raw cashew nut production from 30,000Mt to 700,000Mt by next year.
However, even as the country moves to step up output, only 5 per cent of raw cashew nuts are being processed locally. The other 95 per cent is processed in Vietnam or India for value addition before being sent out to the final consumer markets in Europe and America.
“It is estimated that this (exporting of unprocessed cashew nuts) caused Tanzania a loss of some 83 million Euroes in the previous season…and that is when the decision to set up this processing industrial park,” the CBT official said.
As for progress in the construction of the industrial park, Tanzania’s Deputy Minister of Agriculture, David Silinde, said, “The activities carried out so far include clearing the area, starting the drilling of water wells and extending electricity to the area. In addition, a contractor has been selected to build internal gravel roads, two prototype warehouses, and a cashew processing plant.”
The government official noted that this initiative (construction of the industrial park) aligns with Tanzania’s broader objective of processing all its cashew nut locally by 2027. With only three years to go, much remains to been seen of this ambitious plan since, at the moment, the country processes less than 15 per cent of its annual cashew nut output.
Mtwara, and other areas in the Southern region of Tanzania are the main cashew nut production. While the region has several small-scale cashew nut processors, but unfortunately, none of them are registered with Fairtrade.
“Being a Fairtrade certified farmer is very beneficial. Farmers need to know that there is growing demand of Fairtrade products around the world, people are now looking at social, economic and environmental aspects of crop production before buying,” Ngaiza cautioned.
Read also: Mozambique: The goldmine in cashew nuts farming
Tanzania’s first Fairtrade certified cashew nut processor
Known as Mama Cashew, this is the first Fairtrade certified cashew nut processing company not only in Tanzania but the entire East African region as well. Mama Cashew is the brand name of the Netherland’s trading company Listram Commodities Co. Ltd that works with some 425 farmers and employs over 530 factory workers.
“Mama Cashew is convinced that ethically buying and processing is the only way forward to create a sustainable impact in the cashew nut sector,” notes Maria Verschoof, co-owner of Mama Cashew.
He adds, “With the Fairtrade certification, farmers are guaranteed a minimum price and will receive a premium to be used to improve their production capacity.”
“The real game-changer is the by Fairtrade developed Living Income Reference Price, which defines a sufficient price to afford a decent standard of living for all household members,” she added.
The Fairtrade Living Income Reference Price, is the price of a product at which a typical farmer’s household (with a viable farm size and a sustainable productivity level) needs in order to earn a living income from the sales of their crop, explains the Fair Trade network.
When a product is sold at the Living Income Reference Price, then the farmer is expected to afford a nutritious diet, clean water, proper housing, education, health care and have some emergency money left over. “A sector can never be sustainable if the farmers at the beginning of the supply chain aren’t able to make a decent living from the sales of their crop. That’s why going beyond the Fairtrade Minimum Price and Premium, we developed the concept of a Living Income Reference Price,” the Fair Trade network says.
According to the network, the Fairtrade Living Income Reference Prices are calculated based on four key parameters:
- Costs to support a decent living (independent Living Income benchmarks)
- Sustainable target yield (stakeholder agreed productivity benchmark)
- Costs of sustainable production (investment required to attain the target yield)
- Viable land size (to fully absorb the available household labour)
Tanzania Fairtrade cashew nuts sector boom
In recent years, there has been a steady increase in cashew nut output in Tanzania with the 2023/24 season recording 305,014 metric tonnes, compared to 189,114 metric tonnes a season earlier. “This surge is largely due to the government’s provision of subsidized agricultural inputs, which saw the value of subsidies double to $72M in the 2023/24 season,” the Milling East Africa report states in part.
The Kenyan company, which focuses on agriculture produce in the region, acknowledges the Tanzanian government’s strategy to revamp the sector. This includes through enhancing of the availability of high-quality seeds, improving pest and disease control measures, and expanding extension services to farmers.
“The establishment of the cashew nut industrial park is expected to attract more investment in the processing segment, creating jobs and boosting the local economy,” notes Milling East Africa.
“The industrial park will not only enhance the processing capacity but also create numerous employment opportunities for the local population,” Tanzania’s Deputy Minister of Agriculture, David Silinde added.
What are the health benefits of eating cashew nuts?
Imagine biting into a handful of creamy, crunchy cashew nuts and knowing that each bite is doing wonders for your body. These little powerhouses of nutrition aren’t just delicious—they’re packed with health benefits that can transform your well-being.
Protecting your heart, one cashew at a time
Cashew nuts are like tiny shields for your arteries. Loaded with folate and vitamin E, they work to protect your heart by preventing the build-up of plaque that can lead to blocked or narrowed arteries. In fact, a 2019 study revealed that adding cashews to your daily diet can help improve cholesterol levels, especially in those managing type 2 diabetes.
Living longer with cashews
Who knew that snacking on cashews could be part of the secret to a longer life? Research shows that diets rich in unsaturated fats, like those found in cashews, are linked to a lower risk of death from all causes. So, when you enjoy these nuts, you’re not just treating yourself—you’re investing in your future.
Fighting off oxidative stress
Ever heard of oxidative stress? It’s the sneaky culprit that, over time, can damage your organs, tissues, and even cells, potentially leading to serious conditions like Parkinson’s, Alzheimer’s, and multiple sclerosis. But don’t worry—cashew nuts have your back. Packed with antioxidants like polyphenols and carotenoids, they help your body combat oxidative stress and keep you feeling your best.
Guarding against heart disease and stroke
Cashews do more than just taste good—they help protect your heart from disease and your brain from strokes. How? By lowering levels of homocysteine, an amino acid that, when elevated, can increase inflammation and put you at risk for these serious conditions. Regularly enjoying cashew nuts can help keep your homocysteine levels in check, keeping your heart and brain healthy.
Easing the strain of osteoarthritis
For those battling osteoarthritis, relief might be closer than you think. A 2020 study found that the powerful combination of antioxidants and anti-inflammatory properties in cashews can help counter the negative effects of this painful condition. So, when you snack on cashews, you’re not just enjoying a tasty treat—you’re giving your joints a helping hand.
Managing colitis with cashews
If you’re dealing with colitis, those creamy cashews might be more than just a snack. Research suggests that the anti-inflammatory benefits of cashew nuts can play a role in managing this inflammatory bowel condition, offering some much-needed relief.
Supporting healthy weight loss
Trying to manage your weight? Cashews could be your new best friend. Studies indicate that diets rich in nuts, including cashews, are associated with reduced weight gain and a lower risk of obesity. The combination of protein, healthy fats, and fiber in cashews makes them a satisfying snack that can keep you full and help you avoid unhealthy temptations.
Keeping blood sugar in check
For those managing diabetes, cashews offer a natural way to help regulate blood sugar. A 2019 study found that daily consumption of cashews improved insulin sensitivity, which is crucial for healthy blood sugar management. Thanks to their high protein and unsaturated fat content, cashews can help keep your blood sugar levels steady.
Lowering stroke risk with magnesium
Cashews are a fantastic source of magnesium, a mineral that plays a key role in reducing your risk of stroke. Research has shown that higher magnesium levels in the blood are linked to a lower risk of stroke, so enjoying cashews regularly could be a smart move for your brain health.
Supporting your memory
Finally, cashews might just be the brain-boosting snack you’ve been looking for. With a nutritional profile rich in protein, essential fats, vitamins, and minerals, cashews provide the nutrients your brain needs to stay sharp and fend off memory loss.
So, the next time you reach for a snack, consider cashew nuts—because with every bite, you’re not just satisfying your taste buds, you’re nourishing your body and mind.
