Domestic value-addition to the crop would benefit Tanzanians
What you need to know:
Dar es Salaam. The government exuded confidence that it would meet the 400,000 tonnes production target for the 2022/23 cashews trading season slated to commence on October 14, 2022.
The expectations have been triggered by a huge investment made during the season preparation through provision of enough agricultural inputs and the presence of conducive weather.
Targeted production increase will be supported by strategies to maintain the quality of Tanzania’s cashews traded in the international market. Speaking during a recent exclusive interview with The Citizen, Cashewnut Board of Tanzania (CBT) acting director general Francis Alfred said historic large quantity agricultural inputs were distributed to farmers in cashews growing regions.
“Agricultural inputs that were distributed free of charge include 14,802 tonnes of powder sulphur, 2.605 million litres of liquid inputs and 1,216 spraying pipes,” he said during a telephone interview.
“The amount is the largest quantity to be distributed to cashew farmers in the country’s history,” he added.
He said 4.334 million empty sacks have also been distributed to cooperative unions in cashew-growing regions ahead of the new season, something that would address the challenge of insufficient packaging materials recorded in previous years.
According to him, the distributed empty sacks are enough for packaging 345,000 tonnes of Raw Cashew Nuts (RCN) at the packaging of 80 kilogrammes per sack.
“Packaging materials supplied for 2022/23 cashew trading season are also in huge numbers in the country’s history. Therefore, we don’t expect any challenge in this area,” he said.
He said the 2022/23 cashew trading season started on September 1, 2022, with official launching made on September 8, 2022 during cashews stakeholders’ meeting convened in Songea District, Ruvuma Region.
He said currently, buyers and warehouse operators are registering themselves for involvement in the season, hinting that CBT was now educating stakeholders on the issues of quality assurance.
“Tanzania’s cashews are recognised worldwide for their quality something we are obliged to maintain through quality prioritisation in our production processes,” he said.
“Prioritisation involves ensuring that cashews with Standard Grade or comprising 48-53 Shell out Turn (SOT) and those with Under Grade or 44-47 SOT are the ones to be exported,” he added.
According to him, SOT means the weight in pounds of cashew kernels that buyers expect from an 80-kilogramme bag of RCN.
Further, he said the quality of cashew kernels increases with increasing SOT levels, noting that the CBT target was to ensure that 95 percent of all exported cashews constitute those with 48 SOT.
“This will enable our farmers to get better prices and guarantee buyers to collect high quality produce. The two sides should achieve a win-win situation,” he said.
According to him, CBT aims at creating sustainable cashew business by increasing RCN production to 500,000 tonnes by 2025/26, increase quality control supervision and realise the value for money.
He said CBT focuses on increasing the number of buyers annually in order to increase competition, providing more benefit to farmers and attracting more investment in the sector. “We want to maintain our position of exporting quality RCN in the international market. Therefore, we are now training stakeholders including warehouse operators, Agriculture Marketing Cooperative Societies (Amcos) leaders and council agriculture officers,” he said.
Below are the excerpts from the interview:
Stakeholders are worried that recorded change of weather could adversely impact production. What is your take on this?
The 2022/23 cashews production target remains unchanged at 400,000 tonnes despite recorded changes of weather in some growing regions.
The only doubt is that the 2022/23 cashews trading season could somehow be longer as compared to previous seasons. However there is no threat in the volumes of production.
How many companies have been licenced for the 2022/23 trading season?
As of yesterday, (Tuesday), a total of 30 companies have been registered, but the number is expected to significantly increase reaching October 10, a few days before commencement of auctions in October 14.
Usually, there have been registration delays, but by October 10, a bigger picture will be seen. However, the 30 registered companies are very few for seasonal participation.
What is the country’s position in using the Tanzania Mercantile Exchange (TMX) for online RCN trading this season?
We will continue using the box system in the 2022/23 cashew trading season because no major challenge was associated with the system in the 2021/22 trading season.
However, TMX will continue creating awareness so that in future the online system could better be used in reaching foreign buyers who could participate in cashew trading processes without having physical presence in the country.
This agenda was also discussed during a meeting gathering buyers from India, Vietnam and the Tanzania envoy for India, Ms Anisa Mbega.
Which Amcos is expected to hold the first auction this season according to the timetable?
We expect to release an auction timetable on October 1 (today) covering the whole season (October 2022 to January 2023). We are collaborating with cooperative unions and regional secretariats in preparing the timetable.
What message do you have for stakeholders involving in informal cashew trading system famously known as kangomba?
Usually, farmers harvesting cashews earlier are the ones involved in informal systems of produce trading in order to address family challenges such as paying children’s school fees.
But, we have introduced a system that allows domestic processors to procure RCN directly from farmers through their Amcos.
The move not only will boost local processing, but also will prevent cashews trading through informal systems.
We have issued a guideline for RCN trading through primary markets before official commencement of auctions every October.
Cashews trading through this system will enable farmers to trade the produce through recognised procedures, have collective bargaining powers and enable operation of local processing companies.
The functioning of processing firms will creates jobs, generate revenue and will have other multiplier effects in the country’s economy.
How did Tanzania fare in domestic cashew processing last season?
Cashew processing increased from 8.000 tonnes in 2020/21 season to 14,000 tonnes in 2021/22 trading season.
Although processing is still below 10 percent, it is an encouraging move as we hope to further increase this season.
This is because apart from the presence of primary markets, many investments have been made in the area of cashews processing.
Primary markets were introduced two to three years ago, therefore enough time was required before recording positive impacts.
How is the government prepared to maintain the early payment achievement recorded in the 2021/22 season?
CBT has been emphasizing that farmers should be paid four days after they have sold the produce and within 10 working days after the auction day.
Apart from imposing that conditions to buyers, cooperative unions have been cautioned to face accountability measures for any role in delaying payments.
A free toll number will be announced that will enable farmers to provide feedback on challenges they face throughout the season including delayed payment.
Without discrimination, farmers will be paid through their respective bank accounts, noting that farmers preferring payment through mobile phones their demands will be realised.
What is the CBT’s message to cashews stakeholders, hinting your collaboration with the Warehouse Receipt Regulatory Board (WRRB) in cashews trading?
WRRB is the one coordinating the meeting of farmers (sellers) and buyers and that they are the ones preparing auction catalogues.
Therefore, everything is distracted whenever they behave unethically and unprofessionally.
However, we have high cooperation with WRRB and the Tanzania Cooperative Development Commission (TCDC).
The cooperation has enabled us to jointly prepare a guideline intended at significantly reducing challenges facing the sector.
Cooperation among stakeholders is of a paramount importance for players’ involvement and creation of a win-win situation.
Therefore, in order to succeed, warehouse players should work ethically and diligently.
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