New queries over cashew processing

Dar es Salaam. Questions are being raised about how long it will take to process this season’s cashew nut harvests estimated at 275,191 tonnes.

Going by the installed and operational capacities of functional processing factories, it could take anywhere between two and 14 years.

But the permanent secretary in the Ministry of Industry, Trade and Investment, Prof Joseph Buchweishaija, said how long it would take to process the cashew nuts was not important at this juncture.

What was important was to ensure that farmers were paid in full for their cashew nuts, he said, adding that other logistics would follow.

According to a report made available to The Citizen, only eight cashew nut processing factories are currently operational in the country. Their annual combined installed and operational capacities are 127,200 and 18,945 tonnes, respectively.

Industry, Trade and Investment deputy minister Stella Manyanya said at the weekend that at least 15 local processing firms had expressed their readiness to sign contracts with the government.

Speaking in Mtwara during the handing over of nine tonnes of cashew nuts to entrepreneurs for processing, Ms Manyanya said the government has already signed a memorandum of understanding with a number of processors. She neither named them nor specified their number.

The eight factories that are currently operational include five that were previously owned by the government before they were privatised. They are Micronix System Ltd (Newala II); Mtwara Cashew Company (MCC) 2005 (Mtwara); Export Trading Company Limited (Tunduru); Micronix System Ltd (Likombe) and Safa Petroleum and Mineral Company Limited (Kibaha).

The other three factories, which are also privately owned, are Naliendele Agricultural Research Institute, AMAMA Farmers and Hawte Investment Ltd. The eight operational factories are among 23 cashew nut processing facilities whose annual combined installed and operational capacities are 42,200 and 11,142 tonnes, respectively.

Fifteen factories are currently not operational for various reasons. They includeAgro Focus Company Ltd (Newala I); BUCCO Investment Ltd (Lindi), BUCCO Investment Ltd; Lindi Farmers Company Limited (Nachingwea); Mohammed Enterprises (T) Ltd (Tanita II) and Cielmac Co.Ltd (Tanita I).

Others are Olam Tanzania Ltd (Likombe Warehouse); Southern Jumbo Cashewnuts Ltd; Masasi High Quality Farmers (Chakama); UVUKI Cashewnut Factory; Kitama Farmers Group Factory, Perfect Cashew Kernels and Demros.

Prof Buchweishaija told The Citizen yesterday that there had so far been no assessment of how long the processing of this season’s cashew nuts would take, adding that the pace was still being monitored.

“I don’t think we should be concerned by how long it will take to process the cashew nuts,” he said.

Prof Buchweishaija said the government does not rely on fully-fledged factories alone to process cashew nuts, adding that there are small groups and small-scale facilities under the Small Industries Development Organisation (Sido) that could process the crop.

Commenting on the dormant factories, Prof Buchweishaija said the government’s position on the matter was clear.

“We want to have as many operational processing factories that can add value to our cashew nuts. However, there is no plan to help dormant factories to resume operations. We are especially interested in the privatised factories, all of which are supposed to be up and running,” he said.

The report mentioned previously cites a number of reasons for operational factories not being able to work at their installed capacities.

These include outdated technology and inadequate capital among local processors, which makes it difficult for them to buy enough raw cashew nuts for processing.

There is also the issue of a multiplicity of taxes which local processors are required to pay to the government.