Cashew farmers earn Sh1.3tr as production heads toward record

CBT Director General Francis Alfred told The Citizen during an exclusive interview that auctions in the main producing regions of Mtwara, Lindi, Ruvuma and Coast Region are at an end, while sales in the central zone regions and Tanga are expected to begin in January 2026.

“Data collection on sales through auctions, the primary market and kernel purchases is ongoing, but production for this season is projected to exceed 600,000 tonnes,” said Mr Alfred.

He said prices during the 2025/26 auctions remained attractive, with the highest price for standard-grade RCN reaching Sh3,520 per kilogramme, while the lowest price stood at Sh1,910.

According to him, under-grade cashews traded at between Sh1,700 and Sh2,470. Further CBT figures show that Mtwara remains the leading cashew-producing region, having traded 232,509.38 tonnes valued at Sh694.67 billion.

Lindi followed with 140,091.02 tonnes worth Sh419.31 billion, while Ruvuma and Coast regions produced 39,759.82 tonnes valued at Sh116.46 billion, and 17,999.89 tonnes worth Sh47.07 billion respectively.

While Morogoro 559.71 tonnes valued at Sh1.43 billion, Mbeya traded 41.6 tonnes worth Sh94.8 million. Furthermore, figures from CBT shows that sales through the primary market also progressed steadily, as of December 23, 2025, a total of 7,082.9 tonnes of RCN valued at Sh11.75 billion had been sold.

“At the same time, purchases of cashew kernels from organised groups and individual processors are continuing,” CBT report says. “Payments to farmers have improved markedly this season, supported by the continued use of designated payment centres.

In Mtwara Region, farmers are receiving proceeds faster than in previous seasons, easing cash-flow pressures at household level,” said Mr Alfred.

He said the government has set a target to ensure that all domestically produced cashew nuts are processed locally by the 2029/30 season.

According to him, this would be possible through maintaining the primary market system to secure timely access to RCN for local processors, encouraging private investment in processing factories, and procuring 100 electrically powered processing machines for distribution to community groups.

Additional efforts, he said include improving access to affordable financing using proceeds from the Raw Cashew Export Levy, strengthening partnerships with financial institutions, and expanding training programmes on modern technologies, quality standards, workplace safety and market access.

He reported several achievements this season, including the sale of all cashews stored in auction warehouses, an increase in registered export buyers from 82 to 89, higher volumes of RCN traded through the Warehouse Receipt System, improved digital trading via the Tanzania Mercantile Exchange (TMX) and more efficient government revenue collection.

“However, challenges persist, including high moisture content in some consignments, quality lapses linked to competition among AMCOS, inadequate storage facilities, transport delays, poor road infrastructure, limited stakeholder awareness and global price fluctuations,” said Mr Alfred.

Maranje Industrial Park Project

During an interview, Mr Alfred said the government is advancing implementation of a $127.18 million (about Sh343.4 billion) project to establish an industrial park at Maranje in Mtwara Rural, aimed at achieving 100 percent local processing of cashew nuts by 2030.

Implemented in phases, he said the project will host 30 cashew processing factories, six cashew nut shell oil extraction plants, four sesame processing factories, and facilities for processing cashew apple products, including juice, wine and ethanol.

“There are also plans to construct 100 warehouses for storing cashew nuts and sesame, alongside supporting infrastructure such as shopping centres, staff housing, sports grounds, restaurants, a police station, a fire and rescue unit, and an investor service centre,” he said, adding that different activities are at different levels of execution.

Word from TMX

TMX trade officer Ms Justa Martin said increased market competition remains one of the key achievements of the TMX during the ongoing cashew trading season, attributing the gains to the effectiveness of the online trading system.

She said the system has provided equal opportunities to all players participating in the auctions, enhancing transparency and empowering farmers to make informed decisions based on observable buyer competition.

“We have played a vital role in increasing transparency and farmers’ participation in the business by enabling them to observe buyer competition trends and ultimately make appropriate decisions in trading their commodities,” said Ms Martin in a telephone interview from Mtwara.

She added that TMX has also contributed significantly to price stabilisation, noting that average prices recorded so far are aligned with the quality of the produce and prevailing global market trends.

Ms Martin said that despite a decline in global cashew prices, Tanzania has managed to maintain favourable average prices, arguing that without the online system, farmers would likely have earned much lower returns.

“In the global market, cashew prices are determined by forces of supply and demand. When large processing companies register high demand, together with other kernel-related factors, prices increase, and the opposite is also true,” she said.

She added that TMX would continue improving the system in line with views from the government and other stakeholders, noting that most buyers were conversant with the platform.

However, she acknowledged challenges, particularly discrepancies between information shared with buyers and the actual physical stocks in warehouses.

“When buyers are informed of a certain quality, it becomes a challenge if the stated quality, quantity or moisture level is not reflected in the available stock. Authorities will continue addressing these issues to ensure a more attractive 2026/27 trading season,” she said.

Remarks from cooperative unions

Tanecu General Manager, Mr Mohamed Mwinguku, said the union had recorded notable achievements this season, including sustained high production levels.

He said while 124,000 tonnes were produced last season, nearly 122,000 tonnes have already been traded this year, expressing optimism that the figure would surpass last season’s total by the close of the auctions.

Mr Mwinguku said unlike last year, when packaging materials were insufficient due to unprecedented harvests, no such challenge had been recorded this season.

“We have also not recorded payment challenges, and buyers have attended auctions in large numbers. Prices were slightly lower compared to last season, but this reflects trends in the global market,” he said, citing efficient payments processed through Coop Bank as another success.

He noted that initial challenges experienced when the bank was simultaneously paying sesame and pigeon pea farmers had largely been resolved during the cashew trading season.

On challenges, Mr Mwinguku said weather changes had resulted in some cashews recording moisture levels of between 12 and 14 percent, above the recommended 10 percent.

“This prompted AMCOS to instruct farmers to continue drying their produce to reduce moisture levels,” he said.

He added that the union is also purchasing raw cashew nuts for its processing plant, targeting 3,500 tonnes by the end of January to meet installed annual capacity.

Tunduru Agricultural Marketing Cooperative Union (Tamcu) General Manager, Mr Marcelino Mrope, said more than 39,000 tonnes had been traded through seven auctions this season, about 8,000 tonnes more than last year.

“There have been no major price changes, with rates ranging between Sh2,200 and Sh2,700 per kilo. Complaints over delayed payments have significantly reduced, with waiting periods falling from two weeks to just three or four days,” he said.

Mr Mrope said packaging materials were no longer a constraint, with a balance of 200,000 bags sufficient to handle 15,000 tonnes.

What do farmers say?

From the farmers’ perspective, Mr Arabi Mchola of Kitama Village, Tandahimba District, said delays in commencing auctions initially affected produce movement but praised timely payments.

Farmers from Newala (Mr Muhdin Mnaly) and Masasi (Ms Suzana Achimpota) districts echoed similar sentiments, saying prompt payments had improved livelihoods and discouraged illegal cashew trading, locally known as kangomba.

“After receiving the payment, farmers are mordernising their houses, stocking food for their families and preparing their children for the coming school term,” said Ms Achimpota from Lukuledi Village, Masasi District.