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High expectations as cashew season opens
What you need to know:
- Farmers are banking their hopes on improved quality of their produce and favourable prices in the world market Cashewnut growers sell their produce during a previous trading season
Mtwara. Farmers are harbouring high expectations as the cashewnut marketing season starts today.
Their hopes are based on the improvement of the quality of their produce and the ongoing trend of improvement in global prices of cashew nuts and other crops such as sesame and peas in recent months.
For instance, during the 2022/23 season, a kilogramme of sesame was sold for between Sh3,083 and Sh3202. However, in the recently concluded 2023/2024 season, prices ranged from Sh3,665 to Sh3,967.
On the other hand, for the first time this season, peas started to be sold through the warehouse receipt system, where the highest price for a kilogramme was Sh2,139, while the lowest price was Sh2,000.
Prior to that, peas were sold at prices ranging from Sh300 to Sh600 per kilogramme.
Meanwhile, during the 2021/22 season, a kilogramme of raw cashews was sold for between Sh2,100 and Sh2,445, while in the previous season of 2022/23, it fetched between Sh1,521 and Sh2,200.
Currently, a kilogramme of cashew nuts from India, Vietnam and West Africa fetches between Sh1,650 and Sh1,936 in the world market.
In Mozambique, the indicative price is $0.54, which is equivalent to between Sh1,355 and Sh1,694.
India and Vietnam have been the major cashew markets for Tanzania followed by China, Bangladesh, Egypt, Germany, Uganda and others.
According to this season’s price assessment posted yesterday on the Cashewnut Board of Tanzania (CBT) website, the price of Tanzanian cashews may be higher than the world market price, depending on the quality of the cashews to be sent to the market through auctions and competitiveness.
Similarly, the cashews in West African countries, whose season ended in July, seem to have dropped in quality compared to the new cashews that are starting to be sold today.
Some of the farmers in the southern regions, who spoke to The Citizen yesterday said that they expect to get a high price from Sh2,000 to Sh5,000 following the improvement in the quality of the crop this season and the good price experience they gained in the crops of peas and sesame.
A farmer from Lindi Region, Ms Somoe Yusuf, said since they got subsidy inputs timely early this year, they expect to get good prices.
“I expect to find prices ranging from Sh4000 to Sh5000 at the auctions because we have produced cashews of high quality this season, dry spells that withered the flowers,” said Ms Yusuf.
Another farmer from Chitekete in Newala District, Mr Ibadi Matata, said he is not sure of the price because he knows that will depend on the world market.
“I’m not sure about prices at the auctions because that will depend on the rich themselves, we will be ready when they set them, we will be sad or happy as the prices are made known,” he said.
The secretary of Mnolela Primary Cooperative Society (AMCOS) in Mtwara District, Mr Masoud Namjupa, told The Citizen that he is requesting the government to ensure that the price does not drop below Sh2,000 per kilogramme.
For his part, CBT director general Francis Alfred urged farmers to sell the best cashews in order to hype its demand among buyers and its price to go up.
A cashew farmer from Nanyanga Ward in Tandahimba District, Mr Abbassi Shaibu Namaneha, stated that he expects to meet a good price that reflects the reality of production at the first auction to be conducted by the Tandahimba Newala Cooperative Union (Tanecu) in Tandahimba town.
”From planting to spraying pesticides, cashew farming incurs costs, and our expectation is that the price should reach at least Sh3000, so that the farmer can remain with at least Sh2500 in hand after deducting operation costs,” said Mr Namahena.
Ms Yusuf expects the price to shoot to at least Sh4,000 to Sh5,000.
The manager for Masasi, Mtwara and Nanyumbu Cooperative union (Mamcu), Biadia Matipa, stated that so far the union has received 1.3 million sacks, (packaging materials) with a capacity to store 105,000 metric tonnes, while expecting to produce 80,000 metric tonnes.
The chairman of the Tunduru Cooperative Union in Ruvuma Region, (Tamcu), Mr Mussa Manjaula, stated that the preparations were going well for the 2023/2024 season, and their first auction is expected to take place on November 2, 2023.
Tamcu has sacks with a capacity to store 30,000 tonnes while their expectations was to produce 25,000 metric tonnes.
Mr Manjaula noted that prices was a cross-cutting issue so they expect to learn from other cooperative unions from Mtwara and Lindi which will open their auctions before them.
The chairman of Lindi Mwambao Cooperative Union, Mr Ismail Nalinga, said that all preparations are ready for this season’s trading.
