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How Tanzanian farmers reaped billions in 2024
Farmers’ incomes in Tanzania increased significantly in 2024, thanks to increased production of both food and commercial crops and favourable prices. PHOTOS | FILE
What you need to know:
- Tanzanian farmers laughed all the way to the bank in 2024, thanks to higher incomes driven by increased production of both food and commercial crops and favourable prices
Dar es Salaam. Tanzanian farmers laughed all the way to the bank in 2024, thanks to higher incomes driven by increased production of both food and commercial crops and favourable prices.
Climate change and global upheavals have increased demand for both food and commercial crops that serve as raw materials for various industries.
Amidst these challenges, heightened demand, alongside ongoing reforms in the agricultural sector such as the provision of subsidised fertilisers, seeds and other essential inputs, have spurred higher production and better prices.
The introduction of an online trading platform (the Tanzania Mercantile Exchange PLC (TMX)) for agricultural products has further boosted efficiency, creating a competitive market that benefits producers and consumers.
In her New Year remarks, President Samia Suluhu Hassan expressed her delight over the sector’s growth in 2024, highlighting that many crops saw better prices, benefiting farmers and the country in general.
For example, sesame was sold for Sh4,850 per kilogramme in 2024, up from Sh3,600 in 2023, while Arabica coffee fetched Sh8,500 per kilo, compared to Sh6,500 the previous year.
Robusta coffee prices also rose to around Sh5,000 per kilo from Sh3,500 in 2023.
Other crops saw similar increases.
Pigeon peas were sold for Sh2,236 per kilo in 2024, up from Sh2,000 the year before; cocoa went for Sh35,000 per kilo from Sh29,500 and cashew nuts sold for Sh4,195 per kilo from Sh2,190.
President Hassan also noted that cashew production is expected to reach 425,205 tonnes in the 2024/25 season, up from 310,787 tonnes in 2023/24.
Based on the outlined maximum prices, farmers earned Sh1.783 trillion in 2024 from cashew sales, a remarkable increase from the Sh680.62 billion earned in the previous year.
Tanzania Mercantile Exchange PLC (TMX) finance management officer Prince Mng’ong’o said a total of 145,886.61 tonnes of sesame were traded through the online platform in 2024, generating Sh535.68 billion.
This was a significant increase compared to just 1,134.90 tonnes traded in 2023.
In terms of pigeon peas, Mr Mng’ong’o said 100,082.09 tonnes were sold in 2024, generating Sh360.3 billion, compared to 961.74 tonnes the previous year.
However, there was a slight decline in the amount of Arabica coffee traded through TMX in 2024, which dropped to 486.14 tonnes, generating Sh2.206 billion, compared to 862.91 tonnes worth Sh2.68 billion in 2023.
“Robusta coffee trading also declined to 18,406.84 tonnes, valued at Sh100.46 billion, down from 18,945.35 tonnes worth Sh52.86 billion in 2023,” said Mr Mng’ong’o.
Mtwara Regional Commissioner Patrick Sawala attributed the success of cashew harvest and favourable prices to the investments made by President Hassan’s administration in the provision of subsidised fertilisers, cashew inputs like insecticides and sulphur treatments.
He also pointed to the government’s focus on recruiting and training extension officers, providing transport and equipping them with smartphones.
Col Sawala also highlighted investments in crop research and pest control through the Tanzania Agricultural Research Institute (TARI) at Naliendele Centre, as well as efforts to educate farmers as actors that have all contributed to increased production.
He noted that the wealth generated from cashew farming is directly benefiting local communities, helping fund essential needs such as food, school fees, and more.
However, Col Sawala noted that the region is diversifying its economy by promoting other cash crops, including sesame, peas, and pulses, to reduce dependence on cashews.
“These alternative crops help farmers address financial demands while using cashew earnings for investment and development,” he said.
The region is also focusing on increasing food crop production, such as maize and millet, to reduce food import costs and reinvest the savings into development.
”This shift is evident in the ongoing regional transformation, with cashew-generated funds being invested in infrastructure and business ventures.
The impacts of government investments are becoming more visible,” added Col Sawala, who also chairs the region’s defence and security committee. Independent analyst Christopher Makombe believes that providing farmers with competitive pricing and timely, accurate information will empower them to make more informed decisions regarding what and how much to produce.
He cautioned, however, that the key risk remains weather conditions, as irrigation systems are still underdeveloped in the country.
Nonetheless, Mr Makombe is optimistic that 2025 will continue to bring positive developments for farmers.
He noted that the increased production in 2024, combined with the continued use of the TMX, has played a major role in ensuring farmers receive better returns for their harvests.
“The platform has provided access to international markets, enabling farmers to benefit from transparent pricing and reducing the exploitation of middlemen, a long-standing issue,” Mr Makombe said.
He added that TMX’s focus on quality has motivated farmers to improve the quality of their crops, allowing them to command higher prices.
Looking ahead, he believes the agricultural sector will continue its positive trajectory as TMX continues to support it.
Another analyst, Mr Oscar Mkude, said crop production has improved compared to previous years, but emphasised the need for farmers to move away from rain-fed agriculture.
