Harvest Season Nears Completion in East Africa

Cashew harvesting in West Africa is in full swing, while the season is winding down in East Africa, particularly in Tanzania. As one of the region's largest cashew producers and exporters, Tanzania has recorded a significant production increase this season. However, actual output remains below initial projections.

Higher Production but Short of Expectations

According to a leading trading house, Tanzania’s raw cashew production for the 2024-25 season has reached 408,600 tonnes, marking a 34% increase from last year’s 305,000 tonnes. Despite this growth, production is still 31% lower than the initial estimate of 595,000 tonnes.

By January 30, 2024, Tanzania had exported 337,700 tonnes of cashews, accounting for 83% of total production. This strong export performance reinforces Tanzania’s crucial role in the global cashew trade.

Cashew Auctions Offer Fair Pricing for Farmers

Tanzania remains the first African nation to conduct official raw cashew sales through an auction system, ensuring better price realization for farmers. In the first week of auctions, prices for raw cashew nuts ranged between USD 1,48 – 1,51 per kg.

For comparison, last season's auction prices ranged from USD 0,55 – 0,91 per kg, highlighting a substantial price increase for farmers this year. The auction system continues to boost farmer income by providing transparency and competitive pricing.

Strong Export Market Driven by Indian Demand

Tanzania’s cashew exports generated USD 227,1 million during the 2023-24 marketing season, reinforcing its position as a key global supplier. India, one of the world’s largest cashew consumers, remains a major buyer of Tanzanian cashews, further strengthening trade ties between the two nations.

Conclusion: Market Stability and Future Growth

Despite falling short of initial estimates, Tanzania’s cashew production remains strong, with higher farmgate prices benefiting local farmers. The structured auction system continues to provide fair pricing, while global demand, particularly from India, plays a key role in market stability.

Moving forward, balancing production growth, pricing strategies, and export demand will be essential for Tanzania’s cashew trade success. Strengthening trade policies and improving market access could further boost Tanzania’s position in the global cashew industry.

Click here to reach our trading platfrom CMBroker