Tanzania Cashew Market Trends

Cashew is majorly grown as a cash crop in Tanzania. The high quality and bigger size of the nuts earn high prices for cashews in local as well as international markets. The high prices of exported cashews generate 10-15% of the country's foreign exchange. Hence, the government of Tanzania is generating favorable policies in order to increase production. One such is supporting local cashew processors, both as individuals and collectively, to grow, increase their capacity and become sustainable through an initiative that allows processors to buy directly from farmers. By implementing such initiatives, the government aims to triple cashew nut production in the country to 1 million metric ton by 2025. According to FAO, the production increased from 225,106 metric tons in 2019 to 232,681 metric tons in 2020.

Tanzania is one of the major cashew-producing countries in Africa. Major cashew-growing areas in Tanzania include Mtwara, Lindi, Ruvuma, and Tanga. Among these regions, the Mtwara and Lindi regions contribute more than 87% to the national cashew production. According to the Cashewnut Board of Tanzania, Tanzania has a substantial potential to extend production and increase the amount and add value to domestically processed cashew nuts beyond the current 10% while also making use of by-products. Therefore, the capacity to increase production is expected to boost the growth of the market during the forecast period.