Dar fails to capture Cashew nuts` exports

Low export supply channels, high cost of haulage and poor product packing logistics are hindering Tanzania`s cashew nuts export to the United Kingdom. In 2007 the country`s market share slightly improved with cashew nuts exports of 48,130kilogrammes valued at 143,584 sterling pounds. Neighbouring Kenya exported 95,257kilogrammes; a recent market study has shown.

London-based Tanzania Trade Centre commissioned the study which showed that the country exported 16,329kg of cashew nuts, earning ?56,349. By comparison Kenya exported 43,128kilogrammes of cashew nuts to UK and earned ?188,990. Mozambique, which earned ?79,888, exported over 33,000kilogrammes of cashew nuts last year.


In 2006, Tanzania exported 32,659kilogrammes of cashew nuts to UK while Kenya`s exports were 121,699 kilogrammes followed by Mozambique and Burkina Faso which exported 15,895kilogrammes and 8,514kilogrammes of cashew nuts respectively. According to the Director of London-based Tanzania Trade Centre, Yusuff Kashangwa, UK holds the largest European market share for the product.


A London-based Tanzanian researcher Dr Hildebrand Shayo explained that the consumption rate of edible nuts, especially luxury nuts, has swollen in the EU in recent years due to recognition of the fact that nuts are healthy products. Overall, edible nuts from developing countries had a market share of 44 percent in the UK in 2006, followed by intra-EU trade which represented 37 percent of the market.


The leading suppliers from developing countries are China (9 percent), India (7 percent) and Vietnam (5 percent). However, he said that UK and EU market needs are based on environmental, consumer health and safety as well as social concerns. He attributed the country`s low trade volume to little support from their microfinance institutions facing farmers and exporters, making them unable to handle large import orders, urging local exporters to learn from counterparts in neighbouring countries to improve the quality of their product and packaging strategies.


Smallholder farmers in Coast, Lindi, Ruvuma and Tanga regions are the main cashew nut producers in Tanzania. Most edible nuts have one harvest per year, and most of them can be kept in dehydrated form for longer periods. Factors that have significantly affected the prices are the exchange rate of the dollar, quality, grade, presentation and the method of drying/processing used prior to export the nuts into the UK market. Dr Shayo said effective operating factories, quality control and organisation of primary procurement are crucial to the improvement of cashew nuts exports.


Although total rated capacity of existing factories is over 100,000 tonnes of raw cashew nuts per annum; effectively, only about 30,000 tonnes of raw nuts can be processed. A lot of money was being lost by exporting unprocessed cashew nuts. One processed tonne of cashew nuts fetches five times more than unprocessed cashew. The country exports more than 90 percent of its total cashew nuts to India in raw form.

Source : Sunday Observer