26Jan 2019
The Guardian Reporter
Mtwara News
The Guardian
IPP gearing for cashew nuts processing
FIVE companies including IPP Ltd have shown interest to invest in cashewnut processing factories in the region, Mtwara Regional Commissioner Gelasius Byakanwa told reporters yesterday in his office.
The IPP Executive chairman Dr. Reginald Mengi.
He said that among those interested to invest in the processing of the nuts included Executive Chairman of IPP, Dr. Reginald Mengi.
Tanzania is soon expected to increase the nut processing after it halted crop export for failure of business people to buy the crop from farmers at appropriate prices, compelling the government to intervene and set the price of Sh3,300 a kilo.
Available reports indicate that there are eight cashewnut processing factories currently operational in the country, with an annual combined installed and operational capacities of 127,200 and 18,945 tonnes, respectively.
The eight factories are Micronix System Ltd (Newala II), Mtwara Cashew Company (MCC) 2005 (Mtwara), Export Trading Company Limited (Tunduru), Micronix System Ltd (Likombe) and Safa Petroleum and Mineral Company Limited (Kibaha).
The other three factories, which are also privately owned, are Naliendele Agricultural Research Institute, AMAMA Farmers and Hawte Investment Ltd. The eight operational factories are among 23 cashew nut processing facilities whose annual combined installed and operational capacities are 42,200 and 11,142 tonnes, respectively.
The government however has already signed a memorandum of understanding with a number of processors to handle the produce, where those concerned include MBR International Trading Company, SAFI Group Company, SHAFA Investment and Food Source Company.
Currently, the RC said at least 209,398 tons of raw cashewnuts had already been collected from farmers from various warehouses countrywide.
The IPP Executive chairman paid a visit to the region at the Hiyari Village where the factory is to be built, he said.
“I personally accompanied Reginald Mengi to Hiyari village where we have allocated an area for industries. He was very happy to be here and to invest in the region,” he said.
The RC said the region was now waiting for formal procedures before the project starts, so it was too early to know the capacity of the factories until the construction is commenced and completed.
“We are now working to ensure there is a conducive infrastructure in the area which will include water and reliable power so as to motivate and attract more investors,” he said.
The government is still purchasing the cashewnut stocks from farmers at a flat rate of Sh3,300 per kilogram using the military vehicles and funds from the Tanzania Agricultural Development Bank (TADB).
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