Global Cashewnut Prices Jump by 10% After Magufuli Deploys Army!

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Mkikuyu- Akili timamu

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Feb 16, 2018
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Cashew traders scramble after Tanzanian government intervention Prices jump as president orders army to buy country’s entire harvest Tanzania is the seventh-largest producer of the cashew nut © Alamy Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) Share on Whatsapp (opens new window) Save Save to myFT Tom Wilson in Nairobi and Emiko Terazono in London YESTERDAY 4 Cashew prices have jumped after John Magufuli, Tanzania’s president, ordered the army to buy the country’s entire 2018 cashew nut harvest. The African nation is the seventh-largest producer of the nut, but a stand-off between farmers and buyers has prompted the president to act. His intervention has come at a critical time. Tanzania is one of the few growers that harvests the crop between October and January — the fallow months before the leading growers of Vietnam, India and Nigeri start exporting in February and March. Prices for processed kernels have jumped 10 per cent to $3.8 per pound since the start of November amid concerns about Tanzanian exports, according to Freeworld Trading, a UK nut trader. “Inventories are very very tight,” said Michael Stevens at Freeworld Trading. Mr Magufuli’s actions have been criticised by some as political grandstanding, but his orders follow tension among Tanzania’s cashew farmers and private traders, who had been refusing to buy the in-shell nuts produced in the country because of high prices. The bulk of the raw nuts which have yet to be shelled are shipped from Tanzania and other African countries to be processed, mainly in Vietnam and India. A falling price for processed kernels — after a bumper west Africa crop — has meant that cashew nut buyers importing for the processors have been reluctant to pay high prices. The Tanzanian president, who claimed the nut traders had been trying to squeeze the country’s farmers, doubled cashew prices and then called in the military to purchase the tree nuts when the international companies refused to pay the higher amount. Cashew auctions for foreign buyers have also been shut down, according to traders. “We will buy the entire crop, then we will look for buyers and we will eat anything that is not sold,” said Mr Magufuli, according to a statement reported by AFP.

Go Go JPM, this is how to run a country and economy! Your Millitary has helped farmers as far as Nigeria,Vietnam and India.
Wewe ndie Amri Jeshi Mkuu!

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