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Earnings from cashew nut exports reached $575.6 million (about Sh1.3 trillion) during the year ending October, 2018 higher than $340 (about Sh780 billion) recorded during the year ending October last year.
BY Mnaku Mbani and Rosemary Mirondo @TheCitizenTZ news@tz.nationmedia.com
IN SUMMARY
Dar es Salaam. Earnings from cashew nut exports reached $575.6 million (about Sh1.3 trillion) during the year ending October, 2018 higher than $340 (about Sh780 billion) recorded during the year ending October last year.
The Bank of Tanzania (BoT) Monthly Economic Review for November shows that the amount was more than the combined earnings from exports of six traditional cash crops including tobacco, tea, coffee, cotton, cloves and sisal.
The review shows that export earnings from the six traditional cash crops stood at $537.5 million (about Sh1.2 trillion), with tobacco and coffee contributing a combined exports earnings to tune of $356.5 million.
According to the Cashew Board of Tanzania (CBT), a total of 313,826.386 tonnes of the crop were produced during the 2017/18 season, of which 93.15 per cent or 292,338.802 tonnes were exported in raw form.
Between 1990/91 and 2017/18, Tanzania produced a total of 3 million tonnes of cashew nuts of which 90.55 per cent or 2.7 million tonnes were exported.
The board report shows that 2017/18 was the peak production year, as it accounted for ten per cent of total production recorded over the last 28 years.
Tanzania is the third major crop producer in Africa, behind Nigeria and Ivory Coast. Ivory Coast is the world’s top cashew nut producer with the output of 770,000 tonnes this year.
This is being reported as the 2018/19 season has completed and almost all cashew nuts have been collected from farmers.
This year, the crop processing is being done locally as the government announced that no raw cashew would be exported.
Unlike in previous years when private sector was involved in buying the crop, this time, the government decided to take up the responsibility as the main buyer, through the Tanzania Agricultural Development Bank (TADB).
The government intervention came after private buyers wanted to buy the crop at a price which was lower than Sh3,300 per kilo.
Recent statistics released by the ministry of Industry, Trade and Investments showed that a total of Sh183 billon had already been paid by the bank to farmers, considering the indicative price.
Industry, Trade and Investment minister Joseph Kakunda told The Citizen in a telephone interview that the government expected this year’s revenue from cashew exports to fall to around the same figure as last year’s which started November 2017 to October 2018.
Explaining, the minister said that while they expect production of cashew to increase compared to last year, but global prices had fallen compared to last year, thereby dashing government expectations to increase export earnings.
“Our expectations were high, but the fall of the global prices might affect this year’s earnings as compared to last year,” he said.
Explaining, he said that, last year the global price of cashew was high which influenced the local price to the maximum of Sh4,500 per kilo, but this year, the local price has fallen to around Sh3,300.
Source: The Citizen
BY Mnaku Mbani and Rosemary Mirondo @TheCitizenTZ news@tz.nationmedia.com
IN SUMMARY
- Earnings from exports of cashew nuts reached nearly Sh1.3 trillion during the year ending October 2018, higher than Sh780 billion recorded during the year ended in October 2017, the Bank of Tanzania has said.
Dar es Salaam. Earnings from cashew nut exports reached $575.6 million (about Sh1.3 trillion) during the year ending October, 2018 higher than $340 (about Sh780 billion) recorded during the year ending October last year.
The Bank of Tanzania (BoT) Monthly Economic Review for November shows that the amount was more than the combined earnings from exports of six traditional cash crops including tobacco, tea, coffee, cotton, cloves and sisal.
The review shows that export earnings from the six traditional cash crops stood at $537.5 million (about Sh1.2 trillion), with tobacco and coffee contributing a combined exports earnings to tune of $356.5 million.
According to the Cashew Board of Tanzania (CBT), a total of 313,826.386 tonnes of the crop were produced during the 2017/18 season, of which 93.15 per cent or 292,338.802 tonnes were exported in raw form.
Between 1990/91 and 2017/18, Tanzania produced a total of 3 million tonnes of cashew nuts of which 90.55 per cent or 2.7 million tonnes were exported.
The board report shows that 2017/18 was the peak production year, as it accounted for ten per cent of total production recorded over the last 28 years.
Tanzania is the third major crop producer in Africa, behind Nigeria and Ivory Coast. Ivory Coast is the world’s top cashew nut producer with the output of 770,000 tonnes this year.
This is being reported as the 2018/19 season has completed and almost all cashew nuts have been collected from farmers.
This year, the crop processing is being done locally as the government announced that no raw cashew would be exported.
Unlike in previous years when private sector was involved in buying the crop, this time, the government decided to take up the responsibility as the main buyer, through the Tanzania Agricultural Development Bank (TADB).
The government intervention came after private buyers wanted to buy the crop at a price which was lower than Sh3,300 per kilo.
Recent statistics released by the ministry of Industry, Trade and Investments showed that a total of Sh183 billon had already been paid by the bank to farmers, considering the indicative price.
Industry, Trade and Investment minister Joseph Kakunda told The Citizen in a telephone interview that the government expected this year’s revenue from cashew exports to fall to around the same figure as last year’s which started November 2017 to October 2018.
Explaining, the minister said that while they expect production of cashew to increase compared to last year, but global prices had fallen compared to last year, thereby dashing government expectations to increase export earnings.
“Our expectations were high, but the fall of the global prices might affect this year’s earnings as compared to last year,” he said.
Explaining, he said that, last year the global price of cashew was high which influenced the local price to the maximum of Sh4,500 per kilo, but this year, the local price has fallen to around Sh3,300.
Source: The Citizen
