TZ best for processed cashews

While Ivory Coast is currently the world's largest producer of raw cashew nuts, Tanzania offers several potential advantages for processing cashew nuts domestically:

1. Seasonality and Market Timing:

• Tanzania's cashew harvesting season often falls at a different time than that of major West African producers like Ivory Coast. This "off-season" production can lead to lower market competition for Tanzanian cashews, potentially allowing processors to secure better prices and a more consistent supply for international markets when other major producers are out of season.

2. Government Support and Strategic Policies:

• The Tanzanian government has shown increasing commitment to developing its local cashew processing industry. This includes policies aimed at boosting production and exports, such as subsidies on farming inputs, infrastructure improvement initiatives, and training programs for farmers.

• The government has also implemented measures to prioritize local processing, such as providing loans to local companies for establishing modern processing facilities, and imposing export levies on raw cashew nuts to encourage value addition within the country. The long-term goal is to process all of Tanzania's raw cashew nuts locally by 2030.

• The Cashew Nut Board of Tanzania (CBT) plays an active role in supporting the industry. Recently we have signed an MOU with CBT. 

3. Growing Focus on Local Processing and Value Addition:

• Historically, both Tanzania and Ivory Coast have exported the majority of their raw cashew nuts for processing in countries like Vietnam and India. However, Tanzania is actively shifting towards establishing more local processing facilities to add value to its cashews. This not only increases revenue from exports but also creates jobs and reduces economic dependency.

• While Ivory Coast is also making efforts to increase its local processing capacity, it has faced significant challenges with local manufacturers struggling to compete with larger Asian importers for raw cashew supply. The Ivorian government has recently implemented measures to address this, such as requiring authorization for raw cashew exports and reserving the early harvest for local processors.

4. Quality and Sustainability:

• Tanzania is known for producing high-quality cashews, attributed to its ideal climate and soil conditions.

• There's a growing emphasis on sustainable farming practices and stringent quality control measures within the Tanzanian cashew industry, which can enhance the reputation of Tanzanian cashews in international markets and attract buyers seeking ethically sourced and high-quality products.

Challenges (for both, but highlighting where Tanzania might have an edge or is actively addressing):

• Limited Processing Capacity: Both countries still process a relatively small percentage of their raw cashew nuts, with the majority being exported. However, Tanzania's aggressive government initiatives and long-term goals indicate a stronger current push for domestic processing.

• Access to Raw Materials: In Ivory Coast, local processors have faced challenges competing with international buyers for raw cashew nuts. While this is a common issue for many African producers, Tanzania's recent policy changes (like allowing local processors to buy directly from farmers and introducing an export levy on RCN) aim to provide local processors with better access.

• Price Volatility and Investment: Both face challenges related to fluctuating international prices and the need for significant investment in modern processing facilities. However, government support and incentives in Tanzania are specifically designed to mitigate these for local processors.

In summary, while Ivory Coast has a larger raw cashew production volume, Tanzania's proactive government policies, increasing focus on local value addition, and efforts to empower farmers and ensure a consistent supply offer significant advantages for the development and growth of its cashew processing industry.

For investment opportunities email: ceo@cashewtanzania.org