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Cashew farmers earn Sh880 billion as Mtwara Port use picks up.

  • November 11, 2024
Cashew farmers earn Sh880 billion as Mtwara Port use picks up.

Cashew-nut farmers have earned a total of Sh879.699 billion in the past seven weeks, courtesy of an improved trading environment, which includes designation of Mtwara Port as the export gateway for the crop.

Speaking when Mtwara Regional Commissioner Patrick Sawala visited the port, Cashewnut Board of Tanzania (CBT) director general Francis Alfred said the 2024/2025 season was off to a successful start and is now in its seventh week.

“So far, the production and sales of cashew nuts have reached 261,797 tonnes valued at Sh999 billion, out of which farmers have earned Sh879.699 billion, he said.

“We expect to surpass last season’s total production figure of 310,000 tonnes this season as we continue using Mtwara Port for exports. I visited the port and was satisfied that there are enough vessels available to ship out this season’s exports,” Mr Alfred said.

Cashew-nut farmers are being offered higher prices this season, thanks in part to the government’s decision to have the crop sold through the Tanzania Mercantile Exchange platform, which has cut out middlemen, who were fleecing farmers.

During the first auction held on October 11 and organised by the Tandahimba and Newala Cooperative Union (Tanecu), 3,857 tonnes of unprocessed cashew nuts were sold at prices ranging from Sh4,035 to Sh4,120 per kilogramme.

The second auction held on October 12 by the Lindi Mwamba Cooperative Union (LMCU) saw 6,435 tonnes traded at between Sh3,400 and Sh3,865 per kilogramme.

Colonel Sawala urged traders who have bought cashew nuts in the region to move fast and export the produce through Mtwara Port instead of leaving it lying in warehouses for months on end.

“We are implementing President Samia Suluhu Hassan’s directive as it is meant to benefit farmers, traders and the nation in general,” he said, adding that he had inspected the port and was satisfied that there was sufficient capacity, with workers operating around the clock.

“We have seen for ourselves that there are enough operational cranes for loading cargo onto ships. In short, this port is capable of handling all cashew nuts that are meant to be exported to international markets this season.”

Col Sawala commended the port, noting that it began preparations for the current season immediately after the previous season ended is now able to handle up to 500,000 tonnes of cashew nuts per season.

Mtwara Port manager Ferdinand Nyathi said the port, through which 253,000 tonnes of cashew nuts were exported last season, has in the last few years made big strides as far as the handling of cargo is concerned.

“A cargo ship operated by Mediterranean Shipping Company is currently docked at the port and is being loaded with 600 containers. It is expected to depart in the next few days, paving the way for more ships to be loaded with cashew nuts. We are still loading goods into containers both inside and outside the port,” he said, adding that 11 ships have been handled since the season began.

Mr Nyathi noted that the port can handle up to 2 million tonnes of cargo annually and accommodate vessels up to 240 metres long. The port last year handled 1.7 million tonnes of cargo.

“It will be recalled that Her Excellency the President directed during her visit to Mtwara Region that all cashew nuts harvested in the southern regions be exported through this port and we are actively implementing this directive,” he said.

The government has so far invested Sh157.8 billion in constructing a new 300-metre berth at the port.

The berth, with a depth of 13 metres, is capable of accommodating ships up to 230 metres long and handling bulk carriers with a deadweight capacity of up to 65,000 tonnes.

The new infrastructure includes a 75,807-square-metre yard that can store up to 8,600 20-foot containers annually.

Mtwara Port’s cargo handling capacity has grown significantly in recent years.

The port handled 1.629 million tonnes of cargo in the 2022/23 financial year, up from just 106,170 tonnes in 2018/219.

The figure rose to 1,727,261 tonnes in 2023/24, with the 2024/25 target being set at 1.7 million.

“We are committed to ensuring that Mtwara Port becomes the key gateway for cashew-nut exports and other cargo from southern Tanzania and beyond. Our goal is to handle all exports efficiently while continuing to attract more business to the port,” Mr Nyathi said.