Tanzania Conducts Raw Cashew Auction via Commodity Exchange

Tanzania Conducts Raw Cashew Auction via Commodity Exchange

Tanzania, an East African nation renowned for its historical significance in the global cashew industry, is poised to make a mark in the 2024/2025 harvest season. Known for its substantial production of cashew nuts—ranking second in Africa after Côte d’Ivoire—Tanzania’s cashew sector is experiencing promising developments. This article explores the recent auction of raw cashew nuts in Tanzania, examining the implications of price fluctuations, supply chain dynamics, and the nation’s strategic positioning within the global market.

On October 11, 2024, Tanzania held its first auction for raw cashew nuts of the 2024/2025 season in Newala District, Mtwara City. The auction was conducted via the online platform of the Tanzania Mercantile Exchange (TMX), the largest commodity exchange in the country. A total of 3,857 tons of raw cashews were traded, although specific details regarding the quality of the nuts were not disclosed.

According to reports from Tanzania’s Daily News, the prices agreed upon during the auction ranged from 4,035 to 4,120 shillings (approximately 1.48 to 1.51 USD) per kilogram. This represents a significant increase compared to previous years, when prices fluctuated between 1,500 and 2,500 shillings (around 0.55 to 0.91 USD) per kilogram.

Francis Alfred, the Director General of the Cashew Board of Tanzania (CBT), attributed this price surge to a combination of rising demand and limited supply in the global market. The constraints on supply can be largely traced to a decrease in raw cashew production in West Africa, particularly in Côte d’Ivoire, a major supplier of cashew nuts worldwide. Due to adverse weather conditions, this year’s production in Côte d’Ivoire is expected to fall below 1 million tons, down from approximately 1.3 million tons in 2023.

Against this backdrop, Tanzania is strategically positioned to capitalize on the increasing demand from cashew processors in India and Vietnam—two of the world’s leading nations in cashew processing, which require a consistent year-round supply of raw cashew nuts.

The cashew season in Tanzania is anticipated to continue through the last quarter of this year, with trading activities expected to extend into the first quarter of the following year. The country is projected to harvest approximately 595,000 tons of raw cashews during the 2024/2025 season, marking a substantial increase from the 305,000 tons harvested in the previous season.

In conclusion, Tanzania’s efforts to auction raw cashew nuts and the resulting price dynamics highlight the country’s growing importance in the global cashew market. As the demand for cashew nuts continues to rise, Tanzania’s role as a key supplier is vital in meeting the needs of processors worldwide, positioning it for future success in the industry.

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