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Project Executing Agency Regional Cashew Improvement Network for Eastern and Southern Africa (RECINESA) Naliendele Agricultural Research Institute P. O. Box 509, Telephone +255 73 2934035; Fax +255 73 2934103 E-mail utafiti@iwayafrica.com MTWARA Tanzania
Developing apple
Developing nut
3.0 Recommendations
3.1 Major problems, constraints and limitations 3.2 Strategic positioning and future prospects 3.3 Strategies put in place to increase production include: 3.4 Policy recommendations
1.0 Background
CFC provides financial assistance to developing countries for poverty alleviation through commodityfocused developments.
RECINESA one of them, Tanzania, Malawi, Uganda, Kenya, Mozambique, Madagascar and Ethiopia
In LDCs, exports of cashew nuts and citrus fruits increased by 7.2% and 11.8% respectively between 1995 and 1999 Cashew nuts are the largest single export item for LDCs, having accounted for 53% of the total LDC exports of fresh and dried fruit and nut in value over
However, efforts have been initiated recently in order to revamp the cashew industry and improve its marketing
2.2 Market agents and channels for raw cashew nuts In all countries in the Network, cashew nut marketing
structures have changed over the years due to changes in the overall macro-economic policies. Market liberalization policies in the region have put emphasis on separation of the governments from business. private companies were given permission to buy and export raw cashew nuts or process them within the countries and export kernels to foreign markets. (Let us examine some examples of the marketing systems)
2.2 Market agents and channels for raw cashew nuts (Cont.) are purchased primarily using a At present cashew nuts
network of agents who go to the field to buy nuts for the large exporters At village level, buyers, (whether employees of exporters, their agents or smaller buying companies), deal with agents of buyers either at designated buying points or other places Cashew nuts are being bought at all sorts of buying posts such as primary society offices, village godowns, in the shops, and at farmers' residences After bulking, cashew nuts are then transported to main processing or export points. Direct purchases from farmers account for more than a half of all purchases
Buying agent
Experienced Company
Local processor
Local Processor
Retailer s Exports (Raw nuts) Exports (kernel) Local consumers Exports (raw nuts)
Retailer
Local Consumer
Export (kernels)
Indian Buyers/Exporters
Indian Processors
AIA
European/USA Blenders/Roasters
Local Consumers
European/USA Consumers
Bicycle Traders
Kiosks
Brokers
Big Traders
Domestic Consumers
Export (Kernels)
Figure 4 Warehouse receipt system for cashew marketing in Tanzania (Adopted in 2007)
Owner
Loan Receipt
Financial Institutions
Produce Receipts
Information
Warehouse Custodian
Payment Agreement
Market
One big weakness has been lack of market research or consumer surveys in the Network countries to understand the actual domestic, regional or international demand for kernels
Correct grading of nuts and quality control are important for maintaining a country's reputation as
an exporter of high quality nuts And to ensure that farmers are offered good price
In the marketing system for kernels in the respective countries, quality control is strengthened by the national bureaus of standards However, quality control is sometimes difficult because of a number of factors including:
the use of non-standard weights and measures failure of cooperative unions to increase farmers' bargaining power unsatisfactory performance of extension staff regarding quality lack of mechanisms for rewarding farmers producing high quality cashew nuts.
3.0 RECOMMENDATIONS
Fostering development of medium and large scale farms by offering technical assistance and financial incentives in high potential areas To strengthen extension services through training of subject matter specialists or local councillors. Educating farmers through training of various technologies and skills of cashew production.
1. Encouragement of farmer groups/associations 2. To encourage progress towards better cashew quality starting from the field 3. Strengthening of legislative bodies where they already exist and foster their institutionalization in countries where they do not exist 4. To improve quality of research, there is an urgent need to secure sustainable funding for research and development activities