Tanzania is expecting yet another bumper cashew crop in 2019/20, surpassing production from the last year by 34%, according to Reuters. The output is initially estimated at 300,000 tonnes, supported by favourable weather conditions, better farm management and increased planted area.
For the new season crop, the Tanzanian Ministry of Agriculture has said it would allow cashew sales to private traders. Last year in November, Tanzania’s President, John Magufuli ordered an army to buy the country’s entire 2018 cashew crop after farmers complained about low bids they received from private buyers at initial auctions in the Tandahimba, Masasi and Nachingwea districts.
In June, an inventory of around 235,000 tonnes was still stored in government owned warehouses, after talks collapsed with a Kenyan-based buyer.
However, the agricultural minister has now told Reuters that the government had eventually sold the 2018/2019 crop to a Vietnamese firm.
The Mintec price for Vietnamese cashews remains down 6% y-o-y in USD terms.