Friday, May 11, 2012


Tanzania: Firm Set to Boost Cashew Nut Processing

  • Friday, May 11, 2012
  • Thùy Miên
  • cashewnews_001EXPORT Trading Group (ETG) has embarked on expansion of local processing of cashew nut that will see the company enhance its capacity from 2,500 to 14,000 tonnes per annum.

    The move is part of the company's bid to rescue the cashew nut industry by providing a reliable domestic market and adding value to the crop.This season over 85,000 tonnes of cashew nut worth over 100bn/- stranded in co-operative unions' godowns due to price volatility in the world market.

    ETG's in-charge of Korosho Africa Ltd, Mr Sunil Mizar told the 'Daily News' on Thursday that the expansion would begin in July, this year, by increasing processing capacity at its Tunduru factory from 2,500 to 4,000 tonnes."We have secured cutting and peeling machines from India and Vietnam, respectively to boost production at Tunduru," he said.

    Mr Mizar said the company had also acquired two processing plants with capacity to process 5,000 tonnes each to be installed in Newala District and Mtwara Municipality.The two plants will start production in October, this year.

    Apart from having packing centre for cashew nut in Mtwara, EGT has established a state-of-the-art packaging centre in Dar es Salaam with (International Standard Organization (ISO) certification, he said."We have come-up with consumers' packs of different size from 250 grammes to 50 kilos to suit different needs of our customers," he noted.

    He said the expansion and investments would create more jobs to Tanzanians and avoid over reliance on the foreign markets.The Tunduru factory employs 4,000 casual labourers.EGT, according to Mr Mizar, expect to by 60,000 tonnes for export and for local processing this year, up from 48,000 tonnes last season.

    Lack of enough processing industries has left the country exporting more than 80 per cent of its raw cashew nut to India.

    Since September the Indian market slumped by 40 per cent due to depreciation of its currency, Rupee and influx of cheaper cashew nut from Ivory Coast.

    The Chairman of Parliamentary Committee on Public Organisations Accounts Committee (POAC), Mr Zitto Kabwe advised the government to repossess all 10 factories that were privatized in 1980s because the owners failed to honour sales agreements. The factories were built by the government with a World Bank loan of 184 million US dollars in 1970s and 1980s.


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