Tanzania’s growing cashew nut industry is set to benefit from a newly launched shipping service tailored to support the country’s growing export demands. Danish shipping giant Maersk has introduced the ‘Korosho Express,’ a dedicated ocean freight service for ease the export of Tanzanian cashews to key markets in India, Vietnam, and China.
Running bi-weekly from the Port of Mtwara, the service will operate from late October through February 2024, aligning with the peak cashew harvesting season. Babafemi Jay Aderounmu, Maersk’s East African market division head, highlighted that the service was specifically designed to boost the capacity of Tanzania’s cashew exports during this emergency.
“By offering reliable, scheduled services during the peak cashew season, we’re enabling more efficient trade flows and supporting the growth of this vital export commodity,” said Aderounmu.
Tanzania has gained its position as one of Africa’s leading cashew producers, although it faces stiff competition from West African nations such as Côte d’Ivoire, the world’s top cashew exporter. Annually, Tanzania produces between 250,000 and 300,000 metric tonnes of cashews, significantly contributing to the nation’s economy. The Korosho Express is expected to boost export efficiency and cement Tanzania’s role in the global cashew market.
Despite the country’s strong production figures, Tanzania continues to export most of its cashews in raw form, primarily to Vietnam and India, where they are processed and re-exported. This has led to substantial economic losses. Between 2008 and 2013, Tanzania is estimated to have lost approximately $551 million by exporting unprocessed cashew nuts instead of processing them domestically.
The country is focused on improving its logistics and processing capabilities to retain more value from its cashew sector. Presently, only about 10% of Tanzanian cashews are processed locally, highlighting a major opportunity for growth and economic benefit.
Regions such as Mtwara, Lindi, and Tunduru produce around 90% of Tanzania’s cashew crop. The country enjoys a competitive advantage due to its harvest season coinciding with the off-season for major cashew producers like Vietnam and India, allowing Tanzania to dominate the market during this period.
However, challenges remain. Global price volatility and weather-related issues continue to affect the industry. In response, Tanzania’s long-term strategy includes increasing annual cashew production to over 1.7 million metric tonnes and expanding domestic processing capabilities.
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