August 07, 2019
Group to buy 176,000 tons out of 210,000 tons of raw cashew nuts the Tanzanian Government set aside for reserve purposes.
Photo by IT
The President of Tanzania directed the country’s Ministry of Justice to approve the contract as it will be an effective measure for the domestic agriculture sector. The contract will not only affect Tanzania’s export cashew nut revenue but also the revenue of other importers.
The Tanzanian Government previously attempted to find partners to buy the batches of raw cashew nuts, in India, Singapore, China and Kenya, but failed to agree on a price. It spent more than six months finding a reputable and competent buyer such as the T&T Group, with the first shipments to arrive in Vietnam in September.
As a country that imports raw cashew nuts and is also the largest exporter of refined cashew nuts in the world, Vietnam regularly plays a role as a coordinator in global value chains, connecting raw cashew nut suppliers like the Ivory Coast, Nigeria, Mozambique, and Benin with other cashew nut producers like India as well as consumer markets.
Recent market data shows that Vietnam produces and imports about 1.6 million tons of raw cashew nuts annually, of which domestic supply meets only 25 per cent of actual capacity.
The contract between the T&T Group and the Tanzanian Government not only provides abundant raw materials for Vietnam’s cashew nut industry but also continues to strengthen the country’s position as the largest raw cashew nut importer and refined cashew nut exporter in the world, with it holding 60 per cent of cashew nut production globally, according to data from the Vietnam Cashew Association (Vinacas).
Tanzania accounts for 75 per cent of raw cashew nut production in East Africa, exporting an estimated 250,000 tons annually. The contract is within the framework of the T&T Group’s long-term cashew nut production and trading project. Its other traditional markets in Africa are the Ivory Coast and Guinea-Bissau.
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