Tanzania Cuts This Year’s Cashew-Output Forecast by 22%

(Bloomberg) --

Tanzania cut its cashew nuts output forecast for this year by 22% after excessive rains pounded the East African country and destroyed some of the crop.

“Due to the heavy rainfall season which started early in September especially in the coastal region, the quantity will drop to about 225,000 tons,” Agriculture Minister Japhet Hasunga said in an interview. The 2019-20 cashew harvest had been projected to climb to 290,000 tons as growers started cultivating in more provinces.

Cashew production remaining at the same level as in 2018 will be a setback for Tanzania’s plans of ramping up output to 1 million tons over the next four years, and potentially becoming the biggest exporter of the nuts. The global cashew output was 3.3 million tons in 2017-18, of which more than half came from African countries including Ivory Coast and Guinea-Bissau. The other main producers are India and Vietnam.

Following months of drought, East Africa was hit by heavy rains in November and December, killing at least 44 people in Tanzania and destroying farmlands and infrastructure.

This season, Tanzania has so far sold 214,000 tons of cashew for about 554 billion shillings ($241.2 million) using an open-auction system that the government introduced last year to improve pricing. The season runs from September through March.

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