Mozambique cashew nuts potential to gas financial progress


Mozambique persistently ranks as one of many high world producers of cashew nut and is at the moment the second largest producer in East and Southern Africa.

The nation’s very best rising situations and robust native processing sector make the nation uniquely well-positioned to turn out to be some of the aggressive world suppliers of high-quality cashew.

Cashew nuts have huge potential for producing financial worth by way of its worth chain. By way of manufacturing alone, it employs 1,400,000 households in Mozambique and, within the 2021-2022 advertising and marketing yr, generated a gross revenue of US$87 million.

  • Mozambique has been famend for its cashews because the early 1900s. and the nation’s very best rising situations and robust native processing sector make the nation uniquely well-positioned to turn out to be some of the aggressive world suppliers of high-quality cashew.
  • Within the 2021-2022 advertising and marketing yr, cashew in Mozambique generated gross revenue of US$87 million.
  • Europe is the biggest importer of cashews nut kernels on the planet, accounting for 35-40 per cent of world cashew import worth. The worth of European cashew nut imports elevated by a mean of two per cent a yr within the 2017-2021 interval, and volumes elevated 6.5 per cent yearly over the identical time. Just about all cashew imports from exterior Europe come from creating nations.

Cashews are kidney-shaped nuts which can be a superb supply of protein and minerals. They’re low in sugar and wealthy in oil, fibre, protein, wholesome fat, antioxidants, magnesium, zinc, copper, and phosphorus. Cashews are generally obtainable in powder, paste, complete, roasted, and break up kinds.

They’re obtained from fruit-producing timber, develop close to the ocean areas, and are extensively utilized in drinks, dairy merchandise, cereals, bars, cosmetics, and bakery merchandise. They help in boosting immunity, reducing blood stress, controlling weight, and enhancing mind features, bone density, and eyesight. Cashews additionally present numerous well being advantages, resembling lowering blood levels of cholesterol and stopping cardiovascular ailments, most cancers, and gallstones. Consequently, cashew finds in depth utility as snacks and desserts within the meals and beverage business.

Mozambique has been famend for its cashews because the early 1900s. For a lot of the twentieth century, Mozambique was the world’s main producer of cashew nuts. Africa’s first industrial cashew processing plant was established in Mozambique in 1960, and the home processing business started to thrive quickly after that, in response to Mozambican cashew.

The southern African nation rapidly constructed a fame for high quality manufacturing and environment friendly processing. Nonetheless, the nation’s cashew nut business was dealt a physique blow first by the 1977-1992 civil struggle after which by a controversial World Financial institution help package deal.

The worldwide cashew market dimension reached US$6.76 Billion in 2021. IMARC Group expects the market to achieve a price of US$ 8.89 Billion by 2027, exhibiting a CAGR of 4.42 per cent from 2022-2027. Important progress within the world meals and beverage business is making a optimistic outlook for the market. Mozambique can financial institution on this to develop its economic system by exporting cashew. In fact, a number of issues should be completed to make cashew manufacturing environment friendly and worthwhile. Allow us to take a look at a number of the issues that may be completed.

Native cashew processing

Based on Mozambican cashew, the nation has 20 cashew processing amenities situated primarily in rural communities. All processing factories in Mozambique make use of both handbook or semi-mechanized processing fashions. Whereas the standard and effectivity of machines have improved drastically in recent times, there’s nonetheless a decrease breakage price with handbook processing, and lots of amenities select to course of the biggest, Most worthy nuts by hand to make sure most revenue. Constructing and growing native processing will certainly enhance provides of the nuts. The nation also can look into digitalizing the processing of the vegetation to enhance on effectivity and manufacturing of high-quality nuts. This space presents a number of alternatives for people who find themselves into mechanization and digitalization of mechanical operations.

Factories buy uncooked nuts from farmers in the course of the harvest season from October to February, with many of the purchases occurring in November and December.

The infographic details the steps of cashew processing, from the arrival of raw cashew nuts at the factory gate through their commercialization. www.theexchange.africa
The infographic particulars the steps of cashew processing, from the arrival of uncooked cashew nuts on the manufacturing facility gate by way of their commercialization. [Photo/ Mozambican Cashew]

Aggressive pricing

The minimal reference buy worth per kilogram of cashews in Mozambique has simply fallen by two meticais this yr, however the authorities ensures {that a} higher amount will probably be offered. In the meantime, the industrialists need the chief to permit the economic system to self-regulate in response to the legislation of provide and demand, which ought to alone set up the worth.

The Cashew Trade Affiliation (AICAJU) doesn’t establish with the present mannequin, which assigns the federal government the main position in setting costs. “AICAJU reinforces its place already expressed beforehand, and as soon as once more appeals to the necessity to let the market work, since that is what is going to dictate the true reference worth,” reaffirms the affiliation’s Julina Harculette.

In 2021, Harculette mentioned, the Mozambican cashew business processed round 32,663 tons of cashew nuts final yr when the reported complete manufacturing was 146,000 tons, a rise of 6.52 per cent in opposition to the earlier yr. In 2020, 30,664 tons of cashew had been processed in Mozambican cashew industries.

Based on Tridge, Europe is the world’s largest importer of cashew nut kernels, accounting for 35-40 per cent of world cashew import worth. The worth of European cashew nut imports elevated by a mean of two per cent a yr within the 2017-2021 interval, and volumes elevated by 6.5 per cent yearly over the identical time. Just about all cashew imports from exterior Europe come from creating nations.

Within the subsequent 5 years, the European marketplace for cashew nuts is more likely to enhance with an annual progress price of 3-5 per cent. Demand for cashew nuts in Europe is secure, however import portions generally fluctuate because of variable manufacturing in the principle supplying nations. Common fluctuations in imports will proceed to be influenced by the harvested crops and worth state of affairs slightly than adjustments in demand.

Though the demand for cashew nuts within the European market is kind of secure, it’s influenced by worth fluctuations. The value of cashew nuts is increased in comparison with most different nuts on the European market.

For the reason that pricing of the nuts influences the market demand, Mozambique can leverage on this and set aggressive costs that entice patrons.

Learn: Inside Tanzania’s plan to plant 1.5 million cashew timber



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