Posted on October, 24, 2022 at 08:00 am
Cashew farmers in Mtwara Region have rejected the low prices offered by buyers for their cashews during two open auctions held separately as the 2022/23 trading season that kicked off on Friday.
The decision was taken by farmers during auctions organized by Masasi and Mtwara Cooperative Union (Mamcu) and Tandahimba and Newala Cooperative Union (Tanecu) during which some 8,123 tonnes were presented for auctioning.
While Mamcu’s auction took place at the Chingulungulu Village in Masasi District under the Mbangara Agriculture Marketing Cooperative Society (Amcos), Tanecu public trading took place at Mitondi B Village under Mitondi B Amcos.
Reports from the region issued yesterday said while Mamcu auctioned 6,513 tonnes of raw cashew nut (RCN), Tanecu submitted 1,610 tonnes for public trading.
However, buyers who attended the auction organized by Mamcu offered Sh1,800 and Sh2,000 minimum and maximum prices respectively, their counterparts at the Tanecu public trading provided Sh1,630 and Sh2,011 prices respectively.
During the auction that took place on Friday, Mamcu general manager Biadia Matipa read prices offered by 20 prospective buyers who appeared during the public trading.
Ms Matipa then asked farmers whether they were ready to trade the merchandise at the offered price, but farmers rejected the price outright.
“The consignment will be re-auctioned during the auction slated to take place next Friday at the Nangaramo Village in Nanyumbu District,” said Ms Matipa.
Her Tanecu counterpart Mohamed Mwinguku said 16 bidders had submitted their offer during the opening auction for the cooperative union in this season.
Reading the offers during the public auction, prices ranged from Sh1,630 to Sh2,011 per kilo, but these price ranges were also rejected by the growers.
“We expect to subject the merchandise for re-auctioning in the second public trading expected to take place at Nanguruwe Village in Newala Town Council,” he said.
“Let us see if farmers will accept the new offers because cashew auctioning depends on the farmers’ price acceptance. There is no way the business will be successful without the farmer’s agreement on the offered prices,” he added.
According to the auction schedule released by the Cashewnut Board of Tanzania (CBT), yesterday Lindi Mwambao Cooperative Union (LMCU) was expected to hold its season curtain raiser auction in Mtama District Council through Mtama Amcos.
Furthermore, the schedule shows that Ruangwa, Nachingwea and Liwale Cooperative Union (Runali) is expected to hold its first auction in Ndomondo Village in Nachingwea District Council under Ndomaki Amcos.
May this year, CBT said Tanzania targeted to produce 400,000 tonnes in the 2022/23 season signifying a huge increase compared to 236,213 tonnes of the merchandise produced in the 2021/22 season.
But, data provided by the National Bureau of Statistics (NBS) through its Tanzania in Figures 2021 report shows the number of RCN tonnes produced in the last five years in brackets as 265,238 (2017) 313,826 (2018) 225,053 (2019) 232,681 (2020) 210,786 (2021).
Recently, CBT maintained that the 400,000 tonnes target remained unchanged despite reports of weather changes recorded in different cashew growing regions.
Source: The Citizen