Value chain factors influencing the cashewnut production and producers’ welfare in Tanzania: the cases of Lindi, coastal and Dar es Salaam Regions

Cashewnuts account a great percent of the agricultural output and significant employers for Tanzanians. Regardless cashewnut role in the economy, discrepancy is observed between agricultural performance and producers’ welfare. This phenomenon is not well documented. The study aimed at identifying the binding constraints to the cashewnut value chain in Tanzania and recommending the changes that would improve sector value incidence on producers. A qualitative approach was used in order to explore information related to cashewnut stakeholders in Lindi, Coastal and Dar es Salaam regions. The study reveals weak linkages among supply chain members. Cooperatives are short-lived and producers do most of the businesses with brokers instead of cooperatives. Supporting institutions are not playing their functions in enhancing producers’ welfare and limited processing is observed among producers. Delay of farm inputs and their prices have been challenging to the producers in getting high quality yield from farms. Producers get low return when compared to other supply chain members. The findings imply limited knowledge among producers on policies affecting the crop, lack of business attitude among producers and limited value by supporting institutions. Cashewnut being among the major exporting commodities, supporting institutions are supposed to play their part in educating farmers and putting the necessary infrastructure in place. Cooperatives as well should play the functions that are currently being played by the processors and brokers. Producers as well should change their attitude towards the cash crop and treat it as any other business.