Cashewnut industry of Tanzania–challenges, problems and prospects

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University of Dar es Salaam
The research problem in this study is to find out why cashew nut crop which has a lot of prospects for the economy of Tanzania, has not contributed meaningfully to the economy of the country. The research has employed an ordinary least equare method to estimate production function of cashew nut in Tanzania using historical data for the period 1975-2007. This was to find out causal relationship among the endogenous variable which is production, and exogenous variables which are quantities of cashews exported, inflation, producer price, and FOB price. The study has found out that the explanatory variables in the models significantly influence the dependent variable, which is production. The study has also found out that lack of incentives to farmers is one of the factors that contribute to low production. The model chosen to explain the problem is significant. In conclusion we are convinced that if producer prices are improved and if the government manages well economic fundamentals such as inflation, and exchange rate, production of cashew nuts will be enhanced. The study recommends measures of increasing producer prices, control and management of important economic fundamentals, improvement of infrastructure, training and availing the necessary market information to the producers. Furthermore, the study recommends building of local institutional support to the farmers to revamp the industry and put it in its rightful position. In concluding, we are of the opinion that, problems and challenges in this industry can only be solved through a “holy” collaboration between the public and private sector and all the stakeholders who have the interest of the growth of this sub-sector at heart.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library
Cashwnut industry, Tanzania, Economic conditions
Lyatuu, J. A. R (2008) Cashewnut industry of Tanzania–challenges, problems and prospects, Master dissertation, University of Dar es Salaam