Tanzania’s rapidly expanding cashew industry is set for a major boost with the launch of a new dedicated ocean freight service from the Port of Mtwara. Maersk’s 'Korosho Express,' introduced to meet the surging global demand for Tanzanian cashews, will begin bi-weekly shipments from late October, running until February 2025.
The service will link Tanzania’s southern regions to major markets in India, Vietnam, and China, key players in the global cashew trade.
Dedicated Freight Service for Tanzania’s Leading Export
Babafemi Jay Aderounmu, Maersk’s Head of East Africa Market Division, highlighted the significance of the Korosho Express, stating that the service is specifically designed to support the country's cashew exports during peak harvest seasons.
“By offering reliable, scheduled services during the peak cashew season, we're enabling more efficient trade flows and supporting the growth of this vital export commodity," Aderounmu said.
The Korosho Express not only strengthens Tanzania’s position as a leading cashew exporter but also responds to the global market's increasing demand for the country’s high-quality raw cashews.
Tanzania’s Growing Influence in the Cashew Industry
Tanzania, with an annual production ranging from 250,000 to 300,000 metric tonnes of cashews, has become a key player in Africa’s cashew trade. While the country continues to face competition from West African countries like Côte d'Ivoire, which is currently the world’s top producer, Tanzania's strategic harvest timing gives it an edge. Its peak season coincides with the off-season for major producers like Vietnam and India, positioning it advantageously in terms of supply and pricing.
Despite this, one of the industry's most significant challenges lies in processing capacity. At present, only around 10% of Tanzanian cashews are processed domestically, with the majority being exported raw to countries like Vietnam, which have developed into global processing hubs. This lack of value-added processing results in substantial economic losses, estimated at over USD 551 million between 2008 and 2013 alone.
Boosting Efficiency and Addressing Challenges
Maersk's Korosho Express aims to improve logistics efficiency and reduce shipping times for Tanzania’s cashew exporters, allowing them to maintain competitiveness in a global market where supply chain efficiency is increasingly vital.
However, factors like fluctuating global prices and weather conditions continue to pose risks to the industry. For Tanzania to remain a leader in the cashew trade, expanding its domestic processing capacity and investing in by-product development are crucial next steps. The long-term goal is to scale production to over 1.7 million metric tonnes annually, enhance processing capabilities, and diversify into new markets.
The regions of Mtwara, Lindi, and Tunduru remain the backbone of the industry, contributing around 90% of the national output. As the industry expands, initiatives to modernize processing, improve infrastructure, and add value to exports will be key to the country's continued success.
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