How Magufuli Made Cashew Farming Profitable Again in Tanzania

Dr John Magufuli is a remarkable economic leader, who understands that food security is a national security issue that needs the highest attention. What separates a leader from just a President is growing an economy. Democracy is built on a good economy and there is no strong democracy without a strong economy.

Traders attempted to defraud farmers the backbone of this agro based economy that drives exports and generates forex for Tanzania. It is the Tanzanian farmers that allow Tanzania to participate in global trade.

The traders do not in fact add any value to the supply chain in the cashew industry and so Magufuli made the calculated risk to cut them out of supply chain. The ministry of agriculture and cashew nut board mismanaged the cashew industry allowing traders more power than they should have.

The cashew traders wanted to purchase cashew nuts for $0.67 which farmers believed was not enough to cover their costs let alone make a profit. Farmers are driven by incentives and monetary incentives are essential to ensure food security and maintain cashew exports for the country. Initially at the government prescribed price of 3,000 shillings or $1.31 per kilogram.

The cashew traders wanted to keep farmers from breaking even which would mean farmers would find the farming cashews unprofitable and bring down the cashew industry in Tanzania.

The Tanzanian government then purchased the cashew nuts for $1.43 per kilogram to compensate the farmers for their efforts allowing the farmers to profit from their efforts and make a living from growing crops and providing their families as well as having enough to save for rainy days and save for next year growing season. This allows the farmers to become self-sufficient and debt free.