Cashew is one of the main cash crops in Mozambique. Apart from sugar cane and sesame, it is the third most widely cultivated crop for sale. It is mostly grown by small-scale farmers in the rural parts of the country.
Many cashew farmers in Mozambique own between one and two hectares. This is according to the 2009-2010 Agricultural and Livestock Census. The report which was done by the National Institute of Statistics of Mozambique (INE) also indicates that more than one million households depend on cashew to earn a living.
Cashew is a major source of revenue for Mozambican farmers. For instance, it accounts for 20% of household income in the northern province of Nampula. This is according to a 2018 report by USAID.
Cashew in Mozambique
Mozambique is mainly involved in exporting raw cashew nuts (RCN). However, processing RCN into kernel is still at a small level. These small numbers of shelled cashews are taken abroad to be roasted so that they can be ready for final consumption. Yet at an even smaller level, cashew processing in Mozambique involves roasting and flavoring the kernel to sell to the domestic market or to wholesalers abroad.
Cashew nut producers in Mozambique include individual farmers and farmers associations. Usually, these producer associations deal with other crops. Any cashew producer can sell their produce to either small, medium and large-scale traders, RCN exporters or processing plants.
Mozambique Cashew Nut Price
Exports of cashew nuts from Mozambique were valued at just above 100 million US Dollars in 2022. Compared to the previous year, it is an increase of 41%. The sharpest climb was from 2016 to 2017 when the export value rose from about 80 million US Dollars to around 200 million US Dollars.
Here are the total values in export of cashew nuts from Mozambique between 2013 and 2022
Cashew Price per kg in Mozambique
The cost of a kilo of raw cashew nuts in Mozambique can be between 120 Mozambican meticais (US2 Dollars) and 200 Mozambican meticais (US3 Dollars). This is based on the average export price per kg. This wholesale price has gone as high as 250 Mozambican meticais (US4 Dollars).
Just like other countries, the WITS software records the Freight On Board (FOB) price of cashew nuts exports from Mozambique. Certainly, FOB price is different from farmgate price. FOB price includes:
- Basic price or value of commodity
- Transportation costs to the port of shipment
- Costs of loading onto ship or aircraft
- Export fees or taxes
- Intermediaries’ fees (if any)
Contrarily, farmgate price is the price paid directly to a farmer. Typically, it should cover the farmer’s costs and earn them profit. The farmgate price for cashew nuts in Mozambique is currently between 35 Mozambican meticais and 50 Mozambican meticais. It is meant to compensate farmers for:
- Planting
- Pruning
- Thinning
- Picking
- Denutting
- Drying
- Bagging
Cashew Nuts in Mozambique
Foreign buyers of Mozambique cashew nuts always do a quality test before paying up. At least 30% of the consignment is sampled for analysis. Thereafter, a sample size of 1kg is selected randomly.
Cashew nuts grown in Mozambique that are meant for overseas markets must be thoroughly dry. After harvesting, they are put out to dry in the sun for 2-3 days. Sun-drying brings down their moisture level to less than 10%. The two methods to test moisture level are:
- The inspector presses the nut between their index finger and thumb. If there is a liquid substance left on their finger or thumb, moisture content is still more than 10%. But if not, it is good enough for storage and export.
- The inspector can use a moisture detector device for precision.