Abstract:
This study analysed the performance of cashewnut production and marketing in
Mkuranga District. More specifically, the study dealt with identifying major
problems affecting cashewnut production and marketing, profitability of cashewnuts
and its competing crop enterprises. In addition, an analysis of factors influencing
buyers’ net profit was done. The survey was conducted using a sample of 120
households, 24 traders and four secretaries of primary cooperatives. A structured
interview, personal observation and key informants were methods used to collect the
primary data. On the other hand secondary data were obtained from key
organizations in the industry. Tools of data analysis included descriptive statistics,
gross margin, as well as regression and correlation analyses. The results of analysis
in this study showed that low prices, unreliable markets, high input costs, pests and
diseases were the most important constraints. The highest and lowest gross margin
obtained from cashewnuts were 159 054 Tshs/ha and 82 110 Tshs/ha for coconut,
respectively. The results of correlation analysis showed that selling price was
positively correlated with market margin (r = 66.5%; P = 0.003). The regression
results indicated that education, selling price, and transport cost significantly (P <
0.05) affected the traders’ net profit, whilst buying price, and trading experience,
were not significant (P < 0.05). The existing marketing system actors comprised of
producers, agents, collectors, cooperatives, traders and consumers. Generally,
cashewnuts marketing system was seen to be inefficient and underdeveloped. Thus,
cashew development interventions should be directed to both production
technological gaps and marketing problems. The study recommends the use of
warehouse receipts system, designated buying posts and improvement of research
and extension services in cashew industry.
