Mozambique: Cashew nut trading season kicks off in Zambézia auction – Watch

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Mozambique: Cashew nut trading season kicks off in Zambézia auction – Watch

9:59 CAT | 08 Dec 2021

Photos: Conselho Executivo Provincial da Zambézia

Overall, Zambézia province produced 17,000 tons of cashew nuts, but is only selling 170 tons, as foreign and national traders are contacting producers pre-emptively and buying crops at uncompetitive prices instead of waiting for the reference price established by the Government of 43 meticais per kilo.

This Monday, Zambézia hosted the launch of the first edition of the cashew nut auction. This is the first nationwide initiative organised by the Mozambique Mercantile Exchange (BMM), and will cover Mozambique’s top five cashew-producing provinces – Zambézia, Nampula, Cabo Delgado, Inhambane and Gaza.

The town of Malema, district of Pebane, hosted the auction launch ceremonies. The president of BMM, Victória Daniel, said that the initiative, the first of its kind, would be annual, and it was planned in due course to include other products, such as beans, sesame, maize, among other cash crops with substantial production and in high demand.

Victória Daniel also stated that this initiative aimed to strengthen the efforts of producers who do so much to produce and, at the end of the day, don’t raise much for their families, because the merchants who approach them make uncompetitive offers.

“This has a negative impact on the producer’s family income. He spends strength, time and money to produce intending to increase his income, but, at the end of the day, he sees all his plans frustrated by merchants who look only to their own profits,” Daniel said.

Zambézia’s current growing season produced 17,000 tons of cashew nuts, but the auction will only sell 170 tons, because traders go directly to the producer and buy crops at less than the recommended price.

The government set the reference price for the current marketing year at 43 meticais per kilo. From the 170 tons being auctioned, producers expect to raise just over seven million meticais, of which 2% – just over 400,000 meticais – goes to the state.

The governor of the province, Pio Matos, who launched the auction, began by presenting the qualities of the available cashew nuts to those involved in the marketing chain.

After the announcement, traders denounced the reference price decided by the government, saying transportation costs and taxes meant they would not make any money.

In response, Pio de Matos made it clear that “the reference price applied by the Government is not negotiable; it is intended to safeguard the improvement of living conditions for producers” and was irreversible.

The “mega auction” of cashew nuts runs from November 2021 to February 2022, covering Cabo Delgado, Zambézia, Nampula, Inhambane and Gaza provinces.

By Jorge Marcos