Makadirio ya Mapato na Matumizi ya Serikali kwa Mwaka wa Fedha 2017/2018 - Wizara ya Viwanda, Biashara na Uwekezaji

MHE. CECIL D. MWAMBE: May your Table be pleased to read my contribution in English as it is research based, it should also be read with Intoxicating Liquour Act. of 1968/ 1966 and 1981.

Justification for cashew value addition in Tanzania. Cashew Apple Processing: In Tanzania, cashew apples are under utilized. In most cashew-growing areas, small quantities of cashew apples are consumed as fruits, though they are not sold in markets as there is no demand for them. A few cashew apples are locally used in production of alcoholic and non alcoholic beverage, but the majority of cashew apples are left to not in the field. Some farmers in Brazil plant cashew primarily for its fruits and the nut is a secondary product which is thrown away, yet they realize a very good profit.

It should be noted that Cashew apple have vitamin C, five times than that in citrus fruits, have high carotene and hence they have good health benefits.

The estimated amount of cashew apple produced in Tanzania is over 1,300,000 tons in major cashew growing areas based on current National cashew production levels. Assuming that only 10% of it (Approximately 130,000 tons) is utilized for production of juice at extraction rate of 70% about 91.1 tons (approximately 91 million liters) of cashew apple juice will be produced. If each liter is sold at a farm-gate price of $o.5,about $45.5 million will be realized in a season.

Equally, if 90% of the remaining cashew apples (Approximately 1,100,000 tons) is used to produce cashew gin (Nipa), farmer could earn even more money than the amount obtained in juice above.

It should be noted that Farmers are already knowledgeable in the production of cashew gin, but they are not aware if there is a law that allows them to distill alcohol as long as they have a valid distilling license from relevant authority. As a result, they produce gin (Nipa) in hiding and once they are caught by Police they face prosecution. This calls the need to create awareness to our farmers. Nipa is called illegal illicit alcohol simply because the producers do not have a licensed to do so. The law is clear that gin (Nipa) can be produced but the producer must have a valid license.

The institute has done a research on cashew apples processing into juice, Jam and Wine. They are in the final stage of commercializing the value addition to juice and wine. Equally the institute has also undertaken research on cashew butter production. They are also in the final stage of studying shelf life of the cashew butter. Broken cashew kernel are sold at Tshs 6,000/kg. Once the 1kg of broken kernels is processed into butter it will produce three jars (each 330 mls) and will be sold at Tsh 6,000 per jar making a total of Tshs18,000.

It should be noted that Cashew kernel is cholesterol free or zero cholesterol therefore it is good for health. These health benefits are the main reason why cashews are quite expensive worldwide. Cashew farmers can double their income if they will add value to cashew kernels, cashew shells and cashew apples.

Convincing farmers to produce Gin (Nipa) for value addition into Ethanol and Methanol will give them more income. The reason for further processing is due to the fact that Nipa has about 2% methyl alcohol which is not good for health. It makes people blind but it is mainly used in hospitals (popularly) known as methylate spirit). This means adding value to Nipa will make our people more health and equally farmers will tend to sell to get more money.

Naliendele Research Institute is in the process of installing a small scale cashew distilling plants to be specific Fractional Distillation Equipment to separate Nipa into methyl alcohol and ethyl alcohol. The objective is to undertake economic analysis to find out how much more farmer can gain if they sale their Nipa to authorize agent. It is estimated that at moment the Nipa is sold at about Tshs 500 per Fanta bottle which is approximately 330 mls. This means Nipa will be sold at about Tshs 1500 per litre. On the other hand, 100 mls of the methylated sprit (methl alcohol 70% v/v) is sold between Tshs 1,000-2000 in pharmacies.

Naliendele Research want to establish how much can be obtained from the Nipa if it is fractionally distilled. Data from this study will show how much more farmer can get from cashew apples which are sometimes thrown away or under utilize. It is no doubt that they will earn more than selling the Nipa at Tshs 1,500 per litre. Another advantage of adding value to cashew apples in creation of employment in the entire cashew value chain.

Reviving Cashew Processing is Possible; Cashew processors in Tanzania complains that they cannot compete with foreign buyers in buying raw cashewnuts in the warehouse because they hardly get raw cashewnuts when bidding. On the other hand, they also complain that they do not make profit due to high prices. One of the reason why they do not make profit is due to the fact that they depend on only one product when processing and these are the cashew kernel. The cashew shells are not value added. They can produce Cashewnut Shell Liguid(CNSL) and shell cakes to be used as fuel.

The CNSL also can produce several products as follows:-

• Brake linings
• Lubricant is high temperature areas
• Cosmetics
• Insecticides to fumigated buildings
• Ceiling boards for high moisture conditions Cashewnut produce the following:-
• Kernels (20-25% by weight of raw cashewnuts
• Cashew shells (70-80% by weight)
• Cashew shell produce CNSL –(20-25%) of weight of raw cashewnuts
• Cashew shell cake for fuels (50-60%) by weight of raw cashewnuts

It is important for the local processors to be given a high priority in buying cashewnuts in the auction though warehouse receipt system. Arrangement can be done to make sure the local processors do not need go to the auction. They need to be allocate 20-25% of the amount the cashewnuts which was given the highest price during auction.

When a foreign buyer bid and get a certain amount of cashewanuts, 20-25% will be allocated for local processors to buy at the same market price. In this way, farmer will continue getting higher prices while the local processors will have an access to the raw cashewnuts until they satisfied.