STRATEGIC PLAN - cashewnut board of tanzania

EXECUTIVE SUMMARY
Tanzania is currently undergoing major reforms in a bid to attain economic and
social development. Key documents such as the Tanzania Development Vision
2025 (TDV2025), the Poverty Reduction Strategy Paper (PRSP), the Rural
Development Policy (RDP), the Agricultural Sector Development Strategy
(ASDS), the Agricultural Sector Development Programme Framework and
Process document, the National Strategy for Growth and Reduction of Poverty
(NSGRP) popularly known as MKUKUTA (in Kiswahili) and recently the
Agricultural Sector Development Programme (ASDP) have been operationalized
to guide the process.
In view of the on going reforms, the government is currently financing all Crop
Boards operation activities through subventions. Thus, all the Crop Boards and
other institutions affiliated to the Ministry of Agriculture Food Security and Cooperatives
(MAFC) are now requested to align their planning and budgets as per
Medium Term Expenditure Framework (MTEF) prerequisite. Therefore, due to
this current government stance and various changes and challenges occurring
both nationally and internationally in the Cashewnut industry, the Cashewnut
Board of Tanzania (CBT) considers of utmost importance to chart out its future
direction and develop strategies that will allow it to play an effective national
and international role as a regulator of the development of the Cashew industry
in Tanzania.
The major pillar of the Strategic Plan is the articulation of CBt’s Vision, mission
and values. The Vision of CBT is stipulated in the following statement:
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“Conversion of the Cashew Industry into modern, efficient and economically
viable and sustainable Cashew Industry that competes effectively in the World
Market of Cashew by 2025”.
The mission of CBT is to promote, control and regulate in an efficient, effective
and fairness manner.
Values
Pursuit of excellence in service
• Loyalty to government
• Diligence on duty
• Impartiality in service
• Integrity
• Courtesy to all
• Respect for the laws
• Proper use of official Information
• Maximum and considerable care to Stakeholders.
Based on the industry SWOT analysis, the strategic plan will address itself to the
following objectives.
a) Sustainable Cashewnut production productivity and quality in the
Cashewnut industry enhanced.
b) Policies, strategies and regulatory framework development in
cashew industry strengthened.
c) Capacity of Cashewnut Board to carry out its operations
efficiently and effectively by 2010 enhanced.
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d) Cashewnut development activities that consider cross‐cutting
issues such as HIV/AIDS promoted.
e) Information management and communication system improved
These objectives will be implemented for three years as from 2007/2008‐
2009/2010 to achieve the production of 180,000 tones of Cashewnut by 2010. It
will be implemented concurrently with MTEF.
The day to day activities of the strategic plan will be enhanced by close
monitoring and evaluation of its performance. This will ensure efficiency and
effectiveness in delivering the objectives and strategies of the Board.
Evaluation will focus on assessment of the impact of the strategies and will
require physical observation and interviews by both internal and external
evaluator. The aim of the evaluation will be to justify the use of resources,
assessing the reason for success or failure, to see whether the strategic plan is
achieving its intended objectives and contributing to the fulfilment of the mission
of the Board.
The development of the strategic plan involved wide consultation with a broad
spectrum of stakeholders through workshops and administering of
questionnaire. The identified objectives, strategies and targets in this strategic
plan take consideration of those presented under various components and sub
components identified in the ASDP which are currently under implementation.
However, identification of Cashew development interventions at field level will
be increasingly undertaken by the communities and local Government
authorities who will set local priorities through the District Agricultural
Development Plans (DADPs) and District Development Plans (DDPs).
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1.0 CHAPTER ONE
1.1 : INTRODUCTION
In recent years, the Government has undertaken various structural and
institutional reforms, revised its policies and strategies aimed at
improving service delivery. This was apparent in the government decision
to rationalize its functions to concentrate more on regulatory and
supervisory roles. In view of the on going reforms, the government is
currently financing all Crop Boards operation activities through
subventions. Thus, all the Crop Boards and other institutions affiliated to
the Ministry of Agriculture Food Security and Co‐operatives are now
requested to align their planning and budgets as per Medium Term
Expenditure Framework (MTEF) prerequisite.
1.2 Rationale of the Strategic Plan
Therefore, due to this current government stance and various changes and
challenges occurring both nationally and internationally in the Cashew
industry, the Cashewnut Board of Tanzania (CBT) considers of utmost
importance to chart out its future direction and develop strategies that
will allow it to play an effective national and international role as a
regulator of the development of the Cashew Industry in Tanzania. For
CBT to be able to fulfill this important role it must enhance its capacity
and build a strong foundation in order to articulate clearly the desired
mission and goals which should guide the planning and decision making
in future.
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Thus, the formulation of this strategic planning document is important in
order to identify appropriate solutions that will enable the Board to live
up to the expectations of the Cashew stakeholders in the industry.
1.3 Organization of the report
The Strategic Plan document is organized into four chapters, each with a number
of sub‐ chapters as follows:
• The Introductory chapter covers the background of the Board,
the rationale of the strategic plan and the process involved in
the entire strategic planning process.
• Chapter two addresses the situational analysis whereby the
challenges facing the cashewnut sub‐sector were critically
analyzed, various government policies supporting the sector,
the processor association, farmers association as well as SWOT
analysis are also presented here.
• Chapter three addresses strategic action plan itself where the
mission, vision, core values, objectives, strategies, targets and
key performance indicators are presented.
• Lastly, chapter four includes monitoring and evaluation of the
strategic action plan and some concluding remarks.
2.0 CHAPTER TWO: SITUATIONAL ANALYSIS
2.1. Historical Background
Evolution of the Industry
From the year 1960 onwards, Tanzania embarked on an aggressive programme
of forming rural cooperative societies. A large number of co‐operatives and
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farmers association were formed with the hope that they will be appropriate
instruments for representing farmers in negotiations with buyers, the
government, finance houses and Co‐operatives that deal with the cashewnut
crop were formed in this period for the purpose.
Before independence in 1961 and a few years after independence, individual
private merchants, acting as middlemen between producers and
the Indian
buyers dominated the procurement of cashewnuts in Tanzania. Prices offered to
farmers varied widely from place, season – to – season, and even within the same
season.
In 1962 the Southern Region Cashewnut Board ( SRCB ) was set up to carry out
the marketing of cashewnuts in Tanganyika. The SRCB sold cashewnuts to
exporters through auctions. Farmers were paid according to the price at the last
auction. This marketing system was efficient and each farmer was paid a price
determined by the forces of the market.
The National Agricultural Products Board ( NAPB) replaced the SRCB in 1963
first by the Southern Region Agricultural Products Board ( SRAPB ) and then by
National Agricultural Products Board ( NAPB ) in 1964. When the NAPB was in
existence, Primary Co‐operative Societies procured cashewnuts from farmers and
sold them to Regional Cooperative Unions.
In 1974, The Cashewnut Authority of Tanzania ( CATA) replaced the NAPB.
CATA was given wide ranging responsibilities for developing the CI such as
promoting, planting of few cashew trees, stimulating processing cashewnut as
well as advising the government about the industry. CATA was therefore, the
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controller, the promoter, the procurer, the exporter and advisor of the
government on CI.
In 1984 the CI made yet another change in the legal framework of the CI. The
Tanzania Cashewnut Marketing Board ( TCMB) was formed to replace CATA.
The system of Procurement of cashewnut through the Regional Co‐operative
Unions ( RCUs ) and village Primary Societies continued unabated.
The Tanzania Cashewnut Marketing Board ( TCMB ) bought cashewnuts from
RCUs at a predetermined annual into‐store‐price, arrived at after negotiations
between the Board and each of the RCUs. The cashew was exported in raw form
as all cashew factories had been closed by for lack of sufficient raw material to
process among other reasons.
In 1993, The Cashewnut Marketing Board, Act No.21 of 1984 was amended and
the Cashewnut Board of Tanzania (CBT ) replaced
TCMB. CBT assumed
regulatory role of all activities in the cashew industry instead of being an
exporter of raw cashewnuts, processor and exporter of kernels on behalf of Cooperatives.
The government, thus, relinguished its control on prices and
liberalized the procurement and export of
cashewnut. In order for CBT to
perform its assigned roles effectively, the government made Cashewnut
Regulations under the Cashewnut Marketing Act No. 21 of 1984.
2.2 Mandate
The Cashewnut Board of Tanzania (CBT) is a corporate body established by the
Act No. 21 of 1984 ( As amended in 1993) to replace Tanzania Cashewnut
Marketing Board.
It is entrusted with the responsibility of regulating the
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development of the cashew industry in Tanzania. The Board came into force in
1993. Thus, CBT has been mandated to develop promote and regulate Cashew Industry
in Tanzania
2.3 Role and Functions
The main functions as set out in the Cashew Act No. 21 of 1984 ( As amended in
1993) is as outlined below:‐
• To advise the government on policies and strategies for
the development of the Cashew industry .
• To promote the development of cashewnut production,
processing and marketing.
• To assist directly or through financial support the
research and development of Cashew Industry.
• To regulate and control the quality of cashewnuts.
• To collect, refine and maintain, use disseminate
information or data concerning the Cashewnuts
Industry.
• To ensure proper management of cashewnuts
Development Fund established under the CBT Act..
• To promote and facilitate the formation of associations
(or other bodies) related to or dealing with Cashewnut
Industry and coordinate their activities.
• To make and enforce Cashewnut Regulations.
• To provide consultancy and technical services to cashew
farmers, processors, buyers , or exporters.
• To represent the Government in International Forum
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• To carry out other tasks that are associated with
improvements in cashew industry as need arises in the
course of time, such as:
‣ To register or license Cashewnut Growers,
Buyers, Sellers, Processors and Exporters.
‣ To grant licenses and permits for buying and
exporting of cashewnuts.
‣ To appoint inspectors for inspection of
Cashewnut farms; processing facilities,
warehouses and any other facility that may be
inspected for the better carrying out of the
provisions of the Cashewnuts Industry Act. 2003.
2.4 Performance Review
2.4.1 Performance of Cashewnut Sub Sector World Wide
Cashewnut is a native crop of the coastal area of Brazil, which over
a number of years, has become naturalize in many tropical
countries throughout the world including Tanzania. The crop is
considered to be the third or fourth greatest commercial nut ( by
mass ) in the world according to the ratings made by the United
Nations Food and Agricultural Organization ( 1993 ).
Production of cashewnut
is estimated to be at an average of
between 1,000,000 and 1,200,000 metric tons per year, with India
leading as the main producer, followed by Brazil and Vietnam.
India alone produces between 30% and 36% ( thirty and thirty five
per cent ) of the world production of cashewnuts. Africa, including
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Tanzania produces 35% (thirty five per cent ). These statistics show
how significant India is to the world production of cashewnut.
The period since 1975, has witnessed a decline in the world
production of cashewnuts mainly due to political instability in
some African producing countries, socioeconomic problems and
the impact of fungal diseases in the major African producers of
cashewnuts. Except for Brazil and Vietnam, world production of
cashewnuts comes from small holders owning
small farms of
between
two and two and half hectars. Brazil relies on lager
cashewnut plantations some of which are highly mechanized.
Vietnam has a mixture of small holders and large state owned
farms.
Although the crop has great economic potential to producing
countries, it usually receive inadequate attention from economic
planners in most countries due to lack of awareness of its economic
and biological potentials. Countries, like Vietnam, that have put
financial resource and more attention to the crop are fast growing
up in the list of major world producing countries and now enjoying
the economies of increasing production of cashewnuts.
The crop can grow even in poor fertility soils but it does
well in
drained red clay loamy and light coastal sand soils. Soils with pH
more than 8 are suitable for cashew cultivation. That probably
explains why the crop has done fairly well along the coast than in
deep inland areas.
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The market for cashewnuts is segmented in three main levels; that
is, raw cashewnuts, processed cashewnuts ( kernels ), cashewnut
byproducts such as cashewnut shell liquid ( CNSL), cashew apple
juice and wine, etc.
The first segmentation involves of raw cashewnuts by farmers to
traders of their agents who ultimately export the raw crop to the
major importing country of the world, India. Although India
produces at least 35% of the world stock of raw cashewnuts, it
imports almost all the crop grown in African and a large part of
stock from the Indonesia Countries. This is because of its large raw
cashewnut processing capacity.
India has the capacity to process more than half the world
production of raw cashewnuts. This fact gives India a leadership in
the market of kernels, beating both Brazil and Vietnam . Although
Brazil has a market advantage over India in terms of her closer
proximity to USA, which is the major world market of kernels,
India beat this competition using her advantage as
more cost
effective and large volume processor in the world. A more serious
marketing threat to India is Vietnam whose emerging cashewnut
industry is deliberately subsidized by the state in order to promote
foreign exchange earnings.
The second segment of the cashewnut market involves sale of
kernels in the native market and or exports by processing countries.
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The world marketing for kernels is estimated at 200,000 metric tons
of assorted grades of the product. There are twenty – four different
grades of cashew kernels sold in the market.
According to Technoserve Worldwide demand for cashew kernel
exports is currently estimated at 200,000 metric tons per year, with
demand projected to grow at a rate of 5% to 8% annually for five
years to 2009. Major importes of cashew kernels are the United
States, the European Union, countries that former the USSR, Japan
and China.
Although there is a growing
market for kernels in the world
market, the role played by African countries in this market is
mainly to supply raw cashewnuts to India. This situation gives
India more say in matters relating to marketing of raw cashewnuts
of the African farmer. Decisions relating to market prices and
volume of sales of the African cashew farmer are highly dependent
on cashewnut processing decisions made in India and consumption
decisions made in the countries that import the kernels, As both
decision are not easily predictable, the task of estimating correctly
the market risk of raw cashewnuts and kernels in order to take lossmitigating
measures is a moot issue.
Further more, trade of kernels is conducted mostly through brokers
who operate in main importing market. These brokers control the
entire supply chain of the world CI. Their decisions impact on
prices of raw cashewnuts as well as kernels.
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They control the supply of kernels in the marketing through prices
offered, volume of orders placed, standards of product quality
demanded, packing and shipping specifications and the more
recent food process specifications. These brokers also have
contractual links with food processors, major retail kernel
distributors and supermarkets. In short, the entire kernels supply
chain operates under their control as though it was a closed market
system.
It is this situation that is now prompting India and Vietnam to
work together in promoting the business of cashewnuts in the
world. More recently, Brazil has joined India and Vietnam to form
a strong alliance for promoting commercial usage of kernels in food
processing and hence increase the volume of trade in cashew
kernels. African countries that grow cashewnuts are also
developing a similar alliance for that purpose.
The third market of cashewnuts involves sale of cashewnut
byproducts such as cashewnut shell liquid ( CNSL ), cashew apple
juice and wine and many other products derived from the cashew
tree. Cashewnut shell liquid is extracted on‐line through
mechanized processing. It can be processed off –line in a manual
cashew processing system through a secondary process. Brazil is a
major online producer of CNSL in the world producing at least
20,000 metric tons of the world total of CNSL which is estimated at
between 40,000 – 50,000 metric tons per annum.
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CNSL has a number of applications beyond those which are often
described, such as, input for
making friction particles of
automobile break linings, input for marking vanishes, glue related
compounds resins for varies uses, inputs used in the ink and rubber
technology, to name only a few. More sophisticated uses of CNSL
remain to be a trade secret of inventors.
Marketing for cashew apple and related products are very limited.
Most of the countries that have ventured in these products have
done so targeting the local market first. Except for Brazil that
exports cashew apple juice, cashew apples are a neglected part of
the crop in most African countries, although that part of the crop is
approximately 80% of the whole annual crop harvest. In India
cashew apple is utilized in making a number of snack foods. Recent
developments in the user of bio‐fuels may trigger increase use of
the cashew apple liquid in making alcohol fuel.
2.4.2 Performance of Cashew Industry in Tanzania
The CI is a sub sector of the agriculture sector, which according to
the Tanzania economy, is the backbone of the economy of the
country. The economic importance of agriculture in general arises
from the fact that it earns a sizeable amount of foreign exchange to
the nation and makes a good contribution to the GDP.
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Cashew is also important relative to other cash crops in foreign
exchange earnings. On the average it contributes 4% to the total
earnings of foreifn exchange of the country.
The crop is grown in more than 33 districts in the mainland
Tanzania, whereby Mtwara, Lindi, Ruvuma and Coast Regions
produce the lions share of the crop. Due to its great economic
potentials, farmers from a number of
other districts in the
mainland Tanzania as well as Pemba, have shown interest in the
crop.
About 280,000 households are engaged in the cashew crop earning
subsistence income only. It is estimates that Tanzania has between
fourty and fifty million cashew trees. Most of the trees were
planted in the sixties in the traditional villages that existed before
the Ujamaa Villages Campaingn, most of the trees were left behind
abandoned as farmers moved into their new villages. The drastic
fall in output of cashewnuts after the year 1973/1974 is explained
by this factor. Today, probably only between twenty and twenty
five million cashew trees are productive.
Although the crop is also grown in Coastal and Tanga Regions, its
economic importance to the rural population in those areas is fairly
limited. This is partly because of the existence of alternative crops
that also earn income to the farmer and the availability of nonagriculture
income in those areas. However , for the farmers in the
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southern Coastal Regions of Mtwara and Lindi, the crop accounts
for more than three‐quarters of farmer total cash incomes.
2.4.2.1 (a) Production trend of Cashewnut in Tanzanian
Statistics of production in the last five years reveal the
following position:‐
Production statistics 2002/2003 to 2006/2007 (Metric tons)
No. REGION 2002/3 2003/4 2004/5 2005/6 2006/7
1. Mtwara 55,892 42,158 38,810 42,621 54,006
2. Lindi 18,852 14,912 15,709 15,385 22,879
3. Ruvuma 4,680 12,712 10,563 13,829 6,658
4. Pwani 9,640 6,394 5,471 3,969 6,623
5. DSM 1,763 1,778 1,485 1,086 2,077
6. Tanga 842 973 652 288 30
7. Mbeya 485 180 300 190 300
8. Morogoro 0 0 50 60 0
Total 92,154 77,567 73,040 77,446 92,573
The increase in production recorded between the year 2005/2006 and 2006/2007 is
due to a combining effect of the availability of more farm inputs to farmers and
the purposeful intervention made by the Central Government, the Local
Government and the farmers themselves to improve output of Cashewnut in the
said years.
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(b)
Market trend of Cashewnut in Tanzania
Despite the increased out‐put in the year 2006/2007 still the behaviour of
stakeholders in the market did not change. It remained the same it was in the
past as stakeholders continued to operate in an atmosphere of suspicion between
each other.
The market lacked transparency in matters of determining of farmers prices,
grading of Cashewnuts, ascertainment of shell outturn disclosure of export
price etc.
The intervention of the Government by making close follow up of buyers
activities in the market and monitoring of performance, revived the market
again. Price structure and export statistics for the past four years from 2003/2004
to 2006/2007 is as follows:‐
Year
Standard
Undergrade
Export Sales
Export Sales
Grade Price
Price
(Tons)
(FOB)
2003/2004 462 370 76,770 49,012,575
2004/2005 750 600 70,608 64,822,740
2005/2006 600 480 66,282 50,125,318
2006/2007 600 480 69,566 44,256,505
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(c ) Exports of Kernel (Processed Raw Cashewnuts)
Exports of processed Cashewnut (Kernels) for the period of four years
from 2003/2004 to 2006/2007 are as shown below:‐
Year Cartons Kilos FOB Sales
USD
FOB Sales
Tshs’000
2003/2004 Na Na Na Na
2004/2005 Na Na Na Na
2005/2006 71,807 1,628,644.18 6,868,417.65 7,898,680
2006/2007 171,275 3,885,838 14,853,892.57 19,140,070
2.5 Policies and strategies influencing the Cashewnut sub sector
2.5.1 Tanzania Development Vision 2025 (Vision 2025)
In response to challenges that still need to be overcome to accelerate
growth and reduce rural poverty, the Government adopted the
Tanzania Development Vision 2025 (TDV) to provide broad guidance
on the strategic goals of social and economic development in the
country.
The Tanzania Development Vision 2025 envisages raising the
standards of human development of Tanzanians to those of a
medium developing country by the year 2025. The economy will
have been transformed from a low productivity agricultural
economy to a semi‐industrialized one led by modernized and highly
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productive agricultural activities, which are effectively integrated
and buttressed by supportive industrial and service activities in the
rural and urban areas. This will be achieved through increased
productivity and competitiveness, increased export earnings and
investment in human capital. Agriculture has been identified as one
of the priority sectors for achieving these goals.
CBT can contribute a number of things to support the vision such as:
• Coordinating policies, laws and regulations regarding
improvement of cashewnut
• Following up and encouraging research which aims in
the improvement of the levels of cashewnut production
and productivity
• Enhance sustainable good crop husbandry
2.5.2 Millennium Development Goals
Millennium Development Goals (MDGs) are measures agreed by
world leaders concerned with global wide occurrence of poverty,
ignorance, and diseases when they met between 1999 and 2002. The
agreed measures aim at reducing the levels of poverty, maternal
and child mortality, incidences of HIV/AIDS as well as increase
primary school enrolment to specified targets.
MDGs are not a direct reflection of any national plan rather they
are goals of collective action by nations. Individual developing
nations plan in tandem with the MDGs as such MDGs are an
indication of the areas where major development activities are
expected or should be taking place. Most of the MDGs are in line
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Eradicate
extreme poverty
and hunger
Achieve
universal
primary
education
with the functions and objectives of CBT as shown in the table
below:
Table 1: MDGs
Goal Indicator CBT
• Reduce by 50% people living
below $ 1 a day
• Reduce by 50% people who
suffer from hunger
Reduce child
mortality
Improve
maternal health
Combat
HIV/AIDS,
malaria and other
disease
Ensure
environmental
sustainability
• All boys and girls complete
primary education
• Reduce by 2/3 the mortality
rate of children under 5 years
• Reduce by ¾ the maternal
mortality ratio
• Halt and begin to reverse the
spread of HIV/AIDS
• Halt and begin to reverse
incidence of malaria
• Integrate the principles of
sustainable development into
country policies and
programmes, reverse loss of
environmental resources
• To enhance
smallholder farmers
to have factory
ownership.
• Enhancing good
quality production of
Cashewnut which
will eventually raise
the standard of living
of smallholder
farmers.
• Improve standard of
living of smallholder
farmers.
• To discourage child
labour.
• Improve standard of
living of smallholder
farmers
• Improve standard of
living of smallholder
farmers.
• Encourage men
plucking.
• Create awareness
programs on
HIV/AIDS at
workplace
programmes.
• Strengthen the
capacity of Cashew
farmers.
• Introduce firewood
plantations under
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Develop a global
partnership for
development
• Reduce by half the proportion
of people without sustainable
access to safe drinking water
• Achieve significant
improvement in lives of at
least 100 million slum
dwellers by 2020.
• Develop open trading and
financial system that is rule
based, predictable and non
discriminatory includes
commitment to good
governance, development &
poverty reduction
• Address least developed
countries special needs
including tariff, quarter free
access for their exports,
enhanced debt relief, & more
generous ODA for countries
committed to poverty
reduction
• In cooperation with
developing countries develop
decent and productive work
for youth
• In cooperation with
pharmaceutical companies
provide access to affordable
essential drugs in developing
countries
• In cooperation with private
sector make available the
benefits of new technologies
especially in ICT.
smallholders.
• Encourage
manufacturers to use
alternative sources of
energy.
• Improve negotiation
skills and business
acumen.
• Improving
networking with
stakeholders
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2.5.3 National Strategy for Growth and Reduction of Poverty
The National Strategy for Growth and Reduction of Poverty
(NSGRP/MKUKUTA) is the second national organizing framework for
putting focus on poverty reduction high on the country’s development
agenda. The NSGRP keeps in focus aspirations of Tanzania’s
Development Vision 2025 for high and shared growth, high quality
livelihoods, peace, stability and unity, good governance, high quality
education and international competitiveness. It is committed to the
Millennium Development Goals (MDGs), as internationally agreed
targets for reducing poverty, hunger, disease, illiteracy, environmental
degradation and discrimination against women by 2015.
The target GDP growth rate for the NSGRP is 6‐8% per annum over
the period 2005‐2010 and requires that the pattern of growth and
benefits at the macro‐level be translated into welfare outcomes. It
adopts the “outcomes approach” which counts on the contribution of
all sectors towards specific outcomes on growth, poverty reduction
and improved quality of life and hence encourages inter‐sector
collaboration.
The NSGRP recognises that, the constraints to rural development
largely related to the agricultural sector include low productivity of
the land, labour and production inputs; underdeveloped irrigation
potential; limited capital and access to financial services; inadequate
agricultural technical support services; poor rural infrastructure;
erosion of the natural resource base; environmental degradation;
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weak producers organizations; limited technological capacity and
depressed prices of primary commodities both in local and global
markets.
2.5.4 Agricultural and Livestock Policy
The Agricultural development policy aims at improving the well
being of the people whose principal occupation and their livelihood
is based on agriculture. The policy seeks to ensure that the direction
and pattern of development in the agricultural sector meets economic
and social objectives and outputs. The policy also emphases on the
provision of raw materials for the local industries and act like a major
employer in the economy with major goal of achieving poverty
eradication.
Also one of the agricultural development strategies is geared to
revolutionize the agricultural sector so as to make it demand driven
for the purpose of stimulating agricultural growth and hence reduce
rural poverty through involvement of the public and private
industries.
The Board can support the policy by enhancing initiatives to building
the capacity to start the ASDP and monitor its activities accordingly
and in a more effective way.
2.5.5 Agricultural Sector Development Program
The Agricultural Sector Development Programme (ASDP) provides
the overall framework and process for implementing the ASDS. The
ASDP is part of an operational response to a set of policies, strategies
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and initiatives designed to re‐orientate and re‐invigorate the national
economy. The program is underpinned by national policies
supporting, in particular; (i) a focus on poverty reduction; (ii) the
decentralization of many public sector responsibilities to Local
Government Authorities (LGAs); (iii) increased participation and
involvement of local communities in decision making; and (iv) a shift
towards private sector leadership in production, marketing,
processing and service delivery.
The two main objectives of the ASDP are: (i) to enable farmers to
have better access to agricultural knowledge, technologies,
marketing system and infrastructure, and (ii) to promote private
investment based on an improved regulatory and policy
environment so as to contribute to higher productivity, profitability
and farm incomes.
The implementation of ASDP will be at the district level through the
District Agricultural Development Plans (DADPs) and at national
level where it will be guided by the Agricultural Sector Lead
Ministries (ASLMs) Medium Term Strategic Plans. Communities and
local Government authorities will increasingly identify interventions
and activities and set local priorities through the DADPs and District
Development Plans (DDPs). It is envisaged that Cashewnut growing
districts would include in their DADPs activities related to
Cashewnut development.
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The program has three components at the national level:
i. Policy, Regulatory and Institutional Network which aim at
creating a national enabling environment for all farmers and
other actors in the sector
ii. Research, advisor, services and training which establish the
basis for agricultural growth.
iii. Private sector development, market and rural finance.
The ASDP will therefore be the leading instrument for financing and
monitoring public sector support for reinvigorating Tanzania
agriculture. The role of ASDP is to bring together, in a coherent
sequence, prioritised sub‐programmes and to guide central
Government investment to support field level activities in the
agricultural sector.
The Cashewnut Board of Tanzania will be responsible for regulating
the industry while the Government will be providing policy
guidance.
2.6 Stakeholders Analysis
The Board has stakeholders with different requirements and expectations. In order for the
Board to serve the Stakeholders diligently, it was found necessary to carry out a
stakeholders’ analysis to establish interests/expectations, potential effect of not meeting
the expectations and the current status.
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The table below Summarizes results of the stakeholders analysis:-
S/No. Stakeholder/
Client
Expectations
1. Farmers • Reliable Agriculture Inputs and
be supplied on time.
• Good and stable Cashewnut
market price.
• Good Infrastructure
• Reliable Regulations Services.
• Reliable Information regarding
cashewnut.
2. CBT staff • High level of transparency and
fairness within the board
• Conducive working environment.
• Competitive remuneration
package.
• System to support Employees’
training and development.
• Good Governance Training and
succession.
3. Cashewnut • Unbureaucratic licensing
processor
procedures.
• Reliable Information regarding
cashewnut.
4. Government • Proper enforcement of laws and
regulations governing Cashewnut
Industry.
• Effective Coordination of the
Cashewnut Industry.
• Effective fulfillment of roles
responsibilities fairly as a
regulator of Cashew Industry.
5. Farmers
Associations
6. Farm inputs
suppliers
• Strong networking between
parties
• Reliable Information regarding
cashewnut.
Current Status
At the moment farmers
expectations are not fully
addressed
Generally the workers
environment is conducive and
meets the expectation of
staff.
• Licensing procedures are
followed according to
regulation.
• Inadequate Information
• Adhered to laws and
regulations of the Board.
• Weak net working
among farmers
associations.
• Strong Input suppliers. • Currently inputs are not
available to farmers on
time.
7. Researchers • Strong Research Institution • At the moment farm
expectation of Research
in not fully addressed.
8. Buyers • Unbureauctatic licensing
procedures.
• Reliable Information regarding
cashewnut.
9. Co-operatives • Strong networking between the
Co-operatives.
• Reliable Information Cashewnut.
10. Farmers
Business Group
• Reliable Agriculture Inputs
• Good and stable raw and
• Licensing procedures are
followed according to
regulation.
• Inadequate Information
• Weak networking among
the co-operatives
• At the moment Farm
Business expectation are
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processed nut market price.
• Good Infrastructure
• Reliable regulatory services.
• Reliable Infrastructure regarding
cashewnuts.
not fully addressed.
2.7 SWOT Analysis
After analysis of the questionnaire and stakeholders meeting the following were
agreed as the strengths, weaknesses, opportunities and threats.
2.7.1 Strengths
The following have been identified as the major strengths of the
Cashewnut Board:
• CBT has well established linkage with stakeholders.
• CBT has long service and experienced staff
• CBT is the custodian of the Cashewnut Act No.21 of 1984
(As amended 1993) and Cashewnut Regulations 2005 which
guides all matters concerning cashew industries.
2.7.3 Weaknesses
• Inadequate number of staff has resulted into few people doing
many things therefore affecting their productivity.
• Inadequate manpower within the Board affect capacity of the
Board to follow up the regulatory functions
• No Incentive packages for good performers in cashew
industry.
• Inadequate number of staff has resulted into the few people
remaining in the CBT doing too many things and therefore
affecting their productivity.
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• Inadequate Access to Investment Capital for Cashew Industry
2.7.4 Opportunities
The main opportunities to CBT are:
• Availability of extension officers in the District Council.
• Proactive stakeholders.
• Abundant land suitable for Cashewnut production.
• Well determined cashew farmers.
• Well established farmer associations.
2.7.5 Threats
• Inadequate application of inputs
• Lack of enough extension services.
• Changing of weather patterns.
• HIV/AIDS is a national pandemic that threatens the work force
of cashew industry the same way as it threatens the whole
country.
• Over‐aged tree and general lack of willingness of farmers to
plant new trees using improved planting materials.
• Lack of sustainable sources of funds to finance keeps the CI
technologically backward.
• The presence of a single market for raw cashewnuts leads to
unpredictable market show up and monopolistic prices.
• Increasing demand from India for raw cashewnuts under –
develops the local processing capacity
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• Increasing number of international quality standards in food
processing acts as barriers to exports (example, HACCP,
HALAL FOOD).
• Unwillingness of most local banks to adequately finance
rehabilitation, modernization and local processing of
cashewnuts without a special government guarantee stagnates
the industry
• Inadequate Infrustructure
2.8 Recent Initiative
The recent initiative of the Government through Ministry of Industry, Trade and
Marketing to introduce warehouse Receipt system in the cashewnut growing areas
has assisted the farmers to fetch good price on raw cashewnuts. Under this system
all cashewnuts are sold to primary co-operative societies hence eliminating the
buyers and their middlemen to go to the villages as have been the case before.
The cashwnuts purchased are tested for quality and graded before farmers are paid
advance payment of 60% of the indicative price. Thereafter these cashewnuts are
sent to registered warehouses for storage and later on to be sold to processors and
exporters by auction. The price fetched for these cashewnutes through this system
has been on higher side hence farmers second payment have also been increased
and finally improve their standard of living. This system is currently operating in
Mtwara Region whereby the National Microfinance Bank (NMB) has extended
18b/= as loans to Primary co-operative societies under Government guarantee for
the purpose of purchasing cashewnut and pay 60% advance payment to farmers
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2.9 Critical Issues
Several issues of Importance arise from the situation analysis, which have to
be addressed in the plan in order for CBT to achieve its objectives and targets
and deliver its vision mission. The following are some of most critical issues.
a) Compliance to policy and Regulatory Reforms
Despite of significant achievements to policy and regulatory
reforms, there are still inadequacies in ensuring their compliance
particularly at field level. As such there is a need to have
appropriate mechanisms.
b) Capacity Building
Capacity building is an important aspect for efficient and effective
service delivery within the CBT. The current situation indicates that
there are weaknesses that need to be immediately addressed in
order for CBT to carry out its operations efficiently and effectively.
Other, weaknesses include the following disincentive for staff such
as delayed promotion which effects morale of staff. Inadequate
number of staff which has resulted in over working of the existing
staff in the board and therefore effecting their productivity, lack of
professional skills
effecting efficiency in service delivery. The
skewed age structure is another weakness where most of the highly
skilled professional are approaching retirement age with most of
them due to retire in the next five years or less. This leaves a gap
which will take long time to fill.
C )
Inadequate finance for Cashewnut Sub sector development
CBT is currently faced by Inadequate funding to fulfil its
obligations, this is accelerated by absence of important working
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tools such as vehicles, moisture meters, cutting scissors, Digital
weighing scales, computerized network, website etc. CBT has to
address these issues so that it could meet stakeholders’
expectations.
d) Improving Cashewnut Sub‐Sector Information Management and
Dissemination.
Availability of reliable and accurate data in the Cashewnut Subsector
is still problematic. This fact is one of the key factors
affecting successful planning and execution of cashewnut sector
development plans and programs.
Compounding the problem is the presence of weak monitoring and
evaluation (M&E) system. Not only that but also data concerning
CBT itself is a problem because of weak records and data base
management systems. Currently there is no Data base management
of collecting data thus, causing decision making process to be
difficult. This will ultimately be eliminated by Installation of
proper Data base management system.
Therefore the Medium Term Strategic Plan for 2007 – 2010 will address
amongst other important matters the critical issues clarified and discussed
above.
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3.0 Chapter Three: Vision, Mission Objectives
3.1 Vision and Mission statement
The vision statement highlights the future situation or success to be
realized through the strategic plan and reflects closely the aspirations of
stakeholders. The mission statement describes how the vision will be
realized in terms of the basic purpose of the Board.
3.1.1 Vision
To be a competent institution for providing policy, regulatory and
technical advise for a modern, efficient, and economically viable
and sustainable cashewnut industry by 2025.
3.1.2 Mission
To promote, control and regulate all matters in the Cashew
industry in an efficient, effective and fair manner. The Board will
achieve this through delivery of services in highest standard of
excellence to all stakeholders.
3.2 Core Values
In fulfilling its obligations to its stakeholders CBT will be guided by the
following core values:
Table III.
S/no Core Values Details
Pursuit of
Excellence in
Services
CBT employees shall strive to achieve the highest
standards in their work, and to actively look for
opportunities to improve standards i.e. team work and
competence in delivery of high quality services.
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Loyalty to
Government
CBT employees shall loyally serve the duly elected
Government of the day, and shall comply with the
lawful instruction of their ministers and senior
managers to the best of their ability.
Diligence on Duty
CBT employees shall be at their places of work during
Impartiality
Service
Integrity
Courtesy to All
in
their hours of duty and shall devote themselves wholly
to their work during this time.
CBT employees shall not engage in political activities at
places of work, or allow their personal political views
to influence the performance of their duties.
CBT employees shall not seek or accept gifts, favors or
inducements, financial or otherwise, in the course of
discharging their duties. Likewise, they shall not offer
gifts, favors or inducements. They shall not use public
property or official time for their own private purpose.
They shall not use information acquired in the course
of their official duties to gain personal financial
advantage.
CBT employees shall treat their client and colleagues
with courtesy. Public servants shall regard themselves
as servants of the Tanzania people, and shall be
particularly considerate when dealing with vulnerable
member of the public, such as the elderly, the poor, the
sick and people with disabilities, and other
disadvantaged groups in society. That therefore they
must treat students, colleagues and stakeholders with
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courtesy, dignity and respect.
Respect for the Law
CBT employees shall not commit unlawful acts in the
course of their duties, nor shall they instruct or
encourage any other persons to do so. If a public
servant is asked or directed to commit an unlawful act,
he or she shall refuse to comply, and report the matter
to his or her superior officer. If no action is taken, the
public servant concerned has a duty to report the
matter in person to the Public Service in person.
Proper use of Official
Information
CBT employees shall not unnecessarily withhold
information which the public has a right to know, or
information which is needed by Ministers or other
public servants.
On the other hand, they shall not
Maximum
and
divulge or misuse official information which is
confidential hence adheres to honesty, transparency
and integrity in all practices.
CBT employees have a social obligation in the
considerable care to
stakeholders
community in the neighbourhood and society at large
for the daily discharge of their duties hence to observe
social justice and accountability to people of all
creeds.
3.3 Objectives
Based on the analysis of the key Strengths, Weaknesses Opportunities and
Threats, the strategic plan should address itself to the following objectives:
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a) Sustainable Cashewnut production, productivity and quality in
the cashew industry enhanced.
b) Policies, strategies and regulatory framework development in
Cashew industry strengthened.
c) Capacity of Cashewnut Board to carry out its operations
efficiently and effectively enhanced.
d) Cashew development activities that consider crosscutting issues
such as environment and HIV/AIDS promoted.
e) Information, management and communication systems improved.
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a) Sustainable Cashewnut production, productivity and quality in the
cashew industry enhanced
Rationale
For the past five years, Cashew Industry has been experiencing hard times
in production in terms of quality and quantity of raw and processed nuts.
Production of cashewnut is frustrated by the low prices paid to farmers per
kilogram of Cashewnut compared to the cost of production. Effective and
efficient strategies need to be developed and implemented so as to ensure
they improve the production of cashewnut both in quality and quantity.
Strategies
• Expand tree population in old farms using improved seeds
and seedlings.
• Transfer of cashew planting research technology to farmers.
• Increase supervision of farmers’ compliance to instructions
in proper cashew farming.
• Push for the privatised factories to be rehabilitated and
commence processing.
• Increase farmer training in modern cashew farming.
Targets
• Tree population Increased from 40 to 70 per hector by June
2010.
• 20,000 new Cashew trees planted using Improve Seeds and
Seedlings
• Production yield increased per tree from 8‐15Kgs by June,
2010.
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• Cashewnut quality increased from 85%‐95% and production
of Cashewnut increased from 100000 tons to 180,000 tons by
June, 2010.
• To promote production of cashew kernels from 20,000 to
100,000 tons by June, 2010.
Key performance indicators
• Increased number of trees planted.
• Average kilo yield per tree increased
• Quality in shell out – turn increased
• Increase in processing of Cashewnut kernels.
b) Policies, strategies and regulatory framework development in Cashew
Industry strengthened
Rationale
As a regulatory body of cashew industry in Tanzania, the success of
the Board depends largely on the presence of a strong and committed
organization and management. Policies and regulatory framework
development is an important aspect for planning and guiding
implementation of National Cashew development program.
Experience has shown that while there have been cashewnut Act No.21
of 1984 ( As amended in 1993 ) and cashew Regulations 2005
developed, the challenge has been to keep abreast with other
developments in the cashew sub sector such as National Cashewnut
Programs.
Networking with various stakeholders is a major prerequisite if the
Board is to excel in its activities. It is important to develop and
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implement strategies to enhance networking with stakeholders of the
Board both internally and externally.
The Board also requires
concerted efforts of various stakeholders to fulfill its desired objectives.
Cashewnut Board focus in creating conducive environment and put in
place a sub sector wide policy analysis mechanism to make sure that
its plans are effectively implemented in conformity with an informed
policy framework so as to achieve the targets of improved Cashewnut
production productivity qualities, and reduction of poverty among the
cashew farmers in the sub sector.
Strategies
• Review and implement cashew sub sector policies
• Review and implement CBT Act No. 21 of 1984 (As amended
in 1993) and Regulations 2005
• Improve information distribution within stakeholders
• Create conducive environment to attract investors
• Amendment of plant protection Act to improve competition
Targets
in the distribution of farm inputs.
• Ensure efficient regulation of cashew industry by June 2010.
• Enhance the existing cashew market regulatory framework
by June 2010
• Enhance awareness to stakeholders on world cashew
production and trade by June 2010
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Key performance indicators
• Number of Policies, Reports and other Regulations in place.
• Number of Cashewnut Act, and Regulations produced and
circulated to cashew stakeholders.
• Number of cashew stakeholders meeting convened and
attended
c) Capacity of Cashewnut Board to carry out its operations efficiently and
effectively enhanced
Rationale
The Board’s management is the heart of all implementation to be
undertaken. Analysis of the internal environment shows that there is
weak organization structure; infrastructure and management control tools
i.e. Incentive schemes, training and development policy, which prevent
the Board from performing properly. Due to this major role there is a
need to strengthen and emphasis the management and organization.
Strategies
• Review and implement management control tools
• Improve Cashewnut Board infrastructure
Targets
• Ensure efficient operation of Cashewnut Board by June 2010.
• Ensure adequate availability of working tools and facilities
by June 2010.
Key performance indicators
• Number of staff trained in various fields
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• Number of working facilities acquired
• Conducive working environment created
• Administrative and financial regulations in place
d) Cashewnut development that considers cross‐cutting issues such as
environment and HIV/AIDS.
Rationale
HIV/AIDS threatens lives of workers and workforce nation wide. In
response to this threat, the government has directed each government
institution to implement the national strategy to curb the deadly
HIV/AIDS.
Strategies
• Rising awareness to staff on HIV/AIDS
Targets
• HIV/AIDS awareness seminary/workshops conducted to all CBT
staff by September 2008
• HIV/AIDS educational material produced and disseminated to all
staff by September 2008.
Key Performance Indicator
Number of staff informed on HIV/AIDS
e) Information management and communication systems improved
Rationale
Information and communication systems are essential to the success of
any organization. The speed at which this information is processed,
interpreted and communicated is equally important. Currently, CBT does
not have its own website. In the area of technology advancement
stakeholders and the general public expect to have access to information
pertaining to the functions and activities of the CBT through a website.
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During the situation analysis, it was observed that there was inconsistent
of data disseminated by the Cashew industry stakeholders. In addition, it
was found that the CBT has unsystematic management of data and to a
certain extent under utilization of IT equipment. This creates the need to
effect changes in order to capture information that is useful for decisionmaking.
These changes will promote culture of transparency, accuracy
and reliability of information and data.
Strategies
• Tendering for the most effective IT specialists to do the
installation work
• Build the internal capacity of the CBT
• Installation of Local Area Network (LAN)
• Enhance informed decision making
• Involve and inform the stakeholders on various issues
• Train records management staff
Targets
• Specialists commissioned to study and propose the IT
network by August 2008
• Website specialists commissioned to design and establish the
CBT website by September 2008
• Training of 5 staff in Information and Communications
Technology (ICT) by July 2008
• Local Area Network (LAN) installed by September 2008
• Data base system established by October 2008
• Records management system reviewed and streamlined
annually
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• M& E system developed and operational by November 2008
• Management meetings conducted after every month.
Key Performance Indicators
• Time taken to retrieve records
• Degree of information that can be disaggregated
• Time taken to make informed decision making
Chapter Four: Monitoring and Evaluation
4.1 Introduction
The day to day activities of the strategic plan will be enhanced by close
monitoring and evaluation of its performance. This will ensure
efficiency and effectiveness in delivering the objectives and strategies
of the Board.
There will be two types of monitoring information,
• Information originating internally on the performance of CBT
• Information related to the responses of the stakeholders of CBT
Evaluation will focus on assessment of the impact of the strategies and
will require physical observation and interviews by both internal and
external evaluator.
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4.2 Monitoring system
The strategic plan will be implemented through MTEF annually. The
operational plan will be the basis for monitoring of activities. Different
reports will be provided to see the progress performance of the activities
in the plan i.e. quarterly reports, semi annual and annual reports. The
reports will indicate clearly the actual outputs against target set.
The management meeting will discuss the semi‐ annual reports at the
end of December and June before they are submitted to stakeholders’
workshop for more discussion on the strategic plan performance.
Example of Semi‐ Annual Summary Report is Presented Below:
S/N Objective Strategy Planned
activity
Planned
target
Achievement
Obstacles Remedial
Actions
The Board management will use all the feedback in the progress reports and
from the stakeholders’ workshop to update and roll forward the strategic plan
every year.
4.3 Evaluation system
The evaluation of the performance of the Board will be done every one
and half year by evaluators.
The aim being to justify the use of resources, assessing the reason for
success or failure, to see whether the strategic plan is achieving its
objectives and contributing to the fulfilment of the mission of the Board
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and to see if there is any serious problem which might hinder the Board
performance.
The management of the Board will prepare and issue comprehensive
TORs for the two types of evaluation.
Example of the evaluation form is shown below:
S/N Objective Strategy Planned
indicator
Achieved
indicator
Impact
Assessed
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