The Buying Season Calendar
Tanzania's cashew harvest peaks between March and June, with the first flowering in October–November and maturation occurring from February. The government-supervised buying season opens when the Tanzania Cashewnut Board announces the minimum farm-gate price, typically in March.
The Cashew Buying Trust (CBT) Auction System
Tanzania uses a unique competitive buying system through the Cashew Buying Trust (CBT). Licensed buyers bid competitively at auction centres located in cashew-growing districts. The auction system was introduced to improve transparency and prevent the exploitation of farmers by middlemen.
Key features of the CBT system:
- Farmers bring RCN to CBT warehouses after primary grading
- Licensed buyers submit sealed bids above the government floor price
- Payment is made within 24–48 hours via bank transfer to farmer accounts
- All CBT transactions are recorded in the national commodity management system
Private Purchases Outside CBT
In addition to CBT auctions, licensed traders may purchase directly from large cooperatives under pre-negotiated contracts. These private purchases typically happen for larger volumes (500MT+) where buyers want quality assurance through the cooperative's grading process.
Export Timing Strategy
The first-mover advantage is real in RCN. Processors who secure early-season supply before Indian demand pushes prices typically achieve better procurement costs. The late-season (June–August) sees prices firm as available supply narrows and quality homogeneity improves.
