Tanzania Cashew Nuts Value Chain Model was presented in Brussels, Belgium. The presentation summarized TANECU LTD's cashew nuts business model in Tanzania, which involves procuring nuts from farmers, processing, and marketing. Key points included increases in cashew production over 10 years, plans to establish a processing factory, identified needs for financial, technical, and training support, and estimated $1.5 million budget for the factory investment.

1. PRESENTATION

2. TANZANIA CASHEW NUTS VALUE
CHAIN MODEL PRESENTED AT
BRUSSELS IN BELGIUM.
PREPARED AND PRESENTED BY:
ALEX N. DOMITIUS
NOV.2018
IN BRUSSELS - BELGIUM

3. YOUR WELCOME TO TANECU LTD

4. 1.INTRODUCTION
 Cashew nut is one among the highly demanded agro-products in today
world market that its demand and supply need to meet a value chain of
the farm produces as part of agro business competition.
 Tanzania national economy as GDP is obtained from the Export Levy,
others levy and tariffs as per the business trend within cashew nuts seasons
(as a major crop), apart from other crops as sesame seeds, cassava, pige
on peas and ground nuts.
 TANECU LTD being of the leading Cooperative based Organization that is
located at southern Tanzania in Mtwara Region,
 TANECU LTD hold supreme of (AMCOS) and it operates over a statistical
records of 183 AMCOS, Out of that the 128 AMCOS operates at Tandahi
mba District and 55 AMCOS operates at Newala District.

5. 1.INTRODUCTION
• Thus TANECU LTD operates to fulfill its objectives and mission
stated here below;
• Mission Statement:“To promote the economic interests and
arrange for the agricultural, Industrial and all matters connected
with crops development activities of affiliated primary societies
and their members in accordance with cooperative Act and
Regulation,”
• Vision:“To be a leading cooperative union promoting develop
ment amongst its members“

6. 1.INTRODUCTION
• Vision:“To be a leading cooperative union promoting development
amongst its members“
• Our Motto: “Together we build the economy”
• Objectives: The main objective of TANECU is to promote economic
interests and arrange for the agricultural, Industrial and all matters
connected with crop and animal husbandry development activities of
the affiliated primary societies and their members in accordance with
cooperative principles and proactive and particulars.

7. 2. TANECU LTD BUSINESS MODEL
• 2.1 GAPS IDENTIFICATION
• Cashew nuts are exported abroad in form of
raw material and very few percent of it is being
processed locally by small groups whom most of
members are women.
• Processing is done in small scale and fails to
capture market due to lack of processing machine
, Technology, Capital, Training, and Infrastructures
for processing.

8. 2. TANECU LTD BUSINESS MODEL
• 2.2 BUSINESS MODEL ANALYSIS
• TANECU LTD takes responsibility to supervise the
cashew nut season in join with the Tanzania
Warehouse Licensing Board (TWLB) who regulates
the warehouse receipt system, Cashew nut Board
of Tanzania (CBT) as a quality controller and promoter of
cashew nut industry, Weight and Measurement Agent
(WMA) for calibration and certifying weight bridges and
other stakeholders to operate in warehouse receipt
system as shown in the model below:

9. 2. TANECU LTD BUSINESS MODEL
Warehouse receipt system Operational Model

10. 2. TANECU LTD BUSINESS MODEL
• 2.3 BUSINESS OPERATION
• TANECU LTD management and supporting staffs under the
leadership of the Board of Directors of TANECU LTD who
enforce the work plans are implemented through department
And unit ensures succession of the operation on behalf of
AMCOS without any business defect, This department is
under mentioned as Procurement department plan all
logisticians for season, The marketing department obtaining
data and auction markets and accounting department control for
payment distribution to the AMCOS who disabusing the famers
payment through the Banks account after the approval of the
payment centers which is supervised by the cooperative officers.

11. 2. TANECU LTD BUSINESS MODEL
• 2.4 BUSINESS VALUE CHAIN
• 2.4.1 CASHEW NUT VALUE CHAIN BEFORE PR
OCESSING STAGE
1: The existence Cashew nut plants

12. 2. TANECU LTD BUSINESS MODEL
2: Cashew nuts harvesting

13. 2. TANECU LTD BUSINESS MODEL
3: Cashew nuts packaging

14. 2. TANECU LTD BUSINESS MODEL
4:.Cashew nut Storage

15. 2. TANECU LTD BUSINESS MODEL
2.4.2 CASHEW NUT VALUE CHAIN AT
PROCESSING STAGE
1. Existence of machinery and plants

16. 2. TANECU LTD BUSINESS MODEL
2.RAW MATEIALS (Procurement )
3.Processing stages
-PREPARATION (Drying and steaming)
-SHELLING (remove of shells)
-PEELING (Remove of west)
-GRADING (standardizing )
-PRODUCT DESINGING (Roosting and spicing)
-PACKAGING (filling and vacuuming)

17. 2. TANECU LTD BUSINESS MODEL
-FINISHED GOODS (sale of cashew nuts)
-MARKET (Supply chain )

18. 3.TANECU CONCRETE ACHIEVEMENTS
• 3.1 INCREASES IN PRODUCTION.
• The production trend for cashew nut is presented
since the commencement of the cashew nut season
in year 2007/2008 up to 2017/2018 that the trend
proceeded up to date with respective prosperities
to the farmer and cooperative members through
their Amcos groups, The under mentioned here is
the table for production records and histogram
presentation of the production trend over 10
cashew nut season:-

19. 3.TANECU CONCRETE ACHIEVEMENTS
Production trend
No SEASON YEAR PRODUCTION TREND
1 2007/2008 33,121,908
2 2008/2009 27,386,943
3 2010/2011 33,490,595
4 2011/2012 49,998,388
5 2012/2013 64,704,969
6 2013/2014 51,520,752
7 2014/2015 77,928,115
8 2015/2016 60,070,474
9 2016/2017 98,365,013
10 2017/2018 106,947,895

20. 3.TANECU CONCRETE ACHIEVEMENTS
Production Histogram
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
2007/2008 2008/2009 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018
1 2 3 4 5 6 7 8 9 10
PRODUCTION SIZE

21. 3.TANECU CONCRETE ACHIEVEMENTS
3.2 ACQUISITION OF LAND FOR FACTORY
INVESTMENT
• TANECU LTD has bought to acquire a land for
investment with Eleven hectors for two
investment clusters located at Tandahimba
and Newala areas.

22. 3.TANECU CONCRETE ACHIEVEMENTS
3.3INTRODUCING A CASHEW NUTS BRAND
• The processing is initiated to link the
agribusiness processed units in seeking the
segmentation of markets under cooperative
systems in order to add the value of cashew
nuts by introducing new market brand of
cashew nuts of Tanzania named TANECU –
CASHEW NUTS.

23. 3.TANECU CONCRETE ACHIEVEMENTS
3.4 IMPROVING PRODUCT QUALITY ASSUARANCE
• The quality assurance starts on grading stage, cutting
test, and the shells out turns (SOT). The cashew nuts
quality controls are by Cashew nut board of Tanzania,
and the finished goods are tested by Tanzania Bureau of
Standards and East African Bureau of Standard.
And Tandahimba Newala Cooperative Union (TANECU) Limited
arrange for certifications and Quality assurance at national
standard Bureau (TBS) and Regional Standard Bureau and
International Organization for Standards (ISO) in order to
sustain the supply chain of finished goods.

24. 3.TANECU CONCRETE ACHIEVEMENTS
3.5 RELIABLE MARKET FOR CASHEW NUTS POTENTIAL.
• This processing is established to support the affiliated groups of
TANECU LTD who are participating in processing cashew nuts and
then TANECU LTD taking responsibility to seek for the market of the
finished good as segmented as following:-
i. DOMESTIC MARKET.
• The demand for cashew nuts outstrips production, it is consumed
by almost every household and sold with a retail business in some
restaurants, bars, supermarket and hotels, due to the local processing
methods the product don’t meet standards due to local processing me
thods and then it is difficult to sale in domestic market mean
while the marked demand, the supply is low and the price is high

25. 3.TANECU CONCRETE ACHIEVEMENTS
ii. EXPORT MARKET.
• The is high demand for raw material in export market,
this enforces us to change the methodology of
processing from local to machinery so that to increase
the quality assurance, product standard and value chain
addition. The export of processed cashew nut is an
opportunity that this new model whereby the aim is to
capture the east Africa market and Middle East as well.
For this case the processing unit model shall increase the
production line as the demand at domestic and
international market.

26. 3.TANECU CONCRETE ACHIEVEMENTS
3.6 FARMER POPULATION: TANECU LTD operates to
justify a demographical population of 143,664 people
as shown below:
Source:TANECU LTD 2018
No CARTEGORY OF
FARMERS
MEMBERS OF
AMCOS
FARMERS OF
AMCOS
TOTAL
1 FEMALE 22,995 43,232 66,227
2 MALE 29,897 47,540 77,437
TOTAL 52,892 90,772 143,664

27. 3.TANECU CONCRETE ACHIEVEMENTS
3.7 CREATING EMPLOYEMENT
DESCRIPTION TYPE OF JOB COMPANY
/
AMCOS/
CLUSTERS
EMPLOYEE TOTAL
TANECU OFFICE Permanent 20 20
AMCOS Contract 366 366
TRANSPORTERS Seasonal 60 20 1,200
WH/ OPERATORS Seasonal 4 30 120
CARGOES Seasonal 4 200 800
PROCESSORS Seasonal 4 100 400
GRAND TOTAL 2,906

28. 4.CONCRETE UPSCALING FOR A
BUSINESS EXPANDING
4.1 TANECU LTD PLAN TO ESTABLISH A PROCESSING FAC
TOR
• Despite of the local processing TANECU LTD
has found that the famers loose money by selling
raw cashew nuts instead of processed cashew nuts,
this implies that the Price of raw cashew nut per
Kg $ 1.48, while the Price of proceed cashew nut
with Value Added per kg $ 8 and the Farmer
loose per kg at domestic market $ 6.52.

29. 4.CONCRETE UPSCALING FOR A
BUSINESS EXPANDING
• 4.1 PROCESSING INVESTMENT
• TANECU LTD initiative focus to support farmers cashew nut business
to change Production line from Raw cashew nut to Products that att
ribute to value chain addition of the cashew nuts market.
• TANECU LTD processing factory initiative depends on members shar
e contribution to own the factory, since
TANECU LTD call up the Investors to join in this joint
investment under public private partnership (PPP)
processing project. Or any development
partners to support for TANECU LTD initiative for
processing plant.

30. 4.CONCRETE UPSCALING FOR A
BUSINESS EXPANDING
• 4.2 NEED IDENTIFICATION
The processing project is engaged to support the needs in three aspect namely:
1.Financial Need support:
• The project needs financial support to undertake this project the funds will be use
d to finance the acquisition of building, civil work, plants, machinery and other mis
cellaneous costs to be contributed the amount requested $1,208,000.00
2.Technical Need support:
• The project need technical support for CTA Belgium and others advisors to come in
Tanzania to work with TANECU LTD and ensure we add value to the farmer cashew
nut processing initiatives and seek for project markets in various countries like Belg
ium etc
3.Training Need support;
• The project need training and development on how to use the new processing Tec
hnology and other research and development for the second phase project such lik
e environmental impact analysis for this project.

31. 5. FINANCIAL MODEL.
• 5.1 ESTIMATED INVESTMENT FUNDS
i. TANECU LTD Contribution: $300,000.00
ii. Amount requested: $1,208,000.00
Total project amount: $ 1,508,380.00

32. ALEX N. DOMITIUS (Resume)
• Tanzanian Male with 40years age,
• Education; Thesis PhD Continuing, and Holds
MBA-Marketing, BBA-Procurement
• Professional level: Registered as Authorized
Professional at PSPTB with CPSP
• Working experience: Entrepreneurship and
Business Consultant with 10years experience

33. NB:
THANK
YOU
FOR
LISTENING

34. Official contacts
• EMPLOYEED OFFICE CONTACTS:
• Title: Branch Manager,
• TANECU LTD-Cooperative union,
• P. O. Box 65,
• TANDAHIMBA -MTWARA.
• TANZANIA (EA).
• Mobile Number: +255 677 006 313 or +255 753 3
19 900
• TELEPHONE: /Fax: +255 232410346
• Personal E- mail:ad.ndikile@gmail.com

35. PRIVATE OFFICE CONTACT
• Title: Entrepreneurship-Agribusiness Consultant
• LEX INTERNATIONAL -Community Based
Organization,
• P. O. Box 773,
• MOROGORO-TANZANIA (EA).
• Mobile Number: +255 677 006 313 or
+255 753 319 900
• E- mail:lexinternational2@gmail.com