Abstract:
Despite a significant increase in foreign exchange earnings from cashew nut exports in Tanzania
over the past ten years, it remains unclear whether smallholder farmers have benefited from
participating in the cashew nut business. This study bridges the research gap by assessing the
impact of cashew nut business performance on smallholder farmers’ welfare in Mtwara and
Lindi regions. A quasi-experimental design using cross-sectional data was employed, involving
384 respondents, 128 cashew nut farmers and 256 non-participants. Data were collected
through structured questionnaires and Focus Group Discussions (FGDs), and analysed using
Propensity Score Matching (PSM) and content analysis.The findings show that participation in
the cashew nut business had a statistically significant positive impact on farmers’ welfare (t value > 2). Participants reported higher food expenditure (TZS 58,687–58,829), non-food
expenditure (TZS 52,312–55,385), income (TZS 1,763,592–1,786,650), and annual savings (TZS
697,232–701,714). They also owned more consumer durables, valued between TZS 13.9- TZS
14 million. As the study confirms the positive impact of cashew nut business on farmers’
welfare, local governments should encourage non-members to engage in the sector through
sensitisation on its benefits. The Cashew Nut Board of Tanzania should continue regulating and
promoting the quality, marketing, and export of both raw and processed cashew nuts. The
central government should strengthen trade regimes and institutions that enhance positive and
mitigate negative trade impacts on sustainable development. Lastly, smallholder farmers should
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improve their socioeconomic status through capacity-building programmes and adopt
sustainable farming practices
