MBA (Agribusiness Management)

RURAL IMMERSION PROGRAM

Topic: Cash nuts Processing Industry in Mozambique

STUDENTS: TEACHER:
Armando Mateus Moiana PhD Veluchnany Venkatakrishnan

Boneze Nhampoca Joaquim

Mozambique, December 2021

 INDEX

1. INTRODUCTION............................................................................................................................ 3

2. OBJECTIVES................................................................................................................................. 5

3. GENERALITIES............................................................................................................................. 6

3.1 Mozambican Cashew Nut....................................................................................................6

3.2 Cashew nut Production........................................................................................................6

3.3 Value Chain......................................................................................................................... 7

3.4 Premium Markets................................................................................................................. 7

3.5 The Mozambican Cashew Industry......................................................................................8

4. SELF-CONTROL SYSTEMS IN CASHEW NUT PROCESSING INDUSTRY.................................9

5. UNIT OPERATIONS INVOLVED IN THE PROCESSING OF CASHEW NUTS.............................9

6. CONCLUDING REMARKS........................................................................................................... 15

7. BIBLIOGRAPHIC REFERENCES................................................................................................16
 1. INTRODUCTION

For much of the twentieth century, Mozambique was the world's largest producer of cashew nuts.
Africa's first industrial cashew processing plant was established in Mozambique in 1960, and the
domestic processing industry began to thrive soon after. Mozambique quickly built a reputation for
quality production and efficient processing, which created a strong export market and supported
millions of subsistence cashew farmers
(https://www.portaldogoverno.gov.mz/por/Imprensa/Noticias/Reduz-quantidade-de-processamentoda
castanha-de-caju, 2020).

After independence from Portuguese colonialism in 1975, Mozambique's plantations and processing
factories were nationalized, causing many Portuguese owners and managers to abandon their
factories. In 1987, the government of Mozambique issued a ban on chestnut exports in order to keep
the raw material in the country and stimulate domestic processing. The consequences of
decolonization and the turbulence of a 16-year civil war, however, greatly damaged both the
production and the processing industry which caused production to decline dramatically. After the civil
war ended, farmers began to return to their land and cashew production slowly began to increase. In
the hope of increasing production to higher levels and reviving the domestic processing sector, the
government removed the export ban and replaced it with a high export tax. Slowly, large mechanized
factories started to re-enter the industry.

Unfortunately, the revival of industry was short-lived. In 1995, the World Bank - as part of its structural
adjustment plan for Mozambique - called for the removal of the export tax on nuts. World Bank
economists argued that the domestic manufacturing industry was unsustainable, and it would be more
efficient and profitable to export the nuts as raw material for processing in other countries. This latter
analysis, became a self-fulfilling prophecy; the policy exacerbated the low post-war levels of
investment in industry, effectively rendering the domestic manufacturing industry uncompetitive. Within
a few years, almost all mechanized factories across Mozambique had closed
(http://www.mozambicancashew.com/from-tree-to-trade-1, 2021).

In the early 2000s, Mozambique's cashew industry witnessed yet another revival when the
government, with strong support from Techno Serve, an American NGO, introduced a new, more
profitable business model for cashew production and processing. This new model focused on smaller
scale semi-mechanized factories owned by individual entrepreneurs in rural areas of Northern
Mozambique. These factories quickly proved to be profitable and led to a resurgence of cashew
exports. Since 2009, however, the industry has witnessed more consolidation between buyers of raw
cashew nuts and larger processors, which has forced the closure of some smaller processing facilities.
That trend, however, is reversing. Thanks to the increasing global demand for traceable and
sustainable cashew, smaller processors now have the opportunity to compete and Mozambique is well
positioned to become a long-term global leader in the export of traceable and single origin cashew
nuts. In this sense, the present work arises under the rural immersion programme in order to put into
practice the theoretical knowledge learned in the classroom, by recognizing the cashew nut production
chain in Mozambique.
 2. OBJECTIVES

2.1 General

 To know the industrial production chain of cashew nuts in Mozambique.

2.2 Specifics

 To identify the places of primary production, processing and commercialization of cashew nuts
in Mozambique.
 Refer to the self-control systems applied in the cashew nut processing chain;
 Describe the unit operations involved in the cashew nut processing and marketing industry.
 3. GENERALITIES

3.1 Mozambican Cashew Nut

With its ideal growing conditions, trade policies that now favor local processors, and de facto lack of
foreign nuts entering the supply chain, Mozambique is uniquely well positioned to become the most
competitive global supplier of traceable, high quality, and sustainable cashew kernels. Ongoing
investments in improved technologies and management practices are making the industry not only
more productive and efficient, but also more ethical and transparent. These changes are preparing the
industry to provide large quantities of safe, high-quality cashew nuts to millions of cashew consumers
globally, as well as boosting farmers' incomes through increased profits and premium marketing.

3.2 Cashew nut Production

The sandy soils and temperate climate of northern Mozambique create perfect conditions for cashew
nut production. Mozambique has over 32 million cashew trees, and almost 70% are in the country's
"cashew belt" that runs through the northern provinces of Nampula, Zambezia, and Cabo Delgado.

With proper attention and care, average tree specialists can reach 11 kg of nuts per year, and the
productive life expectancy of a tree can reach more than 50 years. With these rates, a cashew
production is a business opportunity for smallholder farmers that has lasted for generations.

Cashew production is the main source of income for nearly 1.4 million farmers in Mozambique. As one
of the commercial crops that farmers can grow, cashew production is an economic backbone of
income-earning communities across the country. Smallholder cashew farmers run first small farms
with 10 to 20 cashew trees mixed with other crops. During the harvest, which occurs from October to

February in Mozambique, the average cashew farmer produces about 100 kilos of nuts selling to the
processors closest to the communities. In 2013, total raw cashew nut production was 64,000 tonnes,

making Mozambique the second largest cashew producer in East and Southern Africa, and the eighth
largest producer worldwide.

Over the last few years, one of the biggest challenges for Mozambique's cashew industry is a decline
in tree productivity. Since the civil war ended in 1992 and Cyclone Nadia destroyed 40% of the
plantation areas in 1994, many new trees have been planted to replace those that were destroyed or
had outlived their productive life. As a result, the sites have been well below their potential. Production
is now being revitalized, through new planting initiatives and distribution of seedlings and seeds, as
well as agricultural extension programs and improved system approaches.
 3.3 Value Chain

Building on Mozambique's long-standing reputation as one of the world's best and most prolific
cashew nut producers, new technologies and improved management systems for production and
processing are increasing the quantity, quality and value of cashew nuts in Mozambique available for
sale on the international market.

3.4 Premium Markets

Transparent systems for the efficient supply chain management of Mozambique's cashew industry
allows retailers and end consumers to know the provenance of the cashew nut and how it is treated
during the journey from farm to table. This important information also facilitates a range of quality
assurance certifications, including food safety and organic.

According to the Ministry of Agriculture and Rural Development (2021) through the Integrated
Agricultural Survey 2020, Mozambique commercialized about 143384 tons of cashew nuts and among
this quantity Nampula Province is in first position with 66334 tons of cashew nuts commercialized, as
described in the following table:
Table 1: Quantity of cashew nuts in tons marketed in the agricultural season between 2019-2020 in
Mozambique.

Province Marketed in tonnes

Niassa 0
Cabo Delgado 24385
Nampula 66334
Zambézia 14554
Tete 3331
Manica 3768
Sofala 18474
Inhambane 12208
Gaza 329
Maputo Província 0
Nacional 143384

Source: MADER/DPP, Integrated Agricultural Survey, IAI 2020; IAM - IP

3.5 The Mozambican Cashew Industry

The cashew industry plays an important role in Mozambique's economy, particularly in the rural areas
of the North. Over 40% of Mozambican farmers - over one million households - grow and sell cashew,
and the processing sector provides formal employment for over 8,000 individuals. Mozambique
consistently ranks as one of the world's leading producers of cashew nuts, and is currently the second
largest producer in East and Southern Africa. Mozambique's cashew industry follows international
standards in labor and environmental sustainability, which provide the basis for its links to top export
markets, including the United States and Europe.

Mozambique has 20 cashew nut processing facilities, lost mainly in rural communities. Together, the
factories employ about 11,000 people, providing stable wage employment opportunities in areas
where such opportunities exist.

All processing plants in Mozambique employ either manual or semi-mechanized processing models.
In semi-mechanized factories, processing is supported by the use of grading, cutting and peeling
machines, but manual work is still required for peeling, grading and machine operation. Although the
quality and efficiency of machines have improved greatly in recent years, there is still a lower
breakage rate with manual processing, and many factories choose to process manually to ensure
maximum profit.
 4. SELF-CONTROL SYSTEMS IN CASHEW NUT PROCESSING
INDUSTRY

In the food production chain it is pertinent to apply auto-control systems as a way to guarantee the
quality and safety of the nuts to be produced or processed and these systems should meet the
hygienic sanitary requirements and local and universally accepted standards based on codes of good
hygiene and production practices, design and implementation of prerequisite programmes (good
hygiene and production practices based on standard operating procedures). Such prerequisite
programs consist of designing and implementing staff training plan, environmental management or
waste management, hygiene and health control of personnel, pest control, water quality control, stock
management, process control, control of raw material suppliers, sanitation of equipment and facilities
and distribution of the final finished product. Still cashew nut industries need to have a quality
manager, internal auditor or external auditor in order to contribute in the process of auditing,

certification and implementation of quality and safety management standards (ISO 9001: Quality
management system, ISO 14001: Environmental management system, ISO 22000: Food safety
assurance system throughout the production chain and Nora ISO: 45001: Occupational health
assurance system), food legislations (Decree no 15/2006-Approves the Regulation on the Hygienic
Sanitary Requirements for the Production, Transport, Distribution and Marketing of Foodstuffs) and
Hazard Analysis and Critical Control Point (HACCP) system.

Meanwhile, cashew nut processors in Mozambique are committed to sustainable sourcing, the
implementation of traceability systems in their factories and to food safety certification programmers
such as HACCP and BRC Food Safety. The factories use basic batch processing systems and basic
paper-based forms of traceability, but these practices are rapidly evolving to higher technology
solutions that use bar and computer-based tracking systems to trace the path of the nut from the farm
to a table.

5. UNIT OPERATIONS INVOLVED IN THE PROCESSING OF CASHEW

NUTS

Factories buy raw cashew nuts from farmers during the harvest season, which lasts from October to
February, most purchases occur in the months of November and December. The infographic below
details the cashew processing steps, from the arrival of raw cashew at the factory gate after
commercialization.
At each step of the process, the cashew nut is transformed. As changes occur in size, shape, texture
and colour it moves from its raw state to a finished product that can be eaten or sold for further
processing such as roasting or flavouring.
Cashew Processing Flowchart

RECEIPT OF RAW MATERIAL PACKAGES

STORAGE

STEAMING

COOLING

SHELLING

PEELING

DRYING

GRADING

RECONDITIONING

WEIGHING

PACKINGING

ARMAZENAMENTO

EXPEDITION
 5.1 Description of the processing steps for cashew nuts
Storage

Raw cashew nuts puchased from farmers are brought the factory, dried under the sun, and packed in
jute bags for storage in ventilated warehouse. As illustrated in the image below.

Steaming

The raw nuts are put into a streamer for 25 to 35 minutes. Steaming makes the outer shell brittle and
activates the osmosis process, which facilitates of kernel breakage. The application of heat also
condenses the corrosive a chew nut sheet liquid (CNSL) into a jelly, making it safer for manual
processing. As illustrated in the image below.

Cooling

The nuts are taken out of the steamer for 24 hours of air-drying and cooling, which makes the nut
brittle enough to be cut. As illustrated in the image below.
Shelling

The objective of shelling is to remove the kernel from its shell without breaking it. During the shelling
process the hard outer shell of the nut is cracked by machine or by a worker using manually operated
cutting device. The kernel is then separated from the shell by a vibrating conveyor belt. Worker apply
castor oil to protect their hands from CNSL. As illustrated in the image below.

Drying

The kernels are spread cento metal trays, slotted into the racks of a cart, and placed in low-
temperature oven for drying. The heat loosens the kernels skin, thereby allowing it to be more easily
peeled. Drying also protects the kernel from pests and fungi. As illustrated in the image below.

Peeling

Trained works entry scrape each kernel with a small knife to remove its skin, being careful nit to cut or
damage the kernel during the process. In some cases, a peeling machine is used to remove the
majority of the kernels skin, and workers finish the process by hand. As illustrated in the image below.
Grading

Workers sort the kernels by color, size, and shape, and grade them according to Association of Food
Industries (ASFI) standards. Kernels can de classified into up to 27 different grades, and each grade
fiches a different price on the international market. As illustrated in the image below.

Reconditioning

Reconditioning is necessary to control the moisture content must be raised slightly before packing so
that they are less fragile. To do this, the kernels are transferred to a closed conditioning room where
they can absorb moisture from surrounding air. A kernel with the correct humidity level has less risk of
breaking during transport. As illustrated in the image below.
Packaging

Kernel are cleaned and packed into 25 or 50 lb plastic bags using a vacuum packing in machine. This
machine extracts the air and flushes the pack with carbon dioxide or nitrogen to protect the kernel and
increase its shelf life. Once packed and sealed, bags are brought to storage location to await, boxing
or commercialization. As illustrated in the image below.

Storage
After packaging, the beans must be stored in places that offer adequate conditions, with a system that
allows ventilation in the environment, preferably with lined ceiling, cemented or ceramic floor, without
corners that allow the deposit of dirt and walls with washable paint, ventilated, with low humidity. In the
case of almond crates, these can be arranged on wooden or plastic platforms.
 6. CONCLUDING REMARKS

Mozambique is one of the largest producers of cashew nuts worldwide and at national level Nampula
Province occupies the first position in terms of cashew nut production in each agricultural campaign.

The major challenges and problems facing Mozambique in the cashew production chain are the
struggle for the existence of many cashew nut industries at national level, the control of pests in
primary production, the implementation of self-control systems, the development of production
technology and value chains for the marketing of these products.

Cashew nut processing minimizes post-harvest losses, adds value to cashew nuts, diversifies the diet
of the population, ensures the existence of cashew nuts in all seasons, contributes to ensuring food
and nutritional security and generates income for local producers, creates new jobs and contributes to
the development of the country's economy.
 7. BIBLIOGRAPHIC REFERENCES

https://www.portaldogoverno.gov.mz/por/Imprensa/Noticias/Reduz-quantidade-de-processamento-
dacastanha-de-caju (2020).

http://www.mozambicancashew.com/from-tree-to-trade-1 (2021).

Ministry of Agriculture and Rural Development (2021). Integrated Agricultural Survey 2020 | Statistical
Framework. Ministry of Agriculture and Rural Development Directorate of Planning and Policy (DPP).
Mozambique. 74 pages. Website: www.agricultura.gov.mz