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Sustainable supply chain for Cashew nuts with Intersnack

The Intersnack Group is the largest European provider of salty snacks. In Germany, the Intersnack Group is market leader with its brand Ültje in the segment of peanuts and nut specialities. To bolster this position, Intersnack would like to establish a sustainable supply chain for organic and fair-trade cashews in Tanzania.

In Tanzania, about 500.000 small-holder farms cultivate cashews. After coffee, cotton and tea, cashews are the most valuable export commodity for the African country. In addition to price fluctuations, it is mainly agriculutural problems such as poor harvests and lack of know-how regarding the use of pesticides which threaten the livelihood of farmers. To support the farmers and to improve their living conditions, some villages have established a cooperative in the Massai region which provides technical expertise and sells the cashews to international buyers. This cooperative also provides a small factory for the pre-processing of cashew nuts. The Intersnack Group has identified this cooperative as a partner for the development of a sustainable supply chain.

The aim of the PPP-Project is to improve the living conditions of farmers in Tanzania by developing a sustainable and fair supply chain for cashews. As part of the project, training programs for the farmers are designed to provide the essential knowledge about organic farming methods, improvement of yield, Fair-Trade principles, etc. In small groups, farming techniques are jointly tested to increase the local knowledge about these topics. About 800 farmers will benefit from these training in the next few years. Furthermore, two systems are developed and implemented: one which tracks the origins of the nuts and another one which safeguards the adherence to organic farming methods.

WiN=WiN effects

The target group of the PPP-Project are small-holder farmers and their families. Their income situation is improved by introducing agricultural methods appropiate for the climate and region. Through a guarenteed sale of their products a regular income is ensured. In addition, the environment benefits from carefuly cultivation methods. Small-holder farmers in Tanzania are now able to keep up with the international quality standard.

A sustainable supply chain and traceability of cashew nuts to the origin is a prerequisite for the Intersnack Group to secure the trust of their customers. Organic and Fair Trade cashews enable Intersnack to enter a promising new market segment with high growth potential. The expansion of local production helps to achieve a critical mass in order make a deeper processing on site economically viable.

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