The Impact of Domestic Cashewnut Price Fluctuation On the Level of Cashewnut Output in Tanzania
This study was carried out to find the extent to which cashewnut domestic price fluctuation influences the level of cashewnut output in Tanzania. It also aimed at finding out farmers' reactions to price fall and its impact on output. The study collected primary data by using self administered questionnaires and indepth interviews. Secondary data analysis was done by using correlation coefficient. The study results showed that cashewnut price and output are positively correlated with a magnitude of 0.695. It Study also found that farmers' reactions to price fall have an impact on output as 43% of the respondents indicated to reduce efforts spent in cashewnut farms or abandon their farms when prices fe . The study also found that 48% of farmers reduce the amount of agro-inputs when cashewnut prices fall, which negatively impacts on the level of cashewnut production. The policy implications is that the Tanzania government must employ various strategies to stabilise domestic cashewnut prices.