Tanzania’s 2026/27 Agriculture Budget Targets 32% Cash Crop Surge and 235,000 Tonnes of Avocado Output

Tanzania’s Ministry of Agriculture has set a target to raise traditional cash crop production to 2,118,000 tonnes in the 2026/27 agricultural year, up from 1,599,945.66 tonnes in 2025/26, an increase of 32.4%.

The target was announced by the Minister of Agriculture, Daniel Chongolo, while presenting the Ministry’s Revenue and Expenditure Estimates for the financial year 2026/27 to the National Assembly on 28 April 2026 in Dodoma.

Tanzania Cash Crop Production Performance

Cash crop production in 2025/26 reached 1,599,945.66 tonnes, equivalent to 71.9% of the season’s target, and 10% above the 1,451,694.11 tonnes recorded in 2024/25.

Cashew nuts led the cash crop output with 617,683.77 tonnes, followed by sugar at 410,979.04 tonnes, cotton at 222,014 tonnes, tobacco at 185,776 tonnes, coffee at 74,663.60 tonnes, sisal at 64,321.77 tonnes, tea at 11,631.48 tonnes, cocoa at 10,096 tonnes, and pyrethrum at 2,780 tonnes.

Avocado Becomes a Strategic Export Crop

Beyond traditional cash crops, the Government is pushing avocado as a high-value export crop, targeting production of 235,000 tonnes in 2026/27, up from 201,354 tonnes in 2024/25, with exports projected to reach 40,000 tonnes.

To support this target, the Ministry plans to train 9,500 farmers and 500 extension officers in good agricultural practices, while the Tanzania Agricultural Research Institute (TARI) and the Tanzania Coffee and Avocado Research Institute (COPRA) will distribute 1,727,400 subsidised avocado seedlings, primarily targeting youth and women groups.

The Ministry, through COPRA, will continue construction of 20 avocado collection centres across key producing regions, including eight in Mbeya, five in Njombe, four in Iringa, two in Ruvuma and one in Rukwa.

The country currently hosts eight medium and large-scale avocado processing factories, and the Government plans to scale up avocado oil production with private sector partners.

Tanzania Agriculture Sector Macroeconomic Performance

Tanzania’s agriculture sector grew by 4.0% in 2025 and contributed 24.6% to the Gross Domestic Product (GDP).

Food crop production in the 2024/25 season reached 23.78 million tonnes, up 4.3% from 22.8 million tonnes in 2023/24.

Cereal production reached 14,924,582 tonnes in 2024/25, up 2.3% from the previous season, while non-cereal food crop production rose 7.8% to 8,858,546 tonnes.

National food self-sufficiency reached 130%, with the 2024/25 harvest producing a surplus of 5,504,074 tonnes against a national food requirement of 18,279,054 tonnes for the 2025/26 consumption period.

The Minister stated that the surplus presents an opportunity to strengthen food security, stabilise domestic markets and expand agricultural exports.

National Agricultural Extension Services Agency Launch

The Ministry is finalising the establishment of the National Agricultural Extension Services Agency (NAESA), which is expected to begin operations in July 2026.

NAESA will coordinate and supervise extension services nationally, transfer technologies from researchers and stakeholders to extension officers and farmers, and improve the efficiency of agricultural advisory services across the country.

Sector Context for Investors

Agriculture is Tanzania’s largest employer and accounts for roughly a quarter of GDP, with traditional cash crops, horticulture, and food crops representing the main commercial segments.

The Tanzanian Government has progressively scaled the agriculture budget over recent years, expanding input subsidy programmes, irrigation investment, and value-chain development.

The targeted 32.4% increase in cash crop output for 2026/27, combined with the avocado export push and the operational launch of NAESA, signals continued policy focus on commercial agriculture as a driver of export earnings, agro-industrial growth, and rural employment.