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This study was carried out to assess the challenges faced by small-scale cashew nut processors in Ruangwa District, Tanzania. The study employed a correlational research design using a survey on a sample of 180 small-scale cashew nut processors. Data were collected through questionnaire administration, focus group discussions, key informant interviews and documentary reviews. Quantitative and qualitative data were analyzed by using descriptive statistics and content analysis respectively. The study revealed the following challenges that face small-scale cashew nut processors: use of inefficient local processing tools, less availability of appropriate equipment and machine for processing, lack of money to acquire new technology, and lack of investment and working capital. Other challenges were the availability of raw materials, lack of market information on kernel, lack of reliable training facilities, and lack of government initiative support on cashew nut processing. The study recommends improvement and facilitation of modern processing equipment, training processors on improved processing techniques and improvement of domestic and international cashew nut markets.

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