Mining & Trade News

The Tobacco Commission (TC) says it expects an improvement in tobacco prices during this year’s selling season.

CEO Chidanti Malunga said in an interview that TC in coordination with the Ministry of Agriculture is doing everything possible to ensure that farmers benefit from their works by, among other things, ensuring that they are offered attractive prices.

He said one way of making sure that farmers are supported is by setting minimum buying prices every year for buyers to adhere to.

Malunga, however, expressed worry over the reduction in number of tobacco farmers who registered to grow the crop this season. Reports indicated that the number of growers this season has gone down by 5% when compared to the number of farmers who registered last season.

He, therefore, said TC has developed strategies designed to increase the number of tobacco farmers during the next growing seasons.

Tobacco Association of Malawi (TAMA) Spokesperson Sam Kalimba commented that the number of farmers interested to grow tobacco was declining because of low market prices for the leaf and World Health Organisation championed anti-smoking lobby.

Kalimba, however, said despite challenges the industry is facing, there is still hope for the local leaf which he said still enjoys huge demand. But he urged farmers to produce the leaf in line with trade demand and following all good agricultural practices.

“There is still huge demand for local tobacco and what is required is growing the leaf using good agricultural practices, including recommended labour practices,” said Kalimba adding that agricultural extension advisors are also critical in ensuring quality production by participating farmers.

Local agricultural experts have forecast bumper yields in Malawi this year, a development they attribute to good rains being received throughout the country and government’s initiated Affordable Input Program (AIP)

The experts predict that small scale farming households will achieve national food security while surpluses will be sold to strengthen household financial bases.

Famine Early Warning Systems (FEWSNET) published on its website this week: “Farmers are anticipating good harvests this year, as overall cummulative rainfall from October 2020 to March 2021 is expected across the country, with localized areas above average and below average possible. At national level, average to slightly above average production is expected,”

Agricultural analyst Tamani Nkhono Mvula agreed that good rains coupled with the subsidized farm input program have given the country hope for bumper yields. He expressed optimism that there is a possibility of continued good rains, until the end of the season.

“We have really been receiving good rainfall in almost all parts of the country which coupled with the increase in number of AIP beneficiaries who planted hybrid seeds gives us hope for better yields this year. If rainfall continues with the current pace, then bumper yields are guaranteed,” said Mvula.

But Mvula complained that the only thing that might affect the yields are the fall-army worms that have attacked some gardens in some parts of the country, particularly in the central region.

Farmers Union of Malawi (FUM) also complained that the fall army worms might have a negative effect to the anticipated yields.

FUM President Frighton Njolomole, therefore, urged all Extension Planning Areas (EPA) to be alert.

Ministry of Agriculture spokesperson Gracian Lungu said even if results of first round yield estimates were not yet officially released, there were strong indications that the country would produce more maize this year, due to the increased uptake of inputs and good rains.

At the onset of the rainy season, the Meteorological and Disaster Management Department (MDMD) forecasted that the country would receive good rains this season.

Tobacco Association of Malawi (TAMA) says there is still hope for the tobacco industry as demand for the local leaf is high despite a slump in global economy due to the novel coronavirus (Covid-19) pandemic.

“Demand for Malawi tobacco is still there, all we need is promoting growing using recommended agricultural practices that also include recommended labour practices. Agricultural Extension advisors from different players in the industry are working together to ensure these messages reach the farmer and are adhered to,” said Kalimba.

He, however, said the local tobacco industry has not been spared from Covid-19 which has affected most economic sectors.

Kalimba said in a bid to minimize challenges the industry is currently facing due to Covid-19, TAMA has put in place some initiatives aimed at protecting producers of the country’s prime revenue earner.

He said labour in the tobacco sector is one of the areas that have been affected this season, as farmers are advised to reduce their labour force to decongest their farms as a way of preventing transmissions, which the TAMA spokesperson said is a threat to the industry that requires more people to produce quality leaf.

TAMA in conjunction with the Ministry of Health is currently conducting sensitization meetings with farmers who are advised to follow all preventative measures government set in the fight against the respiratory infection.

“The impact of Covid-19 has not spared any sector including tobacco production. Labour is one of the factors impacted as efforts to have work places decongested are being enforced and there is also labour scarcity where communities have been hit. TAMA is advising farmers to follow government’s set preventative measures so that farm operations do not stall,” explained Kalimba.

Meanwhile, TAMA has suspended this year’s Growers Meeting which is held in February every year, as enshrined in TAMA’s constitution as a prevention measure against the spread of Covid-19.

TAMA in collaboration with Ministries of Health and Agriculture has developed Covid-19 messages which are being distributed to farmers, advising them on how they can help in the fight against the pandemic. The messages are in languages used by targeted farming communities for them to easily understand.

Besides Covid-19, low tobacco prices and World Health Organization’s (WHO) championed anti-smoking lobby are some challenges affecting the tobacco industry which remains Malawi’s top foreign exchange earner.

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Malawi’s multi-million dollar Agricultural Commercialization Project (AGCOM) is on course leveraging local agriculture through the promotion of agricultural value chain products.

Using an approach known as the Productive Alliance (PA), the US$95 million World Bank credit facility project links together producers, service providers and off-takers in different value chains.

AGCOM National Coordinator Dr. Teddie Nakhumwa said the project’s development objective is to increase commercialization and competitiveness of agricultural value chain products in crops, livestock and fisheries.

Dr. Nakhumwa explained that the project was developed to respond to some of critical problems facing the small and medium scale farmers such as poor access to organized markets, poorly organized farmers and farmer groups, poor access to competitively priced finance and poor market infrastructure.

AGCOM provides 70% matching grants for the purchase of capital equipment and also insures that farmers lend from commercial banks to finance operations by guaranteeing 70% of their loans. The project also provides public infrastructure through connecting producer organisations to power, irrigation and road infrastructure—in what is known as Last Mile Infrastructure.

“These interventions are aimed at transforming agriculture by increasing productivity and efficiency in scarce land and labour use,” said Dr. Nankhumwa adding that AGCOM also invests in capacity development and organizing producer organisations into cooperatives to operate at economies of scale.

The project only supports producer organization that have formal arrangements with off-takers to ensure they are producing for the market and therefore promoting business culture among small and medium scale farmers that do the bulk of the country’s production.

Dr Nankhumwa highlighted that the project has, meanwhile, made significant progress in putting the system and establishing all strategic documents to guide implementation such as: AGCOM matching grants manual, Risk management manual, Partial credit guarantee (PCG) manual, M&E Manual, Communication manual, Institutional and organisational development guidelines.

“To promote independence and transparency, the project established independent committees such as Independent Evaluation Committee (IEC) and Investment Committee to independently evaluate proposals submitted to AGCOM for matching grants and Patrial Credit Guarantee. These committees comprise members mainly from the private sector and a few from the public sector,” he said.

The project has also a Contingent Emergency Response Component, which can be triggered by Government to respond to natural disasters.  During the 2019 Cylone Idai flood disaster, the project provided US$20 million (US$7-million for maize purchase; US$7.5 million for rehabilitation of public irrigation schemes) among others, after government requested AGCOM for assistance.

Meanwhile, AGCOM has so far managed to approve 45 PAs, out of which, 25 have already paid the required 30 percent contribution and are already accessing funds from AGCOM for implementation of the sub-projects. Over 400 hectares of land for local and foreign investments have been identified to secure an enabling business environment for PAs

Nakhumwa, however, pointed that the project has also encountered numerous constraints such as optimal commitment for PAs to make the 30% contribution and aftermaths of Covid-19 pandemic that has delayed in delivering some strategic capacity building trainings.

Malawi’s tea is making positive strides on the world market as the Caduceus Cellars, owned by winemaker Maynard James Keenan, a Grammy award-winning vocalist for Tool, A Perfect Circle, and Puscifer, will feature five hand-crafted Malawian teas at his Jerome, Arizona Tasting Room in USA on December 28, 2020.

The teas to be featured include; Masala Chai, Lost Malawi English Breakfast, Earl Grey, Green Tea and Mint, as well as Lemon Blend tea,  and it is curated and blended by the United Kingdom’s Rare Tea Company and grown by Malawi’s Satemwa Tea and Coffee Estate.

According to Jordan Price, Malawi’s Honorary Consul in Texas –USA, the beverages are to be incorporated having perfectly complimented Caduceus’ award winning wines.

Price said: “As an Ambassador, I am excited Arizonans and international visitors to the historic mining town of Jerome, will experience the passion and dedication of Malawians through these delicious teas.”

He also disclosed that the sale of these teas will help fund school scholarships through the Rare Tea Company’s nonprofit arm, Rare Charity.

Caduceus Cellars Tasting Room Manager Brian Sullivan thanked Jordan Price Malawi’s Honorary Consul, for providing an enthusiastic introduction to Malawi.

Sullivan said: “I was fascinated by the information Hon. Consul Price shared about Malawi and tea farming. Later I researched the country on the internet and learnt that Malawi was the first country in Africa to grow tea commercially. Pointing me in the direction of the Rare Tea Company has also been a positive experience. They have been quite professional in their interactions and I am looking forward to continuing working with them going forward.”

Founder of Rare Tea Company, Henrietta Lovell, said, “Everything you know about wine is true of tea. The effects of the terroir are every bit as crucial, as is the harvesting and the crafting.  Great tea comes from great producers, in the same way that fine wine does. We source the best to bring you the greatest flavors.”

Alexander Cathcart Kay, owner of Satemwa Tea and Coffee Estate noted that high value teas have a direct impact on Satemwa’s ability to sustain its vision of improving the living standards of their employees and neighboring farmers.

The teas available at Caduceus Tasting Room include black teas grown on the estate and Fair Trade Spearmint and Lemon Verbena, grown by adjacent independent farmers.

He said, “It is exciting and gratifying to see Satemwa specialty teas find their way into high quality establishments like Caduceus. Satemwa has struggled to make progress in the US market over the years and the support received from the Malawi Embassy, through their Honorary Consul and the commitment of the Rare Tea Company makes an enormous difference.”

Founded in 1923, Satemwa is a third generation family owned tea and coffee estate in Malawi’s Shire Highlands which contributes to improved Malawian standards of living by crafting a unique line up of white, green, oolong, black, dark, and herbal teas. 

Price fluctuations are the major setback to the advancement of pigeon pea farming in Malawi, a representative group of the crop’s farmers the Nandolo Farmers Association of Malawi (NFAM) has said.

Speaking in an exclusive interview with Mining and Trade Review, NFAM Chairperson Susan Chimbayo said that lack of profitable and reliable markets, insufficient finances and high interest rates are among the factors that derail the capacity of the crop to contribute enormously to the country’s economic growth.

Chimbayo explained that the marketing performance of the crop was greatly affected by import restriction cap set by the Indian government in 2018. With the cap in place, prices dropped to as low as MK30/kg until the Malawi government intervened, a development which saw prices rising to as high as MK230/kg in the 2019-2020 season.

 “Prices of pigeon peas from 2019 to 2020 have ranged from MK250 to MK365/kg. this has renewed farmers’ interest to grow the crop,” she said adding that the market condition has generated high demand on the market and thus makes prospects for 2021 lucrative.

She said farmers under the association benefit from a deliberate policy where registered members attract a premium of MK20-MK30 above market prices. “This means farmers under the association get better rewards compared to non-members.”

However, she said there is a need to put in place deliberate policies to encourage production of pigeon peas as well as protecting farmers from vendor exploitation through licensing and monitoring buyers.

“So far we are lobbying for an exporting quota to India so that Malawi can export raw and value-added pigeon peas as other countries like Tanzania and Mozambique do,” she said pointing out that the association and government can partner to promote value addition using processing plants which are currently lying idle across the country.

NFAM plans to establish a factory under Nandolo Trading Company. The company will be responsible for procurement and marketing of pigeon peas on behalf of farmers.

Chimbayo commended the market linkage the association has with Mozambique based Royal Group of Companies which has improved purchase prices of pigeon peas from MK50 to MK230.

The association is composed of pigeon pea growers aiming at achieving increased production as well as maximizing returns from pigeon pea production. It has about 10,682 members working in 33 member cooperatives in Southern Region of Malawi.

Minister of Agriculture Lobin Lowe has hailed Civil Society Agriculture Network (CISANET) for its meaningful contributions in developing the agricultural sector in the country.

Lowe made the remarks at Bingu International Convention Centre during the Agriculture Open Day organised by CISANET under the theme ‘Making Agriculture Work in Malawi.’

He said he was impressed with various programs and activities that the organisation holds saying their strategic priorities and the thematic areas align with those of the Ministry.

Lowe said: “I am happy to note that CISANET is already a reliable strategic partner that my Ministry continues to work with.”

“I appreciate CISANET’s efforts that aim at coordinating and fostering collaboration among non-state actors towards agricultural transformation.”

“Indeed as the CISANET slogan suggests ‘together we can make agriculture in Malawi vibrant’.”

He also advised all stakeholders in the sector to consider stocking themselves to see if they are making progress in the industry.

Lowe said continued monitoring and evaluation will help the player to gauge how far or close they are towards their intended destination in the sector.

He said it is of paramount importance to devise ways of getting to the top that every farmer in the country has been dreaming to so that their lives can be improved.

The minister also expressed acknowledgement on the challenges that are currently being faced in the sector and said it high time as a country we should start asking ourselves on what we do to promote food security.  

He said: “I do agree with CISANET that at the core of these challenges are the following questions: How do we increase access to markets for farmers? And how do we strengthen the resilience of the sector to weather and market shocks?”

“I would like to assure you that Government is aware of all these challenges, and working really hard to respond to them. As Government we are committed to respond to these challenges through sufficient budget allocations and policy implementation.”

Lowe urged civil society organisations in the country to continue collaborating with the government and also come forward to bring recommendations to government based on their work or experience from expatriates.

In her remarks, CISANET National Director Pamela Kuwali said she was delighted with the Minister’s openness to recommendations from the CSOs.

Kuwali said: “After meeting the minister we are very happy, especially this is not the first time we have met him. We have noted that every time we have been in his office he has been open. Each time we invite him to our events he shows up.

“We understand that the role of revamping the agriculture sector is not a one body duty. So his openness shows that he really cares for the sector.”

She also said holding of more agricultural events in country can help that policies are not only on paper but also on the ground.

Kuwali said the country needs to be harnessing the benefits from every project that it kick starts rather than being masters in paper work.

She said as CSOs working in agriculture they will continue pushing the government to consider revising the calendar on commencement of buying farm produces.

Kuwali said the country has the tendency of opening ADMARC doors very late, a practice that forces the farmers to be selling their products to unlicensed vendors.

Meanwhile, under Affordable Inputs Program (AIP) the Ministry of Agriculture has managed to sell a total of 165,784.40 Metric Tonnes (MT) of fertilizer representing 45%, translating to 1,657,844 farming household accessing fertilizer.

The Government has also sold seeds amounting to 8,744.44 MT representing 44%.

Malawi Milk Producers Association (MMPA) has expressed concern over low milk and dairy products consumption among Malawians.

The organization which is a mother body for all milk producers associations in the country says local milk intake has stagnated for over two years now which it says is a worrisome development to the local dairy products manufacturers.

Herbert Chagona MMPA National Director said in an interview that it was worrisome that most Malawians do not take milk and its products as part of their essential daily diet since they perceive it as a luxury.

According to Chagona, Malawi is the lowest milk consumer in the Southern African Development Community (SADC) region where the highest milk consumer only consumes eight litres per year which he said is against World Health Organization’s recommended quantity of 100 litres per person per year.

Chagona explained that besides perceiving milk consumption as a luxury, there are also other prominent factors leading to the decline in dairy products consumption including high poverty levels which forces people to use their income on basic commodities.

He, however, asked Malawians to change their perception on milk and dairy products, which he said are crucial in human development.

Chagona also asked dairy products manufacturers to ensure that prices for their products are affordable to most poor Malawians.

“Most people think that milk and other dairy products are designed for the rich just because their prices are usually exorbitant. Let me therefore ask dairy products manufacturers to make prices of their commodities affordable to people with diverse economic strengths,” said Chagona

He also asked dairy products manufacturers to establish their industries in all parts of the country in order to make their products accessible to all people across the country.

Chagona expressed concern that the northern city of Mzuzu does not have any milk processing and dairy products manufacturing industry, despite that the region is one of the highest milk producers.

He said the unavailability of milk processors and dairy products manufacturers in the Northern Region forces farmers to sell their milk to vendors at very low prices.

” The establishment of dairy processing industries in the Northern Region would help dairy farmers have access to reliable markets, while providing people in that area with dairy products which are important to their health,” said Chagona.

MMPA recently imported dairy cattle and goats which were distributed to the organization’s members in a ploy to meet the demand for dairy products in Malawi.

MMPA was established to coordinate all dairy farmers in Malawi and provide them with technical skills on how best they can benefit from their work.

Rainy season is finally here, the time farmers are usually busy in their gardens growing various types of crops, for sale and consumption. But in Malawi, the number of tobacco growers during this year’s season has drastically gone down.

Malawi, whose economy is agro based has relied on tobacco as the main revenue earner for many years but for some time, the industry has been going down drastically, something that has affected the country’s economy.

Commentators say anti-smoking lobby championed by the World Health Organization (WHO) and poor market prices for the leaf are the major factors affecting the local tobacco industry.

Tobacco Commission’s (TC) recent report revealed that the number of farmers who registered to grow the leaf during 2020-2021 season had gone down by 15 percent, the development the organization described as worrisome and retrogressive to the development of the industry.  

The report explained that by September 30, 2020 only 45,000 farmers had registered to grow the green gold during 2020-2021 season, the figure which is lower compared with 53,000 farmers who registered in the previous season. TC extended the period to October 14, in a bid to woo more farmers and there was a slight improvement in the number of farmers who registered after the extension.

“The Commission extended registration and licensing period after realizing that the number of farmers who had registered previously was small. Extension of the period was done in a bid to entice more farmers for the exercise,” reads the report.

But some farmers have said, they are no longer interested in tobacco growing because the industry is no longer lucrative as it used to be previously, something they have majorly attributed to reduced market prices for the commodity. They have therefore said, instead of investing their energies in tobacco growing, they would invest it in the production of other crops that might benefit their families.

Farmer Hananiya Chimala of Mitundu in Lilongwe, said he has been in the industry for many years, but has never experienced the kind of nightmare they are facing these days. He said the many challenges faced have forced him to drop. He cited wretched market prices for the leaf as one of the major challenges faced.

“I have decided to quit tobacco farming because it is no longer paying me sufficiently as it used to be at the time I was joining. Generally, the industry started staggering soon after the World Health Organization (WHO) started the Anti-Smoking Lobby saying smoking is a health hazard,” said Chimala.

While Henderson Chinyama another farmer from Nathenje in the same district, accused buyers of favoring contract farmers than individuals, so he has decided to quit tobacco farming which he said is no longer reliable.

“I feel that we are cheated by our leaders, who cannot make solid decisions on tobacco pricing. Almost all the presidents we have had assured us that, they would do anything possible to improve the leaf prices but nothing is done to that effect so I am fed up with their rhetoric,” complained Chinyama.

Malawi realized K125 billion from the sales of 110 million Kilograms of the leaf in the just ended tobacco growing season.