POLICY REVIEW OF CASSAVA PROCESSING, MARKETING AND DISTRIBUTION IN MALAWI'

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POLICY REVIEW OF CASSAVA PROCESSING,
MARKETING AND DISTRIBUTION IN MALAWI.
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(No Transcript)
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FACTS ABOUT MALAWI

• POPULATION - 10mill
• Economic Growth 5.7 (1997)
• Economic Growth - 2.4 (2000)
• Agric contribution to GDP - 40
• Tobacco - more than 65 of total exports
• More than 85 op the Pop depend on agric
• Major staple - Maize
• Deficit in maize - 180 mt (250 mt)
• Poverty - 65 below poverty line
• HIV/AIDS prevalence - 15-49 years 16
• Multiparty Democracy - 1994

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INTRODUCTION

• CASSAVA
• Cassava is produced mainly for household
  consumption
• Cassava hectarage and production have increased
  lately
• Between 1990 and 1999 production increased from
  61,506 ha to 183,486 ha representing an increase
  of 300 (MoAI, 2000).
• In 1999/2000 production was estimated 2,413,186
  with hectarage estimated at 180,758. (13t/ha)
• In 2000/2001 it was estimated at 3,080,433 mt
  with hectarage at 198,363, representing 26
  (16t/ha)
• More than 67 per cent of smallholder farmers grow
  cassava
• However, the production pattern is not only
  haphard and scattered, but the areas grown by
  individual farmers are on average small relative
• With improved management and technology, cassava
  can yield as much as MK 66,198 per hectare.

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INTRODUCTION

• CASSAVA GROSS MARGINS
• With improved management and technology, cassava
  can yield as much as MK 66,198 per hectare.
• Burley Tobacco can yield MK155,630/ha
• In places where they buy cassava in 90-kg bags
  they sell the bags to their customers at around
  K1000 to K1500 per bag.
• Without considering the transport costs, this
  represents a gross margin of between MK700 and
  MK1000 per bag since these bags are bought at
  less than MK500 each.
• Industrial demand for cassava is estimated at 2
  million metric tonnes
• If Malawi were to process industrial starch and
  its by products like, ethanol, Glucose, glue and
  paste, more than 4 million tonnes of cassava
  would have to be produced to meet both household
  and industrial demand.

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CONSTRAINTS

• Tobacco industry facing a serious ban world-wide
• In response to this question, this papers
  examines critical constraint which policy makers
  have to consider in developing a strategic
  framework for cassava-led rural livelihood
  improvement.
• Key Constraints
• Small-scale and fragmented production units
• Underdeveloped Market
• Lack of information among producers
• Lack of established grades and standardsLack of
  established grades and standards
• Lack of established grades and standardsLack of
  established grades and standards

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RECOMMENDATIONS

• Appropriate policy and strategy for
  commercializing cassava should be developed This
  should lead to the establishment of grades and
  standards and market information system .
• Demarcate cassava growing areas and organize
  farmers in associations.
• Demand driven cassava technology development
  should be supported through cost sharing
  arrangements by farmers, the industry and the
  public sector.
• Short term and long term credit support should be
  provided for the smallscale and medium scale
  operators to engage into processing of cassava
  for industrial and household consumption (animal
  feed, starch, cassava meal, glue etc).
• A non-partisan private investor should be
  supported to develop a cassava markets in
  demarcated production zones. Levy from both
  farmers and the industry (e.g 5 to sustain the
  marketing activities over time).

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RECOMMENDATIONS

• Increased linkage between farmers and the
  industry through contract farming and out-growers
  scheme
• Develop cassava seed multiplication program based
  on industrial and household demand.
• There is need to develop cooperative type of
  organizations at each level of the product chain
  so that each interest group can speak with the
  same voice about its grievances than each
  individual trying to do so alone where success
  may not be ensured.
• Knowledge and skill in agribusiness management
  for all relevant stakeholders to be enhanced
  through short term training programmes and
  outreach activities.
• Cassava related subjects to be adequately
  incorporated in the curriculum of agricultural
  training institutions.
• A Cassava Agribusiness Development Group to be
  set up to spearhead the commercialization of
  cassava.