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Malawi should champion value added processes and industries for the country to get higher returns from tobacco, says the Tobacco Association of Malawi (Tama).
In a concept discussion paper titled ‘Value Adding Prospects’ and presented at the tobacco conference in Mangochi last week, Tama says the move can bring high quality production, attract high prices and, therefore, give high returns.
“Value adding can bring maximum returns for the country from a strategic crop whose immense potential value to the economy has hitherto not been strategically leveraged for the benefit of the country,” says the paper.
Tobacco accounts for 32 percent of Malawi’s Gross Domestic Product and brings in 60 percent of total forex earnings —making it Malawi’s most important economic activity.
Tama says value adding could connect Malawi to a higher level of integration , allow continued and healthy competition and bring transparent and fair marketing system that will provide growers with long term equitable marketing avenues.
Malawi is said to have a steady supply of the green leaf, available land, cheap labour, unique flavoured tobacco and other natural resources. The country has, however, failed to tap from the prospects of value adding.
Experts say the scarce capital, poor technology, unstable markets and lack of access to information is hampering the country’s value adding drive.
Tama says farmers, the World Bank and other donors must have a desire to establish free and fair trading practices.
“The concerned parties must do and act and not just talk the rhetoric in order to enable growers to break the barriers,” says the farmers representative.
“It is, therefore, worthwhile for farmers to start the processes towards achieving the desired integration of farmers into the value chain hierarchy,” the paper says.
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