Groundnuts sales lead on AHCX

Sales of groundnuts are leading on the Auction Holdings Commodity Exchange (AHCX), the country’s structured market for agriculture produce, commanding about 63 percent of the total volumes sold between January and June this year.

According to AHCX, within the period, mixed sugar beans claimed about 15 percent of the total volumes traded, pigeon peas nine percent while the country’s staple, maize, claimed eight percent. Soya and sugar beans claimed four and one percent respectively.

AHCX Head of operations Davis Manyenje told Business News yesterday there is high demand for groundnuts with most of the traded volumes being exported.

Without specifically mentioning the export markets, he said most of the groundnuts that traded during the lean period—April and May 2014—fetched higher prices with total revenues hitting $1 million (K411 million).

“We usually encourage farmers to sell their produce during lean periods when prices have picked up. To cover for cash flow problems, we have the warehouse receipt system which farmers can use as collateral to borrow from commercial banks,” said Manyenje.

He, however, said they had missed out on high value markets, including South Africa because of aflatoxin levels in the groundnuts and encouraged farmers to ensure quality in the production chain.

In January this year, Manyenje was quoted by Business News as saying that the commodities exchange had managed to attract the attention of the international commodities importers from across the globe, registering in excess of $1.9 billion (K781 billion) in 2013.

Legumes, including groundnuts, soya beans and pigeon peas are tipped to be the country’s other major foreign exchange earners.

The Malawi Government is pushing for value addition of legumes—specifically soya beans and pigeon peas—through the provision of matching grants under the Competitiveness and Job Creation Support Project (CJCSP) in targeted areas.

According to available figures, Malawi is the world’s largest exporter of pigeon peas and its processed form, Toor Dal, earning some $35 million (K14.4 billion) annually.

In 2012, according to Trade Law Centre data, legumes valued at $37 million (K15.2 billion) topped exports to India.

The Ministry of Agriculture and Food Security second round crop estimates shows that groundnuts output is projected to increase by nine percent to 414 861 tonnes.