Report outlines misplaced priorities in agro value chains
The Malawi Government’s continued investment in maize is crowding out investment in other value chains with a higher potential for commercialisation, import substitution and expanding the country’s export base, a report co-published by the Mwapata Institute shows.
In a report jointly published with the International Food Policy Research Institute, Bureau for Food and Agricultural Policy and the Alliance for Green Revolution in Africa, the Malawi Agricultural Policy Advancement and Transformation Agenda (Mwapata) Institute found that maize ranked 16th out of 17 value chains that were analysed in the report.
The study assessed the value chains for their capacity to be supported by current policies and investments and their coverage of climate indicators.
Based on that assessment, the researchers found that the value chains with the highest potential for commercialisation were mangoes, macadamia, bananas and soya beans, in that order.
Reads part of the report: “These are two industries [mangoes and macadamia] that are largely developed to export both raw and processed products to the region and beyond and have up to this point been driven by private-sector investments.
“Not only are the production systems used in these three crops highly labour-intensive at the farm level, but they also generate significant off-farm economic opportunities.”
The study, which sought to build on the new policy directions set out in Malawi 2063, the country’s long-term development plan found that the government is still investing heavily in maize production.
Reacting to the report, Malawi University of Business and Applied Sciences associate professor of economics Betchani Tchereni said the budget allocations were fair, considering that the government wants to guarantee food security.
In a separate interview, Catholic University economics lecturer Greenson Nyirenda urged the government to transition to more productive value chains, considering that investments in the Affordable Inputs Programme (AIP) and other government initiatives that support the maize value chain have failed to promote food security.
