Global Food Crisis Impact & Responses: Malawi

FANRPAN Regional Policy Dialogue Meeting,

3rd September 2008, Crossroads Hotel, Lilongwe

Outline

• Context • Impacts • The Responses

The Context:

Issues to note:• Maize is a staple crop in Malawi• Maize as a staple is very responsive to

climatic shocks• Due to soil fertility challenges: chemical

fertilisers have been ‘the most reliable’ short-term soil enhancement mechanism

• The combined factors have greatly qualified Malawi to be part of the global food crisis

The Context:

The food crisis revised:• Malawi has been experiencing climatic

variations affecting food production i.e. droughts, floods etc.

• Global fuel prices increases = domestic price increase = inflation

• Price Effects: Transport costs increases (Malawi land locked) = increase in inputs, food

• High food prices especially maize, official prices jumped from $0.14/kg (Mar 08) to $0.31/kg (Aug. 08)

• Inputs prices (Fertiliser) have almost doubled

Impacts Immediate impacts:• Farmers getting good producer prices• High consumer food prices, speculative

tendencies causing grain shortage (hoarding)

• High fertiliser prices = reduced hectarage, low productivity

• Full extent of vulnerability not known, official figures not yet out, difficult to tell ‘the shock’

• Conservation agriculture: now popular as a alternative

As a response:…. • Ministry of Agriculture called for a

stakeholder meeting in August 2008

• The following were a summary of key responses presented & discussed:

Short-term• Government ban on export of maize &

maize products -- point of debate!• Government revoked all maize traders,

Govt sole buyer & seller of maize – point of debate!

• Govt has a maize production contract with commercial estates, maize ready in Nov 08

• Conservation agriculture: manure campaign • Investment in inputs subsidy programs: use

of fertiliser & improved seed, legumes etc.• Impact analysis & comprehensive strategy

dev. (task team set-up)

Medium-long term• Emphasis on conservation agriculture• Contract farming • Climate change mainstreaming • Risk management instruments: weather

insurance etc• Livestock production: manure vs. small

stock, stimulate grain markets (feed)• Irrigation• Local fertiliser production & buffer stocks

Medium-long term• Work to reduce transport costs• Market development for other crops than

maize: relations, systems etc • Improved fertiliser mgt: planning, farmer

use, imports & handling• Improved sector coordination: The ADP• Work on climate change mitigation for

agri-sector: planning & coordination• Extension & farmer empowerment:

technology adoption, produce pricing etc