Economics

The smallholder has also been at the mercy of economics.
The part privatisation of ADMARC* has resulted in vast annual changes in the price of seed and fertiliser.
This has been between 250-300%, thus making it difficult for the smallholder to plan financially.
Furthermore the private sector has been unable to maintain the supply of inputs to rural areas due to the high transportation costs and the low volume of sales.

This situation has shifted the responsibility to the farmer who must obtain inputs from places too far away; in the case of Neno 65km away in Mwanza.
The additional transport costs on top of high prices and low availability has resulted in poor maize harvest.

* ADMARC was the parastatal marketing arm of the Malawi Government for the purchase of designated smallholder
(village grown) crops.

The situation is compounded further; in rural areas ADMARC also provided the market enabling farmers to sell produce at guaranteed state prices.
This is no longer in place and has resulted in farmers having to travel to sell the little excess they produce.

The macro economic situation has played an essential role in this humanitarian disaster.
The loss in value of the Kwacha, at this time, and high fuel prices has affected every commodity in a land locked country such as Malawi.

 

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