Foreign Direct Investment in Blantyre, Malawi - Millennium Cities ...

Figure 12: Chili Production Trend in Malawi
Source: Malawi Ministry of Agriculture and Food Security.
Production in Malawi and Blantyre
The production volume of chili has been erratic, as shown in Figure 12. In 2006 – 2007, Malawi produced
1,109 tons of chilies. 98
According to the FAO, the producer price in 2005 was US$1,291 per ton—eight
times greater than that of maize (see Figure 13).
In 2006, Malawian farmers exported 77 tons of chilies to
Europe. 99
Figure 13: 2005 Malawian Commodity Price Comparison (US$/ton)
Commodity Price (US$) Commodity Price (U$$)
Coffee 1,597 Potatoes 418
Chilies and Peppers (dry) 1,291 Pigeon peas 213
Tea 1,065 Maize 153
Cotton lint 1,022 Cassava 70
Tobacco, unmanufactured 952 Sugar cane 54
Groundnuts, with shell
Source: FAOSTAT.
532
In southern Malawi, chili has been produced by individual smallholder farmers near Mount Mulanje (40
miles from Blantyre), in Liwonde (100 miles from Blantyre), and in Balaka (55 miles from Blantyre).
Based on the 2005 – 2006 data, about 72 percent of Malawi’s chilies were produced in the Blantyre
region. 100
Currently, Zikometso Smallholder Farmers Association, the largest smallholder chili farmer association in
southern Malawi, is capable of producing 200 tons per year. Their products include raw dry chili
crop/fruit, chili powder, and chili seed. The proceeds and profits are directly transferred to member
101
farmers.
98
Ministry of Agriculture and Food Security (2007). 2006/07 Annual Agricultural Statistical Bulletin, (Lilongwe: Government of
Malawi).
99
FAO Statistics. http://faostat.fao.org.
100
Ministry of Agriculture and Food Security (2008). Crop estimates data, (Lilongwe: Government of Malawi).
101
ACDI/ VOCA (2003). Malawi Farmers Find ‘Future Belongs to the Organized’ Agriculture in the Global Economy,
(Washington, D.C.: Bread for the World & Bread for the World Institute).
FDI in Blantyre Page 34