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MCDA Final Report Malawi - Standards and Trade Development ...

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Table A3.2. Aflatoxin controls for groundnuts<br />

Decision Criterion Value Details Confidence<br />

Cost<br />

Up-front investment<br />

US$600,000<br />

Estimated cost of scoping study for 4 mycotoxins in diet, l<strong>and</strong> race typing<br />

of Aspergillus flavus to geographical indicators, <strong>and</strong> three year field trial Medium<br />

with multiple strain atoxigenic strain Aspergillus flavus.<br />

On-going cost 0.1%<br />

Limited additional production costs estimated conservatively at 0.1 per<br />

cent of the value of exports.<br />

Medium<br />

Ease of implementation +4<br />

Somewhat difficult. Larger smallholder farmers involved <strong>and</strong><br />

fragmented value chain. Difficult to get smallholders to implement GAPs<br />

given that they mostly decide the crops they grow in any season on the<br />

High<br />

basis of price.<br />

<strong>Trade</strong> impacts<br />

Change in absolute value of exports<br />

US$10.8<br />

million<br />

Exports in 2011 were 21,000 tonnes. Limited additional exports could be<br />

achieved as a result of the implementation of aflatoxin controls that are<br />

over <strong>and</strong> above growth in exports that would be achieved anyway.<br />

These are estimated conservatively at 40,000 tonnes per annum.<br />

Assuming no appreciable changes in prices over time these exports are<br />

valued at the unit price in 2011 (US$0.27 per kilogram).<br />

Medium<br />

<strong>Trade</strong> diversification +1 Enhanced exports to the EU will be facilitated. High<br />

Agricultural/fisheries productivity +1<br />

Domestic public health 0<br />

Domestic agri-food impacts<br />

The implementation of GAP <strong>and</strong> enhanced returns will stimulate more<br />

commercial production.<br />

No impact. Groundnuts are heavily consumed in <strong>Malawi</strong> especially by<br />

poor households. Smallholders are likely to sell aflatoxin-free nuts to<br />

exporters <strong>and</strong> to consume the infected ones themselves <strong>and</strong>/or sell<br />

them on local markets. At the same time, a more effective aflatoxin<br />

control <strong>and</strong> management system could reduce overall levels of aflatoxins<br />

in the crop.<br />

High<br />

Medium<br />

Environmental protection -1 Expansion in production could cause reduction in biodiversity High<br />

Page | 57

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