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

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Table A3.6.Pesticide controls for Tobacco<br />

Decision Criterion Value Details Confidence<br />

Cost<br />

Up-front investment<br />

US$800,000<br />

Procurement <strong>and</strong> installation of kite for pesticide residue testing <strong>and</strong><br />

non-tobacco-related materials (NTRM) sorting <strong>and</strong> removal.<br />

Medium<br />

On-going cost 0.1% Costs of testing, on-going training, etc. Medium<br />

Ease of implementation 5<br />

Change in absolute value of exports<br />

US$60 million<br />

<strong>Trade</strong> diversification 0<br />

Agricultural/fisheries productivity +1<br />

Installation of kits for testing <strong>and</strong> removal of NTRM is difficult since<br />

there is a large number of producers <strong>and</strong> numerous buyers. The most<br />

appropriate place to install the kits is not always clear unless there is<br />

funding for each grower to be provided with one, which is unlikely.<br />

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

There will be a general improvement in quality of the exported tobacco<br />

<strong>and</strong> a decline in export market rejections. At the same time,<br />

production levels are restricted. It is estimated that exports could<br />

increase by 10% by 2017.<br />

Little or no impact. <strong>Malawi</strong>an tobacco is blended because of quality<br />

issues.<br />

Domestic agri-food impacts<br />

Increased exports <strong>and</strong> lower levels of rejections should enhance farm<br />

prices <strong>and</strong>/or sales<br />

Medium<br />

Medium<br />

Medium<br />

Medium<br />

Domestic public health 0 No impact High<br />

Environmental protection 0 Little or no impact Medium<br />

Social impacts<br />

Poverty impact +1 Increased income of small-scale tobacco producers Medium<br />

Impact on vulnerable groups +1<br />

Tobacco producers are often small, but less poor than smallholders as a<br />

whole. Production mainly by men.<br />

Medium<br />

Page | 63

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