Regional Markets

Regional Markets for Local Development
Table 3.2 Targets for the artificially dried HQCF VC in Malawi
2010 2013 2015 Potential
HQCF production (tons per year) 0 1,800 2,700 4,000
Number of beneficiaries
Smallholder farmers
Farmer processors
SME employees (3 SMEs)
Average estimated additional return
per beneficiary (USD per year)*
Smallholder farmers
Farmer processors
SME employees (3 SMEs)
0
0
0
3,600
203
213
*Based on 2010 prices and estimated production costs excluding labour costs
0
0
0
0
105
90
205
200
5,400
608
242
105
90
205
200
8,000
900
330
105
90
205
200
At present, three private sector companies are interested in investing in flash dryers
and establishing the artificially dried HQCF VC. It is anticipated that each will buy
at least one flash dryer, with a total potential production of 2,700 tons per year. By
2013, at least two-thirds of total capacity will likely be met (around 1,800 tons of
HQCF). Although primarily food processors, these companies are also interested in
selling HQCF to the packaging industry in Malawi and the neighbouring countries
(Westby and Adebayo 2010).
However, investing in a new product (HQCF) and a new technology (flash dryers) is
not without risks. C:AVA helps promote investor engagement in large-scale processing
in multiple ways. First, it introduced investors and end users to new technologies, for
example, it organised a study tour to Nigeria. Second, it facilitated technology transfer
from Nigeria to Malawi on the fabrication of efficient ancillary equipment, such as
motorised stainless steel graters and hydraulic jack presses. Third, it tapped into new
HQCF markets, by organising demonstration trials for using HQCF in packaging
materials, by linking investors to potential industrial buyers, and by providing technical
support to buyers to incorporate HQCF into their production systems. Fourth, it
worked on securing a consistent supply of raw materials, by helping investors grow
limited quantities of cassava in house or sign contracts with commercial growers (both
are important back up mechanisms during the dry season when the smallholder supply
can be unreliable).
Impact of the intervention
Pro-poor development
In the sun-dried HQCF VC, the average benefit (i.e. additional income) per smallholder
is estimated at almost USD 160 per year. (For comparison, the average wage
for unskilled labour stands at about one dollar per day.) Smallholders who produce
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