the agricultural sector by transforming smallholder-based agriculture into a vehicle
to catalyse the shift towards an industrial economy. The “Plan for Accelerated and
Sustainable Development to End Poverty” (PASDEP) (2005–2010) emphasized on
economic growth through agricultural commercialization. Essentially the national
government and other key development partners such as the World Bank perceived
large-scale commercial agriculture as essential for increasing food production,
enhancing economic growth, increasing foreign exchange earnings, generating
employment, enabling technology transfer to smallholders, modernizing agriculture
and developing infrastructure and basic services to local communities (Rehmato
2011). Around that period, the government started to actively promote large-scale
commercial agriculture (especially of sugarcane) by allocating land for large-scale
agricultural investments to domestic and international investors. Other relevant
government policies seeking to boost the performance of the agricultural sector
partly through industrial crops include the (a) Sustainable Development and Poverty
Reduction Program (2002–2005), (b) Plan for Accelerated and Sustainable Development to End Poverty (2005–2010), (c) the first Growth and Transformation Plan
(2010–2015) and (d) the second Growth and Transformation Plan (2016–2020).
Malawi
Tobacco, sugarcane, tea coffee and cotton are some of the main industrial crops
produced in Malawi. Of these tobacco and sugarcane have traditionally contributed
significantly to the national economy and rural livelihoods. They collectively
account for approximately 79% of the national foreign exchange earnings and
22% of the gross domestic product (GDP) (Chirwa 2011).
Tobacco production started in the early twentieth century, but only reached high
production levels in the 1960s. Total production increased from about 15,000 tonnes
in the mid-1960s to about 160,000 tonnes in 1997, before declining sharply
(FAOSTAT 2019). Production bounced back and reached an all-time high of
about 175,000 tonnes in 2011, before declining again (FAOSTAT 2019). Many
different reasons have contributed to tobacco expansion in Malawi such as (a) shifts
in tobacco demand from developed to developing countries; (b) declining political
support for tobacco production in developed countries; (c) cost competitiveness and
the relatively high profitability of the crop; (d) technical and financial support and
(e) large investments from international companies (Jaffee 2003). Currently, tobacco
is produced overwhelming by smallholders that grow it either on their own land or as
tenant farmers (Kulik et al. 2017). The declining tobacco output and prices in recent
years have been possibly due various interconnected reasons such as exceeding
farmer quotas, poor quality product, international competition, global demand
decline and certain corporate strategies (Kulik et al. 2017).
Conversely, sugarcane production has experienced a large and constant expansion since the late 1960s. The two main plantations in Malawi started operating in
1968 (Nchalo) and 1978 (Dwangwa) (Chisanga and Zulu-Mbata 2017). The sugar
industry was privatized in 1998, with the South African company Illovo taking over
3 Linking Industrial Crop Production and Food Security in Sub-Saharan Africa:. . .
101
to catalyse the shift towards an industrial economy. The “Plan for Accelerated and
Sustainable Development to End Poverty” (PASDEP) (2005–2010) emphasized on
economic growth through agricultural commercialization. Essentially the national
government and other key development partners such as the World Bank perceived
large-scale commercial agriculture as essential for increasing food production,
enhancing economic growth, increasing foreign exchange earnings, generating
employment, enabling technology transfer to smallholders, modernizing agriculture
and developing infrastructure and basic services to local communities (Rehmato
2011). Around that period, the government started to actively promote large-scale
commercial agriculture (especially of sugarcane) by allocating land for large-scale
agricultural investments to domestic and international investors. Other relevant
government policies seeking to boost the performance of the agricultural sector
partly through industrial crops include the (a) Sustainable Development and Poverty
Reduction Program (2002–2005), (b) Plan for Accelerated and Sustainable Development to End Poverty (2005–2010), (c) the first Growth and Transformation Plan
(2010–2015) and (d) the second Growth and Transformation Plan (2016–2020).
Malawi
Tobacco, sugarcane, tea coffee and cotton are some of the main industrial crops
produced in Malawi. Of these tobacco and sugarcane have traditionally contributed
significantly to the national economy and rural livelihoods. They collectively
account for approximately 79% of the national foreign exchange earnings and
22% of the gross domestic product (GDP) (Chirwa 2011).
Tobacco production started in the early twentieth century, but only reached high
production levels in the 1960s. Total production increased from about 15,000 tonnes
in the mid-1960s to about 160,000 tonnes in 1997, before declining sharply
(FAOSTAT 2019). Production bounced back and reached an all-time high of
about 175,000 tonnes in 2011, before declining again (FAOSTAT 2019). Many
different reasons have contributed to tobacco expansion in Malawi such as (a) shifts
in tobacco demand from developed to developing countries; (b) declining political
support for tobacco production in developed countries; (c) cost competitiveness and
the relatively high profitability of the crop; (d) technical and financial support and
(e) large investments from international companies (Jaffee 2003). Currently, tobacco
is produced overwhelming by smallholders that grow it either on their own land or as
tenant farmers (Kulik et al. 2017). The declining tobacco output and prices in recent
years have been possibly due various interconnected reasons such as exceeding
farmer quotas, poor quality product, international competition, global demand
decline and certain corporate strategies (Kulik et al. 2017).
Conversely, sugarcane production has experienced a large and constant expansion since the late 1960s. The two main plantations in Malawi started operating in
1968 (Nchalo) and 1978 (Dwangwa) (Chisanga and Zulu-Mbata 2017). The sugar
industry was privatized in 1998, with the South African company Illovo taking over
3 Linking Industrial Crop Production and Food Security in Sub-Saharan Africa:. . .
101