Global Food Crisis Impact & Responses: Malawi FANRPAN Regional Policy Dialogue Meeting, 3 rd September 2008, Crossroads Hotel, Lilongwe

Outline Context Impacts The Responses

The Context: Issues to note: Maize is a staple crop in Malawi Maize as a staple is very responsive to climatic shocks Due to soil fertility challenges: chemical fertilisers have been ‘the most reliable’ short-term soil enhancement mechanism The combined factors have greatly qualified Malawi to be part of the global food crisis

The Context: The food crisis revised: Malawi has been experiencing climatic variations affecting food production i.e. droughts, floods etc. Global fuel prices increases = domestic price increase = inflation Price Effects: Transport costs increases (Malawi land locked) = increase in inputs, food High food prices especially maize, official prices jumped from $0.14/kg (Mar 08) to $0.31/kg (Aug. 08) Inputs prices (Fertiliser) have almost doubled

Impacts Immediate impacts: Farmers getting good producer prices High consumer food prices, speculative tendencies causing grain shortage (hoarding) High fertiliser prices = reduced hectarage, low productivity Full extent of vulnerability not known, official figures not yet out, difficult to tell ‘the shock’ Conservation agriculture: now popular as a alternative

As a response:…. Ministry of Agriculture called for a stakeholder meeting in August 2008 The following were a summary of key responses presented & discussed:

Short-term Government ban on export of maize & maize products -- point of debate! Government revoked all maize traders, Govt sole buyer & seller of maize – point of debate! Govt has a maize production contract with commercial estates, maize ready in Nov 08 Conservation agriculture: manure campaign Investment in inputs subsidy programs: use of fertiliser & improved seed, legumes etc. Impact analysis & comprehensive strategy dev. (task team set-up)

Medium-long term Emphasis on conservation agriculture Contract farming Climate change mainstreaming Risk management instruments: weather insurance etc Livestock production: manure vs. small stock, stimulate grain markets (feed) Irrigation Local fertiliser production & buffer stocks

Medium-long term Work to reduce transport costs Market development for other crops than maize: relations, systems etc Improved fertiliser mgt: planning, farmer use, imports & handling Improved sector coordination: The ADP Work on climate change mitigation for agri- sector: planning & coordination Extension & farmer empowerment: technology adoption, produce pricing etc