Department of Agricultural, Food, and Resource Economics Food Security Group

IDWP 109. Emma Kambewa. 2010. Cassava Commercialization in Malawi

EXECUTIVE SUMMARY:
Malawi continues to rely on maize for household food security. Policies to enhance food
security continue to target maize production. Traditionally production and use of cassava was
localized in lakeshore areas until the past two decades when maize production was
increasingly affected by rainfall variability. Cassava as an alternate food crop has rapidly
gained popularity and commercialization of the cassava sector is steadily taking off. Policy
and institutional support to diversify the food security basket and promote the diversified
applications of cassava in non-food sector has propelled cassava production in nontraditional
growing areas. Production has more than quadrupled over the last decade with production of
sweet cassava rapidly expanding in nontraditional areas.
The main cassava production and marketing season occur concurrently between October and
February. Farmers harvest cassava just before and during the rains in order to replant without
losing seed. Farmers in the north tend to have a late peak season than in the southern and
central regions where the rains start. The major market centers, where cassava converges
from various supply zones, tend to experience extended cassava season than in the individual
supply zones.

Increasingly more enterprises and companies are getting involved in the cassava value chain.
There are more than five active large farms producing cassava targeting industrial users. Four
biscuit manufactures, over 10 large-scale bakeries and over 15 small-scale enterprises are
substituting cassava flour for wheat flour in their businesses. The biscuit manufacturers
substitute up to 10% wheat flour in the low budget biscuits. They increase the rate of
substitution when high quality cassava flour is available. The packaging industry – the largest
starch users – strives to substitute all the 450 tons of imported cornstarch with cassava starch.
Currently they only get less than 1% locally. It is estimated that over 8,000 tons of cassava
flour and chips are absorbed in the food-processing sector with over 500 tons in the non-food
sector. Over 80,000 tons of dried cassava chips are sold in the informal markets for food
security.

In the informal sector, traders operating at wholesale and retail levels dominate the fresh
cassava value chain. Over 4,500 traders operate in the major markets i.e., Mzuzu, Lilongwe,
Blantyre, Zomba, and Kasungu and the assembly markets such as Mpamba, Namwera, and
Bunda turn off. Between 25-40% of these are women who operate mainly during peak season
selling boiled cassava strategically targeting schools, workplaces, and hospitals.
The highest cassava/maize substitution for food security occurs in drought years. In good
maize years, double as much cassava flour is sold to make up for the deficiency in maize
flour between December and February. During drought years, sales volumes for cassava flour
for food security increases between 7-11times depending on the scarcity of maize. During
such years, consumers use up to 50-100% cassava flour in making a traditional dish – nsima.
Cassava prices increase by 10 to 20% during lean maize period (December to February) when
demand for cassava increases. In drought years, prices for cassava flour more than doubles
depending on the scarcity of maize on the market.