An Analysis of the Mango Value Chain in Malawi

Zephania Bondera Nyirenda, Flora Janet Nankhuni and Michael Andrew Bret

No 303586, Feed the Future Innovation Lab for Food Security Policy Research Briefs from Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP)

Abstract: Key Findings -Most of the mangoes produced in Malawi (99%) are of local varieties. Only 1% is are of improved varieties. -The majority of mangoes are traded informally and less than 1% enter food chain stores. Very few also get exported, primarily by the only large scale mango processing factory, Malawi Mangoes. -Malawi Mangoes used to process both local and improved mango varieties for puree but has suspended puree production due to low profitability. It now exports fresh improved variety fruits to international markets and plans on producing dried mangoes. -The largest global markets for mango (for fresh fruits and juice extracts) are in the USA, EU, and the Middle East. Malawi can take advantage of the African Growth Opportunity Act (AGOA) to export mangoes to the United States of America, duty free. Other markets that Malawi can exploit include India and South Africa. -There is need to spur production of improved varieties demanded in these international markets through investments in research and extension. -Smallholder farmers realize Gross Margins of close to MK300,000/ha or 78% profit margin, while semicommercial farmers realize close to MK1.6 million/ha or 87% profit margin. -Whole sellers make a Gross Margin of about MK63, 000 per month representing 12% profit margin while retailers make about MK289, 000 per month representing 52% profit margin. -The biggest challenge in the local mango value chain in Malawi is spoilage and lack of reliable markets. -There is need to improve handling and transportation of mangoes to reduce post-harvest losses. There is also need to invest in infrastructure development including electricity, irrigation, communication, and roads. -The GoM constructed a horticulture shelter in Kanengo that can be used for packaging mangoes and other fruits and vegetables for the market, but the shelter is currently a white elephant.

Keywords: Agricultural and Food Policy; Food Security and Poverty; International Development (search for similar items in EconPapers)
Pages: 6
Date: 2019-03-13
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:miffpb:303586

DOI: 10.22004/ag.econ.303586

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