How traceability is restructuring Malawi’s tobacco industry

Jason Moyer-Lee and Martin Prowse

No 2012.05, IOB Working Papers from Universiteit Antwerpen, Institute of Development Policy (IOB)

Abstract: This article applies a global value chain framework to tobacco in Malawi. It illuminates how cigarette manufacturers govern the chain and control first-tier suppliers: the leaf merchants. Due to credence and litigation concerns, manufacturers have become obsessed with leaf integrity. Contract farming offers merchants the ability to meet manufacturers’ compliance and traceability requirements. It also offers an opportunity for process and product upgrading by smallholders, but threatens to exclude poorer growers. The article concludes by outlining current contractual practices and the possible role of third parties in this rapid institutional evolution.

Keywords: Malawi; Global value chains (search for similar items in EconPapers)
Pages: 27 pages
Date: 2012-05
New Economics Papers: this item is included in nep-afr
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:iob:wpaper:2012005

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