Assessing Alternatives to Tobacco Farming for Smallholders in Malawi

Mrunal Shah, Jacob Ricker-Gilbert and Makaiko Khonje

No 329214, Policy Briefs from Purdue University, Department of Agricultural Economics

Abstract: • Malawi is arguably the worldʼs most tobacco dependent economy, yet its future as a major tobacco producer is uncertain due to the perception of declining tobacco prices over time, along with health risks, child labor laws, and anti-smoking campaigns. • Using nationally representative data, along with time series data on tobacco prices, we assessed the profitability of Malawian tobacco and its potential alternative crops. • We found that the percentage of smallholder farmers growing tobacco declined over the past 10 years from 16% in 2009-2010 to 5% in 2018-2019. • Smallholder farmers who left tobacco cultivation allocated their tobacco land to maize and to smaller extent grain legume crops. • Tobacco is more profitable than alternative crops for smallholder farmers who remained in tobacco production. • Improving value chains for other high value crops is more cost-effective than focusing on moving the remaining 5% of smallholder farmers out of tobacco cultivation.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Food Security and Poverty; International Development (search for similar items in EconPapers)
Pages: 4
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Persistent link: https://EconPapers.repec.org/RePEc:ags:maappb:329214

DOI: 10.22004/ag.econ.329214

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