Trends in Tobacco Production and Prices in Malawi

Ayala Wineman, Lemekezani Chilora and Thom S. Jayne

No 338422, Policy Briefs from Purdue University, Department of Agricultural Economics

Abstract: Key Messages • Diversification away from tobacco production has been framed as a priority for Malawi. • From 2004 to 2019, the share of Malawian crop farmers producing tobacco fell from 16% to 5%, and tobaccoʼs share of the total value of crop production also declined sharply. • In important respects, a transition away from tobacco has already occurred. • Over this period, farm-gate prices for tobacco have declined relative to the prices of maize or fertilizer, as has the share of the export price that is received by farmers. • Research is needed to understand why the farm-gate share of tobacco export prices has declined, and how the livelihoods of smallholder farm-households that exited tobacco production have been affected. • Additional research should also identify the investments needed to develop viable alternatives to tobacco, including improvements in non-tobacco value chains and on-farm technologies.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Demand and Price Analysis; Food Security and Poverty (search for similar items in EconPapers)
Pages: 9
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Persistent link: https://EconPapers.repec.org/RePEc:ags:maappb:338422

DOI: 10.22004/ag.econ.338422

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