Malawi Annual Report, April 2011 ‐ March 2012 Vito Sandifolo Country Manager Chancellor College, Zomba
Summary of Malawi strategy • The strategy in Malawi focuses on developing two value chains for HQCF – Sundried value chain involving community processing groups and small entrepreneurs to supply HQCF to rural end users (primarily mandazi makers, Bakers of scones, cakes, doughnuts, buns and medium scale bakeries based district centres) – Artificial dried value chain involving commercial private sector processors to supply HQCF to paperboard companies, biscuit manufacturers and millers
Estimated demand for HQCF Estimated Type of Estimated Experiences Potential demand for Market demand for after 2 years supply chain wheat (ton/yr) HQCF(ton/yr) of C:AVA Millers 49,000 4,900 (10%) Untapped Flash dryer Rural 36,000 7,200 (20%) 18,000 (50%) Sundried retail Biscuit 10,000 2,500 (25%) 3000 ‐ 5000 Flash dryer (30 ‐ 50%) Paper 750 750(100%!) Untapped Flash dryer board & (maize other starch) Total 95,750 15,350 + 23,750
Revised milestones Key milestone Target 2010 ‐ 11 Target 2011 ‐ 12 Target 2012 ‐ 13 No. of farmers ‐ 75 3600 farmers selling to flash dryer 203 processors Farmers benefiting 78 200 400 ($93/yr) from sundried HQCF Processors 35 90 180 benefiting ($125/yr) from sundried HQCF New flash dryer in ‐ 1 unit installed in 1unit operating and operation with Malawi by October 2 new units C:AVA support 2011 installed Increase in 15.0 tons 112tons 2,100 production & sales 74 rural 250t rural of HQCF 38t commercial 1,388t commercial
Achievements against revised milestones as of March 2012 Key milestone Revised target Target achieved Remarks No. O f farmers Delays in installing 75 0 dryer selling to flash dryer From C:AVA and non Farmers benefiting 200 978 C:AVA groups ($) from sundried HQCF Including members of Processors benefiting 90 327 processing groups and ($) from sundried employees HQCF Increase in Processing groups 74 tons 123.7 tons utilizing any dry day production & sales of for processing due to HQCF markets demand HQCF purchased by 1797 total for 130.3 tons 2.1 tons in stock end users all countries (HQCF assoc)
Highlights of activities Monitoring of prices for selected products 1 st quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Product (MK/ton) (MK/ton) (MK/ton) (MK/ton) Wheat flour (WS) 100,000 163,000 210,000 240,000 Wheat flour (retail) 130,000 200,000 250,000 300,000 Makaka (FG) 5,000 10,000 7,000 10,000 Makaka (MP) 15,000 15,000 10,000 15,000 Makaka (Fact G) 27,000 25,000 23,000 25,000 Makaka flour 43,000 45,000 45,000 45,000 HQCF (WS) 65,000 70,000 80,000 80,000 HQCF retail 80,000 80,000 100,000 100,000/120 Diesel (MK/litre) 260 260 360 360/600 Exchange rate (O) 152 163.4 165.4 166.7 Un official 175 200 210 270
Highlight of activities (sun ‐ dried value chain) • Continued to conduct end user trials for rural bakers to sell the remaining HQCF from 2010/11 season • Monitored sales of HQCF at various trading centres where first end user demonstrations were conducted ‐ at the same time measuring quality of the product – HQCF sales started going up at Nkando trading centre in Mulanje ‐ Premixed flour was selling at K110/kg – Five processors opened shops for HQCF (in KK ‐ had good sales after radio promotion) – Noted good HQCF sales amongst mandazi, wedding cakes and maganja makers
Highlights cont’d Facilitated testing of quality parameters for HQCF at CHANCO laboratory Sample Particle Moisture Solubility pH CN content Colour Ordour size (%) content (%) (%) (ppm) MJ border 91.37 9.33 + 0.59 8.50 6.0 0 ‐ 5 Pale None wheat weevils, yellow KK HQCF 97.7 9.58 +0.89 6.17 5.8 0 ‐ 5 White None AZAM 100 12.97 + 0.12 7.03 6.4 0 ‐ 5 cream None Old Maula 98.2 11.01 + 0.01 2.44 6.0 20 ‐ 30 White None HQCF Tiyamike 98.0 10.58 + 0.16 2.19 6.0 0 ‐ 5 White None HQCF CMRTE 96.8 9.87 + 2.81 3.69 5.8 0 ‐ 5 White None HQCF KK wheat 99.0 11.14 + 0.06 4.67 5.8 0 ‐ 5 White None
Provided capacity building activities on various topics Type of Participants Total Remarks training Male Female Service providers Business mgt 48 32 12 92 For members of VPGs Quality mgt 10 3 4 17 Facilitated by systems Louise Marketing 11 3 0 14 Two phased training Product 306 448 28 782 By C:AVA and development VPGs Equipment 9 3 2 14 Consultants maintenance Cassava 143 89 16 248 Small scale & agronomy commercial HQCF quality 5 1 0 6 Lab assessment technicians Total 532 579 62 1421
Activities undertaken by VPGs after business management and marketing trainings • It was confirmed that there was ready market for HQCF in rural areas from mandazi makers and scone bakers • Most of the VPGs expanded drying areas • Some of VPGs opened selling points for HQCF and other ingredients for rural baking e.g. sugar, yeast, baking powder & wheat flour – Problems of premixed flour & poor yeast • Draft business plans were developed which showed different break ‐ even prices for VPG
Estimated g/margins for village processing units Name of Estimated S/ Revenue Variable Margins BE/ group prodn price costs price Tiyamike 8000 80 640000 369536 270464 46 Old 10000 80 800000 514500 285500 51 Maula CMRTE 12960 80 1036800 597500 439300 46 Mkandawire 12000 80 960000 632600 327400 53 Kasiyamaliro 16000 80 1280000 732800 547200 46 Chisi 2574 75 193050 112498 80552 44 Chikaonda 20000 80 1600000 1081300 518700 54 73534 79 49
Expansion in drying areas Name of VPG Old drying area New drying are Qty of HQCF Remarks (square metres) (square metres) /day (tons) Tiyamike 60 120 0.24 Also moulded 40,000 bricks CMRTE 90 180 0.36 Constructed warehouse Old Maula 120 120 0.24 ‐ Chiaonda ‐ 60 0.12 Opened HQCF shop Chisi ‐ 120 0.24 Opened 2 shops Kasiyamaliro ‐ 140 0.28 Has plastic dryer Mkandawire ‐ 120 0.24 Was sick for some time NKPA 90 ‐ ‐ ‐ Press 480 480 0.96 Was disolved Total 840 1185 2.68
Highlight of activities ‐ sundried value chain cont’d • Participated in national agriculture fairs and national commission of science and technology activities ‐ Advocacy for HQCF • Conducted commercial end user trials with bread and biscuit companies using HQCF from sundried value chain ‐ Universal for composite mandazi mix flour & Mothers Holding for bread and other bakery products • Formed HQCF processors association – Draft constitution developed with assistance from NASFAM – Discuss potential threats to HQCF industry – Plan for advocacy meetings with MoAFS
Highlights of activities cont’d Facilitated development and submission of proposal to U.S • Ambassador’s self help fund for construction of processing and storage shed at Tiyamike Processing group – Member of parliament provided funds to start construction – Requested for proposal to assist in sourcing funds Presented key lessons and challenges several of the sundried value chain • at several fora which facilitated other projects to adopt C:AVA model – Root and Tuber Crops Innovation Platform (RTCIP) – Trustees of Agriculture Promotion project launch (TAPP) – Wellness & Agriculture for Life Advancement (WALA) – Millennium Villages Project (MVP) – Land O Lakes (FFP) Facilitated planting of demonstration plots with improved cassava • varieties and promising clones for HQCF at CMRTE Ordered commercial presses for NKKP processors •
Highlights of activities with artificial dried value chain • Provided support towards investment in flash dryer by Universal industries by: a) Providing cassava seed to 7 commercial growers and providing agronomy support b) 5500 bundles of cassava seed given to 7 commercial growers who planted more than 42ha ‐ also to act as seed multipliers for surrounding smallholder farmers ‐ estimated to supply seed for 400 ha to be planted by over 1000 farmers c) Facilitated updating of business plan for loan application from the project for procurement of flash dryer ‐ due to forex problems
Support to Universal continued d) Facilitated cassava seed distribution and price negotiations between UI and Millennium Villages project i. 1880 bundles of cassava seed distributed to MVP farmers ii. Provided agronomy support to farmers in MVP iii. Maintained 2 ha of cassava nursery under DARS iv. Prices of K9000 ‐ 10000/ton agreed between farmers and Universal Industries e) Facilitated follow up meetings with potential buyers of HQCF e.g. PIM to ensure continued interest in buying HQCF. The company has invested in installing cooling systems to be able to use HQCF following recommendations from C:AVA
Progress made towards investment in flash dryer by Universal Industries Flash dryer has been ordered • and under construction Flash dryer to be shipped from • Nigeria by 19 th of March Drawings of processing • structure agreed by board at Njuli (Over K20 Million worth of investment) Logo for HQCF by Universal • Industries agreed Currently in the process of • estimating yield from various production areas and developing schedule for supply
Highlights of activities artificial dried value chain cont’d • Facilitated development of business plan for Rab Processors – Draft business plan available – Will wait to study operations of first flash dryer by Universal Industries Another private investor (Former Chief Executive of Press Agriculture )has shown interest to establish flash dryer in Lilongwe
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