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Malawi’s competitive advantage in oil products underutilized

Written by  Gladys Nthenda

With the growing demand for organic products especially in oil products due to rising health concerns, the Malawi oil industry is set to take up the challenge as it feels it has a competitive edge on the world market.

10
February

Project Manager for Sun seed Oil Malawi Innovation Challenge Fund Yamikani Jasi said they have gone ahead to seize the opportunity and are working with farmers in a bid to get 80% of the produce from them.

Jasi observed that the organically produced sunflower and other oil seeds such as soya, groundnuts and cotton which the country produces.

 

Malawi has a competitive advantage especially now that the world is promoting foods grown without the use of pesticides and fertilizers.

 

He explained that there is a huge export market demand for the sunflower cake which Malawi needs to fully utilize.

 

“We have a very viable market for it and if we can leverage on that it will become one of the more sustainability mechanisms for the economy” Disclosed Jasi.

 

He cited Malaysia, Pakistan, India, Argentina and Brazil as some of the countries which rely on soya, sunflower and groundnuts to produce oil seeds which have boosted their economies through the export of premier oils.

Jassi pointed out that once they are able to buy 50% of their total requirements direct from farmers, it will assist in improving farmers’ incomes and livelihoods.

 

He further said if the country can export a minimum of 100 thousand metric tons of sunflower cake it can generate enough forex for the nation.

 

He however lamented that the country is losing out through imports from other countries.

 

“We’re losing a lot of money by importing oils processed in other countries; importing margarine”

 

“If we were running at 100% of our capacity alone we would be able to satisfy the market demand for the cooking oil” Stressed Jassi.

 

Jassi also bemoaned the prevailing harsh economic environment coupled with the continued depreciation of the Kwacha which he said can be addressed with the right policies in place to support the development of the private sector.

 

Speaking at the launch of a DVD aimed at promoting sunflower production in Lilongwe Minister of Agriculture Dr. Allan Chiyembekeza hailed the initiative which he said will help farmers get all the information on sunflower for them to produce high quality crop.

Chiyembekeza urged farmers to practice crop diversification to broaden their economic base.

 

He noted that the sunflower boom which existed in 1996 died naturally because it only benefitted processers not producers.

 

“Farmers were eager to grow the crop in 1996 but unfortunately the amount of money they were getting from the buyers was very little and because of that farmers lost interest in growing the crop” Observed Chiyembekeza.

 

He however expressed hope that with the increasing number of processers in the industry, the prices would improve hence trigger increased production.

 

Apart from cooking oil, sunflower is also used for other products such as margarine and animal feed.

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