Thursday 7 January 2016

The green Gold is not Gold anymore


For so long agriculture has been the backbone of Malawian’s economy. It is currently the most important sector of the Malawi economy. It employs about 80% of the total workforce, contribute over 80% of foreign exchange, accounts for 39% of Gross domestic product (GDP). Tobacco being the crop of most importance is proudly nicknamed “green gold”. It was the main cash crop that was performing wonders on the international scene earning foreign currency for Malawi. Things have changed; Tobacco is no longer “the green Gold” as it used to be. In my opinion, I think the so called Gold is tarnishing and turning into Blonze.
Since Malawi got independence about fifty ago, both the subsistence and commercial farmers had been growing this gold. Those days were the best because Tobacco was really paying for itself; farmers were getting rich with Tobacco farming. Even typical Tobacco farmers in the villages were respected because of the profits they get from Tobacco, but not anymore. There are so many factors fueling the downfall of the green gold down to its knees.

Price fluctuations is the main culprit bringing the crop to its knees. The buying prices of the crop  changes so aggressively ending up disappointing growers. One year the price is good and another year before you know it the prices changes. What pains most is that the price for Tobacco is set by the buyers themselves other than the farmers. What kind of business is that? Even the prices these buyers set are very low and humiliating to farmers. Think about the pain farmers endures though out the year to produce Tobacco. Think again about the loans farmers acquire in order to purchase farm inputs for the same crop. What about a bunch of laborers anxiously waiting to get paid once the farmer sold his/ her Tobacco?
Another culprit to the successful Tobacco business is the issue of climate change.  I believe the issue of climate change is not a new thing to most of you. Currently Malawi is experiencing persistent floods and droughts, a clear sign of climate change. The fields are rendered useless once hit by floods because nothing good comes from them afterwards. Roads are also being damaged by the same floods thereby dis linking farmers and buyers. To make matter worse, agricultural extension workers do not make it in time to reach to Tobacco farmers with innovations in areas usually hit with floods.

Acquiring all the essential farm inputs is also becoming a challenge to most Malawian farmers. Malawian currency has lost its value dramatically over the past years raising the prices of almost every farm input. Not every Jim and Jack can now afford to buy a bag of fertilizer let alone pesticides. This is discouraging farmers to venture into Tobacco farming thereby making them to opt into other enterprises.