Reports
Discussion Papers
No.170 The Impact of Tobacco Production Liberalization on Smallholders in Malawi
by HARASHIMA Azusa
October 2008
ABSTRACT
Burley
tobacco
production
in
Malawi
was
liberalized
to
permit
production
by
smallholders
in
the
early
1990s.
The
purpose
of
this
paper
is
to
show
which
smallholders
began
producing
burley
tobacco
after
liberalization
and
which
smallholders
still
continue
to
produce
it.
Analysis
of
the
characteristics
of
burley
tobacco
producers
shows
that
only
smallholders
who
had
adequate
farm
size
and
adequate
funds
could
start
to
produce
it.
With
regard
to
the
farm
size
requirements,
only
smallholders
who
had
enough
acreage
to
sell
tobacco
on
the
auction
floors
and
who
had
enough
acreage
to
rotate
crops
could
start
to
produce.
With
regard
to
the
financial
requirements,
only
smallholders
who
could
procure
funds
through
informal
institutions
or
who
possessed
their
own
capital
to
meet
the
necessary
agricultural
expenditures
could
start.
So,
it
was
only
the
wealthy
households
which
could
start
to
produce
tobacco
after
liberalization
and
continue
to
produce
it.
Keywords:
smallholder,
tobacco,
Malawi,
agricultural
income,
liberalization
JEL
classification:
D10,
Q12,
R20
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.