Illovo Sugar Malawi Limited says delays by government to release funds towards a maize production initiative the company is implementing at its Nchalo and Dwanga sugar estates may cause Illovo to cut back or suspend production, putting at risk of food insecurity people the company targeted to reach through the project.
Illovo Sugar Public Relations Manager, Ireen Phalula, said even though Illovo and government did not sign a contract to effect the project, government gave the company its commitment to provide funds on a cost-sharing basis.
“We have put a total of 232 hectares of land under maize production to help in food security. This is a public and private sector partnership where both sides will share the cost. Illovo will not make any profit out of this initiative. Although no contract was signed, Illovo got the commitment from government that there will be an agreement and that the government will provide the funding so based on that commitment, Illovo has started growing the maize,” said Phalula.
Phalula was speaking during a media tour of the maize field at Nchalo in Chikwawa on Tuesday. She said 66 of the 232 hectares are in Dwangwa in Nkhotakota with the remaining 166 hectares in Nchalo.
Phalula said even though the company expects to harvest about 1,160 tonnes from the two estates, Illovo could grow more maize if the agreement with government could be signed before August 31.
“If the company gets an agreement and funding from government by 31 August, the company would be able to expand the maize field at Nchalo from 166 to 405. Which means that the total for Nchalo and Dwangwa will be 637 hectares.
“But if we will have the agreement and funding after 31 August it will be difficult to expand the hectarage because it will not be possible to have the maize ready before the onset of the rains and also we will not have enough time to remove the maize and prepare land for sugarcane,” said Phalula.
She added that the company has also requested government to provide it with experts in maize growing so that they improve on yield.
“You can appreciate that we are experts in sugarcane growing but we will need the expertise from the government to help with maize production to ensure higher yield,” said Phalula.
Minister of Agriculture, George Chaponda, could not be reached for comment yesterday.
According to the latest Famine Early Warning Systems Network (Fewsnet) report released on Tuesday, Malawians should brace for extremely high food prices as the country heads towards the lean period.
“Another factor that could impact food prices between June 2016 and January 2017 will be the ability of Admarc to purchase enough maize to supply their markets this consumption year,
“By October to January period, the situation will worsen and middle income as well as poor and very poor households will face stressed and crisis outcomes,” says Fewsnet
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