Near average maize grain prices recorded as harvesting concludes across the country

The average price for maize grain continues to decline as harvesting concludes in the central and northern regions of the country.  For example, in Salima average prices for June fell 19 percent since April. The price in June is nearly 50 percent below prices in June 2016 and 8 percent below the five-year average. In Karonga, average maize grain prices dropped to levels that are 39 percent below the five-year average and 27 percent below average prices in June 2016.

Informal cross border maize imports are currently significantly below five-year average owing to slightly above average production. However informal cross border exports, especially to Tanzania, registered some steep increases between June and July 2017. FEWS NET informal cross border monitoring data showed that informal maize imports increased by 76 percent from June to July but were 43 percent below the five-year average. Informal maize exports increased by 98 percent between June and July 2017 due to increasing demand for maize in the East African region. The informal cross border exports for July recorded 1,769 MT into Tanzania and some parts of Mozambique, especially areas bordering with Mulanje and Phalombe districts.

Minimal (IPC Phase 1) food security outcomes continue to exist across almost all the wealth groups, as households continue to consume own-produced food. However, very poor and poor households in some localized areas, including the Lower Shire Livelihood zone, will begin relying on food purchases earlier than normal this consumption year due to below average 2017 production.  

Farmers are earning less income than normal by selling their cash and food crops at below-average prices. In some cases, farmers are selling maize grain for as low as MWK 50/kg, and selling soya beans for prices that are less than half of prices in the previous marketing season. At the same time, the Agriculture Development and Marketing Corporation (ADMARC) started purchasing maize from farmers for MWK 170/kg. However, ADMARC depots are purchasing maize from farmers at a very slow pace and for only 1-2 days/week due to funding issues.