Colonial period Although
Nyasaland, as the country was known before 1964, had some mineral resources, particularly coal, these were exploited in colonial times. Without economic mineral resources, the protectorate's economy had to be based on agriculture, but in 1907 most of its people were subsistence farmers. In the mid-to-late 19th century, manioc, rice, beans and millet were grown in the Shire Valley, maize, cassava, sweet potatoes and sorghum in the
Shire Highlands, and cassava, millet and groundnuts along the shores of Lake Nyasa (now Lake Malawi). These crops continued to be staple foods throughout the colonial period, although with less millet and more maize. Tobacco and a local variety of cotton were grown widely. Europeans wrongly criticised the practice of
shifting cultivation in which trees on the land to be cultivated were cut down and burnt and their ashes dug into the soil to fertilize it. The land was used for a few years after another section of land was cleared. Compared to European, North American and Asian soils many sub-Saharan African soils are low in natural fertility, being poor in nutrients, low in organic matter and liable to erosion. The best cultivation technique for such soils involves 10 to 15 years of fallow between 2 or 3 years of cultivation, the system of shifting cultivation and fallowing that was common in Nyasaland as long as there was sufficient land to practice it. Throughout the protectorate, the colonial Department of Agriculture held negative attitudes towards African agriculture, which it failed to promote and favoured European planter interests. Although in the early years of the 20th century, European estates produced the bulk of exportable cash crops directly, by the 1940s, a large proportion of many of these crops (particularly tobacco) was produced by Africans, either as smallholders on Crown land or as tenants on the estates. Most people in Nyasaland were subsistence farmers growing maize, millet and other food crops for their own consumption. Its colonial export economy had to be based on growing economic crops, but before 1907 commercial agriculture had hardly started to develop. In pre-colonial times trade was limited to the export of ivory and forest products in exchange for cloth and metals and, for the first few years of the protectorate, ivory and rubber collected from indigenous vines were the principal elements of a tiny export trade. The first estate crop was coffee, grown commercially in quantity from around 1895, but competition from Brazil which flooded the world markets by 1905 and droughts led to its decline in favour of tobacco and cotton. Both these crops had previously been grown in small quantities, but the decline of coffee prompted planters to turn to tobacco in the Shire Highlands and cotton in the Shire Valley. Tea was also first planted commercially in 1905 in the Shire Highlands, but significant development of tobacco and tea growing only took place after the opening of the Shire Highlands Railway in 1908. In the early years of the 20th century, European estates produced the bulk of exportable cash crops directly, but by the 1930s, many of these crops, particularly tobacco and cotton, were produced by Africans, either as smallholders on
Crown land or as tenants on the estates. The first estate crop was coffee, grown commercially in quantity from around 1895, but competition from Brazil after 1905 led to its decline in favour of tobacco and cotton. Both these crops had previously been grown in small quantities, but the decline of coffee prompted planters to turn to tobacco in the
Shire Highlands and cotton in the
Shire River Valley. Tea was also first planted commercially in 1905 in the Shire Highlands, but significant development of tobacco and tea growing only took place after the opening of the Shire Highlands Railway in 1908. During the time of the protectorate, tobacco, tea and cotton were the main export crops, but tea was the only one that remained an estate crop throughout. The main barriers to increasing exports were the high costs of transport from Nyasaland to the coast the poor quality of much of the produce and, for African farmers, the planters’ opposition to them growing cotton or tobacco in competition with the estates. The area of
flue-cured tobacco farmed by European planters in the Shire Highlands rose from between 1911 and 1920, yielding 2,500 tonnes of tobacco. Before 1920, only about 5% of the crop sold was dark-fired tobacco produced by African farmers, but this rose to 14% by 1924. The First World War boosted the production of tobacco, but post-war competition from United States Virginia adversely affected Nyasaland growers. Much of the tobacco produced by the European estates was a low-grade, and the decline in flue-cured tobacco intensified throughout the 1920s. Europeans produced 86% of Malawi's tobacco in 1924, 57% in 1927, 28% in 1933, but only 16% in 1936. Despite this decline, tobacco still accounted for 65-80% of exports in the years from 1921 to 1932. Formation of a
Native Tobacco Board in 1926 stimulated production of fire-cured tobacco. By 1935, 70% of the national tobacco crop was grown in the Central Province where the Board had around 30,000 registered growers. At first, these farmed Crown land (also called
Native Trust Land), but later estates contracted sharecropping “Visiting Tenants”. The number of growers expanded after the Second World War, so by 1950 there were over 104,500 growers planting and growing 10,000 tons of tobacco; only 15,000 were in the Southern Province. About three-quarters were smallholders, the rest estate tenants. Numbers declined later, but there were still 70,000 in 1965, producing 12,000 tons. Egyptian cotton was first grown commercially by African smallholders in the upper Shire valley in 1903 and spread to the lower Shire valley and the shores of Lake Nyasa. By 1905 American Upland cotton was grown on estates in the Shire Highlands. African-grown cotton was bought by
The British Central Africa Company Ltd and the African Lakes Corporation until 1912 when government cotton markets were established where a fairer price for cotton was given. After reckless planting on unsuitable land, consolidation of the planted area to and improving quality increased cotton exports to a peak of 44% of total exports in 1917 when the First World Was stimulated demand. A shortage of manpower caused a post-war drop in production, with no recovery until 1924, but then reaching 2,700 tons in 1932 and a record of 4,000 tons exported in 1935. This was mainly African production in the lower Shire valley, as output from European estates became insignificant. The relative importance of cotton exports dropped from 16% of the total in 1922 to 5% in 1932, then rallied to 10% in 1941, falling to 7% in 1951. The quality of cotton produced improved from the 1950s with stricter controls on pests and, although 80% of the crop continued to be grown in the lower Shire valley, it also began to be grown in the northern shore of Lake Malawi. Production varied widely, and increasing amounts were used domestically, but at independence cotton was only the fourth most valuable export crop. Tea was first exported from Nyasaland in 1904 after tea plantations were established in the high rainfall areas of Mlanje District, later extended into Cholo District. Exports steadily increased at first, and the importance of tea increased dramatically after 1934, from only 6% of total exports in 1932 to over 20% in 1935. It never fell below that level, rising to over 40% from 1938 to 1942, and in the three years 1955, 1957 and 1960 the value of tea exports exceeded that of tobacco and until the mid-1960s, Nyasaland had the most extensive area of tea cultivation in Africa. Despite its value to the protectorate's economy, the main problem with its tea on the international market was its low quality. Groundnut exports were insignificant before 1951 when they amounted to 316 tons, but a government scheme to promote their cultivation and better prices led to a rapid increase in the mid-to-late 1950s. At independence, the annual exports totalled 25,000 tons and groundnuts became Nyasaland's third most valuable export. They are also widely grown for food. In the 1930s and 1940s, Nyasaland became a major producer of Tung oil and over on estates in the Shire Highlands were planted with Tung trees. However, after 1953, world prices declined and production dropped as Tung oil was replaced by cheaper petrochemical substitutes. Until the 1949 famine, maize was not exported but a government scheme then promoted it as a
cash crop and 38,500 tons were exported in 1955. By independence, local demand had reduced exports to virtually nil. The basis of estate agriculture in Nyasaland for much of the colonial period was the system of
thangata which, in the early colonial period, meant that African on estates had to perform agricultural labour in lieu of the rent for a plot of land on which they could grow food. At first, estates usually required two months’ labour a year from adult men, one month for rent, the second for Hut tax. However, on some estates the obligations of labour tenants were extended. The demand for estate labour declined in the 1920s, and British Central Africa Company was the first estate owner to modify thangata. The company issued seed to African tenants so that they could grow cotton or tobacco under supervision, and then sell their crops to the company at low prices. The Natives on Private Estates Ordinance 1928 formalised this arrangement by allowing landlords to receive rents in cash, in a fixed quantity of acceptable crops or by direct labour. The term thangata applied both to rent in kind, common on tobacco and cotton estates, and to the older form of labour thangata, which persisted on the tea estates that required direct labour. By 1946, those estate companies that had formerly relied on labour tenants for their workforce complained that thangata was virtually unenforceable, as the workers ignored their contracts with impunity and refused to pay rent. A proposed rent increase in 1953 led to further resistance, and riots in August 1953, leading to eleven dead and seventy-two injured. Following these riots, the Governor Colby urged that estate land should be acquired through voluntary purchase, and the colonial administration purchased 142,000 hectares by 1954. At independence in 1964, only 171,000 hectares of estates remained, mostly tea plantations.
After independence At independence in 1964, the cultivable area of Malawi was estimated at 3.42 million hectares (net of the remaining estates), about 90% of which was cultivated. Most of the land in Malawi suitable for farming food crops was available at the time of independence to Malawians without an obligation to pay cash rent or provide labour services. From 1950 to the mid-1980s, Malawi exported substantial amounts of maize. Initially, this was the result of a policy change to promoting maize as a cash crop after the 1949 famine, but it continued despite later indecision on whether such surpluses should be promoted. Smallholders’ estimated average yields from local maize rose from 0.6 tonne a
hectare in the 1950s to 0.8 tonne a hectare in the 1960s, then to 1.2 tonnes a hectare (1.8 tonnes with moderate fertilizer) in the 1980s. Up to the mid-1980s, Malawi was a net maize exporter; its agricultural growth rate was 6% a year between 1973 and 1982. From approximately 1950 to 1980 Malawi enjoyed adequate and reliable rains.
Food security seemed assured and consumption exceeded production only in five years in this period, none leading to serious shortages. However, this apparently successful dual policy faltered in the late 1970s. Banda retained control over agricultural policies as Prime Minister in 1964 and President from 1966 to 1994, so its successes or failures were primarily his. Banda recognised Malawi had few resources other than agriculture. He at first favoured smallholder agriculture, as few European-owned estates remained. However, the policy of growing
Burley tobacco on estates was developed from 1968. Burley tobacco is a fairly inexpensive air-cured variety used as a filler for certain cigarettes im contrast to the more expensive flue-cured variety. In 1966, President Banda argued that customary land tenure was insecure and inhibited investment. The Customary Land Development Act, 1967 allowed the creation of agricultural leases of up to 99 years over Customary Land. Many in the Central Region were intended to grow Burley tobacco and controlled by Banda himself, or senior officials and politicians. There were 229 mostly European-owned estates of 79,000 hectares in 1970, but 14,355 of 759,000 hectares in 1989 and their final area exceeded a million hectares. Only about 25% of the land was used in a four-year tobacco cultivation rotation. Many estates became insolvent, despite easy credit and were foreclosed by the parastatal banks. When estates were formed, former residents lost their Customary Land rights and left or became estate labourers or tenants. There were 51,000 agricultural workers (mostly on tea estates) in 1968, 181,000 in 1980 and 200,000 in 1990. Tenants replaced employees later and 675,000 estate tenants were registered in 1990 and 580,000 “squatters” lived on surplus land as a low-paid casual labour pool. Few grew all their food but relied on rations or purchases. This occupation of land by inefficient tobacco estates undermined food security. With more intensive agricultural use, the amounts and duration of fallow were progressively reduced in more populous areas. A situation approaching continuous mono-cropping developed on many Malawian
smallholdings, which placed soil fertility under gradually increasing pressure Maize monocropping without fallow or fertiliser leads to reduced yields, but even so, up to 1982 it was estimated that Malawi had sufficient arable land to meet the basic food needs of its population, if it were distributed equally. By 1992, cultivation had spread to hillsides and onto steep Rift Valley slopes where it was unsustainable. The area of smallholder maize increased 20% between 1968 and 2000 by using marginal land. Many rural smallholdings were less than two hectares in the 1960s: by the mid-1980s the average plot was hardly more than one hectare. Throughout most of the 20th century Malawi's main food crop was maize and at the end of that century, 90% of its grain was maize, which provided 56% of all calories consumed. Malawi was the world's most maize-dependent country, except for Zambia. Its traditional substitutes were cassava on the Lakeshore and sweet potatoes in the Shire floodplain. The estimated area of maize cultivation increased from around 1.3 million hectares in 1980 to over 1.6 million hectares in 2000. However, maize harvests began to fluctuate widely, from highs of about 1.5 million tonnes in 1989 and about 1.3.million tonnes in 1990 to lows of about 0.6 million tonnes and about 1994 and 0.8 million tonnes in 1992. In view of the fluctuation in maize harvests, from the 1990s crops of sweet potatoes and cassava increased the result of
USAID projects to promote drought-resistant foods. The area of cassava planted is estimated to have increased from 72,000 hectares in 1990 to over 200,000 hectares in 2001, with estimated output increasing from 168,000 tonnes in 1990 to 3.4 million tonnes in 2001. The area of sweet potatoes planted is estimated to have increased from 43,000 hectares to over 192,000 hectares between 1990 and 2001, while estimated output increased from 177,000 tonnes to 3.4 million tonnes over the same period. There is some disagreement about the magnitude of this increase, but they suggest that maize is no longer the most important crop by tonnage, although it still accounts for 60% of the area of food planted. Despite a collapse in tobacco prices in 1979, The World Bank thought growing Burley tobacco by smallholders would relieve poverty by allowing farmers to buy imported cheap maize for food. From 1987, market liberalisation allowed smallholder to grow Burley, and they could only sell it freely in 1996173. The richest 25% of smallholders earned significant amounts from Burley after liberalisation. Malawi's Burley production increased from 45,600 tonnes, all estate-grown, in 1988 to 142,200 tonnes (including 98,600 tonnes grown by smallholders) in 2000. It grew 10% of world Burley in 1992, but the market started to decline and the US dollar price of Malawian Burley halved between 1988 and 2000; its lower grades were unsaleable. Detailed surveys estimated that in 2000 10% of Malawi's rural households grew Burley tobacco using 3% of cultivable land each year. In the four-year cycle, and including the estates growing it, Burley tied-up 300,000 hectares of land that could have been used for maize, when the areas of maize plantings were some 1.6 to 1.7 million hectares. Households with sufficient land, labour, fertilizer and credit for both food and tobacco achieved only modest returns but were vulnerable to price fluctuations and bad weather. Burley was not the solution to Malawi's problems. Malawi currently has a food gap equivalent to 500,000 to 600,000 tonnes a year of maize. Attempts have been made to close this gap with other foods, but the two most likely ways to close it are either to import large quantities of maize or grow more maize. Paying for maize imports reduces Malawi's foreign currency reserves to very low levels and creates very high level of debt, and growing more maize would require massive investment. ==Agricultural marketing==