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How traceability is restructuring Malawi’s tobacco industry

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  • Moyer-Lee, Jason
  • Prowse, Martin

Abstract

This article applies a global value chain framework to tobacco in Malawi. It illuminates how cigarette manufacturers govern the chain and control first-tier suppliers: the leaf merchants. Due to credence and litigation concerns, manufacturers have become obsessed with leaf integrity. Contract farming offers merchants the ability to meet manufacturers’ compliance and traceability requirements. It also offers an opportunity for process and product upgrading by smallholders, but threatens to exclude poorer growers. The article concludes by outlining current contractual practices and the possible role of third parties in this rapid institutional evolution.

Suggested Citation

  • Moyer-Lee, Jason & Prowse, Martin, 2012. "How traceability is restructuring Malawi’s tobacco industry," IOB Working Papers 2012.05, Universiteit Antwerpen, Institute of Development Policy (IOB).
    • Handle: RePEc:iob:wpaper:2012005
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    File URL: https://medialibrary.uantwerpen.be/oldcontent/container2143/files/Publications/WP/2012/05-moyerlee-prowse.pdf
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    References listed on IDEAS

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    Cited by:

    1. Pipkin, Seth & Fuentes, Alberto, 2017. "Spurred to Upgrade: A Review of Triggers and Consequences of Industrial Upgrading in the Global Value Chain Literature," World Development, Elsevier, vol. 98(C), pages 536-554.
    2. Marianne Nylandsted Larsen, 2016. "Sustaining Upgrading in Agricultural Value Chains? State-Led Value Chain Interventions and Emerging Bifurcation of the South Indian Smallholder Tea Sector," Sustainability, MDPI, vol. 8(11), pages 1-19, October.

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    Keywords

    Malawi; Global value chains;

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