Farmers face maize, fertiliser prices’ irony

Malawi’s maize remains the cheapest in southern Africa, averaging K963 per kilogramme (kg), yet the cost of fertiliser keeps rising, now at K3748.97 per kg (or K187 448.5 per 50kg), a new study has shown. The Food Security Monitor report for February, published on Wednesday by Alliance for a Green Revolution in Africa (Agra) and released Wednesday, projects a further downward spiral on maize prices after harvest, due to “an average to above average 2026 harvest, particularly for maize.” With the disturbance in the Middle East due to the US/Israel war on Iran, where most fertilisers pass, the report fears that fertiliser prices will inflate food production costs, especially for Malawi as an import dependent economy. Using the parallel market for the dollar which it says is prevalent in Malawi, the average price of maize in Zambia is K1 577 per kg; in Mozambique it is selling at K1 423.24 per kg while in Zimbabwe the average price is K3 885 per kg.

Reads the report: “Malawi displayed the widest variation in price signals. Based on the official exchange rate, February maize prices stood at USD 558/MT, down from USD 738/MT in January [−24 percent], mostly attributed to large inflows of imports that have bolstered supplies. “However, when using the parallel exchange rate, price falls to USD 254/MT, making it the lowest-priced market in the region and highlighting the significant influence of exchange-rate distortions on price formation.” On fertiliser, the report notes that Malawi displays mixed short term signals but remains structurally expensive across both NPK and Urea.

It said NPK prices rose moderately by 5.18 percent month on month moving to K3748.97 per kg (or K187 448.5 per 50kg), and year on year, prices remain significantly higher (+49.06%), reflecting persistent supply constraints and elevated import cost pressures. Urea prices declined slightly (−1.56% MoM) to K3432.22 per kg or K171 611 per 50kg, but at +52.02 percent year on year, showing substantial annual inflation and signalling broad based cost escalation across fertiliser types. Yesterday, agriculture extension expert Leonard Chimwaza said the high prices of production inputs, notably fertiliser, labour and seed, make it difficult for many producers to breakeven.

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He said: “The differences in maize prices across the regions entails that some countries have taken note of the costs of production hence the prices are compensatory on the part of the farmers. “Farmers should diversify through production of crops that demand little amounts of fertiliser but have good market value, and in any case, should resort to use of organic fertilisers and alternative sources of plant nutrients.” Agriculture policy expert Tamani-Nkhono Mvula said it will be difficult for farmers to develop in terms of commercialisation because they are not getting much out of what they are supposed to have done. He said: “We are killing commercial maize production in Malawi because those that produce on commercial basis may not be able to continue production because they are not able to get much from what they are selling.

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