EXAGRIS-AFRICA: OUR INTERESTS REGARDING AFLATOXIN MANAGEMENT. January 2014

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1 EXAGRIS-AFRICA: OUR INTERESTS REGARDING AFLATOXIN MANAGEMENT January 2014

2 Aflatoxin contaminated peanut:

3 Exagris Africa Limited Business Activities Production of certified seed of groundnuts, soya, maize and beans. Grower, buyer and exporter of paprika (export markets regulate aflatoxin limits) Active major shareholder of Afrinut, to which we aim to supply nuts from outgrowers, the export markets for which are regulated as above. Development services.

4 D E F G B A H C EAA estates AMpatsanjoka BMchaisi CLisungwi DKathontowolo ENkhoso FKazuma GNgala HGulugufe Fig. 1 Map of ExAgris estates in Malawi

5 EAA commercial operations affected by aflatoxin.contd. Outgrower groundnut project (linked to the above) Active major shareholder in Valid Nutrition which is growing local customer for peanut paste with an aflatoxin level of < 4 ppm Producer of groundnut oil, and an end user of the press-cake Broiler producer with an interest in utilising groundnut presscake An interest in the health of our staff and the communities we are connected with.

6 WHY IS AFLATOXIN MANAGEMENT IMPORTANT TO US? ExAgris, smallholder farmers and Malawi as a whole need an increase in export crops A market of over 500,000 mt of groundnuts and 5,000 mt of paprika exists in Europe + additional markets in the region Aflatoxin contamination is the principle barrier Groundnuts suitable for smallholder production due to relatively less reliance on imported factors of production compared to tobacco Rural population health

7 What are we doing about it? Two donor funded projects aimed or partly aimed at improving access to export markets for smallholder groundnut producers through aflatoxin management RLEEP- Growing with Groundnuts AECF- From Field to Factory Aflatoxin Management Working relationship with PMIL Continuous staff training on and awareness of aflatoxin as an issue in our farming system

8 Contd. Informal trials on estates of various practices to reduce aflatoxin contamination during crop growth and harvesting : a healthy plant is the starting point. Seeking to develop formal trials of selected technologies, (e.g. micro-organism technology, soil fertility, varietal resistance) with DARS and PMIL Switched buying system to in shell and introduced grading systems targeting aflatoxin management. Harvest and post-harvest mechanisation Participation in MAPAC activities

9 What are the main challenges we can work with MACA /PACA on? Basically the whole value chain. Testing protocols Field testing methods Specfiic practical agronomic recommendations for both large scale commercial production, and commercialising smallholders, as well as, separately, for the poorest. Specific post harvest and storage management recommendations Understanding varietal resistance, direct or indirect, and its potential for aflatoxin management

10 Contd Treatment of groundnut press cake Looking at what can be done to make groundnut products (and maize) consumed in rural areas safer. Management of aflatoxin during processing ( Afrinut and Valid Nutrition) Would presscake with a high aflatoxin content pose any problems as a fertiliser? How do we make aflatoxin management economically viable?

11 ASPECTS OF BUSINESS SUPPORTED BY DONOR FNDED PROJECTS: Investment in AFLATOXIN management at key ingress points in the value chain: Growing Harvest Post-Harvest handling, drying and processing Marketing through.. Research, Training and Infrastructure Development

12 E.G. Research: use of effective micro-organism technology, seed treatments, soil health development, plant populations etc, through the growing stage Training: smallholder and staff training in identification of correct stage of maturity for harvesting and post-harvest curing Training: shift towards Nut-In-Shell buying Infrastructure: centralised buying, shelling, grading and sorting facility

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