Agribusiness investor AgDevCo will put $1.5 million into a Malawian peanut processor that aims to make the country an exporter again.
The company, Afri-Oils Limited, is building a new processing facility to handle locally grown peanuts, and estimates that the company will provide higher incomes for 18,000 Malawian smallholder farmers by marketing nuts in regional and export markets.
Malawi produces over 200,000 tonnes of groundnuts a year, but exports collapsed after European and other markets tightened quality standards for aflatoxin, the natural byproduct of a mold that can contaminate peanuts, maize and other crops. Through farmer training programs, and improved handling and sorting methods, Afri-Oils aims to demonstrate that Malawi can meet international standards on the control of aflatoxin.
Afri-Oils’ shareholders include NASFAM, a large Malawian farmers association, and Exagris, which owns a Ready-to-Use Therapeutic Foods (RUTF) paste manufacturer in Malawi. The company also benefits from a Dutch Government grant.
“Afri-Oils aims to be a profitable enterprise that improves the lives of its farmer suppliers, and contributes to systemic improvements in the groundnut industry in Malawi,” said Afri-Oils’ Chairman Tim de Borde.
Click here to go to the full news release.