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AO Maluwa, JL Taulo, RW Mkandawire, KN Kalonda

Industrial Research Centre

Malawi University of Science & Technology
Presentation outline

 Background
 Terms of References
 Objectives
 Deliverables
 Methodology
 Findings
 Conclusions and Recommendations
Background to the gap analysis
• The Ministry of Industry, Trade and Tourism is
implementing the Trade Related Facility (TRF)
project with financial support from the
European Union through SADC.
• The main components of TRF are:
1) Upgrading and Modernization of the Oilseed
Cluster in Malawi
2) Effective Implementation of the Rules of
3) Enhanced trade facilitation
 Oilseeds provide an opportunity to contribute to
the Malawi economy
 National Export Strategy (NES) has prioritized
oilseeds as potential crops for diversification
 Malawi is upgrading its oilseed industry and is
modernizing it to increase access to technology
and latest international R&D
 Focusing on quality assurance; product quality;
and accreditation & standards of oilseed
Background to the gap analysis
 Among oilseeds in Malawi groundnuts,
sunflower and soybean are showing
potential for commercial production by

 Consequently, these crops have been

targeted in the NES for Malawi’s export
Background to the gap analysis
 There is an effort to assist oilseed
processors to produce at the most
competitive costs

 MoITT has engaged the IRC at the

Malawi University of Science and
Technology (MUST) to undertake a

 The aim is to identify the best possible

ways of improving the processor’s
Terms of Reference for the Consultancy

 Determine the seed quality at the factories, in terms

of protein and oil content, moisture content and the
general quality of the seed (cleaned, damaged,
rotten, graded or mixed)
 Undertake an inventory of machinery that are used
to extract oil from oil seed sources and determine
the type, make and efficiency of the machinery in
 Determine the effectiveness and appropriateness of
all the oilseed extraction processes e.g. seed drying,
cleaning, crushing, extraction, refining and
packaging as it affects oil output and quality
Terms of Reference for the
 Document the quantities of edible oil being
produced per producer per given period and
the quantities of by products such as seed
cakes that can be used for manufacturing of
animal feeds

 Document the technical and managerial

skills required and those that are actually
available to sustain an increased edible oil
and seed cake production in Malawi
 Identify the type and oil content of raw
materials used by processors in Malawi
 Document the machinery used and their
appropriateness to increase productivity
 Assess the processing methods used and their
efficiency in oilseed production
 Assess oil processor’s management and
technical staff skills to promote and sustain
increased edible oilseed production in Malawi
The study deliverables include:
 Identification of gaps that hinder oilseed productivity in
 Documentation of best practices to improve oilseed
 Possible areas of intervention include:
 Industrial productivity
 Skills development
 Suitable crops and varieties
 Seed multiplication
 Farm gate prices of oilseeds
 Incentives to farmers and the industry
 Desk reviews

 Key informant interviews

 Factory visits

Sampling and sample sizes

 All oil extractors in Malawi were targeted and

 Both quantitative and qualitative
 Data analysis
 Quantitative through SPSS- Frequencies of
 Qualitative through NVIVO – Themes and
 Informed consent
 Avoiding harm
 Maintaining confidentiality
 Freedom to opt out at any time or
refusing to respond to some questions (if
not comfortable).

Ethical considerations
Study Findings
Updating the list of Oil Extractors in
Malawi by district
Name District Name District

Capital Oil Refining Industries Blantyre Central Poultry Limited Lilongwe


Export Trading Blantyre Rab Processors Blantyre

Sunseed Oils Lilongwe Cori (Makata) Blantyre

Mt Meru Millers Lilongwe Unilever Blantyre

Iponga Cotton Company Blantyre Naming’mba Tea Estates Thyolo

Kawalazi Tea Estate Nkhata bay Eastern Produce Limited Thyolo

Makandi Tea Estate Thyolo Sable Farming Blantyre

Bakhresa Grain and Milling Blantyre Caps Limited Lilongwe

No. Name Status Response to
request for
1 Capital Oil Refining In production Declined to be
Industries (CORI) Ltd interviewed

2 Central Poultry Ltd In production Declined to be

3 ETG Parrogates In production Interviewed

4 Rab processors Not producing oil but producing food and feeds Not applicable

5 Sunseed In production Interviewed

6 Oil and Protein but In production Declined to be
now renamed Blantyre interviewed
Oil mill
7 Mt Meru Millers In production Declined to be
8 Uniliver Not producing oil, factory closed, but only Not applicable
packaging oil from extractors and selling. The
company is using Kazinga as a brand name but they
are buying from everybody in the industry
9 Iponga cotton Not in production Not applicable
No. Name Status Response to request for

10 Naming’mba Tea Stopped production due to low profitability Questionnaire filled but Director
estate of macadamia oil has not consented to release it

11 Kawalazi Tea Stopped using macadamia. Macadamia Interviewed Kawalazi and

Estate grown by Makandi and Kawalazi Estates used collected data for the years in
to process there. Macadamia nut sells at US9- production using seconds of
10/kg, while oil attracts less than US$2/litre macadamia.
12 Eastern Produce Stopped production due to low profits of Not applicable
macadamia oil
13 Sable Farming Stopped producing from Macadamia due to Gave verbal interview but did
low profits not fill the questionnaire
14 Bakhressa Grain Milling food and feed using wheat Not applicable
and Milling
15 CAPS Ltd Not traced Not Applicable
16 BERL Processing Bio-diesel using Jethropha Not applicable
17 Moti Mills In production Not interviewed
18 Lakeshore Agro- In production Interviewed
 Initial List of Cooperatives and Associations

Name District Name District

Kunthembwe Cooking Oil Blantyre Nthiransembe cooking oil Blantyre

Zikometso Sunflower Processors Phalombe Madisi Agro-Processing Dowa
in Phalombe
Kamwendo Cooking Oil Mchinji Tilipo Cooking Oil Mulanje
Hanga Cooking Oil Chitipa Mapfinga Cooking Oil Chitipa

Chogomezgo cooking oil Rumphi Khamalipindula cooking oil Kasungu

Mitundu Agro-processing Lilongwe Khombedza oil Cooperative Salima

 Updated List of Cooperatives and Associations
No. Name Status Response to request for
1 Kunthembwe Cooking Oil Producing crudely, the Interviewed
Cooperative in Blantyre machinery
not yet connected with
electricity, using groundnuts
2 Zikometso in Phalombe In production Interviewed

3 Kamwando Cooking Oil in In production Interviewed

4 Nthira Nsembe (Mchinji) In production Interviewed

5 Madisi Agro-processing in In production Interviewed

6 Tiripo Cooking Oil Not traced in Mulanje, Not applicable
Thyolo, Phalombe
 Updated List of Cooperatives and Associations

No. Name Status Response to request for

7 Hanga Cooking Oil in Not extracting oil but engaged Interviewed farmers that
Chisenga, Chitipa in bee keeping and are called grow sunflower and
chisenga honey cooperative ground nuts
8 Mapfinga Cooking Oil In production Interviewed
9 Khamalipindula Cooking Not producing, stopped, there Interviewed
Oil (Kasungu) is now a new group that is yet
to start production
10 Mitundu Agro-Processing in Stopped producing and the Gave oral interview on
Lilongwe factory is closed reasons for closure.
11 Khombedza Cooking Oil in Stopped and machine taken Interviewed
Salima away by project sponsors
12 Thundu / Muleranthaka In production under COMSIP Interviewed
comsip in Phalombe
 Updated List of Private Oil Extractors

No. Name Status Response to request for


1 Khumbo Oil refinery Not producing edible oil but Not applicable
Moringa, Neem and Baobab
2 Baobab Oil refinery In production in Ndirande Not traced
3 Mulawe Cooking oil
in Closed at Chisitu and the Not interviewed
Mulanje current Mulawe is being
produced as a trademark by
Sunseeds oil
4 Kaporo Foundation Not traced Not interviewed
5 A number of Chinese In production, but are so Not interviewed
extractors along Zomba secretive and inaccessible
Category of processors
Category of processors

Category type Raw materials Percentage

capacity (tonnes/
Micro Less than 0.5 37.5
Small Less than 1.0 12.5

Medium Between 1 to 5 25.0

Large Greater than 5 25.0

Business type

Category type Percentage

Farmer clubs 11.8

Associations 5.9

Cooperatives 70.6

Private Industry 11.8

Number of employees

Number of Employees Percentages

Firms employing 1-4 12.5

5-20 31.3

21-50 37.5

51-100 0.0

More than 100 12.5

Volunteers / Interns 6.3

Annual sales turn over

Sales turn over (MK) Percentages

Less than 100,000 / annum 8.3

100,001 – 500,000 25.0

500,001 – 1,000,000 0.0

1,000,001 – 10,000,000 50.0

More than 500 million 8.3

No records 8.3
Type of seed oil used

Seed Type Percentages

Sunflower 62.5

Ground Nuts 25.0

Palm Oil 4.2

Cotton Seed 4.2

Soybeans 4.2
Importance of organization:
 Provision
 Be
 E.
Some Actions to Achieve P&R
Intent: Baptize a significant number of persons
and train:

District/ Conference
Church employed Lay witnesses
Pastors bible workers

Ministerial Technology
Lay Bible
students in in Evangelism
training Providers

Prayer Lay
Coordinators Evangelists
Some Actions to Achieve P&R
The Annual Church/District Proclaim
and Reap Campaign:
Lay Bible

Lay Witnesses

Technology in
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