Awlachew Sintie Malawi Country: Malawi Country Information Country Size : 118,485 sq km Population: 14.9 millions Currency: Kwacha(D)(MWK) Languages: official - English, national - Chichewa Capital City: Lilongwe GDP(US$): 5.1 billions Economy-Overview: A small intensely rural, agricultural economy. Agriculture contributes 36% of the GDP and employs more than 80% of the total labour force. Main Economic Sectors: Agriculture, Manufacturing, Fisheries, Tourism. Main Exports: Tobacco 53%, tea, sugar, cotton, coffee, peanuts, wood products, apparel Main Imports: Major petroleum products, Vehicles, fertilizers, iron or steel, electrical machinery, equipment, Pharmaceutical products, Dairy products, Mineral fuels. Main Industries: Tobacco,, Brewing, Cement, Food Processing, Tourism Natural Resources International Organization Membership: Commonwealth, SADC,COMESA,AU, U N, WTO, OIE Infrastructure: Two international airports, good road network even in rural areas, Lake Malawi waterway, good communication facilities. Other: Livestock Information Cattle Population : 990,000 Sheep Population: 213,000 Goat Population: 3,953,000 Camel Population: None Other Populations: 570,000 (donkeys, rabbits, pigs) Cattle Off take Rates: 10.4% Sheep Off rake Rates: 25% Goat Off take Rates: 29.5% Camel Off take Rates: None Livestock Policy: To sustain modern livestock breeding & production to meet domestic demand for animal products such as meat and dairy products through provision of sustainable animal health and livestock extension services. The Government has also a deliberate policy of broadening livestock ownership to the rural community so that the livestock sector contributes to poverty reduction efforts and food security. The animal health policy emphasises surveillance and prevention of spread of trans-boundary , trade sensitive livestock diseases to safeguard the livestock industry. Slaughter Facilities: Number of abattoirs: 3 Slaughterhouses: 24 Slaughter slabs/places>200 Hides and Skins Quantity Hides: 0.2 million pieces Quantity Sheep: 0.1 million pieces Quantity Goat: 2.0 million pieces Annual Collection Level Hides: 90% Annual Collection Level Sheep: 95% Annual Collection Level Goat: 95% Flaying methods: Hand flaying (using flaying knives ); flaying by pulling, pneumatic de-hiders. Preservation Methods: Air (ground) drying, frame/suspension drying; wet salting. Grading Systems, Available Grades and Percentage of each: Grade I: Abattoirs (hides): 60% / Abattoirs (skins): 75% / Smallholder (hides): 30% / Smallholder (skins): 80% / Export sector (raw): 40% Grade II: Abattoirs (hides): 10% / Abattoirs (skins): 10% / Smallholder (hides): 10% / Smallholder (skins): 10% / Export sector (raw): 40% Grade III: Export sector (raw): 20% Grade IV: Smallholder (hides): 10% Reject system: Abattoirs (hides): 30% / Abattoirs (skins): 15% / Smallholder (hides): 50% / Smallholder (skins): 10% Hides and Skins trade channels: Farmer to Butcher/Abattoir to Collector/Buyer to Trader to Exporter. Abattoirs also export directly to international & regional markets. Market(%): 80% International and 20% Regional & local (only raw hides and skins) Regional (Tanzania, Zambia, South Africa, Zimbabwe) International (Hong Kong, China, Italy, Greece, Portugal) Annual Export Value(US$): NA Average Market Bovine Price: NA Average Market Sheep Price: NA Average Market Goat Price: NA Tanning Number of Tanneries: 1 Installed Tanning Capacity: 300 hides/day 3000 skins/day Tanneries in Operation: NA Utilized Capacity: NA Output of the Industry: Expected to produce 77,000 sqft of finished leather/year Number of Employees: 60, at the time it was operational Market (%): 100% local Estimated Annual Export Value: None Footwear Number of Footwear Factories: 2 In Operation: 2 Manufacturing Capacity: 7000 pairs per month Number of Employees: 176 Market (%): 7000 pairs per month Estimated Annual Export(US$): None Leather Goods Number of Leather Goods and Garment Factories: None In Production: None Manufacturing Capacity: None Number of Employees: None Market (%): None Estimated Annual Export Value(US$): None SWOT Analysis Strengths: -A fairly sound macro-economic policy -Stable and democratic political environment -A thriving livestock industry -Absence of trade-sensitive livestock diseases -Existence of community structures that offer a conducive environment to undertake community-based activities aimed at improving the hides and skins sector and -Presence of good communication facilities and presence of a good extension system for delivery of livestock services. Weaknesses: - Inadequate quality material - Limited formal knowledge in hides, skins and leather issues - Inadequate capacity in the sector - De-motivated government extension staff - Lack of value addition to the raw material - Inadequate/crumbling slaughter house infrastructure - Low disposable income of the population (widespread poverty) - Weak institutional support - Weak and unreliable markets - Inadequate conducive policies to support the sector - Inadequate enforcement of regulations in the hide and skins trade Opportunities: - Abundant raw materials - Unexploited industry - Very healthy competition in the field (collection of Hides and Skins) - High local demand for finished leather for artisan manufacturing of leather articles - Fairly good investment environment for the sector - Cheap labour force - An emerging middle class society that is fashion conscious - A highly liberalized economy and renewed interest of the donor community in the livestock sub-sector - Some signals of strong political will to support the sector. Threats: - Chaotic markets - Too many foreign buyers on the market who compromise on quality - Lack of investment in the sector - High staff attrition in the livestock sub-sector due to the HIV/AIDS pandemic - Unregulated, massive imports of second hand shoes and other leather goods - A dwindling livestock population - A booming plastic shoe industry - Unregulated trade in the leather sector - Strict environmental and sanitary demands/regulations on the international market.