prepare tobacco farmers for an era of reduced demand
The global decline of smoking could have many positive health impacts but could bring negative economic consequences to tobacco farmers, many of whom are in developing nations.
In order to address the agricultural impact of smoking cessation, the Foundation is focused on partnering with agricultural, rural development, and smallholder experts to identify alternative livelihoods for tobacco farmers. And, to determine which alternatives are the most viable, the Foundation plans to bring together private development and public players to invest in pilot solutions.
The True Cost of a Cigarette
A tobacco farming family in Malawi struggling in the face of rapidly changing economic realities.
Agricultural Transformation Initiative (ATI)
Preparing for a smoke-free future by facilitating globally competitive economies and farmers
Declining demand for tobacco leaf could have devasting effects on farmer incomes in Malawi
Global cigarette sales have fallen by 7.6% between 2012 and 2016
(Euromonitor International, 2018)
Farm-gate prices of tobacco in Malawi have fallen by 54% between 2012 and 2016
Over the past decade, tobacco has represented 40.6-63.6% of Malawi's total exports
Malawi’s tobacco exports have fallen by 33% in quantity between 2012 and 2016
Market-driven economic diversification May Be the only way to mitigate this decline
- Understand current tobacco-based business models.
- Seek existing and potential markets for alternative crops and livelihoods to replace declining tobacco income.
- In the long-term, identify and support structured agricultural value chains and adjacent industries to drive economic growth.
- “Grow the pie” by targeting high-value business models.
- Co-create business models that accrue value directly to smallholder farmers.
- Leverage innovative financing mechanisms to drive growth.
- Pilot “ring-fenced” agricultural investments to achieve scale and security.
- Create a Center of Excellence that merges 21st century agricultural innovation with the scaling power of the private sector.
- Identify game-changing inputs and technologies that can drive productivity increases and economic growth.
- Incentivize private sector investment with risk capital and technology transfer agreements.
- Identify business model and cross-cutting constraints to growth in agriculture, trade, investment, finance, and access to capital.
- Facilitate the policy reform process through existing processes and stakeholders.
- Form and facilitate a Doing Business task force to position Malawi as a lead reformer in SSA.
Our approach IS TO combine strategic partnerships and a robust research agenda to catalyze progress, empower local organizations, and create globally competitive, prosperous farmers
Paralleling economic growth comparable to African success stories
Seeking improvement in Doing Business Indicators/Investment climate
Rising and securing smallholder farmer incomes
Improving dietary diversity and food security
Reducing child stunting and other malnutrition