Agriculture is the single most important sector in the Malawi’s economy, contributing about36% of value added GDP, employing 85% of the workforce and contributing 90% of foreignexchange earnings in 2003 (MPRSP, 2003). However, over the past five years agricultural GDP grew at an average of 2.27 % with large swings ranging from -6 % in 2001 to 5.9 % in 2003. Therefore Government’s overarching development issue is improvement in the productivity and profitability of agriculture, especially among smallholder farmers. By the year 2020, Malawi envisions a high level of agricultural productivity that will ensure equity in household food security, income and employment and sustainable utilization of natural resources. This is in line with the mission of the Ministry of Agriculture and Food Security of promoting the country’s economic growth by raising farm incomes, employment and household food security through the development of partnerships and promotion of private sector investment for increased agricultural productivity, diversification, commercialization and sustainable use of natural resources.
Malawi’s agriculture has been characterized by low and stagnant yields, factors which are contributing to pervasive poverty and food insecurity. The five-year average growth rate in production is below the officially estimated population growth rate of 3%. For example, yields of major crops are far lower than the attainable potential and world averages in most cases. In the case of maize, yields of local and hybrid varieties among smallholder farmers average almost one quarter and one fifth of the potential yields obtainable at research stations, respectively, whereas average burley and flue cured tobacco yields among smallholder farmers is less than half the potential yields at research station.
Low nutrient application especially inorganic fertilizer estimated at an average of 43 kg per hectare is among the major factors contributing to declining agricultural productivity. The level of nutrient application is too low when compared with the world average of about 100 kg/ha or that of several developing countries like China (>300 kg), Egypt (>300 kg), Bangladesh (>110 kg), Pakistan (>110 kg). The general recommendation in the case of hybrid maize is to apply 87 kg or 2x50-kg bags of DAP as basal and 175 kg or 4x50-kg bags of urea as topdressing per hectare. However, most Malawian farmers apply half or less than half of this quantity which is not only resulting in low production but is also leading to a rapid depletion of nutrients from the soils.
Adoption of fertilizer technology especially among smallholder farmers has been affected by the absence of a policy framework to guide the formulation, importation and marketing of fertilizer types as well as enforcement of standards. Although demand for various types of fertilizers used in Malawi has gone up from approximately 98,000 tons in 1987 to nearly 225,000 tons at present, this falls much below the potential demand for fertilizer in Malawi estimated at about 500,000mt annually.
The purpose of the National Fertilizer Strategy is to identify key issues affecting adoption and utilization of fertilizer technologies and to provide short, medium and long term actionable programs for developing private sector led fertilizer markets with a view to improving agricultural productivity and profitability, especially among smallholder farmers. The strategic plan also identifies priority areas for bold actions which are likely to accelerate farmers’ access to affordable fertilizer and incentives for its use. Considering that Malawi is a net importer of fertilizer, the strategic plan provides input into the development of a Regional Fertilizer Action Plan to accelerate access of millions of poor farmers to chemical fertilizers and other complimentary inputs.

