Project: Jatropha

G20, I heard through the village wire, has demanded a reduction in tobacco production and exports from several countries, including Malawi. Tobacco is life in Mwazisi and most of Northern Malawi. It is the single income source for not only the community but also the crowds of tenant farmers that travel to the North every year to help harvest tobacco. Without tobacco they have no means to live. This decision has been in talks, on and off, for several years, but has acquired a new shade of seriousness and finality. Fortunately, this global decision on tobacco will be slowly phased in over a few years, providing time for farmers to change their crops.

Tobacco itself is a terrible crop. It destroys the soil, requires immense amounts of expensive fertilizer, and requires a large labour force. Also, drying tobacco requires drying sheds, which locals build from trees cut from the area: the largest cause of deforestation in Mwazisi. The Chewa tenant farmers that come up are in constant feuds with the Tumbuka farmers. And lastly, the price in the auction floors in Mzuzu fluctuate so much, hitting such lows, that it is not profitable at all. Once the fertilizer, tenant costs, transport, tax, and licences are factored in, most people realize a loss. But it is, and has been for a long time, part of life here.

This is where the jatropha tree comes in. There has been a big push to plant jatropha all over Malawi, but people seldom like change, especially in rural communities . They are sceptical and truly can’t take the risk of new ventures. Jatropha is a tree that grows best in the worst soils and conditions. The fruit it produces are little black shelled seeds about the size of a marble. Inside the shell is a white seed, that when processed, produces a poisonous liquid. This liquid can be used as an alternative fuel to diesel. Any diesel vehicle, with a little modification, can run on jatropha oil. It’s an amazing tree and could be a wonderful, sustainable, source of fuel. Simultaneously, it could lead to increased tree planting and the reversal of deforestation in the area.

The new pressure of tobacco reduction has made my goal of converting Mwazisi into a jatropha producer that much easier. Jatropha fruits in about 18 months, less than the time frame allotted by G20 to halt tobacco exports. With fossil fuel prices trending up; alternative and renewable fuels are a necessity for the future. I’m pushing the community to plant a few acres at a time, slowly phasing in the new crop, testing the waters.

The big push for jatropha in Malawi is lead by a company called Bio Energy Resources Ltd. (BERL) based just outside of Lilongwe. This company is the only major jatropha fuel producer in Malawi (that I have heard of so far) and it provides seed to any farmer that wants to grow the tree. I was a little disappointed when BERL told me that most of their operations are focused in the southern regions and are not ready to expand to the North. But this Malawi, where people can finagle anything and I will try to finagle BERL. BERL’s offer in Malawi is enticing as it provides sufficient incentives to farmers while maintaining the company’s profitability. BERL provides seed to farmers, who sign a contract agreeing to sell the fruit to BERL for 10 years. BERL buys the fruit from the farmers at about $1 per kg. From seed to fruit BERL periodically checks on the contracted crops, ensuring proper growth and providing support as need arises.

At $1 per kg it’s better than tobacco auction prices: about $1.80 per kg (and as low as $1.45), which are very little once all the costs are factored in. Jatropha has almost no costs, other than opportunity, as it doesn’t need fertilizer or licences and there is no tobacco tax. Currently diesel, which has run out in Rumphi and Mzuzu, is at Mk. 231.20 per litre. Jatropha, once processed, could be sold at a comparable or much lower price.

I’m meeting with BERL next week, hopefully, to discuss the prospect of jatropha in Mwazisi. Working with BERL would provide easy access and conversion to jatropha. Plus, there is already a buyer and demand for the crop, thus, lower risk in the venture than tobacco. The only thing holding us back is what if jatropha is not as profitable as they expected, what if the company folds? Then we could hopefully process the oil ourselves, else the farmers would be stuck with loads of useless jatropha. The process for producing jatropha oil is similar to groundnut oil. In fact the same equipment can be used interchangeably (just don’t do both as jatropha is poisonous). We might even plant a little jatropha independently and the process the fruit into paraffin substitutes. We will have to wait and see how everything pans out and more importantly if the community welcomes the change.