Net Value of Tobacco
Sales (MK)


246.31 347.08


60.42 753.66


Cash Income (MK) 217.73 90.93 541.57 -76.74 800.47

 Household 3 is a surplus maize producer, but once crop liberalisation introduced the
possibility of growing burley tobacco, some land was switched from hybrid maize to tobacco.
Nominal cash income has grown substantially, though income dipped in 1993/94 due to an
increase in input costs. Even when actual year to year yield variations are taken into account, this
household has enough income to save in good years and dissave in bad years. It should be
regarded as food secure in both chronic and transitory terms.

 Household 4 is similar to household 3 in all respects, except in its cropping pattern. This
household is probably located in an ADD such as Salima or Shire Valley and grows cotton as a
cash crop. Cotton was never proscribed for smallholder farmers, so there is no change in
cropping pattern throughout the period. Table C6 gives an abbreviated family budget.

 Table C6. Household 4 Farm Budget


 1990/91 1991/92 1992/93 1993/94 1994/95

 Income Using Average Yields

 Local Maize (kg) 434.5 434.5 434.5 434.5 434.5
 Hybrid Maize (kg) 501.4 501.4 501.4 501.4 501.4
 Maize Sales (kg) 55.9 55.9 55.9 55.9 55.9
 Net Value of Cotton Sales 94.60 96.72 101.18 110.74 361.29
 (MK)
 Cash Income (MK) 109.69 113.32 125.22 137.01 431.17

 Income Using Actual Yield Variations

 Local Maize (kg) 436.0 162.0 469.0 294.5 383.5
 Hybrid Maize (kg) 581.6 261.4 615.6 273.8 365.8
 Maize Sales (kg) 137.6 -456.6 204.6 -311.7 -130.7
 Net Value of Cotton Sales 127.94 6.85 100.15 70.66 280.29
 (MK)
 Cash Income (MK) 165.10 -190.86 188.13 -161.24 -83.05

 Household 4 is self-sufficient in maize and sells cotton. The returns to cotton have been
quite low nominal income has been stagnant until last year. However, in 1994/95, the cotton


C 15