This article applies a global value-chain framework to the tobacco industry in Malawi, showing how cigarette manufacturers govern the chain and control first-tier suppliers, the leaf merchants. Contract farming offers smallholders the ability to meet manufacturers' compliance and traceability requirements and an opportunity for process and product upgrading, but threatens to exclude poorer growers. The article concludes by highlighting the role leaf merchants can play in diversifying Malawi's economic base and suggests research avenues to understand this rapid institutional evolution better.
|Number of pages||16|
|Journal||Development Policy Review|
|Early online date||2 Feb 2015|
|Publication status||Published - Mar 2015|