Luanar teams up with Sino Borcar to develop new castor and chili crops

The Lilongwe University of Agriculture and Natural Resources (LUANAR) has entered into a promising five-year partnership with Sino Borcar Investment Holdings Limited to trial and produce non-GM (genetically modified) castor oil seeds and chili varieties aimed at export markets, particularly in China.

Speaking at the signing ceremony in Lilongwe, LUANAR Vice Chancellor, Professor Emmanuel Kaunda, expressed optimism about the potential impact of this partnership on Malawi’s economy, particularly in generating foreign exchange. Kaunda highlighted the high demand for the seeds in China, underscoring the importance of diversifying Malawi’s agricultural output.

“If agriculture does not perform in this country, we are doomed,” Kaunda said. “That’s what we can rely on at present, and you’ve seen how tobacco has performed over the years. We have been looking for alternatives, and I think this partnership offers us a potential crop that can substitute tobacco or at least complement what we are getting from tobacco.”

The collaboration will initially focus on collecting local data across all regions of Malawi through extensive research. The goal is to fast-track the approval process for the seeds, which will then be sent to China for certification and release into the international market.

According to Sino Borcar Investment Director Tom Hou, the partnership has the potential to generate substantial revenue for Malawi. He stated that, if successful, the project could bring in up to $1 billion in revenue, which would help ease the country’s foreign exchange challenges. Hou emphasized that there is a readily available market for the seeds in China, where demand is high for these agricultural products.

“The market is there, and there is high demand that just needs value addition,” Hou explained. “In this Memorandum of Understanding (MoU), we want LUANAR to help us certify the seeds, as per Malawi’s regulations. Any new seed to be planted and commercialized in Malawi must first be certified, which is why we want to work with LUANAR to certify the castor and chili seeds.”

The partnership comes at a time when Malawi is seeking to diversify its agricultural exports in the wake of declining tobacco revenues. Tobacco has long been Malawi’s leading cash crop, but the global decline in tobacco consumption has raised concerns over the country’s reliance on this single commodity. By introducing non-GM castor and chili crops, LUANAR and Sino Borcar are positioning Malawi to tap into lucrative international markets, particularly in Asia.

This initiative aligns with Malawi’s broader efforts to modernize its agricultural sector and explore alternative sources of income to secure a more sustainable economic future. As the research progresses and the seeds undergo the certification process, both parties are hopeful that this venture will offer a significant boost to the country’s agricultural exports and help in addressing the foreign exchange challenges that Malawi faces.

With the backing of LUANAR’s research capabilities and Sino Borcar’s expertise in international trade, the partnership is seen as a significant step forward in Malawi’s agricultural diversification strategy, offering hope for an economic turnaround based on new, high-demand crops.