The collapse of global coffee prices to $0.98 per pound (lb) will likely affect earnings from the Malawi market, as reported by The Coffee Association of Malawi (Camal).

Camal chairperson Bernard Kaunda revealed to The Nation newspaper that this development will result into farmers dropping or diverting from the crop altogether.

The International Coffee Organisation (ICO) has shown low figures that have been attributed to an oversupply by Brazil. Camal chairperson Bernard Kaunda said that though the prospects for coffee in terms of production look better, the biggest challenge will be on revenues to be realised due to the collapse of the international coffee prices on the market. Figures show that global prices have hit as low as $0.98 per lb which is the lowest price in 13 years.

The development is louder call for the agricultural sector to diversify, as Malawi’s cash crops reign is declining, coffee being next to tobacco which is facing anti-smoking campaigns. Meanwhile, the World Bank says poverty in Malawi is driven by poor performance of the agriculture sector, in addition to a volatile economic growth together with a population growth and limited opportunities in non-farm activities.