Nali eyes Middle East markets

Nali Group of Companies, which once exported trial consignments of chilies products to European markets, says it now plans to start exporting to the Middle East as a key part of its products’ portfolio objective to saturate international markets.
This follows the group’s relative success in saturating some key regional markets. Nali currently exports to Zambia, Tanzania, Mozambique, Zimbabwe and South Africa, among other Southern African Development Community member states. It now looks forward to the newly launched Common Market for Eastern and Southern Africa Customs Union.
But Edward Labuwa Khoromana, the group’s Assistant Managing Director and Managing Director for Nali’s Exports Department, respectively, said huge transportations costs had always worked against the company’s market expansionist programmes.
Labuwa Khoromana cited the company’s failure to continue exporting large consignments to Europe, though market feedback indicated many customers had fallen for the Malawi chilies products, saying huge costs, mainly related to transport, were giving other market players some unfair advantage.
Malawi is a land-rocked country that depends on Mozambique, Tanzania or South Africa, among other port nations, for long distance transportation needs. This has often meant an extra transportation bill for exporters and importers, the cost of which is fractioned in consumer products and thus making shelf prices more expensive for the local consumer.
“We are a land rocked country and this has tended to disadvantage Malawian companies wishing export local products and leave a mark on the international market. You will find that most of our international competitors sell their products at much cheaper prices than us,” said Labuwa Khoromana.
According to Labuwa Khoromana, another crucial factor for Malawian companies wishing to explore European, Asian and Middle Eastern markets hinged on consistent production and output. Unpredictable weather, which is crucial in the production of chilies, misfiring energy sources and persistent water problems had conspired against local companies and, when pitted against foreign manufacturers, left them wanting.
This has one major implication, he added. Since most international companies and consumers who place orders for Malawian products are strict on deadlines, Malawian players find themselves in a precarious situation- challenges that can, otherwise, be overcome by improving the water, electricity and transport infrastructure system.
“Otherwise, we have the potential to make it big.. We tried it when we sent trial consignments to Europe, and, from the look of things, consumers loved our products. You can see this potential in the way Nali has managed to saturate the regions market,” said Labuwa Khoromana.
The group- which has three subsidiaries in Nali Export, Nali Motel and Nali Farms- currently exports chilies and pigeon peas to Zambia, Mozambique. Tanzania, Zimbabwe and South Africa. Nali Export, which is responsible for the manufacturing and exports of chilies products and pigeon peas, needs 250 tonnes of pepper annually.
Labuwa Khoromana said, through farmers associations and other chilies’ products suppliers, the company was able to meet both local and international demand. Unpredictable weather patterns still remained a challenge, however, since satisfactory production of crop products depended largely on rainfall patterns.
“Production has been encouraging. Some consumers may remember that we once ventured into tinned-fruit (products) manufacturing but stopped that line of business due to poor supply of fruits. Now things have changed, production has picked up, and arrangements are in place to re-venture into that line of business gain,” said Labuwa Khoromana.
He said Nali planned some heavy investments as it repositions itself and focus on exploring new markets in the Middle East, United States of America and European Union. It has since started outsourcing chilies produce and now counts Mangochi, Nkhotakota and Nkhatabay districts as part of its catchment area- in addition to the traditional source districts of Mulanje and Thyolo.
From humble beginnings, when it got incorporated in 1974, Nali Group of Companies has seen itself grow from an institution that once produced its own chilies products through a family farm, to one that can out source, export and build on its wide range of flavour- now at eight.
Labuwa Khoromana said his company wanted to compliment government’s efforts in turning Malawi from a predominantly consuming and importing nation to a dominant exporter, a goal that depended very much on infrastructural development in the core areas of water, transport and electricity.