Subjects: LIC, ESG
Pyxus International, USAID Partner to Unlock Farmer Value in Malawi
MORRISVILLE, N.C., Sept. 11, 2023 /PRNewswire/ -- Pyxus International, Inc. (OTC Pink: PYYX), a global value-added agricultural company, announced a new partnership between its subsidiary Pyxus Agriculture Limited (Malawi) (PAM) and the U.S. Agency for International Development (USAID). The partnership launched Sept. 7, 2023, during a signing ceremony at PAM's state-of-the-art groundnut processing facility in Lilongwe, Malawi.
USAID will award PAM $14.6 million over the next five years, which will support the company in maximizing its operational effectiveness and minimizing its exposure to financial risk as it continues to drive sustainable agriculture developments in Malawi. This award compliments PAM's investment to date and offsets certain company expenditures going forward as both entities work to increase the availability of high-quality, climate-smart groundnut seed varieties, boost groundnut production and processing, support improved farmer livelihood and counteract the nation's high rate of deforestation.
"Our company has a 30-year history of operating in Malawi and has one of the largest networks of smallholder farmers ? most operating on two hectares of land or less ? in the country. We have worked diligently to help our contracted farmers successfully grow and market high-quality, sustainable crops, thus improving the livelihood of the farmer, their families, their communities and the country as a whole," said Pyxus President and CEO Pieter Sikkel.
"Pyxus is honored to receive this $14.6 million award from USAID, which helps our company to further build capacity, expand impact throughout the legume and forestry value chains, and unlock value for Malawi and its farmers," added Sikkel.
The agreement aligns with Pyxus' global environmental, social and governance (ESG) goals and identifies five focus areas to achieve success:
- Improve Malawi's legume seed production system through the acceleration of PAM's current research, breeding and distribution of new high-yielding, climate-resilient, market-demanded and more nutritious legume seed varieties.
- Increase farmer access to high-quality crop inputs and hands-on training of good agricultural practices while simultaneously working to diversify PAM's contracted farmer base. These efforts enable farmers to increase yields, sales and incomes, driving the development of the country's commercial agriculture sector.
- Help address smallholder farmer financing roadblocks, which currently put a significant limitation on crop production and overall market success, through fair and affordable crop input financing. Minimizing financial roadblocks can help farmers increase yields and improve their overall livelihood.
- Enhance the quality and value of Malawi groundnuts through increased processing capacity of PAM's groundnut facility, driving job growth, the country's export opportunities and value addition, resulting in a more impactful private sector contribution to Malawi's economic growth.
- Combat deforestation and forest and soil degradation by further developing PAM's sustainable forestry operation and the introduction of new, innovative energy solutions and soil health amendments to the farmer.
USAID Deputy Administrator Isobel Coleman, who was present for the signing ceremony, expressed her enthusiasm for the joint project, stating, "The partnership we've launched today, with USAID and Pyxus, will invest in Malawians to accelerate opportunities for more sustainable, inclusive and resilient economic growth."
Coleman added the partnership contributes to soil health improvements, utilization of clean energy generated from recycled agricultural waste and increasing availability of nutritious food for the Malawian people.
The PAM operation was founded in 2019 under Pyxus' Value-Added Agricultural Products division. Since its inception, PAM has opened one of the largest groundnut processing facilities in Africa, gained government approval to commercialize five new legume seed varieties, cultivated and maintained more than 7,000 hectares of forestry, and unlocked additional income potential for over 20,000 smallholder farmers.
About Pyxus International, Inc.
Pyxus International, Inc. is a global agricultural company with 150 years' experience delivering value-added products and services to businesses and customers. Driven by a united purpose?to transform people's lives, so that together we can grow a better world?Pyxus International, its subsidiaries and affiliates, are trusted providers of responsibly sourced, independently verified, sustainable and traceable products and ingredients. For more information, visit www.pyxus.com.
About Pyxus Agriculture Limited (Malawi) (PAM)
Pyxus Agriculture Limited (Malawi) (PAM), a subsidiary of Pyxus International, Inc., is dedicated to the responsible and sustainable production of value-added agricultural products. Headquartered in Lilongwe, Malawi, PAM provides agronomic support to smallholder growers and promotes crop diversification efforts, helping create new market opportunities to enhance farmer livelihoods.
SOURCE Pyxus International, Inc.
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