Primary agricultural cooperatives in Malawi: Structure, conduct, and performance
Primary agricultural cooperatives in Malawi: Structure, conduct, and performance

Author: Davis, Kristin

Publisher: Intl Food Policy Res Inst

Published: 2023-05-23

Total Pages: 78

ISBN-13:

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Primary agricultural cooperatives in Malawi, in contrast to other farmer-level organizations, have legal status and can own assets, borrow money for their operations, and sign contracts, making it easier for them to do business for the profit of their members. Conceptually, such cooperatives enable their member-farmers to achieve economies of scale for their commercial activities. By joining together in a cooperative, members can obtain commercial inputs at lower prices closer to wholesale prices than if they purchased the inputs as individuals. In selling their output, by aggregating their crops and other products into larger lots that the cooperative then negotiates to sell on their behalf, buyers can achieve greater efficiency in buying from them and can be expected to offer a premium over the prices that they would offer farmers selling those products individually. Cooperatives can also serve farmers in providing an important channel for obtaining information and advice to increase their productivity and the profitability of their farming. Moreover, by joining together to achieve common objectives in primary agricultural cooperatives, member-farmers can exercise greater influence on local and national policy issues of concern to them, while also building social cohesion, solidarity, and trust within their communities.

Farmer groups as ICT Hubs: Findings from a cluster-randomized controlled trial in Malawi
Farmer groups as ICT Hubs: Findings from a cluster-randomized controlled trial in Malawi

Author: Ragasa, Catherine

Publisher: Intl Food Policy Res Inst

Published: 2024-07-10

Total Pages: 63

ISBN-13:

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Many rural producer groups face poor management practices, low productivity, and weak market linkages. An information and communication technology (ICT)-based intervention bundle was provided to producer groups to transform them into ICT hubs, where members learn about and adopt improved management practices and increase their productivity and incomes. The intervention bundle includes phone messages and videos, promotion of the call center/hotline, and facilitation of radio listening clubs and collective marketing. The study, a cluster-randomized controlled trial, randomly assigned 59 groups into treatment groups and 59 into control groups. After 18 months of interventions, results show positive but small impact on crop sales (USD65 per household) and no impact on productivity. The income effect was mainly from Kasungu and Nkhota-kota, which experienced increased production and sales of rice, soybean, and groundnut and received higher prices due to collective marketing. Farmers in Kasungu and Nkhota-kota improved a few agricultural management practices, while farmers in other districts did not improve their management practices. Results show more farmers accessing phone messaging on agriculture and markets, greater awareness and use of the call center, more listening groups established, and more farmers—especially women—joining these groups. Nevertheless, coverage and uptake remain very low, which are likely reasons for the limited impact.

Structure, conduct and performance of maize markets in Malawi
Structure, conduct and performance of maize markets in Malawi

Author: Ochieng, Dennis O.

Publisher: Intl Food Policy Res Inst

Published: 2019-08-21

Total Pages: 63

ISBN-13:

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Seasonal analysis of the structure, conduct, and performance (SCP) of markets for staple crops has received relatively little attention in food policy analysis yet it has important implications for food and nutrition security. This study employs a mixed methods approach to analyze the SCP of maize markets in Malawi in the 2018/19 main harvest and lean seasons. We interviewed 749 traders from 74 markets across 8 districts, held 28 focus group discussions (FGD) with a total of 480 farmers and analyzed daily and weekly price data from 13 regional markets. The structure of maize markets was explored by examining marketing channels, barriers to entry and the competitiveness of different tiers of the marketing chain. Inequality in sales revenues, switches in trader types between seasons, quality and weights standardization, and the behavior of traders were used to examine market conduct. Performance was assessed by examining traders’ costs and margins, and the spatial and temporal integration of maize markets. We find that Malawi’s maize market is pyramidal in structure and highly competitive at lower tiers of trade but ‘oligopolistic’ at higher tiers. The market channels vary across seasons with switches between trader types and instances of rural-urban trade reversals. There is considerable inequality of sales revenues among traders of similar capacities, and a widespread lack of structured trading despite existing institutions. A high ratio of marketing costs to revenue suggests marketing inefficiencies. Malawi maize prices were highly seasonal and more volatile than neighboring countries. In contrast to previous studies, our findings show weak spatial integration of markets and slow price adjustments to long-run equilibrium values even among short-distance market pairs. The study highlights five pathways to improving Malawi’s maize marketing system: (1) increased policy predictability to promote private-sector investment; (2) institutionalization of quality grades and standardization of weights and measures; (3) increased commercialization of smallholder maize production; (4) investment in enabling infrastructure; and (5) the promotion of structured trading.

Agricultural Input Subsidies
Agricultural Input Subsidies

Author: Ephraim Chirwa

Publisher: Oxford University Press, USA

Published: 2013-09-26

Total Pages: 315

ISBN-13: 0199683522

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This book takes forward our understanding of agricultural input subsidies in low income countries.

Cooperatives for Staple Crop Marketing
Cooperatives for Staple Crop Marketing

Author: Tanguy Bernard

Publisher: Intl Food Policy Res Inst

Published: 2010

Total Pages: 104

ISBN-13: 0896291758

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Rural producer organizations (RPOs), such as farmers' organizations or rural cooperatives, offer a means for smallholder farmers in developing countries to sell their crops commercially. RPOs hold particular promise for Sub-Saharan Africa, where small-scale farming is the primary livelihood but commercialization of food crops is very limited. Using the experience of smallholders in Ethiopia as a case study, this research monograph identifies the benefits of RPOs for small farmers, as well as the conditions under which such organizations most successfully promote smallholder commercialization. The evidence from Ethiopia indicates that RPOs do increase farmers' profits from crop sales, but that the beneficiaries do not tend to be the poorest smallholders. Moreover, an RPO's marketing effectiveness is precarious: it can easily diminish if the number or diversity of its members increases or if it provides more non-marketing services. The authors conclude that RPOs have a role to play in the agricultural development of Sub-Saharan Africa, but that role should be complemented by other programs that directly target the poorest farmers. Further, the effectiveness of RPOs should be preserved by allowing them to follow their own agendas rather than being encouraged to take on non-marketing activities. The assessment of RPOs presented in this monograph should be a valuable resource for policymakers and researchers concerned with economic development and poverty reduction in Sub-Saharan Africa.

Farmer profiling: Making data work for smallholder farmers
Farmer profiling: Making data work for smallholder farmers

Author: Addison, C.

Publisher: CTA

Published: 2017-11-28

Total Pages: 76

ISBN-13:

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The study presented in this report was commissioned by the Technical Centre for Agricultural and Rural Cooperation (CTA) as a member of the Global Open Data for Agriculture & Nutrition (GODAN) initiative, and was conducted by SB Consulting (SBC4D). The objective of the research is to understand the role of farmer organisations (FO) and cooperatives in the agriculture data ecosystem. These organisations have long been recognised to play an important role in society that translates into the improvement of living conditions of their members, particularly the low-income earning population. More than 40% of households in Africa are member of a cooperative society ([ILO-2000]) and the cooperative movement is Africa’s biggest nongovernmental organisation. The key question this report explores is the role of these organisations in the emergent “data revolution.” How can they ensure that this data revolution benefits their members and the smallholder farmers in general, and at the same time contribute to the revolution by providing valuable information to policy makers or other stakeholders of the ecosystem?

Cooperative Enterprises Build a Better World
Cooperative Enterprises Build a Better World

Author: International Labour Organization

Publisher:

Published: 2012

Total Pages: 145

ISBN-13: 9789221262077

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Explores the underlying rationale for the approach adopted by the COOPAfrica, a regional technical programme established by the ILO in October 2007, and highlights innovative features in the process of setting up and implementing phase 1 of the programme (2007-2010).