Malawi desk review groundnut value chain
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Transcript of Malawi desk review groundnut value chain
National Smallholder Farmers’ Association of Malawi
GROUNDNUT VALUE CHAIN IN MALAWI:
Challenges and research opportunities
24th April, 2013
National Smallholder Farmers’ Association of Malawi
Presentation Outline• Brief Introduction
• Groundnut Value Chain Actors
• Opportunities and Challenges
• Current research efforts
• Recommendations
National Smallholder Farmers’ Association of Malawi
Introduction• Key legume crop grown by SHF
• Multiple Uses– Nitrogen fixing– Nutritional– Vegetable oil– Shells-briquettes
National Smallholder Farmers’ Association of Malawi
Major areas currently producing
National Smallholder Farmers’ Association of Malawi
Groundnut Value Chain • Broad activities: Production, Processing and
Marketing. • Supporting and advisory activities: • - Technical, • - Financial, • - Business,• - Regulatory, • - Input and Export services• - Policies and legislations.
National Smallholder Farmers’ Association of Malawi
National Smallholder Farmers’ Association of Malawi
Production Challenges• Erratic rainfall and dry spells
• Limited/poor access to quality seed
• Poor crop husbandry practices
• Pest and diseases
National Smallholder Farmers’ Association of Malawi
Production Challenges
A farmer planting 10kg of certified seed should yield at least 90kg of high quality grain (and quite possibly more), whereas the same farmer planting 10kg of recycled grain might yield as little as 18kg of grain, of poorer quality.
National Smallholder Farmers’ Association of Malawi
Post Harvesting Challenges
• Harvesting methodologies
• Hand shelling
• Storage facilities - increases chances of post harvest losses from pest and disease
• Post harvest handling farmer education
National Smallholder Farmers’ Association of Malawi
Marketing Constraints• Poor marketing arrangements
• Poor road and market infrastructure
• Poor quality- low incomes
• Undefined/ non-adherence to standards
• Regulatory framework
• Poor linkages amongst VC actors
National Smallholder Farmers’ Association of Malawi
Processing constraints• Little value addition amongst the processors• High maintenance cost for groundnut processing
equipment • Groundnut produces less oil compared to other
legumes such as soya beans and therefore is not attractive for processors to produce oil.
• High levels of aflatoxin affects the market for the groundnut seed cake which is used as feed for livestock
National Smallholder Farmers’ Association of Malawi
Financing constraints• Limited credit financing
• High interest rates
• SHF limited access to financial services
• Weather risk insurance issues- uncertainty of production
National Smallholder Farmers’ Association of Malawi
Policy related constraints• Uncoordinated policies
• Price controls
• FISP programmes- market distortion
• Certification challenges
• Poor agro-dealer network in rural areas
• Poor private sector participation
National Smallholder Farmers’ Association of Malawi
Opportunities• Political will: ASWAp; Crop Diversification
Strategy; Export Diversification Strategy
• Seed systems development – research-FO linkages
• Legumes Platform
• Challenges in tobacco
• Domestic, Regional market
• Agro-processing
National Smallholder Farmers’ Association of Malawi
National Smallholder Farmers’ Association of Malawi
Some of the Current research efforts
Research topic Researchers
Mapping the Path of Peanut in Malawi Miriam Rich, Office of International Research, Education and Education of Blasburg, Virginia
Technical efficiency in groundnut production in Malawi: An application of a frontier production function
A. K Edriss and F. Simtowe, Bunda, College of Agriculture, Malawi
Assessing Adoption Potential of New Groundnut Varieties in Malawi
H A Freeman, P J A van der Merwe, P Subrahmanyam, A J Chiyembekeza, and W Kaguongo, ICRISAT, Malawi
Economic Analysis of Groundnut Production in Kasungu District, Malawi: A production Economics Approach
Vincent Kapopo and Maganga Assa, University of Malawi
Assessing the Competitiveness of Groundnut Production in Malawi: A Policy Analysis Matrix Approach
Abiba Longwe-Ngwira , Franklin Simtowe, and Moses Siambi, Radboud University Nijmegen, The Netherlands; Alliance for Green Revolution in Africa (AGRA), Kenya; and The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), Malawi
National Smallholder Farmers’ Association of Malawi
Possible Research Questions• What is the economic value of Value addition
and reduction of post harvest losses in groundnuts
• To what extent can collaborative partnerships help to control aflatoxin levels in the Malawi groundnuts
• What are the optimal input levels for groundnuts for maximizing gross margins
National Smallholder Farmers’ Association of Malawi
Possible Research Questions• Mobilization of farmers operating individually into
groups for collective action• Developing regulatory mechanisms for small scale
buyers, especially in light of the fact that these buyers are known to be exploitative.
• Supporting the efforts of smallholder farmers to enable them benefit from their linkages with various market scenarios and players in the value chains
• Assess the effect/impact of the current agricultural policy environment in Malawi on smallholder farmers production, processing and marketing of groundnuts
National Smallholder Farmers’ Association of Malawi
Possible Research Questions• What could be done to improve access to the knowledge on
approaches and options for expanding groundnuts marketing for smallholder farmers in the country – lessons from the region
• Logistical challenges in the groundnut value chain in Malawi• Identifying possible areas of intervention or investment in the
value chain that would give the industry the biggest boost • Cost benefit analysis of smallholder groundnut farming in
Malawi
National Smallholder Farmers’ Association of Malawi
Possible Research Questions• What are the impacts of the institutional reforms and
the participation of smallholder farmers in the groundnuts value chain
• How growth in production can be increased through increasing yields and disease and pest control
• How to improve groundnuts marketing and technical information flow to smallholder farmers
• To conduct adaptive research on technologies and adoption potential of smallholder farmers for improved groundnuts value addition
National Smallholder Farmers’ Association of Malawi
Thank you