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Malawi desk review groundnut value chain


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Malawi desk review groundnut value chain

  1. 1. National Smallholder Farmers’Association of MalawiGROUNDNUT VALUE CHAIN INMALAWI:Challenges and researchopportunities24thApril, 2013
  2. 2. National Smallholder Farmers’Association of MalawiPresentation Outline• Brief Introduction• Groundnut Value Chain Actors• Opportunities and Challenges• Current research efforts• Recommendations
  3. 3. National Smallholder Farmers’Association of MalawiIntroduction• Key legume crop grown by SHF• Multiple Uses– Nitrogen fixing– Nutritional– Vegetable oil– Shells-briquettes
  4. 4. National Smallholder Farmers’Association of MalawiMajor areas currently producing
  5. 5. National Smallholder Farmers’Association of MalawiGroundnut Value Chain• Broad activities: Production, Processing andMarketing.• Supporting and advisory activities:• - Technical,• - Financial,• - Business,• - Regulatory,• - Input and Export services• - Policies and legislations.
  6. 6. National Smallholder Farmers’Association of Malawi
  7. 7. National Smallholder Farmers’Association of MalawiProduction Challenges• Erratic rainfall and dry spells• Limited/poor access to quality seed• Poor crop husbandry practices• Pest and diseases
  8. 8. National Smallholder Farmers’Association of MalawiProduction ChallengesA farmer planting 10kg of certified seed should yield at least 90kg of high quality grain (and quitepossibly more), whereas the same farmer planting 10kg of recycled grain might yield as little as 18kgof grain, of poorer quality.
  9. 9. National Smallholder Farmers’Association of MalawiPost Harvesting Challenges• Harvesting methodologies• Hand shelling• Storage facilities - increases chances of postharvest losses from pest and disease• Post harvest handling farmer education
  10. 10. National Smallholder Farmers’Association of MalawiMarketing 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
  11. 11. National Smallholder Farmers’Association of MalawiProcessing constraints• Little value addition amongst the processors• High maintenance cost for groundnut processingequipment• Groundnut produces less oil compared to otherlegumes such as soya beans and therefore is notattractive for processors to produce oil.• High levels of aflatoxin affects the market for thegroundnut seed cake which is used as feed forlivestock
  12. 12. National Smallholder Farmers’Association of MalawiFinancing constraints• Limited credit financing• High interest rates• SHF limited access to financial services• Weather risk insurance issues-uncertainty of production
  13. 13. National Smallholder Farmers’Association of MalawiPolicy related constraints• Uncoordinated policies• Price controls• FISP programmes- market distortion• Certification challenges• Poor agro-dealer network in rural areas• Poor private sector participation
  14. 14. National Smallholder Farmers’Association of MalawiOpportunities• Political will: ASWAp; Crop DiversificationStrategy; Export Diversification Strategy• Seed systems development – research-FO linkages• Legumes Platform• Challenges in tobacco• Domestic, Regional market• Agro-processing
  15. 15. National Smallholder Farmers’Association of Malawi
  16. 16. National Smallholder Farmers’Association of MalawiSome of the Current researcheffortsResearch topic ResearchersMapping the Path of Peanut in Malawi Miriam Rich, Office of International Research,Education and Education of Blasburg, VirginiaTechnical efficiency in groundnut productionin Malawi: An application of a frontierproduction functionA. K Edriss and F. Simtowe, Bunda, College ofAgriculture, MalawiAssessing Adoption Potential ofNew Groundnut Varieties in MalawiH A Freeman, P J A van der Merwe, PSubrahmanyam, A J Chiyembekeza, and WKaguongo, ICRISAT, MalawiEconomic Analysis of GroundnutProduction in Kasungu District, Malawi:A production Economics ApproachVincent Kapopo and Maganga Assa, University ofMalawiAssessing the Competitiveness of GroundnutProduction in Malawi: A Policy Analysis MatrixApproachAbiba Longwe-Ngwira , Franklin Simtowe, andMoses Siambi, Radboud University Nijmegen, TheNetherlands; Alliance for Green Revolution inAfrica (AGRA), Kenya; and The International CropsResearch Institute for the Semi-Arid Tropics(ICRISAT), Malawi
  17. 17. National Smallholder Farmers’Association of MalawiPossible Research Questions• What is the economic value of Value additionand reduction of post harvest losses ingroundnuts• To what extent can collaborative partnershipshelp to control aflatoxin levels in the Malawigroundnuts• What are the optimal input levels forgroundnuts for maximizing gross margins
  18. 18. National Smallholder Farmers’Association of MalawiPossible Research Questions• Mobilization of farmers operating individually intogroups for collective action• Developing regulatory mechanisms for small scalebuyers, especially in light of the fact that these buyersare known to be exploitative.• Supporting the efforts of smallholder farmers to enablethem benefit from their linkages with various marketscenarios and players in the value chains• Assess the effect/impact of the current agriculturalpolicy environment in Malawi on smallholder farmersproduction, processing and marketing of groundnuts
  19. 19. National Smallholder Farmers’Association of MalawiPossible Research Questions• What could be done to improve access to the knowledge onapproaches and options for expanding groundnuts marketingfor smallholder farmers in the country – lessons from theregion• Logistical challenges in the groundnut value chain in Malawi• Identifying possible areas of intervention or investment in thevalue chain that would give the industry the biggest boost• Cost benefit analysis of smallholder groundnut farming inMalawi
  20. 20. National Smallholder Farmers’Association of MalawiPossible Research Questions• What are the impacts of the institutional reforms andthe participation of smallholder farmers in thegroundnuts value chain• How growth in production can be increased throughincreasing yields and disease and pest control• How to improve groundnuts marketing and technicalinformation flow to smallholder farmers• To conduct adaptive research on technologies andadoption potential of smallholder farmers forimproved groundnuts value addition
  21. 21. National Smallholder Farmers’Association of MalawiThank you