Malawi Photo Essay

Talking to farmers in Malawi to understand how to improve agricultural cooperative performance

Cynthia Kazembe

Kristin Davis

Communications Manager, IFPRI Malawi

Senior Research Fellow, IFPRI

Most farmers in Malawi are smallholders, and many join farmer organizations to gain economies of scale. The government promotes cooperatives to commercialize farmers as part of Malawi’s Vision 2063, but not much is known about factors affecting cooperatives’ performance. In 2022, with funding from the Government of Flanders, we studied agricultural cooperatives to understand how to help them perform better and be more inclusive of all social groups. We reviewed existing literature and datasets on cooperatives; interviewed key experts from government, donor organizations, NGOs, private sector, and service providers for agricultural cooperatives; and conducted focus group interviews with members and leaders of cooperatives. Combining these research elements provided us with a robust picture of agricultural cooperatives in Malawi, as well as important insights on how to improve their performance. Because of time and distance restrictions, and due to COVID-19 regulations, we used online meetings for several of the key informant interviews. We met in a convenient location for the farmers, where there were some seats and shade. Meeting in person and on site also gave us a chance to see the cooperatives’ books, posters, equipment, and registration certificates. We even got to taste their products!

Cynthia and Kristin in a key informant interview with John Mulangeni, Malawi Federation of Cooperatives

We bought some yoghurt from Chitsanzo Milk Bulking Group, Dedza. Farmers from this cooperative are involved in dairy farming; they sell fresh milk as well as process it into yoghurt for the local market. Being in a group allowed them to access yoghurt making training as well as access to the milk processing equipment. Their aim is to sell in leading supermarkets, but they have not yet been cleared by Malawi Bureau of Standards to sell the yoghurt in supermarkets. Coming together as a cooperative allows them to access training, certification, capital equipment, and finance – all elements necessary for getting top prices that they would not access as an individual smallholder. Photo by Kristin Davis, IFPRI

We used focus group discussions as an approach to generate qualitative data and hear from a number of people in a short time. We included both women and men farmers in focus groups.

Aubrey Jolex from IFPRI facilitating a focus group discussion with farmers from Mkanganya Cooperative, Kasungu. This group has about 200 members and they grow soya, maize, and groundnuts. The group was registered as a cooperative in 2011. Photo by Emmanuel Hami, IFPRI Malawi

Focus group discussions included an interviewer and a note taker. With permission from the participants, the discussion was also recorded.

Cynthia facilitating and recording a focus group discussion with Simulemba cooperative leaders. This cooperative produces maize, soya, and groundnuts and sell in bulk. Soon after selling their crops, they also buy produce from farmers around their area to sell when prices are high. They have plans to start processing the soya and groundnuts into cooking oil. Photo by Hawa Munganya, IFPRI Malawi consultant

Emmanuel Hami note taking in a focus group discussion with Mkanganya cooperative members, Kasungu. Photo by Aubrey Jolex, IFPRI Malawi

There are many benefits to farmers who join a cooperative. Increased economies of scale that improve market access through aggregation; greater access to extension services and training; credit to buy equipment; and increased bargaining power all positively impact smallholder farmers in Malawi.

Farmers at Mkanganya cooperative in Kasungu aggregate their maize soon after harvesting to access better markets. Selling in bulk allows them to find better markets and higher prices. Photo by Aubrey Jolex, IFPRI Malawi

Members of Nsaru cooperative in Lilongwe, a milk bulking group, showed us their milk cooler. This milk cooler uses solar as a backup power, but the inverter has been faulty for about a year. With the country’s unreliable power supply , the farmers are forced to sell milk immediately after bulking to avoid it going bad and are thus have limited options in terms of buyers and good prices. Photo by Kristin Davis, IFPRI

To benefit from these economies of scale, farmers must plan collectively. Collective planning is best achieved through the cooperative structure, governance, and management; these areas were shown to be important factors for success of cooperatives.

While in Nkhatabay, Mkondezi Rice Producers and Marketing Cooperative farmers showed us how they package their rice ready for the market. The packaged rice is displayed in their office at the cooperative. They also sell their rice in 50 and 90 kg bags. Photo by Cynthia Kazembe, IFPRI Malawi

The farmers from Nsaru cooperative also showed us their action plan for 2021-2025.

Simlemba Cooperative in Kasungu received their registration certificate in 2007, allowing them to conduct business, receive trainings, and access investment opportunities.

In the final step, focus group discussions (conducted in Chichewa) were translated into English, and they and the key informant interviews (conducted in English) transcribed, put into a software program and analyzed.

One of the cooperatives we visited in Kasungu, Mwalawanyenje, was given a license to produce industrial hemp. The farmers are planning to start producing industrial hemp in the 2022/23 growing season, in addition to the maize and legumes that they produce as a cooperative. Industrial hemp is a high-value crop, and its production requires certification. The application fee for the certificate is so expensive that a smallholder farmer cannot afford it. But being in a cooperative allows the farmers to pool their resources, and in some cases access a loan, to get this certificate to produce industrial hemp.

Photo by Aubrey Jolex, IFPRI Malawi

Producing high-value products

The insights from this integrated approach to gathering evidence informed a forthcoming policy report on the performance of agricultural cooperatives and how to improve it. Initial analysis shows that cooperatives in Malawi are important for farmers to share information, aggregate and market produce, and obtain inputs and finance, but require better market regulations and institutional strengthening to build their capacity and make them more inclusive. Additionally, a change to a business mindset and management approach would help cooperatives operate more professionally. Findings from the report were presented at a stakeholder validation meeting on 31st August 2022.

In Conclusion

We met in a convenient location for the farmers, where there were some seats and shade. Meeting in person and on site also gave us a chance to see the cooperatives’ books, posters, equipment, and registration certificates. We even got to taste their products!