Research shows big potential for Banana, soya & poultry for local, export markets  

A joint research by an independent agricultural think tank MwAPATA Institute on the policy prioritisation analysis using value chains through a set of indicators has revealed the need for Malawi to prioritise soya, bananas and poultry value chains.

The research which started in 2021, came up with investment proposals to assess their impact recommended a market-led approach to guide production processes to meet market demands.

It further assessed the demand and supply of particular products of 17 crops which was later narrowed down to the three.

The Policy prioritisation value chain (PPVC) deep dive final results meeting in Lilongwe drew representation from the government, private sector, and development partners working with different categories of smallholder farmers producing and processing the three crops.

Among others, the results are expected to provide policy direction in order to attain inclusive agricultural transformation and achieve long-term development processes.

MwAPATA Institute Executive Director William Chadza said the meeting provided a platform for stakeholders to discuss various challenges and opportunities on how they can develop these value chains.

He noted that the three value chains have potential on domestic and export markets as there is a lot of demand for soya both in neighbouring countries and across the region for processing feed, oil and other products.

“So the demand is actually right there, big potential in terms of the export market. We also see a lot of import substitution especially for bananas as you see that recently the country has been importing bananas from Tanzania and also Mozambique part of it.

“So we believe that if you can boost local production, then we should be able to satisfy the domestic demand and also potentially export to other countries. So it’s the same case also with the demand for poultry products both in the country and also across the region neighbouring countries like Mozambique and also Zambia”.

Chadza said he is happy with response from the Ministry of Agriculture in terms of uptake of the research findings and its interest to interact further to understand some of the nitty gritties especially in terms of the kind of opportunities which the research has unveiled.

Bureau for Food and Agriculture policy (BFAP) worked with the International Food and research policy institute (IFRPI) and MwAPATA in the development of the research methodologies as well as its implementation.

BFAP Executive Director Mmatlou Kalaba stated that the primary goal was to support policy and private sector decision making by producing evidence based and market led outcomes to assist farmer’s participation in markets.

He underscored the importance for government to participate and understand the process and gain confidence so that private sector resources can be enhanced.

Kalaba noted this impacts directly in areas of food security, poverty reduction and inequalities with players participating in the market thereby enhancing commercialization.

 “They can be incentivised to support the market led initiative which will result in smallholder farmers now moving in the next level of participation in the market as net sellers or growing into the commercial phase.

 “It is precisely for those that when we have food insecurity as an example, the objective of this method is actually to improve productivity of the farmers, that productivity is what leads them to sell the net production to the market.

“You can see a situation where you have volumes of production increasing and those who are able to sell, they then have extra income. In situations where there isn’t sufficient maize, it can be any food security crop, then the extra income gained can still be used to purchase the food”.

Pearson Soko Director of Agriculture Extension Services in the Ministry of Agriculture acknowledged the shifting of the landscape from farming to commercial orientation in line with MW2063 which requires informed research findings.

Following the adoption of the National Agriculture policy which will soon be launched, he spoke on the significant support to government in identifying necessary policy reforms to drive agriculture diversification and policy reforms.

Soko said the MW2036 is a long term policy agenda which calls for agricultural and trade policies which support high value crops for domestic and export markets citing the mega farms.

He lamented that the agriculture sector remains undiversified; a development which isn’t good for the economy and not sustainable for tobacco and maize to remain dominant crops.

The Director described the research findings as an important tool in guiding agriculture strategies and insights towards improving food and nutrition security.

For bananas, the global picture volume is growing at 3 percent indicating the great potential for the crop with most importers from USA, China hence the opportunity to go beyond Malawi.