 Malawi
In mid-2002 IFDC began a 3-year project, Agro-Input
Market (AIMS) Development in Malawi, to strengthen the
agricultural inputs markets in Malawi by deepening
policy reform, establishing regulatory systems,
developing the capacities of private sector dealers,
and expanding market information systems. The project
supports the objective of achieving sustainable
increases in agricultural productivity by improving
the access of small-holder farmers to quality inputs
in a commercial, market-based manner. The project has
helped establish an agricultural inputs trade
association.
The Malawi project’s significant accomplishments are
as follows:
•
Encouraged the growth of an agricultural inputs
dealers’ association, with the potential for more than
1,000 members.
–
Dealer outlet shops increased regionally from 191 in
2002 to 800 in 2004, substantially increasing farmers’
access to inputs; 30% of these members are women.
•
Conducted more than 20 training seminars and workshops
on technical agricultural topics involving more than
800 agricultural dealers and public-sector officials.
–
Training provided improved quality of service to
customers, improved organization of the shops, and
motivated the dealers to open more outlets.
•
Conducted in-depth and specific study tours to
Albania, Mozambique, Kenya, and Togo.
–
These tours explored regional and international
opportunities to study the structure and functioning
of other associations, which encouraged business
networking and enhanced an understanding of
association development and business opportunities.
•
Established a high level of private dealer involvement
in the Sustainable Livelihoods Through Inputs for
Assets (SPLIFA) program initiated in collaboration
with an NGO consortium.
–
This program has endowed poor farmers with purchasing
power (through the redeemable vouchers they receive
from doing public works). They can now easily
participate in the marketplace; otherwise, they would
remain excluded. The establishment of private dealer
involvement in the SPLIFA program in collaboration
with the NGO consortium has created confidence by the
donor/government community in the use of dealers in
safety net programs.
•
Initiated linkages with financial institutions.
–
Access to credit remains the critical constraint in
the development of agricultural inputs dealers largely
due to prohibitive collateral requirements. The
condition has prompted trade associations to emphasize
linkages with local inputs importers.
*
During 2003/04, 356 tons of fertilizer worth US
$109,000 was transacted in group purchases season on a
cash basis.
*
During the 2004/05 season, 35 tons worth US $11,300
has already been transacted and in progress.
* A
cash purchase program is intended to cultivate trust
and develop a credit supply relationship in the
future.
*
Large fertilizer suppliers and seed companies have
established linkages with dealers.
•
Provided short-term consultancy on importation and
procurement of fertilizers.
–
This consultancy impacted greatly on the prominence of
the IFDC/AIMS project as a neutral forum and conduit
between the private fertilizer sector and the
Government of Malawi in paving the way forward for the
current Government’s wish to subsidize fertilizer.
Both parties have seen the project’s usefulness in
this respect and are now liaising frequently with the
project for assistance on this important issue. This
consultancy also proved that the private fertilizer
sector in Malawi is as competitive as any in the
developed world, despite initial criticisms from the
Government on the high price of fertilizer.
•
Performed biotechnology and bio-safety policy
consultancy.
–
This consultancy resulted in a report, which was
presented at a national workshop attended by
stakeholders from various sectors. It was unanimously
agreed to increase public awareness efforts and start
the process of reviewing the Biotechnology Act and
regulatory framework. The development of a policy
encompassing all sectors was identified as an area
that would need strengthening. Also recommended at the
workshop was the establishment of a National Biosafety
Steering Committee.
•
Analyzed and drafted regulatory legislation for
fertilizers, seed quality and purity, CPPs, and
genetically modified organisms (GMOs).
–
Policy and regulatory activities of the project for
these inputs have been strong, with breakthrough
activities setting the stage for the Government to
enact regionally significant legislation. Submission
to parliament is expected during the next 3 months.
•
Developed and distributed monthly newsletter to more
than 1,500 recipients.
–
Through the newsletters the recipients learn
information on local fertilizer prices, useful
agronomic information, technology updates, and the
schedule for field days.
•
Produced weekly radio broadcasts on agronomic and
market information.
–
Weekly radio broadcasts have increased awareness of
farmers in the rural areas on quality market and
technical information, for example, field preparation
and processing of manure for use. The programs were
heard by more than 4 million people, and feedback was
received by more than 400 people.
•
Established 17 data collection points and disseminated
monthly pricing data.
– The
establishment of 17 data collection points has enabled
farmers to purchase fertilizer at a more favorable
time by becoming aware of possible price increases.
•
Created awareness of the importance of using
potassium.
– The
benefits of potassium have been proven through
demonstration plots that show farmers that crop yield
is increased, drought stress is reduced, and plant
diseases are retarded. Sales of fertilizers containing
potassium have increased since IFDC started promoting
its use, and private sector companies are starting to
introduce new blends with potassium.
•
Established 78 demonstration field trials across the
country to show improved field results.
–
Field days have enabled farmers to learn from fellow
farmers about plant spacing, ridge spacing, and the
importance of timely fertilizer application. Manure
application was also demonstrated to show farmers its
advantages.
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