By Vincent Nhlema
Farmer Associations under the National Smallholder Farmers’ Association of Malawi (NASFAM) have embraced value addition as means to increasing profitability while creating a steady market for their members’ produce in the long term. The initiative is also a response to the Buy Malawi campaign being promoted by government, to reduce dependence on imported goods.
Currently NASFAM has 52 member-associations spread across the country. According to the NASFAM structure, these Associations are managed at 13 different Innovation and Productivity Centres (IPCs), located in Karonga, Rumphi, Mzimba, Kasungu, Mchinji, Ntchisi, Nkhotakota, Lilongwe (2), Ntcheu, Balaka, Zomba, and Mangochi, dealing in different crop value chains such as rice, beans, chillies, sunflower, cotton, pigeon peas, maize, soya, groundnuts, and others.
According to NASFAM Head of Business and Market Development, Felix Sichali, 4 IPCs, namely Karonga, Mzimba, Zikometso and Nkhotakota, are adding value to their respective produce.
“Apart from these 4, we will soon have Lilongwe South IPC resume its operations in animal feed production. We are also working with Agricultural Commercialisation Project (AGCOM) to start groundnut flour processing in Ntchisi. In Namwera IPC (Mangochi), through the USAID funded Titukulane project, there are plans to add value to beans by cleaning, sorting, packaging and then further sales delivery to supermarkets,” said Sichali.
While Karonga and Nkhotakota are into rice production and processing, Mzimba produces certified Kometsa Sunflower Cooking oil, and Zikometso produces the famous Zikometso Chili Sauce, which is available in most supermarkets across the country, and Zikometso Sunflower Cooking Oil, which is still undergoing certification processes.
Sichali further said the initiatives being undertaken by NASFAM are in line with the Malawi 2063 vision in which Agricultural productivity and commercialisation is one of the pillars. Through the Malawi 2063, Malawi aims to transform into an inclusively wealthy and self-reliant nation.
One key component under the pillar is investment in value addition and agro-processing that will result in creation of employment, wealth, and economic self-reliance.
Lettons Mkandawire, Manager for Mzimba South IPC, said value addition is crucial to the IPC because it contributes 25 percent of their income.
According to Mkandawire, currently the factory produces about 30,000 litres of refined cooking oil per annum due to scarcity of raw materials but has capacity to produce more than 60,000 litres.
“We would like to double our annual production but we are limited by raw materials. Supply is growing slowly since the introduction of the factory to the area in 2010. It was until 2 years ago when our product was certified by the Malawi Bureau of Standards and that has increased demand for the product.
“Our cooking oil is sold to people around Jenda Trading Centre and many others, from different parts of the country. The surrounding community and members are benefitting in twofold: access to quality edible cooking oil for nutrition, and a ready market for their sunflower produce,” said Mkandawire.
With support from governments of Norway and Ireland, NASFAM aim to become an agribusiness that delivers value and creates impact for smallholder farmer members, their households, their communities, and ultimately for the entire economy, in line with the Malawi 2063. Value addition is the means to achieving this goal.
The US African Development Foundation (USADF), Agricultural Commercialisation Project (AGCOM), united Nations Industrial development Organisation (UNIDO), Malawi Enterprise Enhancement project (MEPE), and Food Income Diversification Programme (FIDP) have all played different roles in establishing and improving the processing factories in NASFAM Associations to ensure farmers add value to their produce.