Cereal-Legume Value Chain Analysis: A Case of Smallholder Production in Selected Areas of Malawi

This article analyses the cereal-legume value chain in Malawi through a comprehensive VC Map, a SWOT exercise and a policy analysis. VC participation entails a number of challenges for smallholders. Limited access to land, technology and inputs, inadequate knowledge of market functioning, insufficient access to credit and extension services, combined with more general problems of poor infrastructures, often prevent smallholder farmers from accessing profitable market opportunities. The effectiveness of national policies (e.g., public extension service support, inputs subsidy system) oriented to increase smallholders' market access is often constrained by inadequate financial capacity, an inefficient public extension services system and limited involvement of privates in the extension services scheme. VC interventions should distinguish between VC-ready farmers, namely those provided with the minimum conditions of external and internal factors, and non-value-chain-ready farmers. Market-based interventions (e.g., enhancing VC coordination) are needed for enhancing market access of value-chain-ready farmers. Conversely, while non-market-based interventions (e.g., investments in basic infrastructure, increasing extension services, credit and inputs access) prove necessary to build the minimum asset thresholds for non-value-chain-ready farmers' participation in the market. A smallholder-friendly VC development relies on the role played by VC actors and the need to harmonise and improve existing policies to remove inadequacies, conflicts and overlaps in the various institutions charged with implementation.

Automated summary

This article examines the challenges faced by smallholder farmers in the cereal-legume value chain in Malawi, such as limited access to resources and market knowledge. It also discusses the constraints of national policies in enhancing smallholders' market access. Different interventions are needed for value-chain-ready farmers and non-value-chain-ready farmers, with market-based interventions for the former and non-market-based interventions for the latter to build their minimum asset thresholds for market participation. The importance of VC actors and policy harmonization in promoting a smallholder-friendly VC development is highlighted.