Malawi Agricultural Partnership

Overview

In 2007, Prorustica, working with Yara  initiated a value chain project that aimed to build on the success of Malawi’s fertilizer subsidy program.

Drawing on experience from Prorustica’s similar projects in Tanzania and Ghana, it was agreed that there was a need to engage the entire value chain in a coordinated programme of initiatives related to agricultural development.

It also sought to combine commercial and developmental objectives – including an investment plan to alleviate the systematic problems in the fertilizer supply chain – involving joint risk-sharing between government, the private sector and donors

Prorustica initially helped establish local facilitation and partnership building skills. Working closely with the African Institute of Corporate Citizenship (AICC) we worked with them to replicate, improve and expand the Prorustica PPP model.

Background

To support Malawi’s progress in the fertilizer subsidy programmes, Prorustica was asked by Yara and other local partners to help design and facilitate a partnership and related value chain project. The project’s initial focus was to make the subsidy programme more effective and cost-efficient and to reduce costs along the fertilizer supply chain.

The Malawi Agricultural Partnership’s initial focus is on the development of more effective rice and cotton value chains that includes more effective and sustainable inputs use.

The Partnership

The partners within the Cotton Development Partnership (CDP) include the main commercial players in the sub-sector in Malawi including seed companies. In the Rice Partnership the group of partners is more focused with a pilot initiative involving a smaller group made up of a commercial millers/traders, seed companies, fertilizer suppliers and farmer Associations.

From the public sector the partnership includes local authorities and the Norwegian Government who is funding the facilitation process.

The CDP has set up a board of trustees and is working with Prorustica/AICC on four key thematic groups:

• Research, Extension & Production (including input development)
• Pricing & Marketing
• Credit & Financing
• Policy & Regulation

Each of the thematic groups has devised activities that contribute to the goals of the Trust. AICC/Prorustica is currently coordinating these.

The Rice Partnership is more focused with a pilot initiative involving a smaller group made up of a commercial millers/traders, seed companies, fertilizer suppliers and farmer Associations.

Achievements

The Rice Partnership has established an investment blueprint detailing each partner’s commitments and responsibilities. The key players have agreed to coordinate activities.

The programme works with 1600 rice farmers concentrating on improving the production systems.

Demonstration plots have been set up. These are hosted by lead farmers and are used to illustrate recommended rice management practices.

To help facilitate and create awareness of a viable market AICC/Prorustica have developed a marketing model that stipulates the quantity, variety   and type of rice that will be bought by a particular buyer in the partnership arrangement.