Smallholder Famers in Malawi Benefit from Cooperative Development

ACDI/VOCA launched the Smallholder Agribusiness Development Project in 1995 to increase farmer incomes and capacities in Malawi. This project led to the development of the National Smallholder Farmers’ Association of Malawi (NASFAM), which in 2007 represented over 108,000 members and 38 member associations. Through the NASFAM Strengthening Project, which was implemented from 2000-2003, NASFAM received assistance from ACDI/VOCA to provide numerous services, such as training in business skills, basic education and information services and government advocacy.

In 2000, NASFAM experienced many successes. The organization opened its 10th regional field office and helped create eight more regional agribusiness associations. All 31 NASFAM member associations operated at a profit in 2000, allowing them to hire full-time managers serving an average of 2,500 members each. Through a grant from the Norwegian Agency for Development, each of the associations is in the process of building new offices and warehouses to better serve their members. NASFAM has also grown to become one of the largest buyers of fertilizers in Malawi, gaining them bulk discounts that resulted in savings of nine percent, free product transport and commissions of over $15,000 for the associations. In addition, association-owned farmer supply stores increased their profits by 181 percent, leading 10 more associations to launch stores in 2001. NASFAM conducted 24 training courses for over 700 association leaders, about 34 percent of whom are women.

Individual associations also experienced significant gains in 2000. The Balaka Smallholder Farmers’ Association increased the volume of cotton by nearly 500 percent, from 101 tons in 1999 to over 500 tons in 2000, increasing member revenues by 17 percent, with plans to double production again in 2001. In its first year, the recently formed Mchinji Association marketed 183 metric tons of groundnuts for a profit of $10,000, with $8,000 returned to members as a second payment.