The Malawi Agrodealer Strengthening Program (MASP) has improved the input supply and output marketing distribution channels available to smallholder farmers in the under-served, remote areas of Malawi by developing a commercially viable network of rural retail enterprises known as agrodealers (Read more about the Agrodealer Model). Until the launch of MASP, these small farm stores were located mainly in urban areas and were thus inaccessible for many farmers. The three-year project, made possible by a grant from the Alliance for a Green Revolution in Africa (AGRA), has strengthened Malawian agrodealers by providing training in business management and productive farming methods, as well as increased farmer access to agrodealers in remote areas, ultimately raising rural incomes and increasing household productivity.

Working with its local affiliate, the Rural Market Development Trust (RUMARK), CNFA has certified over 1,500 agrodealers in business management, a 150-percent increase above the target set for the program. These agrodealers have also been trained in safe product usage and handling, product knowledge and crop husbandry practices, thus allowing them to not only provide inputs to smallholder farmers, but also to share knowledge on improved production practices through nearly 850 demonstration plots established in the country under MASP. Over 88,000 farmers participated in field days hosted by partnering input supply companies, who provided both inputs for demonstration plots and technical information on various crops. At the close of the project, over 1 million farmers and over 5.7 million Malawians total were benefiting from access to the agrodealer network.

Expanding the Agrodealer Network

In order to transform the Malawian agrodealer network into a self-sustaining enterprise, CNFA took a methodical five-step approach. The first component of MASP was to expand the existing agrodealer network already in place; as of 2007, Malawi had a foundation of 160 active agrodealers located primarily in urban and semi-urban areas. CNFA undertook a detailed survey of the agrodealer network to identify under-served areas where new startups could be created and then began targeting business management training in these areas. Specifically, CNFA certified agrodealers through a six-module business management training program that included managing working capital, managing stocks, costing and pricing, selling and marketing, record keeping, and managing business relationships.

Increasing Technical Training, Boosting Market Demand

After certifying agrodealers in business management training, CNFA then worked with input suppliers to develop and deliver technical training to agrodealers in product knowledge, handling and safe use of pesticides, herbicides and fertilizers, and use of improved seed. CNFA and its supplier partners also developed demonstration plots and farmer field days, allowing agrodealers to offer enhanced technical and product advice to their customers, thereby increasing smallholder farmer awareness of the demand for improved inputs. This generation of new market demand has brought a boost in agrodealer sales, created a loyal customer base, and increased yields and crop quality for smallholder farmers.

Improving Rural Access to Finance

Once agrodealers were equipped with the needed business and technical expertise, CNFA then worked to improve rural agrodealer access to finance, which is often difficult to obtain in remote areas due to the high cost of agricultural financing and high perceived risk by lending institutions. Specifically, CNFA created guarantee facilities to stimulate increased access to credit; created matching grants facilities for startup capital, output marketing, post-harvest handling and small-scale processing; built lending capacity for local financial institutions; helped urban lending institutions expand their services to serve rural needs; and developed targeted agricultural lending products such as rice vouchers and equipment leasing.

Connecting Farmers to Global Markets

After financing for inputs was in place, CNFA then sought to increase smallholder farmer access to larger markets for distribution of their products. CNFA worked with agrodealers to develop and deliver basic output marketing training in order to increase farmer awareness of market opportunities and to help link them to existing market channels.

Sustaining a Public-Private Policy Dialogue

The last component of MASP was to create a mechanism for sustaining a public-private policy dialogue. CNFA has maintained a leadership role in the policy arena, actively shaping Malawian agricultural policy to promote the interests of private sector growth and of the rural smallholder farmer. CNFA has also supported the growth of agricultural inputs traders associations, which have had a large influence on shaping agricultural policy, as well as supported the creation of a national agrodealers association, which serves to help agrodealers increase their business through bulk purchasing and supply credit. CNFA has provided training on organizational management, member services, networking and advocacy capacity building to ensure the successful operation of the agrodealers association. This last component of MASP will ensure that the program is self-sustaining and continues to bring increased business for agrodealers and higher incomes for smallholder farmers.

Accomplishments:

At the end of MASP project implementation, CNFA has built upon previous success and achieved the following results as of September 30, 2010:

• Over 5.7 million Malawians currently benefiting from MASP
• Over 1 million farmers currently involved in and benefiting from MASP
• 1,507 agrodealers trained and certified in business management skills
• 533 farmer field days held featuring 16 supply companies and attended by over 88,000 farmers
• $2,068,983 of total investment leveraged through the project
• 118 technical trainings on product handling and safe use attended by 1,072 agrodealers
• 29 associations advocating for agrodealer interests created and supported

Related Links

Agrodealer Improves Income, Shares Expertise with Customers

Program Overview: Malawi Agrodealer Strengthening Program

Updated 11/2008