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domestic product (GDP). Despite its importance, the agriculture sector faces a number of challenges including (i) overdependence on rainfed farming, (ii) limited
absorption of improved technologies, (iii) weak private sector engagement, (iv) limited farmer organization, and (v) lack of investment capacity in mechanization.
About 99% of Malawi agricultural land is under rainfed cultivation, and smallholder
farmers cultivate 69% of that land.
One way of increasing and ensuring sustainable agricultural production is financing value-added investments and promotion of value addition to agricultural products (World Bank 2018). For example, according to the Malawi National Agricultural
Investment Plan (NAIP), commercialization of the agricultural sector is limited by
market access constraints and limited integration/coordination of most agricultural
value chains. As such, the Malawi government has identified investments in agribusiness, value addition, and investments into the domestic markets as priority
intervention areas, with emphasis on crops (Malawi Government 2017). Recent
developments are however encouraging as livestock is also gaining prominence.
In both Malawi and neighboring Tanzania, pioneer farmers have adopted new
technologies leading to increased farm productivity and income. For example, in
central Malawi and the southern highlands of Tanzania, integrated dairy and cropping systems are spreading. Farmers are keeping more high-yielding cows for producing milk and meat for household consumption and sale. Combined with
appropriate use of compound fertilizer and lime, crop yields have doubled or even
tripled.
Most farmers cannot afford buying a dairy cow. Therefore, in Tanzania, dairy
goats are becoming increasingly popular. Since the introduction four decades ago,
Norwegian dairy goats and crosses have reached a number of about half a million,
which is more than 10 times the numbers of goats in Norway.
For farmers, attaining stable and fair commodity prices is a key success factor.
Njombe Milk Factory Company Limited in Tanzania and Lilongwe Dairy in Malawi
are examples of successful enterprises contributing to increased farmer’s income
where milk is bought at an agreed price and farmers are assured of ready market.
Smallholder farmers may also increase their income through sale of meat as exemplified by the Nyama World with its newly established slaughter facilities in Mzuzu,
Malawi. The company founded in 2010 is a growing agribusiness with a known
national brand of high-quality meat. It has since developed into a fully integrated
value chain with a feedlot, a fattening farm, a halal-certified processing plant, and a
wholesale distribution system combined with six retail outlets. The company supports farmers with improved Bonsmara bulls to crossbreed with the Malawi Zebu
and then buys 6- to 8-month-old bulls from farmers for fattening, thereby providing
farmers with a market outlet. The strategy is to expand the domestic business and
shortly to build exports into neighboring countries and the Middle East markets.
Norfund has made a 23.3 million NOK loan commitment (2.75 million USD) to
Afrisphere Worldwide Limited, who trades as Nyama World with a fully integrated
beef production company in Malawi. All livestock are sourced, processed, and sold
predominantly in Malawi. Once the business is fully developed, the aim is to engage
as much as up to 30,000 smallholder farmers in an integrated value chain.
Agricultural and Natural Resource Sustainability Under Changing Climate in Africa
domestic product (GDP). Despite its importance, the agriculture sector faces a number of challenges including (i) overdependence on rainfed farming, (ii) limited
absorption of improved technologies, (iii) weak private sector engagement, (iv) limited farmer organization, and (v) lack of investment capacity in mechanization.
About 99% of Malawi agricultural land is under rainfed cultivation, and smallholder
farmers cultivate 69% of that land.
One way of increasing and ensuring sustainable agricultural production is financing value-added investments and promotion of value addition to agricultural products (World Bank 2018). For example, according to the Malawi National Agricultural
Investment Plan (NAIP), commercialization of the agricultural sector is limited by
market access constraints and limited integration/coordination of most agricultural
value chains. As such, the Malawi government has identified investments in agribusiness, value addition, and investments into the domestic markets as priority
intervention areas, with emphasis on crops (Malawi Government 2017). Recent
developments are however encouraging as livestock is also gaining prominence.
In both Malawi and neighboring Tanzania, pioneer farmers have adopted new
technologies leading to increased farm productivity and income. For example, in
central Malawi and the southern highlands of Tanzania, integrated dairy and cropping systems are spreading. Farmers are keeping more high-yielding cows for producing milk and meat for household consumption and sale. Combined with
appropriate use of compound fertilizer and lime, crop yields have doubled or even
tripled.
Most farmers cannot afford buying a dairy cow. Therefore, in Tanzania, dairy
goats are becoming increasingly popular. Since the introduction four decades ago,
Norwegian dairy goats and crosses have reached a number of about half a million,
which is more than 10 times the numbers of goats in Norway.
For farmers, attaining stable and fair commodity prices is a key success factor.
Njombe Milk Factory Company Limited in Tanzania and Lilongwe Dairy in Malawi
are examples of successful enterprises contributing to increased farmer’s income
where milk is bought at an agreed price and farmers are assured of ready market.
Smallholder farmers may also increase their income through sale of meat as exemplified by the Nyama World with its newly established slaughter facilities in Mzuzu,
Malawi. The company founded in 2010 is a growing agribusiness with a known
national brand of high-quality meat. It has since developed into a fully integrated
value chain with a feedlot, a fattening farm, a halal-certified processing plant, and a
wholesale distribution system combined with six retail outlets. The company supports farmers with improved Bonsmara bulls to crossbreed with the Malawi Zebu
and then buys 6- to 8-month-old bulls from farmers for fattening, thereby providing
farmers with a market outlet. The strategy is to expand the domestic business and
shortly to build exports into neighboring countries and the Middle East markets.
Norfund has made a 23.3 million NOK loan commitment (2.75 million USD) to
Afrisphere Worldwide Limited, who trades as Nyama World with a fully integrated
beef production company in Malawi. All livestock are sourced, processed, and sold
predominantly in Malawi. Once the business is fully developed, the aim is to engage
as much as up to 30,000 smallholder farmers in an integrated value chain.
Agricultural and Natural Resource Sustainability Under Changing Climate in Africa