Farmconnect is committed to supporting farmers by ensuring they are well-informed about critical developments in the agricultural sector. To help farmers benefit from the latest announcements, Farmconnect will disseminate information about the Ministry of Agriculture’s newly announced minimum prices for agricultural products for the 2023/2024 farming season.

The Ministry of Agriculture has set the minimum prices for Malawi’s staple foods, maize and rice, at 650 kwacha per kilogram. This decision was made by a team of experts from various organizations, including the Ministry of Agriculture, Ministry of Trade, Malawi Investment and Trade Centre, LUANAR, Farmers Union of Malawi (FUM), NASFAM, ADMARC, GTPA, and other stakeholders who convened in March to discuss and finalize these prices.

Effective immediately, the minimum prices in kwacha per kilogram are as follows: sorghum at 600, finger millet at 600, soya beans at 800, pure beans at 1200, mixed beans at 900, white haricot beans at 1200, shelled groundnuts at 1200, unshelled groundnuts at 800, pigeon peas at 700, cowpeas at 750, Bambara nuts at 750, sesame at 1300, sunflower at 650, paprika at 1500, chilies at 2000, cassava at 450, and cotton at 900.

The Ministry emphasized the need for special regulations to enforce these minimum farm gate prices. This approach was proven effective during the heightened cases of COVID-19, reflecting a firm commitment to maintaining fair prices. The Ministry also plans to collaborate with the Ministry of Finance to fund the Malawi Police Service to ensure compliance with these prices.

Given the challenges anticipated in the 2023/2024 farming season due to natural disasters caused by the El Nino weather phenomenon, it is crucial for farmers to be aware of these minimum prices. Heavy rains and floods, as well as prolonged dry spells, have significantly affected crop yields, prompting President Lazarus Chakwera to declare a state of national disaster.

Farmconnect will leverage its platform to ensure that all registered farmers receive timely updates on these price changes. Through our website, informational workshops, and direct communication channels, we will keep farmers informed and help them understand how these minimum prices can positively impact their economic stability and decision-making in selling their produce.

Breaking the Chains of Exploitation in the Supply Chain

In Malawi, many people struggle to make ends meet, with a large portion of the population living on less than $2 a day. Most Malawians rely on farming to survive, with around 85% of the population living in rural areas and engaged in agricultural activities. However, despite their hard work, farmers often face exploitation in the supply chain, leaving them trapped in poverty.

Let’s take a closer look at how the supply chain for farm commodities works in Malawi. Smallholder farmers, many of whom are women, grow about 80% of the crops. They usually farm using traditional methods, primarily for their own consumption, with only a small portion sold for commercial purposes.

When harvest season comes, farmers face a tough choice. They can either sell their crops to local vendors or take them to trading centers. However, reaching trading centers can be difficult, so many farmers sell to bicycle vendors who travel door-to-door in villages. These bicycle vendors then sell the crops to trading center vendors, who have the resources to buy in bulk.

The problem arises when trading center vendors wait for bulk buyers, often big procurement companies that purchase directly from vendors. These companies, focused on profit, may not pay farmers fair prices. This cycle of middlemen taking their share leaves farmers struggling to make ends meet, despite their hard work.

Government and NGOs have tried to address this issue by setting price standards for farmers, but many rural farmers lack information and struggle to find buyers willing to pay these prices. As a result, they remain trapped in poverty.

That’s where Farmconnect comes in. Our project aims to revolutionize the supply chain, connecting farmers directly with buyers. By cutting out middlemen, we can ensure that farmers receive fair prices for their crops, empowering them economically and breaking the cycle of poverty.

Through proper logistical support and innovative solutions, Farmconnect strives to give farmers the power they deserve. By linking them directly with buyers, we can help Malawian farmers improve their lives and build a brighter future for themselves and their families. Join us in supporting Malawi’s farmers and transforming agricultural supply chains for the better.

By: Paul Nthala- Tech Effort Founder