Commercialization of small-scale dairy farming to support export-oriented growth
At an average of 10% per annum dairy farming is one of the fastest growing industries in Malawi. However, the industry cycle is such that raw milk supply is highest from November to March at the same time that domestic demand is weakest, due to pressure from the purchase of agro-inputs, school fees, and having to pay for food before the harvest. Milk supply during this period exceeds domestic demand and unless alternative markets or longer life products are found farmers suffer huge losses due to spoilage of uncollected milk.
MICF has financed a project that will establish an end to end traceability system with targeted agro-vet services for farmers in dairy supply chain for the first time in Malawi and through this offer a premium for high-quality milk supplied by smallholder farmers. The project anticipates to improve incomes of 2485 farmers by 145% through increased productivity; a total of 2,700 farmers will receive a quality premium of 1.5% per litre and 20 new jobs will be created.