Small and medium enterprises (SMEs) in the agriculture sector say value addition is emerging as a key strategy for firms seeking to earn more from their produce and reduce reliance on raw commodity exports.
During the three-day 22nd National Agriculture Fair which ended on Saturday at Chichiri Trade Fair Grounds in Blantyre, small businesses showcased locally processed products made from crops and livestock.
Instead of selling immediately after harvest, some small firms say they are now processing, packaging and branding goods for higher-value markets while other have formed cooperatives to share costs and benefit from economies of scale.
Agriculture Fair in Blantyre. | Temwanani Mndhluli
Mangochi-based agribusiness dealer Susan Mzunga said in an interview on Thursday that value addition offers higher returns than selling raw or semi-processed products.
She markets baobab and hibiscus products, including juice, jam and powders and added that processing also promotes consumer health.
Zikometso Innovation and Productivity Centre chairperson Bintoni Nasola said cooperatives in Mulanje, Phalombe and Thyolo have seen demand of their products rising after value addition.
He said: “Before value addition, our products such as pepper, soya beans and sunflower had lower demand, resulting in them going bad.
“But after gaining knowledge, we started producing chili sauce and our products are on high demanded.”
Nasola said that a cooking oil milling machine in Phalombe now enables the cooperative to process sunflower seeds into oil, generating higher earnings than selling seeds alone.
Mach Milk Company Limited managing director Madalitso Phiri said his firm based in Mpemba on the outskirts of Blantyre, produces dairy products with longer shelf life than raw milk.
“Milk easily loses its value if not properly handled. I am able to produce powdered milk that stays longer and brings more returns than selling it without adding value,” he said, adding that processed dairy products have the potential to earn foreign exchange.
Phiri said despite successes, challenges remain that hinder expansion of the venture.
Speaking during the opening of the fair on Thursday, Malawi Confederation of Chambers of Commerce and Industry president Ronald Ngwira urged government to create a supportive environment for private sector investment in agriculture.
He said commercialisation depends on value addition, technology and profitable value chains.
Ngwira called for greater investment in irrigation, mechanisation, agro-processing, storage, logistics and technology, while stressing stronger links between farmers, processors, exporters and buyers.
Minister Agriculture, Irrigation and Water Development Roza Mbilizi, who was the guest of honour at the fair, said Malawi must move beyond producing more commodities to earn more through agro-processing, packaging and logistics.
The agriculture fair was held under the theme ‘Transforming agriculture through innovation, value addition and market linkages’.
