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Value Chain Analysis of Indigenous Vegetables from Malawi and Mozambique By: Takemore Chagomoka, Victor Afari-Sefa, and Raul Pitoro Invited paper presented at the 4 th International Conference of the African Association of Agricultural Economists, September 22-25, 2013, Hammamet, Tunisia Copyright 2013 by [authors]. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.

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Value Chain Analysis of Indigenous Vegetables from Malawi and

Mozambique

By:

Takemore Chagomoka, Victor Afari-Sefa, and Raul Pitoro

Invited paper presented at the 4th

International Conference of the African Association

of Agricultural Economists, September 22-25, 2013, Hammamet, Tunisia

Copyright 2013 by [authors]. All rights reserved. Readers may make verbatim copies of

this document for non-commercial purposes by any means, provided that this copyright

notice appears on all such copies.

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T. Chagomoka et al.

149- Value Chain Analysis of Indigenous Vegetables from Malawi and

Mozambique

Paper submitted to:

Takemore Chagomoka1

Victor Afari-Sefa2

Raul Pitoro3

1AVRDC - The World Vegetable Center (AVRDC)

Liaison office for Cameroon,

c/o IITA P. O. Box 2008 Messa

Yaoundé, CAMEROON

2AVRDC - The World Vegetable Center (AVRDC)

Regional Center for Africa (RCA),

P. O. Box 10 Duluti

Arusha, TANZANIA

3Center for Socio-Economic Studies (CESE)

National Institute for Agricultural Research-IIAM

2698 F.P.L.M. Avenue

Botanica Building 110, Maputo, MOZAMBIQUE

* Corresponding author e-mail: [email protected];

Tel: +255-686-027677; Fax: +255-27-2553125

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Abstract

Several studies have shown that indigenous vegetables have high market potential and contribute

substantially to household incomes. Until quite recently however, research into development of

indigenous vegetables were neglected by the scientific and donor community. With a resurgence

of their importance in human nutrition, there is the need to understand the interactions among

various actors in the value chain so as to be able to improve marketing efficiency by adding

value to produce. Based on a multistage cross-sectional primary data of 240 respondents in

Malawi and Mozambique this study employed participatory evaluation and market research of

wide range of indigenous vegetable value chain to identify potential outlets and target crops and,

define processes of the value chains, including choice of market outlets and mode of farmer-

buyer linkages. Value chain mapping was used to establish linkages among chain actors while

SWOT analysis was used to identify constraints and opportunities in the value chain. In Malawi,

amaranth, Ethiopian mustard and black jack are the most important indigenous vegetable while

pumpkin, okra, tomato and cabbage are the most important globally important vegetables. In

Mozambique, African eggplant, amaranth, jute mallow, Ethiopian mustard and wild cucumber

are the most important indigenous vegetables while pumpkin, cowpea, kale, onions, tomato,

cabbage, and okra are the most important exotic vegetables. The results indicate that indigenous

vegetable sales contribute about 35% and 30% of the small-holders income in Malawi and

Mozambique respectively. Most linkages between value chain actors are spot market transactions

except for that between retailers and supermarket which are based on relationship marketing. The

findings of the study also indicate that 12% of respondents in Malawi and 6% of respondents in

Mozambique process their indigenous vegetables.

Keywords: African traditional vegetables, commodity value chains, value chain mapping,

marketing efficiency, Micronutrient adequacy, SWOT analysis

1. Introduction

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Despite constituting only a small share of the arable land area, vegetable production, particularly in

East and Southern Africa, has the potential to be highly profitable, increase employment

opportunities, generate income and bring about an increasing commercialization of the rural sector

(Weinberger and Lumpkin, 2007). This would however entail that farmers and other value chain

actors endeavour to improve the competitiveness of their agricultural commodities so as to gain

increasing market shares and profits. In addition, diseases related to imbalanced diets from

insufficient vegetable and fruit consumption cause 2.7 million deaths annually worldwide, and

are among the top 10 mortality risk factors (Ezzati et al., 2002). Malnutrition is rampant in the

tropics, where per capita vegetable consumption averages only 43% of the minimum

recommended 73 kg/person/year (Ali and Tsou, 1997). To this end, re-igniting an interest in -

and a taste for - indigenous and traditional foods can help not only improve nutrition but also

increase incomes, restore biodiversity, and preserve local cultures (Stone et al. 2011).

Indigenous vegetables from Africa, including amaranth (Amaranthus spp.), African

eggplant (S. aethiopicum) have been shown to be richer in micronutrients such as iron, Vitamin

A (Weinberger and Msuya, 2004), possess antibiotic, probiotic and prebiotic properties (Park et

al., 2002; Erasto et al., 2004; Veluri et al., 2004) anti-oxidants and phytochemicals that help

protect people against non-communicable diseases (Yang and Keding, 2009; Uusiku et al.,

2010). African eggplant, a readily cultivated vegetable crop, has recently been found to possess

protective properties against ulcers induced experimentally, making it a cheap source of natural

anti-ulcer remedy (Chioma et al., 2011).

Rural families have traditionally made conscious efforts to preserve these plants around

their homesteads, in crop fields and communal lands. A number of ongoing efforts by

development practitioners are also underway to promote production and consumption of

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indigenous vegetables across sub-Saharan Africa as part of efforts towards attainment of several

of the Millennium Development Goals (MDGs). Such developments have contributed

immensely to a rise in demand for indigenous vegetables, especially in major urban and peri-

urban centres. In addition to the fact that indigenous vegetable historically constitute a significant

portion of the daily diet of countries such as Malawi and Mozambique, due to the low per capita

intake of animal products (Chadha et al., 2008), indigenous vegetables are now sold by

supermarkets in major cities and appearing on the menus of some restaurants and hotels in the

sub-region.

In spite of this a number of critical bottlenecks hamper the growth of the indigenous

vegetable sector in East and Southern Africa: high on-farm production losses, high perishability

of leafy indigenous crops such as amaranth, lack of appropriate market infrastructure; high

transaction costs along the supply chain due weak linkages between supply chain actors (input

suppliers, producers and markets); lack of reliable market information and market information

systems; lack of business-oriented extension support and advisory service providers, lack of

mechanism to set price (i.e., indigenous vegetables are usually sold by farmers mostly on the

basis of “cost of living” rather than production costs, and supply and demand conditions);

resulting in low bargaining power of farmers, and ineffective institutional set up and policies to

enhance trade within and between regions and countries (Lenné and Ward, 2010; Lyatuu et al.,

2009).

Value chain analysis offers a great opportunity to be able to assess the efficiency of

value-added operations/services as well as systemic competitiveness along the supply chain to

increase production, trade and the income generating potential of farmers and other actors in the

indigenous vegetable supply chain. Value chain describes the full range of activities which are

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required to bring a product or service from conception, through the different phases of

production (involving a combination of physical transformation and the input of various

producer services), delivery to final customers, and final disposal after use (Kaplinsky and

Morris, 2001). The connection between the producers and buyers may be reinforced, at least to

the level of customer loyalty, and perhaps to the point of establishing a partnership between

them. Generally, food value chain research has developed significantly over the last decades as a

response to major changes in the agribusiness sector, including significant changes in the

configuration of international trade patterns, changes in retailing patterns, notably with the

emergence of supermarket chains in developing countries, growing urbanization and related

changes in consumer behaviour, growing consumer and regulator demands for non-price product

specific attributes such as more emphasis on balanced diets in relation rural and urban household

welfare, food safety aspects, and environmental and social impacts (see for example, Dolan and

Humphrey, 2000; Ahumada and Villalobos, 2009; Gereffi and Christian 2010; Lee et al., 2010).

Indeed, many development interventions now utilize the value chain approach as an important

entry point for engaging small farmers, individually or collectively, in local and high value

export markets (GTZ, 2007). Several studies have outlined the strengths and weaknesses of the

qualitative nature of generic value chain analysis and the need to improve its analytical rigour by

complementing it with quantitative analytical approaches. While this study combines both

qualitative and quantitative approaches, emphasis would not be place in assessing the strengths

and weaknesses of the underlying methodological approach. For an exposition of the strengths,

weaknesses and extensions and options to improve the analytical rigor of the value chain

methodology (see, Rich et al., 2011; Trienekens, 2011) for the framework for analysis.

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Relatively few studies have been conducted on indigenous vegetable value chains in

Southern Africa, (see for example; Lyatuu et al., 2009; Odhav et al. 2009). These studies have

mostly targeted specific segments of the supply chain such as, characteristics of production

systems, nutritional attributes, nature of marketing outlets, and women participation in the sector

among others but have hardly looked at the entire supply chain from seed production and

distribution through to produce marketing. To the best of our knowledge, very little research has

been done on an assessment of the interaction of supply and demand factors that determine

marketing efficiencies along the produce value chain, inter-relationships between value chain

actors and impact of farmers’ social capital and networks on household production and

consumption decisions.

In this setting, the main purpose of the study was to carry out participatory evaluation and

market research of wide range of indigenous vegetable value chains to identify choice of actual

and potential target crops, establish mode and types of farmer-buyer linkages and marketing

outlets in Malawi and Mozambique. The specific objectives of the study were to: (i) characterize

the structure of indigenous vegetable value chains and map out flow relationships between

actors; (ii) assess the relative importance and marketing efficiency of specific flows of

indigenous vegetable produce to various actors, and (iii) provide insights on the potential

pathways for value-addition and enhanced marketing efficiency to optimize the net income

benefits of marketing activities undertaken by various value chain actors.

The remainder of the paper is organized as follows: First, we give an overview of nature

of indigenous vegetable seed supply and distribution systems in Malawi and Mozambique in

Section 2. Section three briefly outlines the underlying value chain analysis used for the study

concludes with an overview of the study design and the field survey methods employed. The

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identified value chains and actor linkages are described in section 4. Sections 5 assess the

constraints and opportunities of indigenous vegetable value chains in the study area. In addition,

conclusions and recommendations for policy action are proffered.

2. Overview of indigenous vegetable seed systems in Malawi and Mozambique

Indigenous vegetables are widely produced and consumed by many farmers in most

countries in Southern Africa including Malawi and Mozambique. In spite of this development

breeding for good quality vegetable seed is practically non-existent with the capacity in the

public sector having been severely reduced historically through lack of funding and privatization

(Afari-Sefa et al., 2012). Malawi has made significant strides in developing and embracing

vegetable research and breeding in its national policies in comparison to Mozambique which

does not explicitly have a well-structured vegetable research program (Chadha et al., 2007).

Nevertheless the Instituto de Investigação Agrária de Moçambique (IIAM) is in the process of

putting up the necessary infrastructural and institutional mechanisms to improve vegetable

research and development. In major vegetable growing areas such as Barue in the Manica

province of Mozambique, Agricultural Extension Officers have been designated from the sector

ministry to provide technical and advisory services to farmers engaged in vegetable production.

Current research thrusts in Mozambique include: varietal trials, cropping season trials to

determine vegetable crops adapted to particular agro-climatic zones and studies on the

improvement of agronomic practices such as plant spacing, plant density and optimum time for

harvesting among others (Chadha et al., 2007).

In Malawi, the government recognizes the importance of vegetables for human nutrition

as clearly indicated in the Guide to Agriculture Production of 1995 – 1996 (Chadha et al., 2008).

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The guide stipulates that the national aim for vegetable production is to increase the supply to

meet both domestic demand and for export. Malawi has also developed a National Horticultural

Strategic Plan which has specific action plans for all horticultural commodities, including

vegetables. It addresses major issues, including extension, research, marketing, agro-processing

and many others. The government of Malawi also established the Horticultural Development

Training and Extension Center (HDTEC) in July 1995. The Center’s major activities include

introduction of new vegetable cultivars and their field evaluation, improvement of production

and good agricultural practices, field demonstrations, training, and extension services in

horticultural crop technologies.

Indigenous vegetable cultivar research and breeding

Vegetable research has a higher national priority as per Malawi’s 1995 Agricultural

Research Master Plan. The major research objectives are to address: increased availability of

high yielding cultivars, adaptability of improved cultivars to both biotic (pest and disease

resistance) and abiotic stresses (heat tolerance), improvement of soil fertility, good on-farm

agricultural practices as well as minimization of postharvest losses. Till date, there has not been

any official variety release on indigenous vegetables in both Mozambique and Malawi. Research

on indigenous vegetables where initiated in 1983 at Bunda College of Agriculture in Malawi

with the emphasis on germplasm collection, documentation, seed multiplication and agronomic

studies. The Bvumbwe Research Station in Malawi has in collaboration with AVRDC - The

World Vegetable Center (AVRDC) and Bioversity International under the sub-Sahara Africa

Challenge (SSA-Challenge) project funded by the Forum for Agricultural Research in Africa

(FARA) has also done a lot of work in identifying, characterizing and popularizing a few

indigenous vegetables. In Mozambique, Scientists at IIAM have collaborated with AVRDC to

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test various globally important vegetables (e.g., tomato and sweet pepper) and indigenous

vegetables (e.g., amaranth and African Eggplant) under the Vegetable Breeding and Seed

Systems project (vBSS) funded by Bill and Melinda Gates (2007-2011) and SSA – Challenge

project (2007-2010).

Certification and commercialization

In most African countries seed laws has been updated with recent efforts to undertake

regional harmonization of laws and policies to enhance the growth of the seed industry

(Rohrbach and Howard, 2003; Setimela et al., 2009). Nevertheless, most laws give little legal

room for use of farmer` saved seeds, although in some cases there is small legal opening through

the use of Quality Declared Seed, relief projects or species not covered by the laws; a typical

example being the Tanzania Seed Act of 1978. Similarly, Mozambique's new Seed Law of 2001

openly welcomes the registration of 'traditional' and 'local' varieties for commercialization, but

only if they satisfy the industrial Distinctiveness Uniformity and Stability (DUS) criteria

(Setimela et al., 2009; GRAIN, 2005). Up until the 1990s, seed regulations in most African

countries were mainly organized around public seed programmes, with seed laws limited to

import and export restrictions. There was little coordination between countries, with regulations

often heavily influenced by the respective donors and very little enforcement on the ground

(Grain, 2005; Waithaka et al., 2011).

Seed sources and marketing

Most vegetable seed are imported from Europe (mainly, Netherlands) to South Africa,

Zimbabwe and Mozambique. Local seed companies produce small quantities of seeds of globally

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important vegetables such as tomato, kale and water melon. Some seed companies are involved

in importing, repacking and marketing of vegetable seeds in Mozambique. Most of the

indigenous vegetables are imported from Tanzania, with few quantities produced locally, mainly

with community based seed producer groups. The imported seeds are usually delivered in packed

plastic bag or plastic coated paper. Some of the input suppliers in the study villages re-pack the

seeds in smaller plastic bags for sale. Most indigenous vegetable farmers use farmer saved seeds.

In Malawi some seed companies like SeedCo have started bulking improved indigenous

vegetable seeds of amaranth and African eggplant developed by AVRDC for commercialization.

A larger proportion of farmers however resort to use of farmer saved seeds. Within the study

area, some farmers benefited from a joint AVRDC and Bioversity International organized 3-day

public-private partnership innovation platform training on vegetable production and marketing

conducted in February 2010. The trainings were conducted in collaboration with Department of

Agriculture Research Services (DARS), Malawi and IIAM, Mozambique were aimed at

complimenting efforts in the region to build the capacity of the farmers to produce good quality

indigenous vegetables.

3. Study methods and analytical framework

Justification for choice of value chain approach used for study

The value chain approach is mainly a descriptive tool to study the interactions between

different actors. As a descriptive tool, it has various advantages in as far as it forces the analyst at

considering both the micro and macro aspects involved in the production and exchange activities.

A number of methodologies and contribution to the value chain approach were reviewed (see for

example Kaplinsky, 2000; Bellù and Guilbert, 2008; Kaplinsky and Morris, 2001).

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Kaplinsky (2000) made an important contribution to this theoretical stream by viewing value

chains as repositories of rent. According to the author, rent arises from unequal access or entry

barrier to resources, scarcity of resources and from differential productivity of factors, including

knowledge and skills. This approach can also help to understand the economic processes often

studied only at the global level (often ignoring local differentiation of processes) or at the

national/local levels (often downplaying the larger forces that shape socio-economic change and

policy making). Keyser and Tchale (2010) developed a methodology that offers a practical way

to establish benchmark prices that can be compared with international standards and identify

specific areas where costs can most effectively be reduced through policy change or other types

of investment. This methodology focuses on competitiveness in key agricultural value chains.

Although, the method is a valuable tool for competitive analysis and has been recently applied as

a quantitative value chain analysis tool for Malawi, it poses some limitations in that it seeks to

provide only a general picture of the underlying costs, profits, and trade competitiveness. This

approach was not suitable for the present study as it does not permit to carry out participatory

evaluation and market research of wide range of value chains while identifying potential outlets

and target crops and defining various processes of the value chains, such as choice of market

outlets and mode of farmer-buyer linkages at the microeconomic level.

For a microeconomic level analysis as was the case for this study, the commodity-based

analysis approach ideally provides better insights into the organizational structures and strategies

of different actors. Bellù and Guilbert (2008) define commodity value chain as a tool for

quantitative analysis of socio-economic and policy impacts. The scope of this study does allow

applying this tool because: (i) commodity chain analysis (CCA) is a technique applied to assess

how public policies, investments and institutions affect existing or planned chains for

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agricultural commodities and (ii) CCA consists of quantitative analysis of inputs and outputs,

prices, value added and margins of the different agents under different policy scenarios. Henning

and Donahue (2008) described a similar methodology with modifications to what was earlier

applied by (Van den Berg et al., 2005) and (Kaplinsky and Morris, 2001) on quantitative value

chain. This methodology deals with upgrading value chain competitiveness with informed choice

as a tool for end-market research. This approach was found to be a consistent fit for the

objectives of this study and was adapted to reflect the situation of the study area, focusing on

identification of target customer segments where value chain clients can focus their sales and

marketing efforts and understanding the value chain’s capabilities, potential markets and

positioning in the market.

The study approach involved development of a value chain map that provided alternative

actor linkages from the producer to the final customer. Figure 1, illustrates the analytical

approach applied to measure the objectives of the study. Prior to undertaking the analysis a

decision was made on which sub-sectors, products or commodities were to be prioritized for

analysis. As resources for undertaking analyses will invariably be limited, a method is required

to be devised to select a limited number value chains to be analysed amongst numerous

alternatives available. The four steps involved in determining a set of criteria to be used to

prioritize the value chains were implemented, including: weighting the relative importance of

those criteria, determining the potential sub-sectors, products or commodities that could be

considered and then constructing a matrix to enable ranking of the products according to the

criteria. The final priority setting was determined on the basis of the ranking obtained.

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Figure 1. Program Analysis Steps

Source: Action for Enterprise, 2006

Characteristics of study sites

The study was carried out in 4 districts, namely, Barue district (Manica province) and

Milange district (Zambezia province) of Mozambique and Thyolo and Zomba districts of the

Southern region of Malawi. The Mozambique study sites are characterized by a very poor

resource base, low levels of literacy and high levels of malnutrition. Few households have

regular cash income and most practice subsistence agriculture, in some cases supplemented by

fishing and other activities. Much of the area is drought and/or flood-prone, although some areas

had a relatively much higher elevation. The diet in the study area is very monotonous: maize and,

to a lesser extent, cassava are the primary staples. Both are cooked as a paste and served with

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simple sauces, usually of beans, dark green leaves, and/or dried or fresh fish. Temple (2007)

reiterated that more indigenous crops have found their way into Mozambican dining tables even

in urban areas such as Maputo - a factor which may be attributed to an influx of rural population

into the cities during the war.

At the Malawi study sites, field crops, especially maize and tobacco, have traditionally

dominated agricultural production. However, in recent years, high input costs and unfavourable

weather conditions have imposed restrictions on maize and tobacco cultivation. The presumed

decline in the tendency of farmers to grow more field crops coupled with enhanced government

horticultural sector development policies has necessitated increased diversification into hardy

crops such as indigenous vegetables. Although vegetables are grown almost everywhere in the

country, the study sites are major vegetable producing locales in the country.

Study design and data collection

The analysis presented in this paper is based on primary data collection from sampled

value chain actors in the study area from June to August, 2010. Multistage stratified random

sampling was carried out to select five villages from each district based on availability of

information on chain actors for implementing the survey. In each village, one farmer focus group

interview, four middlemen (i.e., person who buys goods from producers and sells them to

retailers or consumers, also referred to as collectors) interviews, 4 retailer interviews, and 4 seed

supplier interviews were conducted. For the middlemen, retailer, seed supplier surveys, at least

one interview per actor type identified (i.e., wholesaler, middlemen, and transporter) in the

community was conducted. In all, a total of 20 focus group and 240 individual respondent

interviews were conducted.

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In accordance with identified chain actors, 4 survey instruments were designed for the

identified actors in the study sites. These included: middleman survey, producer focus group

survey, input supplier survey, and retailer survey. The focus group interviews were targeted to

the main stakeholder groups involved in production and marketing of indigenous vegetables. The

interviews conducted by trained enumerators elicited information on the nature and types of

indigenous vegetables collected, cultivated and marketed, as well as on institutional

characteristics of key chain actors. The input, middleman and retailer survey tools elicited

information on the value of production, consumption and marketing aspects as well as on

institutional characteristics of the input dealers, middlemen and retailers, respectively.

A priority setting exercise was carried out based on data obtained from the respondents.

The priority setting included 24 commodities. Fourteen of the criteria captured information on

production activities, food security coping strategies, marketing structure and potential of the

various commodity value chains. Once the criteria were defined, the commodities were ranked

against each criterion; a score of 100% meant that the particular commodity best met that

criterion based on the proportion of respondents favouring the specific crop, and a score of 0%

meant that the commodity did not meet that criterion (ranked against all the other commodities).

The evaluation of each criterion was done through estimating the proportion of respondents.

Once each criterion was evaluated, a simple average score was calculated, and the commodities

ranked accordingly. Commodities with a higher score were ranked higher.

Value chain analysis involved sequence of steps from identification through chain actor

mapping, linkages and quantification of earnings into the rewards by various actors along the

chain using information gathered from a combination of data obtained from observation and

rapid appraisals, the quantitative and qualitative surveys conducted augmented with secondary

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data. Constraints and opportunities within the value chains were categorized into appropriate

classifications and analysed. In addition, the types of market services available along the value

chain were described to serve as conduits for outlining constraints and opportunities of identified

value chains. Finally, the Strength, Weakness, Opportunities and Threat (SWOT) assessment

tool was applied to identify and evaluate the controllable and non-controllable factors that future

interventions ought to address to improve the entire indigenous vegetable value chain.

4. Value chain mapping in Malawi and Mozambique

Value chain description

The results of the priority setting exercise indicated that in the Thyolo and Zomba

districts of Malawi, amaranth, Ethiopian mustard and black jack were most important indigenous

vegetables whereas pumpkin, okra, tomato and cabbage were most important among the globally

important vegetables. African eggplant, amaranth, jute mallow, Ethiopian mustard, and wild

cucumber were ranked high for the indigenous vegetables while pumpkin, vegetable cowpea,

kale, onions, tomato, cabbage, and okra were ranked high for globally important vegetables in

Barue and Milange districts of Mozambique. In both countries, the main actors in the indigenous

vegetables subsector are input suppliers, producers, middlemen, transporters, retailers (street and

market vendors) and consumers. Table 1, presents the distribution of identified actors and their

respectively roles along the indigenous vegetable value chain. Input suppliers in Malawi were

found to trade mainly in seeds, farm tools, and agrochemicals while seeds and farm tools were

the main inputs traded in by dealers in Mozambique.

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Table 1: Indigenous vegetables value chain actors and their main activities in Malawi and

Mozambique, June-August, 2010

Malawi Mozambique Test (a) Main activity Middle-

men (%)

Retailer

(%)

Input

supplier

(%)

Middle

-man

(%)

Retailer

(%)

Input

supplier

(%)

A B C D E F

Grocery shop

trader

28.6 18.3 25.9 18.5 **A>D

Street vendor 21.4 26.7 25.9 22.2 *A<D **B>E

Collectors 35.7 1.7 3.7 ***A>D *B<D

Farmer 14.3 43.3 29.6 48.2 ***A<D

Grocery store

owner

6.7 3.7

Wholesalers 1.7 7.4 11.1 ***B<E

Seed dealer 50.0 66.7 **C<F

Agrochemical

dealer

25.0 33.3 ***C<F

Trade in farm tools 25.0

Others 1.7 3.7

Total 100.0 100.0 100.0 100.0 100.0 100.0

N 14 91 34 27 27 3

(a) Significance testing comparing (A) and (D), (B) and (E); and (C) and (F): * indicates significant difference at 10% level, ** at

5%, and *** at 1%. Source: Survey, 2010

Production inputs play a crucial role in indigenous vegetables production. Most of the

villages visited in the districts of Zomba and Thyolo do not have inputs suppliers serving

farmers. Farmers usually had to walk on foot to obtain inputs from local providers operating in

nearby villages with a radius of 5-9 km. Local inputs for production were mainly supplied by

stockist distributors usually located in the nearby city. Most of the inputs supplied by these

providers are often imported and delivered through local distributor networks. There are also

some instances where some individual farmers doubled as input dealers. Government outlets also

provide inputs such as fertilizers in some villages. These outlets are supported by the Ministry of

Agriculture. Besides providing technical assistance in production, the Bvumbwe Research

Station also provides vegetable seed to farmers in some of surveyed villages. In general, the

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input providers do not usually have contractual arrangements with their trading partners.

Indigenous vegetables seed sales account for about 7% of total agricultural seeds sales and, 37%

of vegetable seed sales. Among the indigenous vegetables produced in Malawi, seeds of

Ethiopian mustard, okra, pumpkin and, African eggplant are the most traded. In terms of

contribution to the total turnover; Ethiopian mustard is the most important indigenous vegetable

among the marketed vegetable seeds with mostert noted as the most common variety. Percentage

of germination, physical characteristics such as shape and size, quality of packaging material and

price, purity and uniformity, yield, size of produce from seed and price are the main determinants

of type of seed purchased.

Actors involved in production of indigenous vegetables include middlemen, who

comprise of two main actors; collectors and transporter contractors. As indicated in Table 2, the

main activities of these actors in Malawi include collection of indigenous vegetables (36%);

ownership and management of grocery shops (29%), street vendoring (21%) and farming (14%).

In Mozambique, some middlemen have other responsibilities in addition to those observed in

Malawi. The collectors of vegetables also manage grocery shops where they sell various fast

moving consumer goods, while most transporters have vertically integrated their activities by

engaging in production and selling of vegetables as well.

In all the four districts surveyed, indigenous vegetables are mainly produced by small

scale farmers who in general have less than one hectare under cultivation. The main indigenous

vegetables produced include Ethiopian mustard, okra, pumpkin, African eggplant, amaranth,

cowpea, spider plant, jute mallow, sweet potatoes and wild cucumber. Indigenous vegetables

production is based on conventional production principles; producers are not applying modern

growing technologies. Only Ethiopian mustard, okra, pumpkin and, African eggplant seeds are

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available in the seed supply chain. Some of indigenous vegetables such as amaranth and spider

plant are not cultivated by the farmers although; they are usually collected in the wild for sale.

Other indigenous vegetables crops like sweet potatoes and cowpea among others are mainly

produced using local landraces.

Guaranteeing home consumption and generating extra income are the main reasons for

cultivating and marketing indigenous vegetables amongst value chains actors. In Malawi, about

21% of produced indigenous vegetables are consumed at home while in Mozambique farmers

consume about 30% of the produced indigenous vegetables. Besides household consumption,

fresh indigenous vegetables are sold in traditional green markets without any value-addition. On

the whole, the study found that indigenous vegetable sales contribute about 35% of the small-

holders income in Malawi and about 30% of household’s income in Mozambique. In most of the

study villages in Malawi, producers are organized in farmers’ associations. Although some of the

farmers groups have been receiving assistance in technical aspects related to production and they

were provided seeds from the Bvumbwe Research Station, on-farm yield levels are quite low

reflecting the general lack of improved indigenous vegetable cultivar and technological progress.

Processing activities of indigenous vegetables in the four survey districts are still in their

rudimentary stages. Despites the fact that indigenous vegetables are highly perishable, they need

to be processed and packaged in order to minimize quantity and quality losses. In general,

indigenous vegetables are supplied in the markets of the study sites without any physical value

addition while few quantities are processed before reaching final consumers. According to the

survey data, only 12% of retailers in Malawi and 6% of retailers in Mozambique declared to

have processed their produce prior to selling. In Malawi, results indicated that amaranth and

cowpea were processed by sun-drying and/or blanching. Most of the preserved indigenous

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vegetables are meant for home consumption, not for sale in market. In Mozambique, a large

number of vegetables are processed including pumpkin, eggplant, cowpea, sweet potatoes, and

Ethiopian mustard; by cutting them mostly. Most retailers concentrate their efforts in sun drying

cowpea.

Given the fact that the processing and preservation is almost inexistent in the indigenous

vegetables marketing chains, the high perishability of the indigenous vegetables poses major

challenges in their marketing and distribution. About 20% of indigenous vegetables are dumped

in the produce marketing process of the value chain. Yet, simple post-harvest handling practices

such as simple bicarbonate wash can help minimize quantity and quality losses and enables

availability during the periods when they are in short supply (Acedo and Weinberger, 2010).

Consequently, improvement of packaging and processing standards is a very important step for

increased competitiveness of indigenous vegetables products in the entire value chain.

Non-structured informal markets are a major outlet for selling of indigenous vegetables.

Produce are mostly bought from farmers by rural vendors and traders. Majority of these vendors

are mostly farmers who buy in small quantities due to capital constraints and sell produce along

roadsides or at village markets directly to consumers or to middlemen who later sell in major

markets. The retailers tend to operate on the same market as the traders. Some middlemen

transport produce to major village markets. In general produce are mainly marketed through

three channels: (i) farmers produce and sell own indigenous vegetables directly to the consumers

as market or street vendors; (ii) farmers sell to retailers and; (iii) farmers sell to middlemen

(collectors). It was also observed that there is a general lack of standard packaging material. In

most cases the indigenous vegetables are packed in bamboo baskets just to facilitate their

transportation until the selling point where they are sold in as bundles without any labels.

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However, there are also some cases where the indigenous vegetables are packed in plastic bags

or sacks. The packaging is mostly done in the context of facilitating transportation of produce to

selling points and unpacked at selling points. Most indigenous vegetables value chain actors

transport their products to the rural markets carrying them on heads/shoulders or using their own

or hired bicycles.

In order to enable the produce to reach high value formal markets such as supermarkets

in urban areas and export markets, there is a need to consider value addition through packaging

and branding to maintain high quality standards and increase profit margins. Indigenous

vegetables marketing channels in the two visited districts are constrained by diverse market

related factors such as small production quantities and heterogeneous quality due to limited

access to input supplies, capital, market information, poor infrastructure and technical know-how

on farm management skills. As consequence, several value chain actors are confronted with

limited economies of scale. Results from the survey suggest that there is some degree of

networking among the indigenous vegetables marketing channel actors: the actors usually

collaborate with each other, sharing price, market information, transport, storage facilities, credit

facilities (including lending/borrowing money), joint purchasing of produce and facilitate access

to produce among each other vegetables when supply is lacking. However, there is still need to

promote collective action and to strengthen actor chain networks in order to overcome some of

these constraints. Collective action and networking will enable stronger bargaining power and

organized produce supplies while improving quality standards.

On the marketing side of the value chain, there are retailers composed of wholesalers and

collectors. These actors have been dealing with indigenous vegetables for at least 6 years. Both

wholesalers and collectors own grocery shops and also act as farmers. Very few wholesalers’

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trade indigenous vegetables, but surprisingly they trade indigenous vegetables in the street (table

2). Contrary to middlemen, the marketing actors in the indigenous vegetables chain deal more

with food crops (maize, rice, potatoes, sweet potato) in their business (Table 2).

Table 2. Type of products related to value chain actor’s business

Malawi Mozambique Testing (a)

Products Middl

eman

(%)

Retailer

(%)

Input

supplier

(%)

Middle

man

(%)

Retailer

(%)

Input

supplier

(%)

A B C D E F

Rice - 11.4 - 15.2 9.5 -

Maize 11.1 16.7 35.0 15.2 25.4 40.0 *A<D **B<D

Sweet potatoes/

potatoes/cassava

5.6 15.9 5.0 16.7 19.1 - ***A<D

Vegetables 27.8 18.9 35.0 22.7 20.6 40.0

Fruits 11.1 9.1 25.0 6.1 1.6 - ***A>D ***B>E

Pigs 5.6 3.0 - 1.5 4.8 -

Poultry 16.7 13.6 - 15.2 12.7 -

Cattle/sheep/goa

ts

11.1 7.6 - 4.6 4.8 - ***A>D

Fishery 5.6 3.8 - 3.0 1.6 - **B>E

Other 5.6 20.0

Total 100.0 100.0 100.0 100.0 100.0 100.0

N 18 212 38 66 63 5

a) Significance testing comparing (A) and (D), (B) and (E); and (C) and (F): * indicates significant difference at 10% level, ** at

5%, and *** at 1%.

Source: Survey, 2010

4.2 Linkages among value chain actors in Malawi and Mozambique

Relationships existing among the various value chain actors were established based on 3

identified marketing transaction typologies namely; spot markets (actors make a transaction

including negotiations on price, volume and other requirements) directly at the market without

prior discussion); persistent network relations (buyer and seller meet to discuss transaction,

come to an agreement and continue relationship when there is a preference for transacting with

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each other time and time again based on trust or otherwise), and horizontal integration along

value chain (typical goes beyond the definition of a ‘relationship’, since both actors share the

same legal ownership. A summary of the value chain actor linkages in Malawi and Mozambique

is shown in Figure 2. Clearly, most linkages are based on spot market relationships, except for

the linkage between retailer and supermarket which are better coordinated and based on

persistent relationships.

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Figure 2. Value chain actor’s linkages in Malawi and Mozambique

Source: Authors

Consumption

Marketing

Trade

Production

Inputs

Local/Foreign Inputs Companies

Government R&D Institutions

Farmers or Farmers Associations

Local Stockist

Village Supplier Government Worker

Collectors/ Assemblers and

middlemen/transporters

Street Vendors

Market Vendors

Hotel/restaurants

Final Consumers

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Table 3. Type of relationships existing between various value chain actors

Malawi Mozambique Test (a)

Item Input

supplier

Middleman Retailer Input

supplier

Middle

man

Retailer

A B C D E F

Collaborate

with others

(%)

71 40 54 100 50 38 **A<D *B<E **C>F

Sample size (n) 14 91 34 27 27 3

Type of

collaboration

Share

price/market

information

40 50 43 29 44 38 *C>F

Share

storage

facilities

20 50 14 6 8 ***B>E **C>F

Supply

vegetable

inputs to

others when

supply is

lacking

20 0 36 14 6 8 ***B<E ***C>F

Purchase

vegetables

inputs

together

20 0 0 29 28 15 ***B<E ***C<F

Lend/borrow

money

0 0 7 11 23 ***B<E ***C<F

Have contract

arrangement

(%)

0 80 20 29 6 8 ***A<D ***B>E ***C>F

Contract based

in written

agreement (%)

N/A 0 0 100 7 13 ***B<E ***C<F

Number of

trading

partners you

collaborate

with

1.3 3.5 4.7 50 N/A 50 ***A<D

Have more

than one

supplier (%)

43 80 46 5 4 5 ***A>D ***B>E ***C>F

Number of

supplier by type

N/A 100 0 31

Foreign seed

company

2.3

Local stockist 1.0 2 N/A N/A

Farmers 6 N/A N/A N/A

Collectors 6 N/A N/A 1

Wholesalers 2 N/A N/A 5

Main supplier

(%)

N/A N/A N/A 4

Farmer 92 96 N/A

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Source: Survey, 2010

Input suppliers in Malawi take the lead in terms of collaboration with other partners

related to indigenous vegetables with 71% of participation, followed by retailers with 54%, and

finally middlemen with 40% (Table 3). In Mozambique, input suppliers lead with 100%,

followed by middlemen with 50% with retailers constituting 38%. Although the input suppliers

have higher level of collaboration with other business partners, in Malawi this collaboration is

not made on the basis of written contracts, as is the case with most other actors along the value

chain. About 30% of Mozambican input suppliers indicated having contract arrangements with

their business partners, while very few of the other actors along the chain have contractual

arrangements. All input suppliers and 13% of retailers in Mozambique indicated having written

contractual arrangements with their business partners.

Looking at the type of collaboration, in general, sharing information about markets and

sharing storage facilities are the most common for both agents in the chain. In addition to these

types of collaboration, the input suppliers implement joint procurement of inputs for the

indigenous vegetables as the third form of collaboration with their trading partners. This type of

collaboration is also practiced by middlemen and retailers in Mozambique. The forth type of

Wholesaler 8 27 46 ***B<E

Other 4 63 44 ***C<F

Sold to more

than one

partner (%)

N/A 100 10 11 ****B>E

Main customer

(%)

N/A N/A N/A N/A

Household 100 79 N/A

Transporter 18 17 13

Supermarket 1 21 12 ***C<F

Wet market 3 26 37 ***C<F

Collector 29 26

Retailer 1 3

Source: Survey, 2010 (a) Significance testing comparing (A) and (D), (B) and (E); and (C) and (F): * indicates significant difference at 10% level, ** at

5%, and *** at 1%.

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collaboration is the money borrowing/lending most practiced in Mozambique by middlemen and

retailers.

Generally, all actors of the chain have more than one business partner. While input

suppliers purchase their inputs from the foreign seed companies, local stockist and local farmers

in the study area, the middleman (collectors, wholesaler and transporter) get their indigenous

vegetables from local farmers and local wholesalers. The retailers, composed by wholesalers,

receive their indigenous vegetables from farmers, wholesalers and collectors. In the course of our

interaction with respondents, we noted that there was no clear identification of the main clients

of the suppliers of inputs, albeit assuming that these are farmers. However, with regards to the

client preference for input suppliers, seed germination, seed physical qualities (size and shape),

price, package type, analytical quality (purity and uniformity), the price and size of the final

product are more important than other attributes in Malawi, while in Mozambique, germination

was the only attribute indicated as important. Unfortunately, these clients do not consider the

extension services or advices provided by the inputs supplier, the proximity of the supplier of

raw materials as important factors to improving efficiency. This may be due partly to the fact

that some input suppliers sell their inputs in farmers' fields and on the other hand, farmers have

no access to technical advisory services on how to handle seeds or they already have experience

in using them and ignore the messages provided by extension agents and decide to explore

alternative applications. Thus, to investigate the real reasons behind this occurrence, it is

important to develop and analyse the structure, performance and conduct of both input and

supply markets.

As middlemen’s clients, households mainly consider most important features of produce:

price, shape, freshness, shape, size, the origin of culture, the factors of food safety (the residual

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effect of fertilizers) and product grading in Thyolo and Zomba. In Barue and Milange, the

middlemen’s customers consider germination, physical qualities, produce size, and sorting as the

most important features of indigenous vegetables. Customers of retailers have the same

preference for the first 5 features of the middlemen’s clients in Thoylo and Zomba, but

unfortunately they do not show concern on other important factors. In Barue and Milange, the

customers of retailers are mostly not concerned with residual effects of agro-inputs like

insecticide/fertilizers that could endanger their health. Also against our expectations, survey

results show that the product classification is not important attribute for supermarkets. Ideally,

quality attributes, such as product certification, presence of pathogens and packaging would be

expected to feature as top priority features. In our view this may reveal a low level of knowledge

about the standards of quality and human health effects that may be caused by ingestion of

contaminated food or with low levels of quality. Thus, awareness creation on quality and food

safety standards of fresh produce such as vegetables would be important area of future

intervention to reduce public health hazards promote efficiencies along the value chain. The fact

that supermarkets do not care that much about their product quality features can result in two

contradicting issues: it can allow the supermarket to get large volumes of products from different

suppliers but would also lead to lower motivation to establishing contracts specifying quality

standards with specific producers.

5. Analysis of value chain constraints

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The marketing of indigenous vegetables generated significant income as shown in Figure

3. In Malawi, average monthly indigenous vegetable sale by middlemen was approximately $US

50, while the mean monthly sale for retailers was $US 37. The peak sale of indigenous

vegetables by middlemen was observed in November with a minimum of $US 20 observed in

February and March. A similar pattern was observed for retailers of indigenous vegetables.

Based on the 8-month cross-sectional data collected the flow of capital is estimated as $US 83

year-1

for middlemen and $US 61 year-1

for retailers.

In Mozambique, both middlemen and retailer generate lower monthly incomes compared

to their Malawian counterparts. On average monthly sales of middlemen from Barue and

Milange amount to $US 28, while the mean monthly sales for retailers is about $US 26. The

peak sales of indigenous vegetables by middlemen was observed in April ($US 49.86) with

minimum values of $US 15.14 and $US 12.74 in September and August respectively. A different

pattern was noted for retailers with peak sales observed in August ($US 92.74) and the minimum

sale in October ($US 13). On the average, these represent modest monthly incomes above the

national minimum wages and in some cases above the World Bank international poverty line of

$1.25 day ($37.50 per month) in both countries. The flow of capital was approximately $US 337

per year for middlemen while that for the retailers amount to $US 315 per year. The contribution

from the sale of indigenous vegetables to the total income is very important for the middlemen

than for retailers. According to data in Table 4, indigenous vegetables sales account for 51-75%

of the total income of 60% of middlemen in Thyolo and Zomba while it accounts for 50% of the

income of 70% of retailers.

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Figure 3. Monthly indigenous vegetable sales for amaranth, cowpea and pumpkin in

Malawi and Mozambique Source: Survey, 2010

It turns out that in Barue and Milange indigenous vegetables account for at least 50% of the

majority of middlemen (86%) and retailers (84%). Thus, any intervention to boost the

commercialization of indigenous vegetables should focus more on middlemen who seem to live

almost exclusively from this activity in Malawi, but in Mozambique both actors deserve similar

attention. This also buttresses the fact that services targeted at value chain actors in the study

area are less developed. The collection, production and marketing of produce have not only

economic benefits to its practitioners but also plays a major role in household nutrition. Results

from the field survey show that in Thyolo and Zomba, 20% of the indigenous vegetables

produced or marketed by both middlemen and retailers are used for home consumption while in

Barue and Milange about 30% of produce traded by both agents are used for home consumption.

Similarly, farmers were found to also consume about 30% of their produce which further

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underscores the importance of indigenous vegetables in meeting household nutritional needs in

the study area.

Table 4. Proportion That Income Derived from indigenous vegetables Sales Represent to Total

Income Actors 10% or less 10-25% 26-50% 51-75% 76-100% Did not

respond

Total N

Malawi

Retailer (%) A 4 35 35 12 8 8 100 91

Middlemen (%) B 20 20 60 100 14

Mozambique

Retailer (%) C 6 44 31 19 100 27

Middlemen (%) D 36 50 7 7 100 27

Test (a) *A<C **A<C;

**B<D

***B<D ***B>D

(a) Significance testing comparing (A) and (D), (B) and (E); and (C) and (F): * indicates significant difference at 10% level, ** at

5%, and *** at 1%.

(a) Significance testing comparing (A) and (D), (B) and (E); and (C) and (F): * indicates significant difference at 10% level, ** at 5%, and *** at 1%.

Source: Survey, 2010

Constraints expressed by key informants and the respondents in the course of the field

survey are summarized in Table 5. On the production side, the main constraints expressed are:

high susceptibility to diseases for exotic vegetables, limited knowledge on seed quality features

and limited knowledge on technical advices for production. These constraints suggest two types

of interventions: education/training of end users of seeds and other inputs in appropriate

technical know-how and provision of plant protection inputs for farmers.

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Table 5: Analysis of constraints of indigenous vegetable’s value chains in Malawi and

Mozambique

N

o

Constraints Who is/are

affected

Existing

service

provider

Potential /Opportunities for

interventions

1 High susceptibility to

diseases in exotic

vegetables

Collectors, retailers,

middlemen

Existent but

weak

Help farmers with materials for protection of

plants.

Limited knowledge on

seed quality features

Farmers Existent but

weak

Awareness campaigns on issues of product

quality

Limited knowledge on

technical advices for

production

Farmers Existent but

weak

Promote and disseminate messages on

production techniques

2 No available good

quality seeds

Collector, retailers,

middlemen

Existent but

weak

Restricting the sale of seed for only the best

quality seed

Lack of access to inputs Farmers/households Existent but

weak

Align the prices of seeds and respective quality

Opt for packages accessible to producers

Low demand for inputs Input suppliers Existent but

weak

Align the prices of seeds and respective quality

Opt for packages accessible to producers

3 Lack of packaging

services

all Existent but

weak

Encourage the processing and packaging of

indigenous vegetables

4 No processing of

indigenous vegetables

before trading

Middlemen Existent but

weak

Encourage the processing and packaging of

indigenous vegetables

5 Lack of capital

Wholesaler,

transporters,

collectors, input

suppliers, retailers,

middlemen

No Promote alternative access to capital, such as

formal or informal credit

Poor infrastructure Collector, input

supplier, Retailers,

middlemen

Existent but

weak

Invest on the improvement of access routes for

disposal of products

Market price is

comparably low

Collector wholesaler,

Retailers, middlemen

No Promote methods of increasing value to

indigenous vegetables such as processing,

branding. Search other markets and market

information is important to consider. The

promotion of associations of both producers

and traders can help get better prices on the

market.

Too many sellers and

very few buyers

Retailers, middlemen, Existent but

weak

Promote methods of processing, in order to

increase shelf life of indigenous vegetable and

sell when supply is low. Search other markets

and market information is important to

consider. The promotion of associations of

both producers and traders can help get low

cost of transitions in market search and product

transfer.

Climate reason Retailers, middlemen Existent but

weak

Training on natural resources management

Absence of contractual

arrangements for

marketing

All Existent but

weak

Training on business management and

negotiation of contracts

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The main constraints regarding input supply are low input demand, lack access to farm inputs

and lack of good quality seed. These constraints offer opportunity for various interventions such

as: alternatives for development of input market (input fairs, input vouchers, etc), provision of

good quality seeds, input price regulation and control in order to guarantee fair prices for seed

purchased in terms of quality. Lack of marketing services such as processing and packaging are

also seen as major constraints in the chain. The provision of training and adequate equipment

seems to be a desirable alternative; the same having been noted for Zambia (Nenguwo, 2004).

Although there is a significant movement towards growing/trade commercially produce in the

study area, farmers complained of some losses on the quantity harvested. According to the focus

group interviews in Malawi, more than three quarters of the community members usually

“dump” at the end of market day because they could not sell about 30% of their produce and

approximately the same amount of their produce are diverted for home consumption. In

Mozambique, the majority of the interviewed farmers indicated that less than 20% of the

vegetables are “dumped’ during market days because they could not sell.

SWOT analysis of indigenous vegetable value chains

The SWOT analysis presented in Table 6 provides a framework for understanding

controllable and non-controllable factors that future interventions should address for the entire

value-chain. In designing possible interventions, it is suggested that development practitioners

and policy makers place emphasis on exploitation of the outlined strengths rather than simply

addressing the weaknesses. Similarly, the opportunities and threats - the external trends that

influence the subsector are also analysed. Externally, opportunities and threats have typically

been categorized into political, economic, social, technological, demographic and legal forces.

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These external forces such as possibly boosting up of the sector with improved cultivars can

change business trends, increase competition, change regulations, among others. However,

opportunities that are ignored can become threats, and threats that are dealt with appropriately

can be turned into opportunities. The non-controllable factors best be dealt with through

advocacy and networking to bring about changes in the policy framework.

Table 6. SWOT Analysis of indigenous vegetables value chains

Strengths Weaknesses

Willingness to sell more indigenous

vegetables in future

indigenous vegetables as important

source of income

Input supplier selling seeds and

other inputs at farmstead

Strong collaboration among actors

Lack of contract arrangements

Low demand for inputs

Lack of capital

Poor infrastructure

Low producer and market prices

Lack of processing services

Weak packaging materials & services

Poor seed quality

Opportunities Threats

Creation of strong farmer

associations

Training in production and

marketing of produce

Introduction of elite varieties

Introduction of other high value crops

Changing weather patterns – climate

change

Changes in government policy favouring

cultivation of major field crops

6. Conclusions and recommendations

Amaranth, Ethiopian mustard, and black jack are the most important indigenous

vegetables while pumpkin, okra, tomato and cabbage are most important globally important

vegetables in Malawi. In Mozambique, African eggplant, amaranth, jute mallow, Ethiopian

mustard, and wild cucumber were ranked high for indigenous vegetables while pumpkin,

cowpea, kale, onions, tomato, cabbage, and okra were ranked high for the globally important

vegetables. The observed dynamics over time and the performance of vegetables along the value

chain in Malawi indicate that while amaranth, pumpkin, and okra are seen as the most preferred

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crops for commercial trade within the communities; cabbage and rape are the most popular crops

currently grown compared to the situation 10-15 years by 18% and 12% of farmers respectively.

In Mozambique, the situation indicates kale (17%), pumpkin (13%) and cabbage (13%).

Although amaranth is not widely grown as compared to 10-15 years ago, it was found to be the

most collected from the wild currently than before.

There was no clear definition of the main clients of the suppliers of inputs, but assume

that the main customers were farmers. However, with regards to customer knowledge, seed

germination, seed physical qualities (size and shape), price, package type, analytical quality

(purity and uniformity), the price and size of the final product are more important than other

characteristics. Unfortunately, the input supplier’s customers do not consider extension services

from inputs supplier, both the proximity of the supplier of raw materials as major factors. This

may in part be a result of the fact that some suppliers sell their inputs in farmers' fields and on

the other hand, the lack of access of technical advices on how to handle seeds and other inputs.

A significant level of collaboration among partners along the value chain exists. The

input suppliers take the lead, followed by retailer, and finally the middlemen in collaborating

with other middlemen partners. Although the input suppliers have higher level of collaboration

with other business partners, this collaboration is not made on the basis of written contracts,

while it is for other types of agents along the value chain.

While in Malawi most input suppliers have no written contracts with their partners, the

majority collaborate with very few trading partner clients based on relationship marketing. In

Mozambique input suppliers usually have written contract agreements with clients and also

collaborate with several trading partners at a time. Results of this study indicate that most

linkages are spot market relationships, except for the linkage between retailer and supermarkets

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T. Chagomoka et al.

which is a persistent relationship. On the economics of input business, the results show that the

most important crop in their businesses are tomato, cabbage, onion and pumpkin based on

volume and sales value. The collection, cultivation, and marketing of indigenous vegetable in

Malawi appear to have great potential with a vibrant growing subsector in terms of value

addition and market expansion. The market size is likely to expand substantially over the next

couple of years. Despite this encouragement dispensation, the market is characterised by slow

growth with obvious room for expansion.

To address these classic problems of indigenous vegetable value chains in the study area the

following recommendations are proffered.

To enable smallholders to remain competitive in such a system, new value added

institutional arrangements are required. For example, a change in the physical state or form

(such as making tomatoes into paste or ketchup). This can be achieved for example by the

One Village One Product. This is an adopted business development strategy from Oita

Prefecture in Japan. It involve zoning of production, processing and marketing of good and

services, thus communities direct their efforts in areas they have comparative advantages

over other communities (Chidumu, 2007) program launched by the Malawian government,

were small to medium processing factories are set up in villages.

Placing emphasis on niche commodity production and marketing in a manner that enhances

value addition (e.g., organic tomatoes, organic cabbage).

Physical segregation of produce for enhancement of the value/product differentiation (such

as an identity preserved marketing system/national brands such as Pumpkin of Malawi). In

Mozambique for example, the Ministry of Commerce have launched a trade Mark to add-

value and differentiate certain speciality Mozambican products from others called “Made in

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T. Chagomoka et al.

Mozambique” in response to influx of produce from nearby South Africa. This can be

applied to any commodity as long as it meets some quality requirements. Vegetables such as

amaranth and cabbages can also be dried and pound into powder for increased shelf-life and

ease of distribution to consumers in distant locations.

Market research and transporting agricultural products to places where the products are not

available. The crop and market information systems in the region appear to be driven more

by hearsay and rumours than by fact. In the absence of realistic projections of crop size,

competitive market conditions, harvest schedules and packing shed activity, growers base

their harvesting decisions on speculation as to potential moves in distant markets, rather

than on factual market appraisals. In Kenya for example, the use of mobile phones to

convey market information has been a huge success.

Provision of financial support to actors along the chain for production and marketing

indigenous vegetables and inputs related to indigenous vegetables. For the farmers, the

availability of resources to invest in the crop is a fundamental factor in the decision of

whether or not to enter in indigenous vegetables production.

Provision of high quality seed. A special attention need to be taken to the fact that in the

production of indigenous vegetables by small scale farmers, the introduction of new

varieties which are linked to new management practices that require an investment in seed

and supplies makes it such that this can partially be centralized spatially such that not all

farmers become involved, because they lack the resources and time necessary to make such

invest.

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