Mapping Market Prospects for Grain Legumes in Malawi

Research has demonstrated that these systems can increase crop yields, reduce soil degradation, and improve farmer livelihoods. However, widespread adoption of these systems requires a robust market demand for the grain legumes they produce. The Integrated Household Survey (IHS) conducted in 2010/11 provides valuable data on household expenditure patterns and food consumption habits in Malawi. The survey reveals that grain legumes, such as groundnuts, soybeans, and pigeon peas, are staple crops in Malawian households. The majority of households consume these legumes as a source of protein and income. Market-mapping data collected by the LUANAR/MSU research team in 2014 provides insights into the structure and flows of the local consumer market in Malawi. The data shows that grain legumes are primarily marketed through informal channels, with a significant proportion of sales taking place in local markets. The majority of grain legume traders and processors are small-scale operators, with limited access to formal credit and market information. The research team used expenditure elasticities from the IHS, together with population data from the United Nations and scenarios on per capita income growth, to evaluate alternative scenarios for future growth in demand for grain legumes. The results indicate that market demand is likely to support the widespread adoption of grain legume cropping systems in Malawi. Total direct demand for legumes is projected to rise between 3.5% and 6.3% per year, driven by growth in real per capita incomes. The growth prospects for different grain legumes vary, with soybean demand projected to rise strongest, followed by pigeon pea or groundnut, depending on export performance. Cowpea's longer-term growth prospects are limited unless new food processing strategies are developed to make intensive use of this crop. The research team identifies three key implications of this work for meeting the challenge of achieving total production growth to keep up with projected demand: continued efforts to reduce aflatoxin contamination in groundnut, assistance packages for small and medium food processors, and identification and testing of small-scale food processing technology. Women play a significant role in Malawi's post-farm agrifood system, but are mostly confined to small-scale retail trade that generates low daily returns. The research team recommends promoting the entrepreneurial capacities of women to grow their businesses, add value to their products, and increase their earnings while providing more jobs to other Malawians. The Global Center for Food Systems Innovation (GCFSI) is encouraged to fund a local team to carry out an inventory of the food processing sector and design a programmatic design study to result in proposals for concrete programmatic initiatives for piloting, adaptation, and eventual scaling.