Determinants of Participation in Value Addition Activities Among Farmer Groups in Ntchisi District, Malawi

Abstract

This research is based upon work supported by the United States Agency for International Development, as part of the Feed the Future Initiative, under the CGIAR Fund, award number BFS-G-11-00002, and the predecessor fund the Food Security and Crisis Mitigation II grant, award number EEM-G-00-04-00013

Abstract

The study was carried out to better understand the determinants of the decision to participate in value addition among the beneficiary and non-beneficiary groups of Deepening Enterprise Development (DED) in Ntchisi District, Malawi. Data was collected from 100 farmer groups. Results indicated that location, project participation, type of farming enterprise, number of enterprises and gender composition significantly influenced the farmer’ decision to engage in value addition. The study, therefore, recommends that development strategies should focus more on implementing initiatives that encourage and support farmers to engage in value addition activities. Stakeholders should also help in creating an enabling environment to improve smallholder farmers’ participation in advanced levels of the livestock value chain. Furthermore, stakeholders should encourage farmers to engage in a vertical form of diversification by adding value to their commodities rather than a horizontal form of diversification that requires advanced management capabilities.

Keywords: Value addition, Deepening Enterprise Development, probit model, Malawi.