The case study analysis of the Universal Farming and Milling Limited's inclusive business project on High Quality Cassava Flour (HQCF) reviews the project's pioneering smallholder engagement model. It highlights the key lessons learnt in developing an inclusive model for a low-value crop (cassava). This includes using a different farmer engagement model with limited intermediaries.
Main findings
- The case study review notes that innovation in forms of engagement with the farmers is an important feature of the project as in Malawi, buyer-seller relationships are informal and based on trust as compared to traditional contract farming.
- Direct engagement between the company and smallholders also increases the potential for developing entrepreneurial capabilities among farmers.
- In the absence of a commercial/formal market for cassava, finding a correct pricing model was a challenge. The project could benefit from more rigorous assessments in order to establish greater commercial viability.
- The review stresses that farming engagement models that work for high-value cash crops such as tobacco, potatoes cannot be applied to cassava.
Intervention description
The project includes sourcing of raw cassava from poor, marginalised smallholders which is processed into a high value flour product. It also minimises the role of intermediaries like NGOs, informal traders which play a greater role in traditional farming models in Malawi. The project helps to reduce reliance on wheat imports and increase exports for the company while developing smallholder farmers market linkages, access to business training and a secure source of income.
Evidence methodology
- The case study involves primary and secondary research. Primary research included semi-structured meetings with relevant stakeholders as well as two focus group discussions. Secondary data included BIF reports (baseline reports, progress reports, project deliverables), World Bank databases, C:AVA website and academic papers.
- The case study Identifies internal and external factors influencing the project and analyses the value chain along with a review of the partnerships before noting the results, impact and lessons from the pilot project.
Useful for:
Inclusive Business projects with smallholder farmers in agriculture.