Informal and unstructured market opportunities for groundnut value chain development in the Central region of Malawi

First release: April 9th, 2024

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This research policy brief provides an insightful analysis into the groundnut sector in Central Malawi, where interviews with 444 groundnut farmers and 160 traders shed light on market access and practices in relation to the country's agricultural diversification objectives. The findings indicate that shelling and grading groundnuts leads to higher prices, a practice more common among traders than farmers. Additionally, it highlights the efficient functioning of informal groundnut markets, cautioning against the imposition of overly restrictive regulations which could stifle growth. The brief also emphasizes the potential benefits of educating farmers about market incentives for quality, which could enhance their output and income. However, it notes the increased risk of aflatoxin contamination with shelled groundnuts, suggesting a need for improved shelling facility designs to address this issue. The study ultimately underscores the importance of aligning farming practices with market demands to bolster the groundnut sector in Malawi."