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Agricultural Diversification and Commercialization of Smallholder Farming in Malawi: Extent, Drivers, Impacts and Policy Options

First release: February 25, 2025

Agricultural diversification and commercialization are widely seen as effective strategies for increasing household income, reducing poverty, and improving food and nutrition security. Our study examined the levels, drivers, challenges, and impacts of agriculture diversification and commercialization in Malawi using Malawi Rural Agricultural Livelihoods Survey (MRALS) data collected in 2019 and 2024. 

The findings indicate that while the level of diversification among farmers is moderate, there has been a decline in diversification between 2019 and 2024, potentially impacting farm resilience and resource allocation. Moreover, the study reveals significant variation in the level of commercialization among small-scale farmers in Malawi, with an average increase from 27% in 2019 to 35% in 2024, signifying progress towards more market-oriented farming practices. In light of these findings, the study offers policy options aimed at enhancing agricultural diversification and commercialization among smallholder farmers in Malawi, including expediting the development or finalization of the agricultural diversification strategy. 

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Photo Credit: Yohane Chideya

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