Malawian farmers have been asked to start embracing cooperatives forums in a bid to attract multinational companies’ needs for quality produce and expansion of selling markets, which is a recipe for the country’s economic growth.
The Kenya’s Cooperative Insurance Company (CIC) Chief Executive Officer (CEO), Nelson Kuria made an appeal to the just ended two-day Farmers Union of Malawi (FUM)’s 2015 Farmers Policy Conference which was held on August 11-12, 2015 in the capital Lilongwe, aimed atlinking farmers to structured and profitable markets for their production.
With the theme titled, “Farming for Markets and Development: Linking Farmers to Structured and Profitable Markets”, the conference attracted local and international participants including heads of insurance companies, banking, agricultural produces buyers, , media, government officials and farmers among others.
In an exclusive interview with The Maravi Post, Kuria expressed optimism towards the country’s farmers of getting huge produces’ proceeds through embracing cooperatives in their endeavours of agricultural production.
Kuria emphasized the need for Malawi to put in place cooperatives legal instrumentals for harnessing farmers’ ability to produce more with profitable markets in the same way Kenyan Coffee farmers cooperative was making big in European and American markets.
“Cooperatives have proven to be a strategic way of getting profitable markets for African farmers as they advocate one thing with agricultural produces buyers. If farmers operate on their own, it’s a recipe for exploitation from multinational buyers who dictate produces’ prices.
“For instance, Kenya Coffee Cooperative Exporters is making a head way on international markets including Europe and America as farmers are fetching more proceeds than the time were operating individually, such that the same can work in Malawi.
“However, there is a need for the country to have legislations in place on cooperatives for smooth running of all business transactions which farmers might take in various field of production to avoid any exploitation from misguided produces buyers”, urges Kuria.
Echoing on the same, Prince Kapondamgaga Farmers Union of Malawi (FUM) Chief Executive Officer (CEO), said cooperative facilitate commercialization of agriculture such that Malawian farmers must learn from their counterparts in Kenya which will enhance the country’s economic growth through forex returns proceeds.
“There is evidence that organizing smallholder farmers into functioning cooperatives will facilitate commercialization of agriculture, a necessary step towards inclusive growth. Farmer cooperatives’ are the vehicle of growth to enable smallholder farmers reduce transactional costs by operating at economies of scale.
We have observed that recently, many developing partners interest the cooperative developing agenda.
“There’s a need to move from supply driven cooperative approach to much more closer collaboration between the Ministry and players in the cooperative sector where the ministry plays the role of an enabler.
Extra efforts are required to ensure that agricultural cooperatives in Malawi thrive. But, there is need for policy actions that support their growth and development.
“Therefore, FUM is requesting the Malawi Government to consider removal of the 3 percent withholding tax on smallholder food produce which only applies to organized farmers that market their food produce collectively.
Such an application is seen as a disincentive and counters the efforts that we are making in organizing farmers”, appeals Kapondamgaga.
Dr Allan Chiyembekeza, Minister of Agriculture, Irrigation and Water Development however assured Malawian farmers of government commitment to fast track formulating of policy and legislation on cooperatives.
