USAID Cooperative Development Activity 4: Our Impact in Malawi

2018-2023

Abundant Food, Unlimited Potential.

On the Cover:

Bright Jeke, a young dairy farmer, feeds his cow. Bright participated in Cooperative Development Activity 4 training sessions through his cooperative, which taught him how to better manage his small dairy farm and helped him gain a leadership position. As president of his cooperative’s youth chapter, he’s inspiring other young people to get involved in the agriculture sector.

Photo credit: Digital Footprints Multimedia

About Land O’Lakes Venture37

Land O’Lakes Venture37 is a 501(c)(3) non-profit committed to helping communities around the world thrive through agriculture. Affiliated with Land O’Lakes, Inc., Venture37 has more than 40 years of experience implementing agricultural development projects in more than 80 countries around the world. Venture37 strengthens economies by improving local agriculture, helping agribusinesses create jobs and linking farmers to markets. It delivers integrated solutions that help build and improve food and agriculture systems through more competitive markets, more resilient systems, healthier and more nutrition-secure communities, and more inclusive societies.

About USAID

USAID leads international development and humanitarian efforts to save lives, reduce poverty, strengthen democratic governance, and help people progress beyond assistance.

The USAID Cooperative Development Activity 4

About the Activity

The USAID Cooperative Development Activity 4 (CD4) is a five-year activity implement in Lebanon, Malawi, and Rwanda by Land O’Lakes Venture37. Since 2018, CD4 has increased the performance of cooperative enterprises to enhance the livelihoods of their members, with a focus on promoting inclusive and resilient cooperative organizations. It also strengthened research and learning efforts in the cooperative development sector.

In Malawi’s central region, CD4 worked with eight cooperatives and four apex organizations in the agriculture sector. It provided coaching services in financial management, business development, governance, and leadership. It also provided in-kind and financial support to apex organizations to help them efficiently support their cooperative members. CD4’s cooperative development efforts ultimately led to increased revenues, more inclusive practices, and stronger food systems.

What is an Apex Organization, and Why are They Important?

An apex organization is an umbrella organization that supports and advocates for its primary cooperative members. In Malawi, cooperatives are recently organizing themselves to form secondary cooperatives in the form of unions. In turn, those secondary cooperatives can join the national-level apex organization, Malawi Federation of Cooperatives (MAFECO), which unites cooperatives from across the country. Malawi’s apex organizations are especially critical for people that work in agriculture, because the industry makes up such a large part of the country’s economy. As of June 2022, Malawi had 1860 registered cooperatives and an additional 170+ groups that were trained to be registered as cooperatives. Malawi has 13 cooperative unions, eleven of which are in agriculture value chains.

Associations like the Central Region Milk Producers’ Association are helping to shift farmers’ mindsets to cultivate local ownership. Association Manager Andrew Chimalizeni explains: “This is your business. With or without us, you should be able to use the knowledge we are imparting to your organizations and be able to grow... We are here as your business partners.”

We are here as your business partners - Andrew Chimalizeni

OUR APPROACH

Business Performance

Providing coaching services to cooperatives, equipping them with knowledge and skills to run their businesses profitably and efficiently.

Enabling Environment

Strengthening apex organizations as they support and advocate for their members while encouraging networking and harmonization of cooperative development efforts.

Learning and Dissemination

Conducting research on various sticking points with Malawi’s cooperative development sector and disseminating research findings, including potential solutions.

From top to bottom: Chimwemwe, an assistant veterinary officer (AVO), and members of Mpalo Cooperative stand by a machine that was purchased with support from a regional dairy association (CREMPA); Nsaru Cooperative members welcome guests in front of their collection center; Herbert Chagona, Executive Director of Malawi Milk Producers’ Association explains how the dairy sector in Malawi has evolved over the years.

Mariam is chairperson of Mpalo Dairy Cooperative. She says,

“With the activity’s support, I learned how to run the cooperative with full confidence as a chairperson.”

BY THE NUMBERS BY THE NUMBERS

Highlands Macadamia Cooperative

Union Limited represents macadamia cooperatives in Malawi. An employee from the union cracks the shells of macadamia nuts.

Our Outcomes

>> Boosting Revenues

Through our coaching sessions, cooperatives also learned how to diversify their businesses to increase their revenue and how to successfully apply for grants and other funding opportunities.

>> Driving Inclusion

Throughout its activities, CD4 prioritized the inclusion of women and young people. Through these efforts, it fostered a sense of belonging among cooperative members, helping them feel valued and respected while attracting more members. Among the cooperatives we worked with, women represented 68 percent of members, and youth represented 18 percent.

>> Promoting Food Security

By linking cooperatives with better markets and inputs, CD4 helped cooperative leaders take advantage of their lead farmers to start offering extension services to their members. For example, at Gwengwere Horticulture Cooperative, members were able to access extension services that increased the production of soybeans and ground nuts.

>> Integrating Sustainable Agriculture

CD4’s platform and its partners increased the adoption of sustainable agriculture practices by encouraging cooperatives to transition to more sustainable, inclusive, and socially responsible farming methods. At Mpalo and Mwaiwathu cooperatives, for example, members leveraged the cooperative platform to share knowledge in farming methods. This not only benefits the cooperative members, it also contributes to a more resilient agricultural sector.

SUCCESS STORY SUCCESS STORY

Bright Prospects: Inspiring the Next Generation for Careers in Agriculture

In Nsaru, Malawi, a 28-year-old farmer named Bright owns a small dairy farm. His name reflective of both his smile and his vision: it’s clear that he’s already very comfortable with his dairy farm, including feeding practices, hygienic milking, and documenting milk production — and he wants to expand his business.

As a member of the Nsaru Dairy Cooperative, Bright has already begun to reap the benefits of membership. He has learned about leadership, business skills, and financial management through CD4 coaching sessions. He says, “With these skills, I’m now able to treat my farm as a real business… I’m able to profit in one area of my farm, like dairy, and use that income to invest in another area of my farm, like soya.” He explains that he is spreading the word to other young people, and that the income he makes is more than he would make in other careers.

Unlocking Financial Opportunities

After receiving coaching from CD4, Bright’s cooperative has seen greater access to markets, better financial management, and a stronger understanding of business development. These changes have helped instill confidence in many young people, besides just Bright. Nsaru Cooperative’s chairperson Daniel Chapota explained how these coaching sessions have helped them unlock new financial opportunities: including applying for and securing grants. They recently secured a grant for approximately $76,000 USD from AGCOM, which the cooperative used to purchase new cows, upgraded its solar system for its cooling tank, purchased machinery for cow feed, and started to construct a new warehouse. These changes are attracting more and more youth to join the cooperative: the cooperative now has 75 young members – a stark contrast to when the cooperative was first registered and had no young members at all.

Bright Jeke milks his cow. He is one of the young members of Nsaru cooperative who benefited from CD4 coaching.

SUCCESS STORY SUCCESS STORY

In A Nutshell: Cooperative Development is Supporting Macadamia Farmers in Malawi

Macadamia nuts are notoriously tough to crack. True to form, getting started in the macadamia business is also no easy feat: farmers need to put in at least five years before the trees start bearing fruit. Still, macadamia farming is a profitable venture in the long run for farmers in Malawi, where the industry is rapidly growing.

In Malawi’s Ntchisi district, the activity partnered with macadamia farmers from a cooperative called Chikwatula and a regional union for macadamia unions called Highlands Macadamia Cooperative Union Limited (HIMACUL) to solve some of these challenges.

Catalyzing a Fair-Trade Accreditation

Notably, participating farmers are now selling Fair Trade macadamia nuts via their macadamia union, HIMACUL. Ken Mkangala, the union manager, explained that they were able to secure the Fair-Trade certification through training and financial support from CD4, and that it will be critical for the farmers they represent: “With this [certification], farmers are able to get stable prices and Fair-Trade premiums.” The stability offered by this new certification guarantees that member farmers will receive fair prices for their goods, despite any market volatility. The certification also guarantees that participating farms are adhering to environmental standards, which is encouraging farmers to take up eco-friendly practices.

Indeed, the farmers are learning eco-friendly practices through their union, CD4, and their national-level umbrella organization, the Malawi Federation of Cooperatives (MAFECO). MAFECO, for example, is teaching farmers like Wellinghton how to produce organic fertilizer on their farms through various techniques. On a visit to Wellinghton’s farm, he explained how these training sessions have helped him take a holistic, sustainable approach to macadamia farming and demonstrated how he uses the green shells from his harvest to produce organic fertilizer to propagate his various crops.

Propelled by partnership efforts at the local, regional, and national levels, these changes are instilling confidence in Malawi’s macadamia farmers and offering them the opportunity to invest in their futures.

Mtisunge Nkhoma (banner photo) and Wellinghton Kapakasa (above) are two of the young macadamia farmers who have benefited from CD4 coaching through their cooperative.

CONTACT US

Kari Onyancha Chief of Party; Land O’Lakes Venture37

kmonyancha@landolakes.com

Deborah Kafanikhale

Cooperative Development Manager; Land O’Lakes Venture37

dkafanikhale@landolakes.com

Benson Kasekera

Cooperative Development Specialist; Land O’Lakes Venture37

bkasekera@landolakes.com