MALAWI: Incentive Based Contract Farming in Malawi


The National Smallholder Farmers Association of Malawi (NASFAM) supports more than 100,000 members across 60 associations. NASFAM, the GIZ programme KULIMA More Income and Employment in Rural Areas of Malawi (KULIMA MIERA) and the UK-funded PROSPER Markets project set up an incentive-based contract farming scheme with over 4,500 farmers in Karonga in Malawi’s Northern Region. The scheme aims at keeping up a continuous supply of high-quality Kilombero rice to processor and markets while increasing members’ compliance and providing them with improved service packages. The contract farming scheme incentivises farmers to produce the desired quality and quantities of rice. To qualify for participation in the contract farming scheme, farmers must be an active NASFAM member, have a minimum of one acre of land, and use System of Rice Intensification planting methods.