Non-Industrial Sugarcane Value Chain Analysis in Zombwe Extension Planning Area, Mzimba North, Malawi

Abstract

Non-industrial sugarcane production sector in Malawi is under-researched and under-developed with limited support. This study used a value chain approach to map the non-industrial sugarcane value chain in Zombwe Extension Planning Area in North Mzimba, Malawi to identify key actors, relationships and constraints in the chain. Multi-staged sampling technique was used to sample the study respondents and a structured questionnaire was used to collect data from 153 non-industrial sugarcane value chain actors. Qualitative data were collected through two focus groups discussions (FGD) and analysed using a value chain flow chart. Descriptive statistics and functional and regression analysis were used to analyse the data. Results indicated that production, selling and consumption are key processes in the non-industrial sugarcane value chain. The actors in the value chain were producers, retailers and consumers who participated in the two channels of the value chain. Both channels start with producers and end with domestic consumers. The results have shown that the major constraints of producers were access to credit and extension services while the major constraints of retailers were transportation, access to credit and price fluctuations. Age, education level, land accessibility and credit accessibility are significant determinants of non-industrial sugarcane production (yield). The study recommends that non-industrial sugarcane producers and retailers be supported to access credit available through the government and other financial institutions. We recommend that extension services should include producers to improve the non-industrial sugarcane value chain. The paper will help policymakers and decision-makers identify potential areas for intervention towards the commercialisation of the non-industrial sugarcane value chain.