A business solution to address the challenges facing farming households.
SPRODETA Agribusiness
SPRODETA Agribusiness is a business solution that we are working on with our local partner SPRODETA to address the challenges facing farming households.
Most people in Malawi live in rural areas and survive by growing their own food — mostly maize, rice, cassava and beans — perhaps producing something extra to sell.
There are a lot of challenges facing farmers and most struggle to make ends meet — it is common for households to experience a period of hunger for a few months before harvest time.
Incomes are low, so parents and carers struggle to provide for the needs of their children like safe housing, clothing, medicine and school fees.
How does this business help?
Fair prices — When smallholders produce a surplus to sell, they tend to have little bargaining power and end up selling at poor prices. We offer farmers a fair price before they have even put a seed in the ground, giving them peace of mind and motivation to grow great produce.
We currently purchase produce from 318 farmers, and this number is growing all the time.
Knowledge gaps — Many farmers lack the skills to produce high yields and grow nutritious crops that fetch higher prices. To combat this, the company employs trainers who help farmers produce quality, marketable produce.
Transport — Many farmers live in remote areas with poor road infrastructure making profitable markets inaccessible. To overcome this, we we collect produce from farmers.
Finance — Farmers require access to credit to scale up operations and a place to deposit proceeds in safety. The communities we work in are unbanked by formal institutions. In many cases we help farmers to establish Village Banks, where members can save their money and access loans.
Inputs — Seeds can be hard to access, so the business provides seeds as a loan to farmers at the start of each season. This also ensures that farmers are growing the produce that we want to buy. In many cases we also provide livestock as part of pass-on schemes. The animals provide essential nutrients for healthy soil and plant growth.
