ICRISAT News

Figure: Goat auction in Malawi

A pilot study led by ICRISAT proves that developing efficient goat value chains lead to better rewards for farmers by increasing their market knowledge and bargaining power.

Amongst the many interventions, goat sale auctions fetched on average a 6% higher price than those sold through conventional market sales that often do not pay off the cost of feed. The study was for the CLIM2 project implemented in Southern Malawi, where half the country’s poor people live on farms less than one hectare.

“The project has built the confidence of farmers and economically empowered farmers and off-takers such as butchers and vendors through higher profits from goats,” Mr Madalitso Ngombe, Agribusiness Officer, Balaka district.

Benefits for farmers

In Southern Malawi, every third household owns goats amidst extremely high pressure on land and limited alternative sources of income. Highly prolific at relatively low labour cost, goats are an attractive capital, particularly for women and youth.

Higher sales of goats at higher prices translated into increased household income and changing lifestyles among farmers in Malawi, while goat meat consumption contributed to improved food and nutrition security.

Goats are important for the resource-poor to balance grain price fluctuations. Highly variable grain prices impoverish the poorest who are not food self-sufficient. Goat prices, in comparison, are more stable and they are like liquid assets that can be quickly converted to cash, which cushions farmers against grain price fluctuations. However, many still follow traditional principles in raising and selling goats.

Win-win for farmers and buyers

Establishing goat auction sales centres equipped with goat sales pens and portable digital weighing scales and owned by community-based MSMEs, added positive impetus, strengthening their capacity to sell more goat products of higher quality. At initial auction sales, buyers competed for good quality goats, which sold faster. This gave farmers insights into the type of goats the market wants and the price they can expect. Farmers appreciated the transparent price setting and buyers found quality products easily and at reduced transport costs when normally they would spend time and resources searching for goats at farm gates.

See https://pressroom.icrisat.org/goat-auction-sales-increase-farmers-agency-and-incomes-in-malawi