Subsidies and Vulnerability: The Paradox in the Malawi FISP

Betty Chinyamunyamu

Presentation Outline

• Contextual background• Research objective• Research methodology• Findings• Conclusions• Policy recommendations

Contextual Background

• Since the global food crisis, debates on the role of Farm Input Subsidies in addressing food insecurity intensified

• The Malawi FISP has attracted research and policy interest

• While considered a successful food security intervention, many questions raised on efficiency, targeting, graduation etc.

• Questions also on its gender impacts

Research Objective

• To analyse how the food security and income status of female farmers belonging to different household types have been affected by the FISP

• Particularly relevant because– Agriculture becoming more feminised (over 95 % of

women in Malawi involved in agric)– Evidence from previous studies that FHH had lower

access to the FISP and when they did, received lower volumes than MHHs

Research Methodology

• Mixed research methods – triangulation of quantitative with qualitative methods

• Research areas – Mzimba, Mchinji and Mangochi– Key maize and groundnuts growing areas

• 540 individual interviews– De facto Female Headed Households– De jure Female Headed Households– Male Headed Households

• 28 key informant interviews• 18 Focus group discussions (10-15 male and female

farmers)

Key Findings

• Demographic factors highlighted the extent of vulnerability for FHH (esp. de jure FHH) for agric. Production– Had less labour (due to missing or absent man)– Highest illiteracy rates – Owned less livestock than MHHs– More de jure FHHs older than 60 years of age– Owned less land than MHHs

Land ownership by household type

Household type Mean N Std. Deviation

De facto FHH 2.00 180 1.28

De jure FHH 2.05 180 1.39

Male HH 2.72 180 1.59

Total 2.26 540 1.46

Livestock ownership by household type

• Increased maize output for all hholds groups due to FISP

Avge Maize Prodn output by hhold typeM

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FHH produced less maize than MHHs

Household type Mean N Std. Deviation

De facto FHH 639.08 180 683.21

De jure FHH 567.50 180 515.53

Male HH 894.19 180 734.32

Total 700.26 540 664.87

More de jure FHHs sold a higher proportion of their maize output

• For both groups of FHHs, FISP-recipients sold more maize than non-recipients, but the opposite was true for MHH– De jure FHHs (28 kg vs 8kg)– De facto FHHs (33 kg vs 21kg)– MHH (32kg vs 34 kg)

FHHs had a lower access to formal markets than MHHs

FHHs had lower production of other cash crops

Household type Mean N Std. Deviation

De facto FHH 125.38 180 169.01

De jure FHH 123.93 180 145.88

Male HH 171.53 180 183.79

Total 140.28 540 168.11

Groundnuts production by household type

MHHs sold a higher proportion of their groundnuts than FHHs

• Groundnut sales by household typeHousehold type Mean N Std. Deviation

De facto FHH 49.62 180 97.73

De jure FHH 41.86 180 84.29

Male HH 72.63 180 114.10

Total 54.70 540 100.13

More FHHs bought supplementary maize compared to MHHs

Conclusions• Although at a lower level than MHHs, FISP-recipient

FHHs were also able to benefit from increased maize production output

• However, their vulnerability leads to different responses compared to MHHs

• Increased (altho inadequate) maize output considered a source of much-needed cash

• Result: More FHHs selling maize for cash– Mainly during the harvest period (low prices)– Their low output however leads to a need to buy more

maize during the lean months (higher prices)

Policy Recommendations• FISP benefits of increased output are lost due to lack

of reliable and structured markets for maize and other crops in remote areas

• Need to enforce minimum prices –– ADMARC to be supported to operate in very remote areas– ADMARC to go into the market early to counter practices

of some unscrupulous informal traders (vendors)• Need to increase support to other cash crops (soya,

gnuts) to reduce desperate maize sales• Need for complimentary support in extension

services to increase productivity

Thank you for your attention