In its first year, CDI's warehousing program will accept and store up to 500 metric tons of maize, soya, and groundnut from smallholder farmers.

CDI identifies business opportunities along agricultural value chains that will create opportunities for farmers. CDI is currently developing two agribusiness projects in Malawi: Warehousing and Moyo Nuts & Seeds. In its first year, CDI's warehousing program will accept and store up to 500 metric tons of maize, soya, and groundnuts from smallholder farmers. During its first year of operation, Moyo sold 25 metric tons of groundnuts to Krestral Foods Limited in Ireland, marking Moyo’s first sale to the European market. Moyo Nuts & Seeds generated more than $1.5 million in groundnut sales and created 30 jobs for smallholder farmers in 2016.

Warehousing

Smallholder farmers are constrained by the seasonality of their agricultural income and inadequate post-harvest storage. As a result, crops are stored in farmers' homes where insects, rats, mold, and moisture can easily result in high crop loss. Additionally, high interest rates, lump sum payments, or other emergencies force farmers to sell when prices are lowest. CDI is addressing the need for post-harvest storage by building and operating community grain bulking centers. These community warehouses will provide safe and secure crop storage; allow farmers to monetize their harvest at strategic times in the year; provide access to cash year-round through warehouse receipts; enable farmer organizations to aggregate larger volumes, improving leverage with buyers; and serve as collateral against bank loans, providing additional security to lenders. In the first year, the warehouse will accept maize, soy, and groundnut from approximately 2,000 smallholder farmers. Upfront and ongoing training will be provided to staff to ensure that crops are properly stored, accurately graded, and conform to export quality standards.

 

Moyo Nuts & Seeds

In 2014, CDI formed a joint venture with Moyo Nuts & Seeds to develop the groundnut value chain and a modern, integrated, and efficient groundnut growing and processing operation in Malawi. The project seeks to initiate local production of quality seeds, production of quality commercial and edible product, and marketing of products locally, regionally, and internationally. Moyo is a joint-venture with Canon Garth Limited, a global leader in peanut breeding, handling, and marketing.

In the first year of operation, Moyo Nuts & Seeds trialed eight new varieties of groundnuts and purchased more than 600 tons of groundnut from smallholder farmers. CDI field officers integrated groundnuts into their training for smallholder farmers, teaching improved climate-smart practices to increase production.