Rice is one of the most common products in Malawi. Rice is the second staple food of the country. OVOP is supporting the production of good quality and well packed rice. The rice is tasty and aromatic.

Our Main Products

Group Information

[Support from OVOP/JICA]
A rice mill and a sealing machine (MK521,000 by JICA, MK341,000 by the Association)
[Support from Other Organizations]
A government property - a warehouse - was transferred to the Association.
[Contribution by members]
Membership fee: MK250/year; Water fee: 5,000 / ha x 2 times/year. Members will be forced to leave if they do not pay the fees.
[Support by District Assembly]
Irrigation scheme manager visits the association every week.
[Background]
The water scheme was constructed in 1970s (204ha) and was expanded by Taiwanese assistance to 265 ha. In 2002, based on the government’s decision to transfer the water scheme to a farmers’ group, IFAD facilitated the formation of an association and encouraged the association to register at Registrar General as trustees.
Under the support of OVOP and the Ministry of Industry and Trade, the milling section of the Association has initiated the procedure of forming a cooperative, intending to separate profit-making activities from the Association (not-for-profit).

Strength and Opportunities

[Human Resources]
The Executive Committee exercises the leadership in all activities of the association.
[Materials]
Although the account of membership fee/ water fee and that of the rice milling are separate, the Association can borrow money from the former account as a capital to buy paddy rice from members (Materials are purchased only in cash).
[Production]
The mill has capacity to process a large quantity of rice: 1 to 4 tons per day. (milling price: MK40/15kg, package material: MK4.5/kg) Total sales of the rice mill was MK 79,000 in June.
[Market]
The Association's rice is still cheaper than its competitors (NASFAM and Ademac: MK250/kg).
[Quality Control]
In purchasing paddy rice, members of the marketing committee check the materials, including moisture level.

Challenges

[Materials]
There is competition in procuring materials. Member farmers are selling paddy rice, in cash, to vendors, Nasfam (totally 76 mt in June to July) and Ademac (61mt).
[Product]
The Association claims that the price (MK180/kg) is not sufficiently high to increase the capital; it constitutes the major constraint in increasing the production.
[Production]
Since it takes time to collect money from OVOP, the Association cannot increase the production.
[Waste]
Husks are mostly burned; the Association wishes to learn the way to utilize husks.
[Distribution]
The Association does not have direct marketing channels, but is dependent only on OVOP and trade fairs.
[MBS]
Although the factory is under the process of MBS accreditation, the factory is not equipped with toilets (no water connection), store rooms for the raw material and milled rice, etc.
[Infrastructure]
The destoner has never been operated because there is no technician. There is no minibus to the main road.