The efficiency of smallholder agriculture in Malawi
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This paper analyses Malawi’s smallholder agricultural efficiency, using a nationally
representative sample survey of rural households undertaken by the National Statistical
Office in 2004/2005. It aims to inform agricultural policy about the level and key
determinants of inefficiency in the smallholder farming system that need to be addressed
to raise productivity. The study found that the factors that improve efficiency are higher
output prices relative to input costs, favorable commodity and input markets, farmers’
organizations, extension, productive assets, and the quantity and productivity of
household labor. The wide range of inefficient practices suggests there is considerable
scope for improving efficiency in the smallholder sub-sector. The paper concludes with policy implications that highlight ways to achieve this goal.