Abstract: While smallholder farming has been and remains at the center of agricultural transformation efforts in Malawi, the limited success of smallholder-centered agricultural development strategies has led policymakers to explore alternative approaches. One emerging approach involves larger farms or agribusiness firms partnering with smallholder farming households, in what we will refer to as an anchor enterprise model. Under this model, smallholder farming households contribute land and labor to produce crops or livestock products that serve as inputs for, or are marketed jointly with, the anchor enterprise. In return, the anchor enterprise provides support such as technical assistance, inputs, transport, or storage. This partnership is intended to be commercial and mutually beneficial. While support for such partnerships is growing and the anchor enterprise model is increasingly being used in development programming in Malawi, there is still little clarity on what they involve, what they aim to achieve, and the conditions they need for success. This study seeks to address these questions and assess whether such linkages between larger farms or agrifood processors and smallholder farming households can contribute to sustainable, resilient, and inclusive wealth creation in Malawi. The findings from this study are also summarized in a policy note (Benson, Cockx, and De Weerdt, 2025).

Authors: Todd Benson, Lara Cockx, Joachim De Weerdt

Read and download the working paper here (PDF 289 KB)

https://hdl.handle.net/10568/182535

Related publication:

• Policy Note 54: The development potential of anchor enterprise models in Malawi (PDF 299 KB)