Thyolo dairy farmers level up

Every morning and evening, farmers converge on the outskirts of Goliati Trading Centre in Thyolo, where buckets of fresh milk are offloaded into a system that forms the backbone of a growing rural enterprise.

At Mwala Wolemba Milk Bulking Group in Traditional Authority Chimaliro, milk is weighed, recorded and pooled into a cooling tank before being collected by Lilongwe Dairy.

The daily routine is simple, yet it supports 219 farmers working together as an organised dairy business.

The group began as a small bulking arrangement supplying milk to a private company.

“A programme approached us and asked us to find a place where we could construct a dairy facility. The project was completed in 2012,” Emmanuel Vimbani, a member of the group, says,

Since then, the group has evolved into a structured enterprise. Members deliver milk individually, but all volumes are measured and recorded centrally.

Payments are made according to each farmer’s contribution after sales, a system that has strengthened transparency and trust.

Vimbani says dairy farming is now viewed as a business rather than subsistence farming.

“We also buy cattle feed as a group and engage in village loans and savings schemes to sustain our livelihoods,” he says.

Collective input purchasing and savings schemes have helped members stabilise incomes while expanding production.

Support from the Agriculture Commercialisation Project (Agcom) has further accelerated growth.

The current support falls under Agcom Phase 2, funded by the World Bank and other development partners following what authorities describe as the successful implementation of Agcom 1.

The programme aims to scale up agricultural commercialisation and strengthen value chains for smallholder farmers.

Under Agcom 2, the group has been awarded a K282 million grant to expand production through the purchase of 130 dairy cattle and the construction of improved kraals.

The first tranche has already been released to buy 65 head of cattle, benefiting half of the 130 members who signed up for the support.

“We applied to Agcom after seeing the call for proposals. We requested support to increase the number of dairy cattle. The first tranche has already been disbursed,” Vimbani says.

Members also contributed their own resources to meet project requirements, both financially and in kind.

“We met the required in-kind contribution and are committed to meeting the requirements for the remaining tranche because everyone is determined to see us succeed,” Vimbani says.

Despite rising production, the group faces low milk prices caused by oversupply and limited demand.

Earnings have come under pressure, forcing members to rethink their long-term direction.

“We are now focusing on value addition as a long-term solution. We are planning to establish processing facilities, including cooling and manufacturing equipment, to reduce reliance on raw milk sales,” Vimbani says.

Edna Phwete joined the group after initially farming tomatoes and gradually investing her earnings in livestock, which eventually led her into dairy production.

“We bought a bull, sold it and bought a cow. That was the beginning of our dairy farming,” Phwete says.

She says participation in village savings and loans schemes has further strengthened household finances.

Although the group is not yet formally registered as a cooperative, Phwete says Agcom-supported training has prepared members for that transition.

“With this training, we hope to improve our family welfare. The cows will boost our venture,” she says.

Phwete is already preparing for expansion and stresses the importance of proper feeding to maximise milk production.

“I have experience and I will do more to feed the cow because it can only produce milk according to how well it is fed,” she says.

Dairy farming has also brought added benefits, including improved household nutrition and the use of manure in crop production at a time of rising fertiliser costs.

According to Phwete, manure has become especially valuable as chemical fertiliser prices rise beyond the reach of many farmers.

Ministry of Trade Cooperative Development Officer Henry Chimpesa, who led a training session for the group, says members are being prepared for registration as a cooperative.

The programme focused on governance, operations and cooperative law.

“They should understand what it means to be a cooperative member, how a cooperative operates and how it is established,” Chimpesa says.

The training also covered cooperative structure, members’ rights and responsibilities and legal frameworks, including the Cooperative Act, regulations and by-laws.

He says that although the farmers are already organised for milk bulking, they need proper preparation before formal registration.

Registration will give the group legal standing, allowing it to enter contracts, own assets and access wider institutional support.

“To attain the legal capacity to enter binding agreements with buyers and suppliers, they need legal entity status through registration,” he says.

The group’s secretary, Phillip Kaliwo, says the training has strengthened discipline and cooperation, particularly in financial management.

“We are also learning how to co-exist because we are dealing with money and money issues can be sensitive,” he says.