Smallholder farmers' market participation and mobile phone‐based market information services in Lilongwe, Malawi

TLDR

Technology‑based systems are increasingly explored to empower African farmers, yet knowledge of prices alone does not ensure market participation, especially when buyers set prices and transaction costs are high, leaving farmers without alternative markets unable to improve outcomes. The study investigates how mobile phone‑based market information services affect maize market participation among smallholder farmers in Lilongwe, Malawi, and proposes coordinated initiatives among stakeholders to enhance market access. The results show no clear evidence that mobile phone‑based market information services drive market participation, but they highlight that enhancing extension services, boosting productivity, and integrating radio and mobile channels with production information could better promote smallholder farmers’ market engagement.

Abstract

Abstract There has been growing interest in the development of technology‐based systems to empower farmers in Africa. This paper determines the effect of mobile phone‐based market information services (MIS) on farmers' decisions to participate in maize markets in Lilongwe, Malawi. The study reveals insufficient evidence to suggest that the MIS influence farmers' market participation decisions. Knowledge of prevailing prices may not necessarily guarantee farmers market participation, especially when buyers determine market prices and transaction costs are high. Consequently, farmers with no access to alternative markets fail to improve their marketing outcomes. The findings suggest that channelling government's resources towards improving extension services and increasing farmers' productivity are ideal ways to promote the participation of smallholder farmers in agricultural markets. The findings also underscore the need to integrate radio and mobile phones in agricultural MIS and to provide farmers with information related to agricultural production in addition to market prices. These recommendations could be realized through better coordination of market access initiatives involving smallholder farmers, government departments, NGOs, mobile network operators, and media houses.