Study cautions ADMARC funding (The Nation)

The Nation (Malawi) published an article on the ADMARC (Agricultural Development & Marketing Corporation), a government-funded program, and the findings from the IFPRI book, Disentangling subsistence agriculture in Malawi, on the role of ADMARC. The book observes that ADMARC is ineffective at defending the government-set maize price band, adding uncertainty to the market, affecting all stakeholders in the maize value chain as losses that ADMARC has repeatedly incurred are the responsibility of the government to cover. ADMARC poses significant risks for private firms–Malawian and regional–that could engage maize trading in the country. IFPRI states that while it will take time before the parastatal’s role is substantially reduced given its scale and centrality to government actions to promote food security, reforms at ADMARC are needed to achieve efficiency.