When a big loss occurred to Fish Land Ladies Cooperative, an all-female fish producer grouping based at Nsaka in Mangochi, the need for reliable cold storage mechanism grew more than ever.
The Cooperative had previously incurred losses due to poor storage of the fish but the one that occurred in April 2021 left the members deflated.
“It was a huge loss since we established our cooperative,” explained the Cooperatives chairperson, Atusayi Msiska, in an interview with Mana. “We lost up to MK495,000 — almost half-a-million Malawi Kwacha — due to poor storage of fish, which led to spoilage in transit to our markets.”
According to Msiska, the cooperative resorted to sun-drying and smoking in order to preserve most of their fish; but fresh fish market always remained irresistibly lucrative.
Such has been the dilemma of most fish producer organizations in the country and it has led to unimaginable losses.
However, July 14, 2023, brought happiness to Fish Land Ladies Cooperative Society and five other registered similar entities across the country as they received the much-sought-after equipment.
Six refrigerated vans were handed over by the Sustainable Fisheries, Aquaculture Development, and Watershed Management (SFAD-WM) — a USD14.57 million five-year project funded by the African Development Bank (AfDB) and Malawi government.
The hand-over ceremony took place in Senga Bay, Salima, where the minister of Natural Resources and Climate Change, Michael Usi, was the guest of honour.
The other fish processing and marketing cooperatives that benefitted from the SFAD-WM initiative were Abwenzi from Mangochi, Chia from Nkhotakota, Ngodzi from Salima, Kamuzu View/Mndundundu Aquaculture from Nkhata Bay, and Kavumu from Karonga.
Barely two weeks after obtaining the refrigerated vans, the cooperatives have already started registering growth as they are now able to reach new markets with fresh product.
Chia Fish Processing and Marketing Cooperative, for instance, had already made a profit of over MK1million by the time this reporter interviewed the secretary for the Cooperative, Shabani Mtila, on Monday, July 24.
“The refrigerated van has been a stitch in time and a boost to our fish business,” explained Mtila, adding, “Previously, when we were supplying our markets using cooler boxes we could only make a profit of up to MK200,000 in 3 days.
“But now with the van, weve already made profits of MK300,000; MK340,000; and MK430,000 in three trips that weve had consecutively; so you can see how handy the van has become.”
Similarly, in Karonga, Kavumu Fisheries Cooperative is expanding its market bounds to surrounding districts and beyond the borders.
“We’re very excited as weve already started receiving orders from different places including Malawi Cargo in Tanzania,” explained the Cooperatives Chairperson, Dick Milanzi. “Weve also found more customers at the Songwe Border, in Chitipa, Hewe — places that we couldnt reach before due to lack of proper storage of our fresh fish.”
According to Milanzi, the cooperative could lose up to MK100,000 per trip due to poor storage of fish, which forced them to keep their market limited to local traders from the surrounding areas.
The excitement is common among all the beneficiary cooperatives, including Ngodzi in Salima, where, according the Chairperson, Swahibu Singano, the members could lose up to MK500,000 in a month due to spoilage of the product in transit to distant markets.
Singano recalled that at one time when there was an abundant catch of fish locally called Jamisoni, they were forced to sun-dry the lot when they could have made a kill if they could get it to the cooperatives distant markets fresh.
The vans are just part of a range of interventions under SFAD-WM project which aims to enhance the resilience of fishing and fish farming communities in Malawi, focusing on addressing climate variability and long-term climate change risks.
The entire package of the project includes training of groups of all fish value chain actors in cooperative member education, business management and business plan development, registering the groups into cooperatives, providing centrally fish landing points with storage rooms, shelter for fish sorting and grading, cold rooms, as well as sanitary facilities.
According to the projects documents, SFAD-WMs key outcomes are: improved incomes for fishers and aquaculture farmers, increased fish production, improved nutritional well-being and inclusive livelihood security for youth and women entrepreneurs.
According to Acting Director of Fisheries, Maurice Makuwira, post-harvest losses in the fishing industry in the country is around 40 percent, culminating into a staggering economic loss of not less than K8.4 billion annually!
Makuwira observed that by implementing a robust cold chain infrastructure, the vans will enable actors to effectively mitigate the post-harvest losses, reduce spoilage and prolong the shelf life of fish — thereby enhancing consumer satisfaction.
“These vans will provide an opportunity for a competitive advantage in fish export to neighbouring countries of Zambia, Mozambique and beyond to Zimbabwe and South Africa, utilising the current set up of one border post arrangement within the SADC corridors,” explained the Acting Director of Fisheries via a questionnaire.
He added: “This accords the nation [an opportunity] to diversify its export base from current crop based to fish based.”
According to Makuwira, the ultimate impact of the cold chain equipment and infrastructure include increased opportunities for well-paid employment, inclusive of women and youth — especially those engaged along the fish value chain, supporting creation of over 300,000 jobs directly linked to fishing and aquaculture.
Overall, the chain will create an estimated 1.5 million jobs along the fish value chain, according to Makuwira.
SFAD-WM project, which will wind up in December 2024, directly targets 20,000 fishers, fish farmers, students, and value chain entrepreneurs, comprising 50 percent women in the targeted regions, and 250,000 indirect beneficiaries at 40:60 Gender Policy ratio, according to available documents.
Perhaps, this explains the cost recovery arrangement attached to the vans whereby the cooperatives will pay back 50 percent of the cost and the proceeds will be deposited in a revolving fund to enable recapitalisation and procurement of more vans for other remaining cooperatives.
The 50 percent loan payment will span 5 years, a period that the cooperatives have since described as “fair and manageable”, given the hinted increased profits.
The Minister of Natural Resources and Climate Change, Dr. Michael Usi, has also found the cost recovery arrangement favourable.
After the vans handover, Usi wrote on his official facebook page: “The vans have been provided to the cooperatives with support from the African Development Bank (AfDB) on cost recovery basis. Each van costs 50 million kwacha but the cooperatives will only be required to pay back 50 percent of the loan over a period of five years.
“This initiative is very much in tandem with governments 2063 Agenda of ensuring that we continue to promote the efficient and sustainable use of our fisheries resources and promote the availability of quality fish in our markets, for the benefit of Malawians.”
Earlier in his keynote address, Usi had noted that the small-scale fishery contributes 95 percent to the total estimated 170,000 Metric Tonnes of fish produced annually in the country, valued at MK187 billion, landed by 99 percent of fishers, while the aquaculture sub-sector comprises 15,000 fish farmers and produces only about 9,000 Metric Tonnes of fish.
“This means that the sector is contributing significantly to the socio-economic development of the country with an estimate of 4 percent of the countrys Gross Domestic Product (GDP),” said Usi.
According to the minister, fish contribute over 60-70 percent of animal protein to the national diet of Malawians — thus facilitating cold chain and movement of the fish goes beyond soaring profits for the traders and addresses Sustainable Development Goal (SDG 2) by making the animal protein accessible to millions of Malawians.
