Cross-border cereal trade between Mozambique and Malawi: an analysis of the vulnerability of Informal Producers

Abstract

The study aims to analyze the economic and financial vulnerability of informal grain traders and/or producers residing in the border areas of Melosa in the province of Zambézia, in the district of Milange, to take advantage of the grain trade in that border area, with regard to the generation of income and employment for informal producers, taking as a basis the study of the marketing of corn and pigeon peas on the border of Meloza, as well as to present some proposals for structural measures that can contribute to a paradigm shift on border trade in Zambézia, in the district of Milange, and contribute in the short, medium and long term, to the enrichment of indicators of agricultural marketing, trade and markets. The study was developed using a bibliographic research methodology and a theoretically oriented approach supported by quantitative and qualitative evidence, as for the objectives, exploratory research was used. Document analysis, direct observation, and a questionnaire were also used for data collection. Microsoft Excel and FOFA were used for data analysis. The study concluded that the cereal trade that takes place in the cross-border area contributes less to informal producers and benefits buyers, and also identified that the main driver and inducer of cross-border trade is a structured and viable market environment. The study points to a more corporate vision of strategic actions and structural measures that should be combined, from the strengthening of economic infrastructures to support agricultural marketing in the border area, to the implementation and introduction of incentive packages for small farmers.