Unlocking the Mechanics of the Small Pelagic Fish Marketing Systems in Malawi: Insights from Market Structure Conduct and Performance Paradigm

Author: Mphatso George Mtukulo

Co-Authors: Moses M.N Chitete, Rosemary Botha, Joseph Dzanja, Daniel Jamu, Innocent Pangapanga‑Phiri

Year of Publication:

Journal Name: Research on World Agricultural Economy

Publisher: Nan Yang Academy of Sciences Pte Ltd

Abstract: Usipa is one of the most commonly consumed fish species in Malawi, and yet it is economically discarded despite its significant economic value. The Usipa fish marketing system in Malawi is crucial for distributing the product and providing employment and income to market players. This study assessed the structure, conduct, and performance of the Usipa fish value chain and marketing system in key selected markets, involving Usipa fishers, processors, wholesalers, and retailers. The study focused on Usipa trading in Mangochi, Blantyre and Lilongwe, using purposive random sampling to select landing sites. A census was conducted to target all actors involved in Usipa trading, with 307 actors interviewed, including 75 fishermen, 76 processors, 63 wholesalers, and 93 retailers. We preferred the census because it provided definite numbers of Usipa trading players and an agreed method for determining sample size. The results showed that the system is generally mildly competitive, with some oligopolistic tendencies. Actors do not participate in formalised marketing tactics, such as following bylaws or joining associations. Although this informa structure might make it easier to enter the market, it could also result in inefficiencies and difficulties in regulating it, which could make market behaviour less appealing in terms of stability. The Usipa fish channels involving more players tend to have higher marketing margins showing that they are inefficient. Usipa Fish actors, particularly those at lower nodes, could improve their scale, reduce costs through fixed cost reduction  interventions, and introduce selling price bands to curb collusive behaviour.

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