Reported by Mustapha Omolabake Omowumi, Managing Editor | Sele Media Malawi.
BLANTYRE, October 4, 2026 — Tomato farmers in Malawi are calling for more reliable markets, affordable agricultural financing and stronger value-addition systems as falling prices and an oversupply of fresh tomatoes threaten to wipe out earnings from one of the country’s important horticultural crops.
The concerns come as the Small and Medium Enterprises Development Corporation (SMEDCO) has stepped in to purchase surplus tomatoes from farmers, seeking to provide an immediate market for produce that could otherwise remain unsold and deteriorate.
The intervention has offered some relief to farmers facing a difficult marketing period, but producers say a temporary buying programme alone will not address the structural challenges confronting tomato farming in Malawi.
Farmers argue that the sector requires predictable markets, affordable access to finance, better post-harvest infrastructure and stronger links between producers and processors if tomato production is to become a sustainable source of income.
The development comes against the backdrop of reports that tomato prices have fallen sharply in some producing areas as supplies increase during the peak harvesting period. According to SMEDCO, some farmers have been selling a 10-litre bucket of tomatoes for as little as K1,000, a situation that has raised concerns about farmers failing to recover the money invested in production.
SMEDCO Media and Communication Officer Micah Nthere said the corporation decided to intervene after receiving reports that farmers were making losses because of excess supply on the market.
«“We could not sit back and watch farmers lose their investment, so we intervened,” Nthere said.»
The corporation has reportedly been buying tomatoes from farmers in different parts of the country, with purchase prices negotiated between SMEDCO and producers according to prevailing market conditions.
The intervention is also designed to address the problem beyond simply purchasing fresh tomatoes. SMEDCO says some of the produce is being processed into tomato sauce and other products, allowing tomatoes that might otherwise perish to be converted into products with a longer shelf life.
The corporation has also indicated that farmers can access its processing machinery while receiving training and skills in tomato processing and value addition.
The approach introduces an important dimension to Malawi’s tomato value chain: moving away from dependence on the sale of fresh tomatoes alone and towards storage, processing and other forms of value addition.
Independent reports published in September similarly said SMEDCO had begun purchasing tomatoes from farmers in Phalombe and intended to keep some of the produce at its factory for up to six months before releasing it onto the market when fresh supplies became scarce. The reports also said part of the tomatoes would be processed into tomato sauce and other products.
Farmers welcome intervention but demand longer-term solutions
While farmers have welcomed SMEDCO’s intervention, they say the more pressing question is whether similar support can be sustained beyond the current period of market glut.
Yoel Kavina, one of the farmers affected by the difficult market conditions, said tomato production requires considerable financial investment.
According to Kavina, farmers have to spend money on pesticides, fertiliser, labour and other inputs before they can bring their crop to market. When prices subsequently collapse, producers can be left with returns that are insufficient to cover production costs.
“Tomato farming is very expensive. If the market is not stable, you end up making a loss despite all the investment you have put in,” Kavina said.
He urged government and other stakeholders to establish dependable markets where farmers can sell their produce at commercially viable prices.
For Kavina, the issue is not simply about increasing tomato production. It is also about ensuring that production is matched by demand, processing capacity and reliable buyers.
He further called for affordable financing facilities that would enable farmers to purchase inputs without facing excessive repayment pressure.
Access to affordable credit, he said, would allow farmers to finance production and repay loans after selling their crops rather than relying heavily on limited personal resources.
The call reflects a broader challenge in agricultural production: farmers can increase output but remain vulnerable when they lack bargaining power and guaranteed access to markets.
Price volatility remains a major threat
Tomato farming is particularly exposed to price fluctuations because fresh tomatoes are highly perishable.
When production is low, consumers can face higher prices. But when many farmers harvest at the same time, market supplies can rise rapidly, placing downward pressure on prices.
Without sufficient storage or processing facilities, farmers have limited ability to hold their produce and wait for more favourable market conditions.
This creates a situation in which producers may be forced to sell quickly, even when prices are low, because keeping tomatoes for too long can result in spoilage.
The problem can therefore create losses at both ends of the value chain.
Farmers lose income when they are forced to sell at very low prices or discard unsold produce, while consumers can later face higher prices when supplies decline.
SMEDCO’s storage and processing approach is intended to help address this imbalance by extending the commercial life of the crop.
A September report by 247Malawi News said SMEDCO planned to store tomatoes at its Phalombe facility for up to six months before releasing them when supplies became scarce. The same report said the corporation was also processing part of the crop into tomato sauce and other products.
If implemented effectively and at sufficient scale, such an approach could help create a link between periods of surplus and periods of shortage.
However, farmers and policymakers would need to consider issues such as storage capacity, quality control, processing costs, market demand and the prices ultimately paid to producers.
Value addition could reduce dependence on fresh produce markets
For Malawi’s tomato industry, value addition could provide an important avenue for reducing post-harvest losses.
Fresh tomatoes have a relatively short shelf life, meaning farmers are often under pressure to find buyers immediately after harvesting.
Processing can change that equation by turning fresh tomatoes into products that can be stored and marketed over longer periods.
Tomato sauce, paste and other processed products can potentially create additional markets for farmers while reducing the amount of produce that is lost after harvest.
SMEDCO’s reported decision to allow farmers to use processing machinery and gain skills in tomato processing could therefore have implications beyond the immediate crisis.
It could help producers understand how value can be retained within the agricultural chain rather than selling all produce in raw form.
For this model to become sustainable, however, processing must be linked to viable commercial markets.
Processing tomatoes into products that consumers do not buy in sufficient quantities would simply shift the problem from unsold fresh tomatoes to unsold processed products.
This means market research, product quality, packaging, distribution and access to retailers will remain critical components of any long-term value-addition strategy.
SMEDCO’s wider mandate of supporting micro, small and medium enterprises also provides a potential institutional framework for connecting farmers with processing and commercial opportunities. The corporation was established under Malawi’s Micro, Small and Medium Enterprises Act of 2024, with a mandate covering the regulation, promotion and development of the MSME sector.
Farmers want intervention to continue
Another farmer, Lawrence Magalasi, welcomed SMEDCO’s intervention and called for the initiative to continue.
Magalasi said the sudden increase in tomato supplies had left farmers concerned that their produce could become worthless before they found buyers.
“Many of us were afraid of losing everything because the market is flooded with tomatoes. We hope this initiative continues so that farmers do not suffer losses every season,” he said.
He argued that similar interventions should be considered as part of a broader strategy to reduce agricultural losses and strengthen domestic food processing.
Magalasi also pointed to the potential benefits for consumers.
He said processing tomatoes into products that can be stored and used when fresh tomatoes are scarce could improve the availability of tomato products beyond the peak fresh-tomato season.
That could potentially contribute to a more balanced supply chain, particularly if processors can maintain production throughout the year.
But farmers say government and other stakeholders must go beyond emergency responses.
They want systems that allow them to plan production with greater confidence, knowing that there will be buyers for their crops when they reach maturity.
Financing remains central to the sustainability question
Access to finance is another major concern raised by farmers.
Agricultural production requires farmers to spend money before receiving any income from their crops. For tomato growers, expenditure can include seed, fertiliser, pesticides, labour, irrigation, land preparation, transportation and packaging.
When market prices fall unexpectedly, farmers can struggle to recover these costs.
Affordable financing could help producers invest in productivity-enhancing inputs and technologies, but the terms of such financing will be important.
High interest rates or short repayment periods could increase the financial risks faced by farmers, particularly where market prices are unpredictable.
Farmers are therefore calling for financing models designed around agricultural production cycles.
Such facilities could potentially allow farmers to repay loans after harvesting and selling their crops rather than being subjected to repayment schedules that do not reflect seasonal agricultural incomes.
A wider lesson for Malawi’s agricultural economy
The tomato market challenge highlights a broader issue facing Malawi’s agriculture: production alone does not guarantee profitability.
Farmers can increase output, but without functioning markets, adequate storage, processing facilities, transportation systems and access to finance, higher production can sometimes contribute to lower farm-gate prices.
For Malawi to derive greater economic value from agriculture, more attention will need to be paid to the entire value chain.
That includes production, aggregation, transportation, storage, processing, packaging, distribution and retail.
The tomato sector provides a particularly clear example because of the crop’s perishability.
A farmer who cannot sell a mature tomato quickly has few options for preserving its value unless there is access to cold storage or processing.
This is where initiatives such as the one being implemented by SMEDCO could become strategically important if they are properly structured and sustained.
The corporation’s reported use of processing equipment and its offer of training could also help build local entrepreneurial capacity around tomato products.
However, the long-term success of such interventions will ultimately depend on whether they can move beyond short-term relief and become part of a commercially viable agricultural value chain.
Need for stronger farmer-market linkages
Farmers also need stronger collective bargaining structures.
Individual smallholder farmers often have limited negotiating power when dealing with buyers, particularly during periods of oversupply.
Farmer organisations, cooperatives and producer groups can potentially improve coordination by allowing producers to aggregate their crops, negotiate collectively and access markets that may be difficult to reach individually.
Such structures can also make it easier for processors and large buyers to source tomatoes in consistent quantities and quality.
For processors, reliable supply is important. For farmers, reliable buyers are equally important.