The Study Of Cotton Supply Chain In Malawi

This research aimed to provide a supply chain analysis, gross margins and a simple game theory model of the cotton industry in Malawi from cotton to textile This research used both qualitative and quantitative methods analysis using descriptive statistics, gross margins, and game theory to explain the quantitative analysis and descriptive research technique’s such as SWOT analysis and case study of Cargill and Great lakes co to explain the qualitative part of the paper. Most of the research was conducted through desktop study; internet was the main source of collecting information and data.They study revealed that the cotton supply chain in Malawi is overall weak. The weakness is due to the splitting of functions between players of the chain, lack of integration and coordination amongst players. The chain has a high degree of government intervention making the chain vulnerable to any changes in policy. The study further revealed that flexibility of the cotton supply chain is constrained due to little information sharing and demand fluctuations. The study also shows that supply chain enablers such as electricity and transport are unreasonable high causing a lot of financial constrains to players mainly processers, Cargill and Great lakes co. The study also saw that no or little technology is used at all levels of the cotton chain this has resulted to poor quality produce and low prices at both farm gate and international markets.They study recommended that the cotton chain must create an environment that enable the transfer and investment of advanced modern technology.Infrastructure investment, should be a major priority for Malawi as good infrastructure will improve and reduce supply chain cost on issues such as, transportation, communications, rail and electricity supply. Efforts should be made to improve supply and value chain linkages amongst players. Quality should start with the producers and transferred throughout the entire supply chain. Education, the cotton industry must strive to work and engage highly educated personal within all sectors of the cotton chain. Finally the research is expected to add value towards the development of efficient and effective Agro-supply chains in developing countries.