DETERMINANTS AND EFFECT OF SMALL-SCALE LIVESTOCK PRODUCTION ON HOUSEHOLD INCOME IN MALAWI: EVIDENCE FROM FIFTH INTEGRATED HOUSEHOLD SURVEY

Abstract

This paper investigates the determinants and effects of small-scale livestock production on household income among farmers in Malawi, using cross-sectional data from the Fifth Integrated Household Survey (IHS5) with a sample of 8,795 households. A probit model is employed to identify socio-economic and institutional factors influencing participation in small-scale livestock production, while propensity score matching assessed the effect of this participation on household income. Key findings indicate that household size, access to credit, access to extension services, landholding size, distance to the market, and location in the Northern region significantly increase the likelihood of participation in livestock production. Notably, households engaged in livestock production earned, on average, an additional MWK 36,405.76 compared to non-producing households, demonstrating its important role in improving economic welfare. These results underscore the significance of livestock production as a means to reduce poverty and promote economic stability. Policymakers can leverage these insights to promote livestock development through enhanced credit access, land tenure reforms, and targeted support for smallholder farmers, particularly in rural areas, to foster sustainable agricultural growth in Malawi.