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

Usipa (Engraulicypris sardella) is among the most extensively consumed fish species in Malawi. However, its substantial economic potential remains largely underutilized. This study analyzed the structure, conduct, and performance of the Usipa value chain across major fish markets in Mangochi, Blantyre, and Lilongwe districts. It focused on key actors including fishers, processors, wholesalers, and retailers. A purposive sampling strategy was employed to identify landing sites and markets, followed by a comprehensive census of 307 market participants. The findings reveal a mildly competitive market structure, with some evident oligopolistic tendencies and a notable absence of formal coordination mechanisms. Most fishers and processors reported engaging in parallel pricing behavior, often adjusting heap sizes to align with competitors. Wholesalers and retailers, on the other hand, exhibited less pricing flexibility. Although the majority of actors rejected exclusionary pricing aimed at deterring new entrants, 68 percent expressed a willingness to increase prices to maximize profits, indicating the presence of localized collusive tendencies. These behaviors may adversely affect consumers through non-competitive pricing and undermine the efficiency of the value chain. Furthermore, marketing channels involving more intermediaries than others were associated with elevated marketing margins, suggesting structural inefficiencies in distribution and pricing. Policy interventions aimed at enhancing coordination among the Usipa value chain actors, reducing fixed transaction costs, and introducing regulated price bands may serve to improve both market efficiency and equity.