IDEAS home Printed from https://ideas.repec.org/a/spr/ssefpa/v13y2021i6d10.1007_s12571-021-01181-9.html
   My bibliography  Save this article

The geography of agricultural input markets in rural Tanzania

Author

Listed:
  • Pieter Rutsaert

    (International Maize and Wheat Improvement Centre (CIMMYT))

  • Jordan Chamberlin

    (International Maize and Wheat Improvement Centre (CIMMYT))

  • Kevin Ong’are Oluoch

    (International Maize and Wheat Improvement Centre (CIMMYT))

  • Victor Ochieng Kitoto

    (International Maize and Wheat Improvement Centre (CIMMYT))

  • Jason Donovan

    (International Maize and Wheat Improvement Centre (CIMMYT))

Abstract

The expansion of agro-dealers into remote areas can be seen as conducive to more smallholders adopting new technologies and inputs, to include improved seed and fertilizer. However, lower travel costs may be offset by agro-dealer decisions on stocking and pricing, reflecting both travel time from wholesale markets as well as the level of competition in localized areas. This paper investigates the geographical distribution of agro-dealers and related patterns of local market competition on the availability and prices of maize seed and fertilizer. We use a unique census of agro-dealers in eight districts of Tanzania (n = 299) which maps distribution points for agricultural inputs in these areas. Results suggested that despite a high number of agro-dealers, almost 30% of farmers lived more than an hour travel time from at least one agro-dealer. Instead of wide geographical coverage, agro-dealers tended to be found in clusters, with strong variation in cluster sizes between different districts. Overall, more remote agro-dealers faced less competition, resulting in fewer stocked product choices and charging higher prices to customers, even after controlling for travel time from district headquarters. Remote farmers are disadvantaged in their uptake of new technologies and critical production inputs due to lack of competition among agro-dealers. Our results suggest that highly aggregated and/or simplified measures of market access fail to reflect important heterogeneity in the market access conditions faced by farmers; a better understanding of distribution networks and competition is needed.

Suggested Citation

  • Pieter Rutsaert & Jordan Chamberlin & Kevin Ong’are Oluoch & Victor Ochieng Kitoto & Jason Donovan, 2021. "The geography of agricultural input markets in rural Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1379-1391, December.
    • Handle: RePEc:spr:ssefpa:v:13:y:2021:i:6:d:10.1007_s12571-021-01181-9
    DOI: 10.1007/s12571-021-01181-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12571-021-01181-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12571-021-01181-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    2. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-488, May.
    3. Derek Headey & David Stifel & Liangzhi You & Zhe Guo, 2018. "Remoteness, urbanization, and child nutrition in sub‐Saharan Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 765-775, November.
    4. Tavneet Suri, 2011. "Selection and Comparative Advantage in Technology Adoption," Econometrica, Econometric Society, vol. 79(1), pages 159-209, January.
    5. Steven Haggblade & Melinda Smale & Alpha Kergna & Veronique Theriault & Amidou Assima, 2017. "Causes and Consequences of Increasing Herbicide Use in Mali," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(3), pages 648-674, July.
    6. World Bank, 2014. "Tanzania Public Expenditure Review : National Agricultural Input Voucher Scheme," World Bank Publications - Reports 18247, The World Bank Group.
    7. Paswel P. Marenya & Christopher B. Barrett, 2009. "State-conditional Fertilizer Yield Response on Western Kenyan Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 991-1006.
    8. Liverpool-Tasie, Lenis Saweda O. & Omonona, Bolarin T. & Sanou, Awa & Ogunleye, Wale O., 2017. "Is increasing inorganic fertilizer use for maize production in SSA a profitable proposition? Evidence from Nigeria," Food Policy, Elsevier, vol. 67(C), pages 41-51.
    9. David Stifel & Bart Minten & Bethlehem Koru, 2016. "Economic Benefits of Rural Feeder Roads: Evidence from Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 52(9), pages 1335-1356, September.
    10. Luc Christiaensen & Lionel Demery & Stefano Paternostro, 2003. "Reforms, Remoteness and Risk in Africa: Understanding Inequality and Poverty during the 1990s," WIDER Working Paper Series DP2003-70, World Institute for Development Economic Research (UNU-WIDER).
    11. Bart Minten & Bethlehem Koru & David Stifel, 2013. "The last mile(s) in modern input distribution: Pricing, profitability, and adoption," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 629-646, November.
    12. Chamberlin, Jordan & Jayne, T.S. & Headey, D., 2014. "Scarcity amidst abundance? Reassessing the potential for cropland expansion in Africa," Food Policy, Elsevier, vol. 48(C), pages 51-65.
    13. David Stifel & Bart Minten, 2008. "Isolation and agricultural productivity," Agricultural Economics, International Association of Agricultural Economists, vol. 39(1), pages 1-15, July.
    14. Hannington Odame & Elijah Muange, 2011. "Can Agro‐dealers Deliver the Green Revolution in Kenya?," IDS Bulletin, Blackwell Publishing, vol. 42(4), pages 78-89, July.
    15. William J. Burke & Thom. S. Jayne & J. Roy Black, 2017. "Factors explaining the low and variable profitability of fertilizer application to maize in Zambia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 115-126, January.
    16. Farrow, Andrew & Risinamhodzi, Kumbirai & Zingore, Shamie & Delve, Robert J., 2011. "Spatially targeting the distribution of agricultural input stockists in Malawi," Agricultural Systems, Elsevier, vol. 104(9), pages 694-702.
    17. Todd Benson & Tewodaj Mogues, 2018. "Constraints in the fertilizer supply chain: evidence for fertilizer policy development from three African countries," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(6), pages 1479-1500, December.
    18. Estelle Koussoubé & Céline Nauges, 2017. "Returns to fertiliser use: Does it pay enough? Some new evidence from Sub-Saharan Africa," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(2), pages 183-210.
    19. D. J. Weiss & A. Nelson & H. S. Gibson & W. Temperley & S. Peedell & A. Lieber & M. Hancher & E. Poyart & S. Belchior & N. Fullman & B. Mappin & U. Dalrymple & J. Rozier & T. C. D. Lucas & R. E. Howes, 2018. "A global map of travel time to cities to assess inequalities in accessibility in 2015," Nature, Nature, vol. 553(7688), pages 333-336, January.
    20. Seneshaw Tamru & Bart Minten & Dawit Alemu & Fantu Bachewe, 2017. "The Rapid Expansion of Herbicide Use in Smallholder Agriculture in Ethiopia: Patterns, Drivers, and Implications," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(3), pages 628-647, July.
    21. Chamberlin, Jordan & Jayne, T.S., 2013. "Unpacking the Meaning of ‘Market Access’: Evidence from Rural Kenya," World Development, Elsevier, vol. 41(C), pages 245-264.
    22. Langyintuo, Augustine S. & Mwangi, Wilfred & Diallo, Alpha O. & MacRobert, John & Dixon, John & Bänziger, Marianne, 2010. "Challenges of the maize seed industry in eastern and southern Africa: A compelling case for private-public intervention to promote growth," Food Policy, Elsevier, vol. 35(4), pages 323-331, August.
    23. Helder Zavale & Greenwell Matchaya & Delfim Vilissa & Charles Nhemachena & Sibusiso Nhlengethwa & Duque Wilson, 2020. "Dynamics of the Fertilizer Value Chain in Mozambique," Sustainability, MDPI, vol. 12(11), pages 1-18, June.
    24. Jeffrey D Michler & Emilia Tjernström & Simone Verkaart & Kai Mausch, 2019. "Money Matters: The Role of Yields and Profits in Agricultural Technology Adoption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(3), pages 710-731.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elizabeth Eldridge & Marie-Eve Rancourt & Ann Langley & Dani Héroux, 2022. "Expanding Perspectives on the Poverty Trap for Smallholder Farmers in Tanzania: The Role of Rural Input Supply Chains," Sustainability, MDPI, vol. 14(9), pages 1-34, April.
    2. Gilbert E. Mushi & Giovanna Di Marzo Serugendo & Pierre-Yves Burgi, 2022. "Digital Technology and Services for Sustainable Agriculture in Tanzania: A Literature Review," Sustainability, MDPI, vol. 14(4), pages 1-17, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kibrom A. Abay & Tesfamicheal Wossen & Jordan Chamberlin, 2023. "Mismeasurement and efficiency estimates: Evidence from smallholder survey data in Africa," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 413-434, June.
    2. Holden, Stein T., 2018. "The Economics of Fertilizer Subsidies," CLTS Working Papers 9/18, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 16 Oct 2019.
    3. Kibrom A. Abay, 2020. "Measurement errors in agricultural data and their implications on marginal returns to modern agricultural inputs," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 323-341, May.
    4. Michelson, Hope & Gourlay, Sydney & Lybbert, Travis & Wollburg, Philip, 2023. "Review: Purchased agricultural input quality and small farms," Food Policy, Elsevier, vol. 116(C).
    5. Kibrom A. Abay & Mehari H. Abay & Mulubrhan Amare & Guush Berhane & Ermias Aynekulu, 2022. "Mismatch between soil nutrient deficiencies and fertilizer applications: Implications for yield responses in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 53(2), pages 215-230, March.
    6. Michelson, Hope & Fairbairn, Anna & Ellison, Brenna & Maertens, Annemie & Manyong, Victor, 2021. "Misperceived quality: Fertilizer in Tanzania," Journal of Development Economics, Elsevier, vol. 148(C).
    7. Kazushi Takahashi & Rie Muraoka & Keijiro Otsuka, 2020. "Technology adoption, impact, and extension in developing countries’ agriculture: A review of the recent literature," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 31-45, January.
    8. Oyakhilomen Oyinbo & Jordan Chamberlin & Tahirou Abdoulaye & Miet Maertens, 2022. "Digital extension, price risk, and farm performance: experimental evidence from Nigeria," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 831-852, March.
    9. Sheahan, Megan & Black, Roy & Jayne, T.S., 2013. "Are Kenyan farmers under-utilizing fertilizer? Implications for input intensification strategies and research," Food Policy, Elsevier, vol. 41(C), pages 39-52.
    10. Sheahan, Megan & Black, Roy & Jayne, Thomas S., 2012. "Are Farmers Under-Utilizing Fertilizer? Evidence from Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126739, International Association of Agricultural Economists.
    11. Terrance Hurley & Jawoo Koo & Kindie Tesfaye, 2018. "Weather risk: how does it change the yield benefits of nitrogen fertilizer and improved maize varieties in sub‐Saharan Africa?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 711-723, November.
    12. Tristan Le Cotty & Elodie Maître d’Hôtel & Raphael Soubeyran & Julie Subervie, 2018. "Linking Risk Aversion, Time Preference and Fertiliser Use in Burkina Faso," Journal of Development Studies, Taylor & Francis Journals, vol. 54(11), pages 1991-2006, November.
    13. Porteous, Obie, 2020. "Trade and agricultural technology adoption: Evidence from Africa," Journal of Development Economics, Elsevier, vol. 144(C).
    14. Chowdhury, Shyamal & Smits, Joeri & Sun, Qigang, 2020. "Contract structure, time preference, and technology adoption," GLO Discussion Paper Series 633, Global Labor Organization (GLO).
    15. Harou, Aurélie P. & Madajewicz, Malgosia & Michelson, Hope & Palm, Cheryl A. & Amuri, Nyambilila & Magomba, Christopher & Semoka, Johnson M. & Tschirhart, Kevin & Weil, Ray, 2022. "The joint effects of information and financing constraints on technology adoption: Evidence from a field experiment in rural Tanzania," Journal of Development Economics, Elsevier, vol. 155(C).
    16. Jindo, Keiji & Schut, Antonius G.T. & Langeveld, Johannes W.A., 2020. "Sustainable intensification in Western Kenya: Who will benefit?," Agricultural Systems, Elsevier, vol. 182(C).
    17. Abay, Kibrom A. & Berhane, Guush & Taffesse, Alemayehu Seyoum & Koru, Bethlehem & Abay, Kibrewossen, 2016. "Understanding farmers’ technology adoption decisions: Input complementarity and heterogeneity:," ESSP working papers 82, International Food Policy Research Institute (IFPRI).
    18. Stifel, David & Minten, Bart, 2017. "Market Access, Well-being, and Nutrition: Evidence from Ethiopia," World Development, Elsevier, vol. 90(C), pages 229-241.
    19. Jonas Kathage & Menale Kassie & Bekele Shiferaw & Matin Qaim, 2016. "Big Constraints or Small Returns? Explaining Nonadoption of Hybrid Maize in Tanzania," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(1), pages 113-131.
    20. Bird, Samuel S. & Carter, Michael R. & Lybbert, Travis J. & Mathenge, Mary & Njagi, Timothy & Tjernström, Emilia, 2022. "Filling a niche? The maize productivity impacts of adaptive breeding by a local seed company in Kenya," Journal of Development Economics, Elsevier, vol. 157(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ssefpa:v:13:y:2021:i:6:d:10.1007_s12571-021-01181-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.