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Fertilizer Consumption and Agricultural Productivity in Ethiopia

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  • Kefyalew Endale

    (Ethiopian Development Research Institute)

Abstract

This study analyzes fertilizer application rates, trends in the number of users, its effects on agricultural productivity and, finally, the determinants of its consumption. The major data sources are the Central Statistical Authority (CSA) and the Ethiopian Rural Household Survey (ERHS). The national level evidence shows incremental increases in total fertilizer imports as well as in the applied volume of fertilizer. The household level data show that the average number of farmers that apply fertilizer is high especially in teff and wheat. The percentage of farmers who apply Urea in particular is, however, low as it does not exceed 36% in any of the five crops. The data also show some decline in the number of adopters, especially in 2004. The high price of fertilizer is the major constraint for about 47.6% of the farmers under consideration, followed by supply shortage and late arrival of fertilizer. The effect of fertilizer use on the value of agricultural production and yield is positive. Partial correlations and panel regression results support the positive effect. However, the magnitude with which the value of production responds to a change in fertilizer use is low. The smaller marginal effects of fertilizer use might be due to problems arising from applying below recommended rates and failure to use the two nutrients in proper combination. Finally, the consumption model reveals that education status of the household head is the most important variable affecting fertilizer use. Livestock ownership, size of land owned, amount of credit, and number of family members with sub-compulsory education are the other factors affecting fertilizer use positively. The study identified priority areas of interventions to address the problem of fertilizer use and its consumption. The highest priority area of intervention in the supply side is the price of fertilizer. Almost 50% of the farmers reported the price as their biggest constraint. This necessitates thinking about alternative means like crop specific partial subsidies of fertilizer and cash transfers. On the farmers’ side, they are not using the fertilizer as per recommended levels and also they are using only one of the two, mainly Dap. This is again largely caused by the price of fertilizer.

Suggested Citation

  • Kefyalew Endale, 2011. "Fertilizer Consumption and Agricultural Productivity in Ethiopia," Working Papers 003, Policy Studies Institute.
    • Handle: RePEc:etd:wpaper:003
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    References listed on IDEAS

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    Cited by:

    1. Samuel Sebsibie & Workineh Asmare & Tessema Endalkachew, 2015. "Agricultural Technology Adoption and Rural Poverty: a Study on Smallholders in Amhara Regional State, Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 23(2), December.
    2. Abate, Gashaw T. & de Brauw, Alan & Minot, Nicholas & Bernard, Tanguy, 2015. "The impact of the use of new technologies on farmers’ wheat yield in Ethiopia: Evidence from a randomized controlled trial:," IFPRI discussion papers 1462, International Food Policy Research Institute (IFPRI).
    3. Bendeza Ccanto, Jessica & Condori, Chura Julissa & Lozada-Urbano, Michelle, 2022. "Proximate, microbiological analysis and digestibility of pepsin in atta sexdens flour, from the region of Rioja, Perú," African Journal of Food, Agriculture, Nutrition and Development (AJFAND), African Journal of Food, Agriculture, Nutrition and Development (AJFAND), vol. 22(10).
    4. Dube, Biru Gelgo, 2016. "Analysis Of Determinants Of Adoption Of Organic Fertilizer And Its Effect On Smallholder Farmers Income In Shashemene District, Ethiopia," Research Theses 265573, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Bachewe, Fantu Nisrane & Koru, Bethlehem & Taffesse, Alemayehu Seyoum, 2018. "Productivity and efficiency in high-potential areas," IFPRI book chapters, in: The economics of teff: Exploring Ethiopia’s biggest cash crop, chapter 7, pages 149-180, International Food Policy Research Institute (IFPRI).
    6. Bachewe, Fantu Nisrane & Koru, Bethlehem & Taffesse, Alemayehu Seyoum, 2015. "Cereal productivity and its drivers: The case of Ethiopia:," ESSP working papers 75, International Food Policy Research Institute (IFPRI).
    7. Bachewe, Fantu Nisrane & Berhane, Guush & Minten, Bart & Taffesse, Alemayehu Seyoum, 2015. "Agricultural growth in Ethiopia (2004-2014): Evidence and drivers:," ESSP working papers 81, International Food Policy Research Institute (IFPRI).
    8. Abate, Gashaw Tadesse & Rashid, Shahidur & Borzaga, Carlos & Getnet, Kindie, 2015. "Rural finance and agricultural technology adoption in Ethiopia: Does institutional design matter?:," IFPRI discussion papers 1422, International Food Policy Research Institute (IFPRI).
    9. Gashaw Tadesse Abate & Tanguy Bernard & Alan de Brauw & Nicholas Minot, 2018. "The impact of the use of new technologies on farmers’ wheat yield in Ethiopia: evidence from a randomized control trial," Agricultural Economics, International Association of Agricultural Economists, vol. 49(4), pages 409-421, July.
    10. Yu, Bingxin & Nin-Pratt, Alejandro & Funes, José & Gemessa, Sinafikeh Asrat, 2011. "Cereal production and technology adoption in Ethiopia:," IFPRI discussion papers 1131, International Food Policy Research Institute (IFPRI).
    11. Bachewe, Fantu Nisrane & Koru, Bethlehem & Taffesse, Alemayehu Seyoum, 2015. "Productivity and efficiency of smallholder teff farmers in Ethiopia:," ESSP working papers 79, International Food Policy Research Institute (IFPRI).
    12. Birouke Tefera & Frehiwot Worku & Zewdu Ayalew, 2012. "Implications of Oil Price Shocks and Subsidizing Oil Prices to the Ethiopian Economy: A CGE Analysis," Working Papers 008, Policy Studies Institute.

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