Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia

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Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia

Author Info

C. Donovan () (Department of Agricultural Economics, Michigan State University)
M. Damaseke
J. Govereh
D. Simumba

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Cynthia Donovan

Abstract

The main question which this research originally sought to answer was whether or not inorganic fertilizers are generally profitable used alone on maize, or with pesticides on cotton, for small farmers in Zambia. Rather than give a definitive answer for each Zambian farmer, the authors developed a framework for analysis and applied that framework to locations with sufficient information. Using simple value/cost ratios, researchers estimated the potential profit of fertilizer for those sites. Then, using the distributions of response rates of the crops (incremental yields) found in the trials and output prices based on regional price series, the probabilities are estimated for VCRs, using a minimum of VCR of 2.0 for profitability. The results for selected locations and input applications are then presented, as examples and indicators of fertilizer profitability in Zambia.

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Publisher Info
Paper provided by Department of Agricultural Economics, Michigan State University in its series International Development Collaborative Working Papers with number ZM-FSRP-WP-05.

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Date of creation: 2002
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Handle: RePEc:msu:icpwrk:zm-fsrp-wp-005

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Paper
- C. Donovan & M. Damaseke & J. Govereh & D. Simumba, 2002. "Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia," International Development Collaborative Policy Briefs ZM-FSRP-PB-04, Department of Agricultural Economics, Michigan State University. [Downloadable!]

Find related papers by JEL classification:
Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Yanggen, David & Kelly, Valerie & Reardon, Thomas & Naseem, Anwar, 1998. "Incentives For Fertilizer Use In Sub-Saharan Africa: A Review Of Empirical Evidence On Fertilizer Response And Profitability," Food Security III Papers 11389, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
David Yanggen & Valerie Kelly & Thomas Reardon & Anwar Naseem, 1998. "Incentives for Fertilizer Use in Sub-Saharan Africa: A Review of Empirical Evidence on Fertilizer Response and Profitability," International Development Working Papers 70, Department of Agricultural Economics, Michigan State University. [Downloadable!]
T.S. Jayne, 2000. "Improving Smallholder and Agri-business Opportunities in Zambia's Cotton Sector: Key Challenges and Options," International Development Collaborative Working Papers ZM-FSRP-WP-01, Department of Agricultural Economics, Michigan State University. [Downloadable!]
C. Donovan & M. Damaseke & J. Govereh & D. Simumba, 2002. "Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia," International Development Collaborative Working Papers ZM-FSRP-WP-05, Department of Agricultural Economics, Michigan State University. [Downloadable!]
Other versions:
- C. Donovan & M. Damaseke & J. Govereh & D. Simumba, 2002. "Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia," International Development Collaborative Policy Briefs ZM-FSRP-PB-04, Department of Agricultural Economics, Michigan State University. [Downloadable!]

Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

J.J. Nijhoff & Gelson Tembo & James D. Shaffer & T.S. Jayne & Julius Shawa, 2003. "How Will the Propsoed Crop Marketing Authority Affect Food Market Performance in Zambia?," International Development Collaborative Policy Briefs ZM-FSRP-PB-08, Department of Agricultural Economics, Michigan State University. [Downloadable!]
Xu, Zhiying & Jayne, T.S. & Govereh, J., 2006. "Input Subsidy Programs and Commercial Market Development: Modeling Fertilizer Use Decisions in a Two-Channel Marketing System," 2006 Annual meeting, July 23-26, Long Beach, CA 21270, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
Xu, Zhiying & Jayne, Thom S. & Black, J. Roy & Govereh, Jones, 2005. "Profitability Of Fertilizer Use On Maize By Small-Scale Farming Households In Zambia," 2005 Annual meeting, July 24-27, Providence, RI 19141, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
C. Donovan & M. Damaseke & J. Govereh & D. Simumba, 2002. "Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia," International Development Collaborative Policy Briefs ZM-FSRP-PB-04, Department of Agricultural Economics, Michigan State University. [Downloadable!]
Other versions:
- C. Donovan & M. Damaseke & J. Govereh & D. Simumba, 2002. "Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia," International Development Collaborative Working Papers ZM-FSRP-WP-05, Department of Agricultural Economics, Michigan State University. [Downloadable!]
Xu, Zhiying & Govereh, Jones & Black, J. Roy & Jayne, T.S., 2006. "Maize Yield Response to Fertilizer and Profitability of Fertilizer Use Among Small-Scale Maize Producers in Zambia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25730, International Association of Agricultural Economists. [Downloadable!]

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