IDEAS home Printed from https://ideas.repec.org/p/ags/midcwp/54459.html
   My bibliography  Save this paper

Developments in Fertilizer Marketing in Zambia: Commercial Trading, Government Programs, and the Smallholder Farmer

Author

Listed:
  • Shawa, Julius J.
  • Haantuba, Hyde H.
  • Belemu, A.
  • Ngulube, E.
  • Banda, A.K.
  • Govereh, Jones
  • Jayne, Thomas S.
  • Nijhoff, Jan J.
  • Zulu, Ballard

Abstract

The debate on fertilizer reform process in Zambia has two contrasting views. Some stakeholders continue to be convinced that the private sector is unable to adequately serve the needs of smallholder farmers, especially in the more remote parts of the country. Only 20 per cent of smallholder farmers used fertilizer in 1999/00. There are serious concerns over private traders’ willingness to deliver inputs on credit for low-resource farmers. According to this view, government fertilizer and credit distribution are indispensable for promoting smallholder agricultural productivity growth. Others believe that the fertilizer market should be restructured even more fully to remove the constraints on the private sector and reduce the drain on the public treasury. This latter line of argument is based on the premise that the continuation of government programs, while intended to meet the needs of remote and poor smallholder farmers, may actually undermine the market for private traders more generally and weaken the prospects for building a vibrant market-oriented fertilizer distribution system. Proponents of this view also contend that the private sector can indeed meet the needs of poor smallholder farmers in remote areas if the policy environment is conducive and if adequate investments in infrastructure are made to support a market economy. This study was identified by the Advisory Board of the Food Security Research Project, composed of government and private sector stakeholders in Zambia’s agricultural sector. The objectives of the study were to describe how the fertilizer industry has developed under the process of liberalization, to examine the effects of liberalization, to identify feasible opportunities to reduce farm-gate fertilizer prices and increase smallholder farmers’ access to fertilizer. Particular attention was given to the impact of government programs on the objective of increasing the private sector’s capacity and incentives to distribute fertilizer, and policy options for increasing fertilizer use in areas where it is profitable and contributes to agricultural productivity. This summary provides the main results of the study and recommendations for consideration by government. First, the general trends in the importation of fertilizer into Zambia and the contributions of different players are shown. This is followed by a presentation of the alternative marketing channels prevalent in Zambia during 1999/2000 and their respective market shares and other characteristics. Thirdly, key suggestions on how to reduce the price farmers pay for fertilizer are presented. Finally, the recommendations emanating from these findings are provided.

Suggested Citation

  • Shawa, Julius J. & Haantuba, Hyde H. & Belemu, A. & Ngulube, E. & Banda, A.K. & Govereh, Jones & Jayne, Thomas S. & Nijhoff, Jan J. & Zulu, Ballard, 2002. "Developments in Fertilizer Marketing in Zambia: Commercial Trading, Government Programs, and the Smallholder Farmer," Food Security Collaborative Working Papers 54459, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  • Handle: RePEc:ags:midcwp:54459
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/54459
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
    2. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January.
    3. Jayne, Thomas S., 2000. "Improving Smallholder and Agri-Business Opportunities in Zambia’s Cotton Sector: Key Challenges and Options," Food Security Collaborative Working Papers 54456, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Donovan, Cynthia & Damaseke, M. & Govereh, Jones & Simumba, D., 2000. "Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia," Food Security Collaborative Working Papers 54460, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    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. Smale, Melinda & Jayne, T.S., 2003. "Maize in Eastern and Southern Africa: 'seeds' of success in retrospect," EPTD discussion papers 97, International Food Policy Research Institute (IFPRI).
    2. Robinson, Peter & Govereh, Jones & Ndlela, Daniel, 2007. "Distortions to Agricultural Incentives in Zambia," Agricultural Distortions Working Paper 48516, World Bank.
    3. Jayne, T. S. & Govereh, J. & Wanzala, M. & Demeke, M., 2003. "Fertilizer market development: a comparative analysis of Ethiopia, Kenya, and Zambia," Food Policy, Elsevier, vol. 28(4), pages 293-316, August.
    4. World Bank, 2007. "Zambia : Smallholder Agricultural Commercialization Strategy," World Bank Other Operational Studies 8039, The World Bank.
    5. Zhiying Xu & William J. Burke & Thomas S. Jayne & Jones Govereh, 2009. "Do input subsidy programs "crowd in" or "crowd out" commercial market development? Modeling fertilizer demand in a two-channel marketing system," Agricultural Economics, International Association of Agricultural Economists, vol. 40(1), pages 79-94, January.
    6. Diao, Xinshen & Hazell, Peter & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    7. World Bank, 2004. "Zambia - Country Economic Memorandum : Policies for Growth and Diversification, Volume 1. Main Report," World Bank Other Operational Studies 15666, The World Bank.
    8. Xu, Zhiying & Jayne, Thomas S. & Govereh, Jones, 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).
    9. Crawford, Eric W. & Jayne, Thomas S. & Kelly, Valerie A., 2005. "Alternative Approaches for Promoting Fertilizer Use in Africa, with Particular Reference to the Role of Fertilizer Subsidies," Staff Papers 11557, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Resnick, Danielle, 2004. "Smallholder African agriculture," DSGD discussion papers 9, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    food security; food policy; Zambia; fertilizer profitability; Agribusiness; Marketing; Q18;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

    Statistics

    Access and download statistics

    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:ags:midcwp:54459. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/damsuus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.