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Low Quality, Low Returns, Low Adoption: Evidence from the Market for Fertilizer and Hybrid Seed in Uganda

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  • Svensson, Jakob
  • Yanagizawa-Drott, David
  • Bold, Tessa
  • Kaizzi, Kayuki

Abstract

To reduce poverty and food insecurity in Africa requires raising productivity in agriculture. Systematic use of fertilizer and hybrid seed is a pathway to increased productivity, but adoption of these technologies remains low. We investigate whether the quality of agricultural inputs can help explain low take-up. Testing modern products purchased in local markets, we find that 30% of nutrient is missing in fertilizer, and hybrid maize seed contains less than 50% authentic seeds. We document that such low quality results in negative average returns. If authentic technologies replaced these low-quality products, average returns for smallholder farmers would be over 50%.

Suggested Citation

  • Svensson, Jakob & Yanagizawa-Drott, David & Bold, Tessa & Kaizzi, Kayuki, 2015. "Low Quality, Low Returns, Low Adoption: Evidence from the Market for Fertilizer and Hybrid Seed in Uganda," CEPR Discussion Papers 10743, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10743
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    Cited by:

    1. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    2. Chaoran Chen & Diego Restuccia & Raül Santaeulàlia-Llopis, 2023. "Land Misallocation and Productivity," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(2), pages 441-465, April.
    3. Charles D. Brummitt & Kenan Huremović & Paolo Pin & Matthew H. Bonds & Fernando Vega-Redondo, 2017. "Contagious disruptions and complexity traps in economic development," Nature Human Behaviour, Nature, vol. 1(9), pages 665-672, September.
    4. Stefanija Veljanoska, 2022. "Do Remittances Promote Fertilizer Use? The Case of Ugandan Farmers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 273-293, January.
    5. Omotilewa, Oluwatoba J. & Ricker-Gilbert, Jacob & Ainembabazi, John Herbert & Shively, Gerald E., 2018. "Does improved storage technology promote modern input use and food security? Evidence from a randomized trial in Uganda," Journal of Development Economics, Elsevier, vol. 135(C), pages 176-198.
    6. Liz Ignowski & Bart Minten, 2021. "Agricultural Transformation, Technology Adoption and Inclusion of Small Farmers: The Case of Dairy in East Africa," LICOS Discussion Papers 42621, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    7. Bizimungu, Emmanuel & Kabunga, Nassul Ssentamu, 2018. "A latent class analysis of improved agro-technology use behavior in Uganda: Implications for optimal targeting:," IFPRI discussion papers 1704, International Food Policy Research Institute (IFPRI).
    8. 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.
    9. Assima, Amidou & Haggblade, Steven & Smale, Melinda, 2017. "Counterfeit Herbicides And Farm Productivity In Mali: A Multivalued Treatment Approach," Feed the Future Innovation Lab for Food Security Policy Research Papers 259563, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    10. Scheiterle, L., 2018. "Soil, striga or subsidies? Determinants of maize productivity in northern Ghana," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277405, International Association of Agricultural Economists.
    11. Kabunga, N. & Bizimungu, E., 2018. "A Latent Class Analysis of Agricultural Technology Use Behavior in Uganda and Implications for Optimal Targeting," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277007, International Association of Agricultural Economists.
    12. Travis J. Lybbert & Gracious Diiro & Dick Kawooya & Sacha Wunsch-Vincent, 2018. "Enhancing Innovation in the Ugandan Agri-Food Sector: Robusta Coffee Planting Material & Tropical Fruit Processing," WIPO Economic Research Working Papers 42, World Intellectual Property Organization - Economics and Statistics Division.
    13. Sara Helen Kaweesa & Hamid El Bilali & Willibald Loiskandl, 2021. "Analysing the socio-technical transition to conservation agriculture in Uganda through the lens of the multi-level perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7606-7626, May.
    14. Swinnen, Johan & Kuijpers, Rob, 2019. "Value chain innovations for technology transfer in developing and emerging economies: Conceptual issues, typology, and policy implications," Food Policy, Elsevier, vol. 83(C), pages 298-309.
    15. Ozaki, Ryosuke & Tsujimoto, Yasuhiro & Andriamananjara, Andry & Rakotonindrina, Hobimiarantsoa & Sakurai, Takeshi, 2021. "Impact of Information of Expected Effectiveness Based on Soil Quality on Farmers’ Decision of Fertilizer Use: Evidence from Madagascar," 2021 Conference, August 17-31, 2021, Virtual 315272, International Association of Agricultural Economists.
    16. Fairbairn, Anna & Michelson, Hope & Ellison, Brenna & Manyong, Victor, 2016. "Mineral Fertilizer Quality: Implications for Markets and Small Farmers in Tanzania," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236818, Agricultural and Applied Economics Association.
    17. Ashour, Maha & Billings, Lucy & Gilligan, Daniel & Hoel, Jessica B. & Karachiwalla, Naureen, 2016. "Do beliefs about agricultural inputs counterfeiting correspond with actual rates of counterfeiting? Evidence from Uganda:," IFPRI discussion papers 1552, International Food Policy Research Institute (IFPRI).
    18. Hounkonnou, Dominique & Brouwers, Jan & van Huis, Arnold & Jiggins, Janice & Kossou, Dansou & Röling, Niels & Sakyi-Dawson, Owuraku & Traoré, Mamoudou, 2018. "Triggering regime change: A comparative analysis of the performance of innovation platforms that attempted to change the institutional context for nine agricultural domains in West Africa," Agricultural Systems, Elsevier, vol. 165(C), pages 296-309.
    19. Bisimungu, Emmanuel & Kabunga, Nassul, 2016. "A Latent Class Analysis of agricultural technology adoption behavior in Uganda: Implications for Optimal Targeting," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249347, African Association of Agricultural Economists (AAAE).
    20. Ermias Engida Legesse & Amit Kumar Srivastava & Arnim Kuhn & Thomas Gaiser, 2019. "Household Welfare Implications of Better Fertilizer Access and Lower Use Inefficiency: Long-Term Scenarios for Ethiopia," Sustainability, MDPI, vol. 11(14), pages 1-24, July.

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    More about this item

    Keywords

    agriculture; Substandard inputs; Technology adoption;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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