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Fertilizer in Ethiopia: An assessment of policies, value chain, and profitability:

Author

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  • Rashid, Shahidur
  • Tefera, Nigussie
  • Minot, Nicholas
  • Ayele, Gezahegn

Abstract

The study involved interviewing a large number of stakeholders in fertilizer value chain, collection of data on costs and margins from the key actors in the value chain, as well as household survey data. In this paper, we present the key findings from that study. In particular, the paper presents estimates of detail costs and margins in the value chain, econometrically derived profitability and yield responses, and the costs of government’s fertilizer promotion policies. Based the estimates of the costs and margins in the fertilizer value chain, the study argues that the current value chain will not be sustainable unless the scale of operation, as well institutional capacity, of the primary cooperatives goes up.

Suggested Citation

  • Rashid, Shahidur & Tefera, Nigussie & Minot, Nicholas & Ayele, Gezahegn, 2013. "Fertilizer in Ethiopia: An assessment of policies, value chain, and profitability:," IFPRI discussion papers 1304, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1304
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    References listed on IDEAS

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    1. Tewodaj Mogues, 2011. "The Bang for the Birr: Public Expenditures and Rural Welfare in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 47(5), pages 735-752.
    2. Spielman, David J. & Mekonnen, Dawit Kelemework & Alemu, Dawit, 2012. "Seed, fertilizer, and agricultural extension in Ethiopia," IFPRI book chapters,in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 4 International Food Policy Research Institute (IFPRI).
    3. Spielman, David J. & Kolady, Deepthi E. & Cavalieri, Anthony & Rao, N. Chandrasekhara, 2014. "The seed and agricultural biotechnology industries in India: An analysis of industry structure, competition, and policy options," Food Policy, Elsevier, vol. 45(C), pages 88-100.
    4. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    5. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
    6. Kelly, Valerie A., 2005. "Farmers' Demand for Fertilizer in Sub-Saharan Africa," Staff Papers 11612, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Byerlee, Derek & Spielman, David J. & Alemu, Dawit & Gautam, Madhur, 2007. "Policies to promote cereal intensification in Ethiopia: A review of evidence and experience," IFPRI discussion papers 707, International Food Policy Research Institute (IFPRI).
    8. Spielman, David J. & Mekonnen, Dawit Kelemework & Alemu, Dawit, 2012. "Seed, fertilizer, and agricultural extension in Ethiopia," IFPRI book chapters,in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 4 International Food Policy Research Institute (IFPRI).
    9. Michael Morris & Valerie A. Kelly & Ron J. Kopicki & Derek Byerlee, 2007. "Fertilizer Use in African Agriculture : Lessons Learned and Good Practice Guidelines," World Bank Publications, The World Bank, number 6650.
    10. Jacob Ricker-Gilbert & Thomas S. Jayne & Ephraim Chirwa, 2010. "Subsidies and Crowding Out: A Double-Hurdle Model of Fertilizer Demand in Malawi," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 26-42.
    11. Demeke, Mulat & Kelly, Valerie A. & Jayne, Thomas S. & Said, Ali & Le Vallee, Jean-Charles & Chen, H., 1998. "Agricultural Market Performance and Determinants of Fertilizer Use in Ethiopia," Food Security Collaborative Working Papers 55599, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:

    1. Guerzoni, Marco & Jordan, Alexander, 2016. "“Cursed is the ground because of you”: Religion, Ethnicity, and the Adoption of Fertilizers in Rural Ethiopia," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201603, University of Turin.
    2. Tsedeke Abate & Bekele Shiferaw & Abebe Menkir & Dagne Wegary & Yilma Kebede & Kindie Tesfaye & Menale Kassie & Gezahegn Bogale & Berhanu Tadesse & Tolera Keno, 2015. "Factors that transformed maize productivity in Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(5), pages 965-981, October.
    3. Guerzoni, Marco & Jordan, Alexander, 2016. "“Cursed is the ground because of you”: Religion, Ethnicity, and the Adoption of Fertilizers in Rural Ethiopia," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201605, University of Turin.

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