Mozambique is characterized by low agricultural productivity, which is associated with low use of yield-enhancing agricultural inputs. Fertilizer application rate averaged 5.7 kg ha−1 in Mozambique during the period 2006 to 2015, considerably low by regional targets, yet constraints that affect fertilizer use have not been thoroughly investigated. This study examined the constraints on fertilizer value chains in Mozambique to contribute to fertilizer supply chain strengthening. We used a combination of multivariate analysis and descriptive methods. Our findings indicate that fertilizer use has both demand and supply constraints. Key demand-side constraints include liquidity challenges, limited awareness about the benefits of using fertilizer, and low market participation, while the main supply-side constraints include high transaction costs, limited access to finance, and lack of soil testing results and corresponding fertilizer recommendations by soil type and crop uptake. These results suggest that scaling up the input subsidy program through vouchers (either paper-based vouchers or e-vouchers) with demonstration plots and effective targeting could drive up smallholders’ demand for fertilizer and fertilizer supply by strengthening a sustainable network of wholesalers and retailers. This would likely boost agricultural productivity.
The objective of this study was to measure white maize grain price transmission among markets in Mozambique and Malawi. Our analysis included two major deficit markets (Maputo in Southern Mozambique and Blantyre in Southern Malawi) and two major surplus markets (Chimoio in Central Mozambique and Nampula in Northern Mozambique). We used monthly wholesale white maize grain prices covering the period 2000 through 2016 to test for and quantify the magnitude of short-and longrun price transmission. To do so, we employed a combination of methodological approaches: Johansen cointegration test, Granger causality test and error correction model (ECM). Our findings revealed that Chimoio market has joint long-run relationship with Maputo, Nampula and Blantyre markets. All three Mozambique market pairs (Maputo and Chimoio; Maputo and Nampula; and Chimoio and Nampula) exhibited bidirectional causality in the long run. However, price changes in Maputo, Chimoio and Nampula are transmitted to Blantyre, but not the reverse. In the short run, only two Mozambique market pairs (Maputo and Chimoio, and Chimoio and Nampula) show bidirectional causality. Blantyre appeared to not exhibit short-run causality with Maputo, Chimoio nor Nampula.
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