Fertilizer in Ethiopia: An Assessment of Policies, Value Chain, and Profitability

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

doi:10.2139/ssrn.2373214

Cited by 44 publications

(30 citation statements)

References 27 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The use of the primary fertility-enhancing agricultural technologies such as irrigation, fertilizers and pesticides is lower than in other regions of the developing world, sharply limiting yield gains. Rashid et al (2013) indicate that only 19 percent of total cultivated area is fertilized, although Amhara, the region of this project, exhibits somewhat higher input use than the Ethiopian national average. They also show that cereals, especially teff, are the main crops that receive fertilizer.…”

Section: Inputs and Credit In Ethiopian Smallholder Agriculturementioning

confidence: 82%

The Impact of Commercial Rainfall Index Insurance: Experimental Evidence from Ethiopia

Shukri¹,

McIntosh²,

Sarris³

2020

American J Agri Economics

View full text Add to dashboard Cite

We present the results of an experiment introducing commercial rainfall index insurance into drought-plagued farming cooperatives in Amhara State, Ethiopia. We introduce a market-priced rainfall deficit insurance product through producer cooperatives, and test a number of potential ways to kick-start private demand. Takeup of the insurance at market prices is very low, between .5% and 3% across seasons, but a low-cost promotion at baseline increases willingness to pay for multiple seasons. When we use a randomized experiment to distribute small free insurance contracts to farmers, 39% of subsidized individuals enroll but this fails to stimulate input use, yields, or income, and nor does it enhance demand in subsequent seasons. Our experience in interlinking credit with insurance shows that while serious logistical challenges need to be overcome, real demand can exist for state-contingent credit in this context.

show abstract

Section: Inputs and Credit In Ethiopian Smallholder Agriculturementioning

confidence: 82%

The Impact of Commercial Rainfall Index Insurance: Experimental Evidence from Ethiopia

Shukri¹,

McIntosh²,

Sarris³

2020

American J Agri Economics

View full text Add to dashboard Cite

show abstract

“…These will require addressing some of the remaining handicaps that reduce farmer access to modern varieties, inputs and services. Some of the institutional and policy issues raised by several authors, especially around the seed system (e.g., Alemu 2010;Alemu et al 2010;Dorosh and Rashid 2013;Rashid et al 2013;Spielman et al 2013), have been changing, albeit slowly, through partnerships with the national program and regional initiatives such as DTMA, Program for Africa's Seed Systems (PASS), and other bilateral programs. We highlight below some of the key issues, including the need for variety replacement, addressing issues related to seed systems, raising the level of input use, and maintaining a critical mass of researchers.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Factors that transformed maize productivity in Ethiopia

et al. 2015

View full text Add to dashboard Cite

Maize became increasingly important in the food security of Ethiopia following the major drought and famine that occurred in 1984. More than 9 million smallholder households, more than for any other crop in the country, grow maize in Ethiopia at present. Ethiopia has doubled its maize productivity and production in less than two decades. The yield, currently estimated at >3 metric tons/ha, is the second highest in Sub-Saharan Africa, after South Africa; yield gains for Ethiopia grew at an annual rate of 68 kg/ha between 1990 and 2013, only second to South Africa and greater than Mexico, China, or India. The maize area covered by improved varieties in Ethiopia grew from 14 % in 2004 to 40 % in 2013, and the application rate of mineral fertilizers from 16 to 34 kg/ ha during the same period. Ethiopia's extension worker to farmer ratio is 1:476, compared to 1:1000 for Kenya, 1:1603 for Malawi and 1:2500 for Tanzania. Increased use of improved maize varieties and mineral fertilizers, coupled with increased extension services and the absence of devastating droughts are the key factors promoting the accelerated growth in maize productivity in Ethiopia. Ethiopia took a homegrown solutions approach to the research and development of its maize and other commodities. The lesson from Ethiopia's experience with maize is that sustained investment in agricultural research and development and policy support by the national government are crucial for continued growth of agriculture.

show abstract

“…As reported by Heisey and Norton (2007), these margins in Ethiopia compare favourably with other African countries, though are still higher than in Asian and Latin American countries. Similarly, Rashid et al (2013) showed that fertilizer prices in Ethiopia are significantly lower than in neighbouring Kenya, Uganda, Rwanda and Tanzania. An explanation for such "low" prices is the state control over prices and marketing margins.…”

Section: Discussionmentioning

confidence: 99%

Fertilizer supply chain in Ethiopia: structure, performance and policy analysis

Agbahey¹,

Grethe²,

Negatu³

2015

View full text Add to dashboard Cite

In Ethiopia, less than 40% of farmers use fertilizer and those who do, apply rates significantly below those recommended. This low fertilizer use is primarily due to prices being two to three times higher than prices on the world markets. Reducing the price of fertilizer requires a sound understanding of the product´s supply chain. This study investigates whether fertilizer is delivered to farmers in an efficient way and at the lowest possible costs using an institutional economics framework. It was conducted in the Arsi zone and relied on secondary data as well as primary data collected through interviews. The findings point out the presence of several formal and informal institutions regulating the market. A market monopoly at each stage of the supply chain and a striking correspondence between the central organization of the chain and the rise in left-over stocks were observed. This pinpoints the imperfect structure of the chain and a misallocation of resources locked up in fertilizer stockholding. In order to improve the demand estimation procedure, this study suggests that incentives should be instituted to enhance the reliability of the information transferred along the process. Additionally, expert knowledge used in the process should be well documented, stock inventories should not be limited to central warehouses and stockholding needs to be reduced.

show abstract

Fertilizer in Ethiopia: An Assessment of Policies, Value Chain, and Profitability

Cited by 44 publications

References 27 publications

The Impact of Commercial Rainfall Index Insurance: Experimental Evidence from Ethiopia

The Impact of Commercial Rainfall Index Insurance: Experimental Evidence from Ethiopia

Factors that transformed maize productivity in Ethiopia

Fertilizer supply chain in Ethiopia: structure, performance and policy analysis

Contact Info

Product

Resources

About