Skip to main content

Ex-ante Evaluation of the Impact of a Structural Change in Fertilizer Procurement Method in Sub-Saharan Africa

  • 705 Accesses

Abstract

In June 2006, the African Heads of State made a declaration to support increase in use of fertilizers in the farming systems of sub-Saharan Africa from the present average of about 8 kg ha–1 to about 50 kg ha–1. One route to attain this goal is to engender regional joint fertilizer procurement to reduce farm gate price and increase fertilizer demand and use. A review of fertilizer use in Africa has shown that structural changes in fertilizer procurement can reduce farm gate price by 11–18%. Using an average of these figures (15%), this study compares the effect of structural changes in fertilizer market (reducing farm gate price by 15%) on total fertilizer demand, total farm income, and additional farm income with the base situation (using FAO data) under three own fertilizer price elasticity of demand scenarios (low –0.38; medium –1.43; and high –2.24) for 11 sub-Saharan Africa countries. Data were analyzed using Microsoft Excel. Result shows that compared with the base level, structural change in fertilizer procurement arrangement (reducing farm gate price by 15%) led to 6% additional farm income (US $125 million) under low elasticity; 22% (US $472 million) under medium elasticity; and 34% (US $730 million) under high elasticity. Switching from one scenario to another indicates the potential to further increase farm income from 20 to 32%. The chapter concludes with the support for structural interventions that reduce farm gate price of fertilizers and other inputs. Such interventions increase farmer productivity, total production, and total farm income and lead to improved livelihoods.

Keywords

  • Farm gate price
  • Fertilizer use
  • Joint procurement
  • Price elasticity scenarios
  • Sub-Saharan Africa

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-90-481-2543-2_8
  • Chapter length: 7 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   309.00
Price excludes VAT (USA)
  • ISBN: 978-90-481-2543-2
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   399.99
Price excludes VAT (USA)
Hardcover Book
USD   499.99
Price excludes VAT (USA)
Fig. 1
Fig. 2

References

  • Bannock G, Baxter RE, Davis E (2003) The Penguin dictionary of economics, 7th edn. Penguin, UK

    Google Scholar 

  • Chianu J, Tsujii H, Awange J (2006) Environmental impact of agricultural production practices in the savannas of northern Nigeria. J Food Agric Environ 4(2):255–260

    Google Scholar 

  • Dregne HE (1990) Erosion and soil productivity in Africa. J Soil Water Conserv 45(4):432–436

    Google Scholar 

  • European Commission (2007) Advancing African agriculture. Proposal for continental and regional level cooperation on agricultural development for Africa. Unit B2 – Policies for sustainable management of natural resources

    Google Scholar 

  • FAOSTAT (2003) http://apps.fao.org/page/collections?subset=agriculture

  • Kelly V, Adesina AA, Gordon A (2003) Expanding access to agricultural inputs in Africa: a review of recent market development experience. Food Policy 28:379–404

    CrossRef  Google Scholar 

  • Kumar S (2007) Dynamics of the global fertilizer market. PowerPoint presentation. Institute of Agriculture and Environment Research, Oslo, Norway, 31 August

    Google Scholar 

  • Lal R (1995) Erosion–crop productivity relationships for soil of Africa. Soil Sci Soc Am J 59(3):661–667

    CrossRef  CAS  Google Scholar 

  • Roy A (2006) Africa fertilizer crisis: summit background and process. Presented at the technical session: high-level dialogue, Africa fertilizer summit, Abuja, Nigeria, 9 June

    Google Scholar 

  • Sanchez PA, Shepherd JD, Soule MJ, Place FM, Buresh RJ, Izac AMN, Mukwonye AU, Kwesiga FR, Ndiritu CG, Woomer PL (1997) Soil fertility replenishment in Africa: an investment in natural capital. In: Buresh RJ, Sanchez PA, Calhoun F (eds) Replenishing soil fertility in Africa. Soil Sci Soc Am 51:1–46

    Google Scholar 

  • Scherr SJ (1999) Soil degradation: a threat to developing-country food security by 2020? International Food Policy Research Institute (IFPRI). Food, agriculture and environment discussion paper 27

    Google Scholar 

  • Todd B (2004) Africa’s food and nutrition security situation: where are we and how did we get here? International Food Policy Research Institute (IFPRI). 2020 discussion paper 37

    Google Scholar 

  • Versi A (2006) Fertilizers – food for as hungry earth, Africa launches green revolution. African business, 18 Dec

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to J. Chianu .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2011 Springer Science+Business Media B.V.

About this paper

Cite this paper

Chianu, J., Adesina, A., Sanginga, P., Bationo, A., Sanginga, N. (2011). Ex-ante Evaluation of the Impact of a Structural Change in Fertilizer Procurement Method in Sub-Saharan Africa. In: Bationo, A., Waswa, B., Okeyo, J., Maina, F., Kihara, J. (eds) Innovations as Key to the Green Revolution in Africa. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-2543-2_8

Download citation