Improving Fertilizer Supply in SubSaharan Africa

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Improving Fertilizer Supply in Sub-Saharan Africa

• By
• B. L. Bumb
• J. J. R. Groot
• IFDC
• Presentation for
• U.S. Africa Agribusiness Conference
• Monterey, California
• November 7-10, 2004

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Outline of the Presentation

• Trends in Fertilizer Consumption and Supply
• Factors Affecting Fertilizer Supply
• Measures Needed to Improve Fertilizer Supply

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Africa Fertilizer Consumption and Production,
2002/03 (000 nut. tons)
Source FAO
Note SSA excludes the Republic of South
Africa. ( ) Surplus
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Average Annual Rates of Nutrient (NPK) Depletion
in Africa (Years 1993-95)
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Per Hectare Fertilizer Use by Markets,
2002/04(kg/ha)
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Sub-Saharan Africa Trends in Fertilizer
Consumption1989/90 2002/03
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Sub-Saharan Africa Trends in Fertilizer
Production and Imports1989/90 - 2002/03
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Why Fertilizer Use Is Low in SSA?

• Underdeveloped and fragmented fertilizer supply
  systems - High prices, limited accessibility, and
  poor quality of products
• Underdeveloped output market - Low crop prices
• Low profitability of fertilizer use
• Risky environments and low SOMs - Low agronomic
  response
• Imperfect knowledge with farmers

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Factors Affecting Fertilizer Supply

• The Supply Chain Import, Wholesale, and Retail
• Macroeconomic Factors
• Market Development Factors
• Technical Factors

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Tanzania Fertilizer Price and Exchange Rate,
1990-2003
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Tanzania Fertilizer Price and Consumption,
1990-2003
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Constraints Affecting Fertilizer Supply in
Sub-Saharan Africa
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Measures Needed to Improve Fertilizer Supply

• The Five Pillars of Market Development
• Other Supporting Measures
• Improving Demand for Fertilizers

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The Five Pillars of Market Development
Policy
Finance
Market Information
Regulation
Human Capital
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Other Supporting Measures

• Integration of multi-country marketsdeveloping
  business linkages
• Output market development
• Infrastructure developmentrural roads and
  railway capacity

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Improving Demand for Fertilizers

• Improving Soil Health - Integrated Soil Fertility
  Management (ISFM)
• Improving Value Cost Ratios
• Linking Farmers to Output Markets
• Bridging the Knowledge Gap

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Competitiveness - The Fertile Triangle
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Conclusion

• Fertilizer supply in sub-Saharan Africa should
  be improved by creating an enabling policy
  environment, building human capital, improving
  access to finance and information, developing
  regional trade and output markets, and promoting
  technology transfer through ISFM and other
  pathways.