Farm input markets in the SSA

1. Farm input market system in Western Kenya:
constraints, opportunities and policy
implications
Low use of farm inputs by farmers in SSA isLow use of farm inputs by farmers in SSA is
responsible for the gap between potential farmers’responsible for the gap between potential farmers’
yields and actual crop yields at farm level.yields and actual crop yields at farm level.
Fertilizer use in Africa is <10% of global meanFertilizer use in Africa is <10% of global mean
(Figure 1). Even a 100% increase cannot(Figure 1). Even a 100% increase cannot
significantly improve SSA fertilizer profile orsignificantly improve SSA fertilizer profile or
provide adequate support for a green revolution inprovide adequate support for a green revolution in
Africa.Africa.
Few farmers in western Kenya use adequateFew farmers in western Kenya use adequate
levels of inputs or fertilizer.levels of inputs or fertilizer.
.
Study was in 13 districts in western Kenya.
A cross-sectional questionnaire survey of 130
agro-input dealers randomly selected.
Main parameters: Agro-inputs sold, other farm
services to farmers, constraints and challenges,
favorable agro-input policies , etc.
Online distance calculator, based on the World
Geodetic System (1984) ellipsoid, was used to
estimate distances between input selling and
purchasing points.
Data was analyzed using SPSS Version 11.5.
Jonas N. Chianu*, Franklin Mairura, Isaac Ekise
Tropical Soil Biology and Fertility institute of the International Centre for Tropical Agriculture
(TSBF-CIAT), Nairobi, Kenya
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SSAEurasia
AfricaOceania
CentralAmerica
SouthAfrica
NorthAfricaW
estAsia
LatinAmerica
EasternEurope
SouthAmerica
NorthAm
erica
SouthAsia
W
esternEuropeEastAsia
Figure 1: Mean fertilizer use by markets (kg/ha)
Source: FAO, 2003
* Corresponding author: jchianu@cgiar.org
Introduction
Agro-input
Number of input dealers* % Increase
2003 2004 2005 2003-2005
Fertilizers 245 276 299 22
Insecticides 314 351 372 19
Farm Machinery 69 78 82 19
Herbicides 61 67 72 18
Fungicide 234 255 275 18
Improved seeds 176 189 198 13
Storage chemical 244 263 271 11
Seed treatment chemicals 43 43 44 2
Materials and methods
•Between 2003 and 2005, the increase in number of agro-input dealers ranged from 2% (seed treatment
chemicals) to 22% (mineral fertilizers); mean 16% across inputs.
•Differences in the magnitude of % increase reflects the demand for different inputs.
•Mean agro-input sourcing distance: 80 km (fertilizers) to 100 km (storage chemicals) (Table not shown).
•A positive correlation between selling price and sourcing distance; magnitude varied with inputs.
Results and discussions
Table 1: Number of agro-input dealers selling different farm inputs (2003–2005)
Other services
Number of farmers#
Female Male
Input packaging 3100 (2) 15000 (2)
Soil suitability information 796 (7) 3650 (7)
Soil fertility information 787 (7) 3645 (7)
Seed variety information 656 (13) 2656 (12)
Agrochemicals information 735 (14) 2328 (13)
Credit facilities 255 (12) 298 (12)
Spraying 30 (3) 75 (3)
Table 2: Average number of farmers who
benefited from other services given by
agro-dealers (According to dealers)
Global average(93kg/ha)
Other services provided by agro-dealers
Agro-input dealers in the survey area (2003–2005)
Only 2-11% of agro-input dealers surveyed provided other services to small-scale farmers
Main constraints facing agro-input dealers: High transport cost and low demand.
0
10
20
30
40
50
60
70
80
High
transport
cost
Low
demand
Lack of
market
information
Lack of
storage
facilities
Limited
business
knowledge
%frequency
Business constraints
Figure 2: Constraints faced by input
dealers in western Kenya
Important paradox
Farmers everywhere in the world can find
Coca-cola but they cannot find most farm
inputs when they need them
Policy and institutional framework
Policy % dealers
Training 29
Enhanced access to credit 21
Extension, research, infrastructure 15
Tax reduction 14
Illegal trade and adulteration 13
Input supply management 8
Total 100
Table 3: Policy areas suggested by agro-
dealers to enhance farm input supply sector
•Major institutions agro-input dealers felt should
intervene to remove business constraints:
•Government (48%): To facilitate loan access, tax
reduction, and input quality control
•Universities and research institutions (26%).
•Agro-input dealers in western Kenya face enormous problems
(e.g., infrastructure, low demand) in their business.
•Only very few agro-input dealers are in a position to provide
other services (input-related information, credit, etc.).
•High farm-level input price is mostly due to the input sourcing
distance.
•Government policy and institutional intervention are critical in
stimulate the input supply sector and effectively usher in
sustainable green revolution in Africa.
Conclusions and way forward
Innovations as Key to the Green
Revolution in Africa: Exploring the
Scientific Facts
Arusha, Tanzania, September 2007
Innovations as Key to the Green
Revolution in Africa: Exploring the
Scientific Facts
Arusha, Tanzania, September 2007
This paper examines constraints and challenges
limiting expansion of farm input use by small
farmers in Western Kenya by assessing input
supply side issues.
#
Values are effective sample sizes of dealers who offered
service
A typical farm input shop
* Responses were collated for different input brands within each agro-input category
We acknowledge the agro-input dealers and in western Kenya
and contributors for their co-operation in the study
Acknowledgement Asante sana