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The profitability of inorganic fertilizer use in smallholder maize production in Tanzania : Implications for alternative and complementary strategies to improve smallholder maize productivity

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  • Mather, David
  • Minde, Isaac
  • Waized, Betty
  • Ndyetabula,Daniel
  • Temu, Anna

Abstract

We use plot-level data from the National Panel Survey to estimate maize - N respon se rates and the profitability of inorganic fertilizer use. We find that average smallholder maize-N response rates are not even 50% of those from zonal center trials, implying that there is a considerable gap between actual and potential returns from fertilizer use. Fertilizer use on maize is only marginally profitable for farmers with average response rates, even in higher potential zones. Farmers who used improved maize seed, fallowed a plot more recently and/or received an extension visit have higher response rates and more profitable fertilizer use, yet fallowing is infrequent and extension does not reach most farmers.

Suggested Citation

  • Mather, David & Minde, Isaac & Waized, Betty & Ndyetabula,Daniel & Temu, Anna, 2016. "The profitability of inorganic fertilizer use in smallholder maize production in Tanzania : Implications for alternative and complementary strategies to improve smallholder maize productivity," Food Security Collaborative Policy Briefs 260437, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcpb:260437
    DOI: 10.22004/ag.econ.260437
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    References listed on IDEAS

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    1. Minde, I., 2008. "Promoting fertilizer use in Africa: current issues and empirical evidence from Malawi, Zambia and Kenya," IWMI Working Papers H042064, International Water Management Institute.
    2. Paswel P. Marenya & Christopher B. Barrett, 2009. "State-conditional Fertilizer Yield Response on Western Kenyan Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 991-1006.
    3. Ariga, Joshua & Jayne, Thomas S., 2009. "Private sector responses to public investments and policy reforms: The case of fertilizer and maize market development in Kenya," IFPRI discussion papers 921, International Food Policy Research Institute (IFPRI).
    4. Minde, Isaac J. & Jayne, Thomas S. & Crawford, Eric W. & Ariga, Joshua & Jones, Govereh, 2008. "Promoting Fertilizer Use in Africa: Current Issues and Empirical Evidence from Malawi, Zambia, and Kenya," Food Security International Development Policy Syntheses 54509, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:

    1. Jayne, Thomas S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2018. "Review: Taking stock of Africa’s second-generation agricultural input subsidy programs," Food Policy, Elsevier, vol. 75(C), pages 1-14.
    2. Mather, David & Minde, Isaac, 2016. "Fertilizer subsidies and how targeting conditions crowding in/out: An assessment of smallholder fertilizer demand in Tanzania," Food Security Collaborative Working Papers 260442, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Mather, David & Ndyetabula, Daniel, 2016. "Assessing The Drivers Of Tanzania’S Fertilizer Subsidy Programs From 2003-2016: An Application Of The Kaleidoscope Model Of Policy Change," Feed the Future Innovation Lab for Food Security Policy Research Papers 259516, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    4. Liverpool-Tasie, Lenis Saweda O. & Jayne, Thomas & Muyanga, Milu & Sanou, Awa, 2017. "Are African Farmers Experiencing Improved Incentives To Use Fertilizer?," Feed the Future Innovation Lab for Food Security Policy Research Papers 270632, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    5. Michelson, Hope & Fairbairn, Anna & Ellison, Brenna & Maertens, Annemie & Manyong, Victor, 2021. "Misperceived quality: Fertilizer in Tanzania," Journal of Development Economics, Elsevier, vol. 148(C).
    6. Kopper, Sarah A. & Jayne, Thomas S. & Snapp, Sieglinde S., 2020. "Sifting through the weeds: Understanding heterogeneity in fertilizer and labor response in Central Malawi," Ecological Economics, Elsevier, vol. 169(C).
    7. Michelson,Hope Carolyn & Gourlay,Sydney & Wollburg,Philip Randolph, 2022. "Non-Labor Input Quality and Small Farms in Sub-Saharan Africa : A Review," Policy Research Working Paper Series 10092, The World Bank.
    8. Fujimoto, Takefumi & Suzuki, Aya, 2021. "Do Fertilizer and Seed Subsidies Strengthen Farmers' Market Participation? the Impact of Tanzania NAIVS on Farmers' Purchase of Agricultural Inputs and Their Maize-Selling Activities," 2021 Conference, August 17-31, 2021, Virtual 315044, International Association of Agricultural Economists.
    9. Joseph S. Kanyamuka & Flora J. Nankhuni & Thomas S. Jayne & Moses W. Munthali, 2018. "Making Fertilizer Use More Effective and Profitable: The Role of Complementary Interventions," Feed the Future Innovation Lab for Food Security Policy Research Briefs 303564, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    10. Burke, William J. & Jayne, Thom S. & Snapp, Sieglinde S., 2022. "Nitrogen efficiency by soil quality and management regimes on Malawi farms: Can fertilizer use remain profitable?," World Development, Elsevier, vol. 152(C).

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    Keywords

    Agricultural and Food Policy; Food Security and Poverty; International Development;
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