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Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia

Author

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  • Donovan, Cynthia
  • Damaseke, M.
  • Govereh, Jones
  • Simumba, D.

Abstract

The main question which this research originally sought to answer was whether or not inorganic fertilizers are generally profitable used alone on maize, or with pesticides on cotton, for small farmers in Zambia. Rather than give a definitive answer for each Zambian farmer, the authors developed a framework for analysis and applied that framework to locations with sufficient information. Using simple value/cost ratios, researchers estimated the potential profit of fertilizer for those sites. Then, using the distributions of response rates of the crops (incremental yields) found in the trials and output prices based on regional price series, the probabilities are estimated for VCRs, using a minimum of VCR of 2.0 for profitability. The results for selected locations and input applications are then presented, as examples and indicators of fertilizer profitability in Zambia.

Suggested Citation

  • Donovan, Cynthia & Damaseke, M. & Govereh, Jones & Simumba, D., 2000. "Framework and Initial Analyses of Fertilizer Profitability in Maize and Cotton in Zambia," Food Security Collaborative Working Papers 54460, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcwp:54460
    DOI: 10.22004/ag.econ.54460
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    1. Yanggen, David & Kelly, Valerie A. & Reardon, Thomas & Naseem, Anwar, 1998. "Incentives for Fertilizer Use in Sub-Saharan Africa: A Review of Empirical Evidence on Fertilizer Response and Profitability," Food Security International Development Working Papers 54677, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Palhares de Melo, L. A. M. & Bertioli, D. J. & Cajueiro, E. V. M. & Bastos, R. C., 2001. "Recommendation for fertilizer application for soils via qualitative reasoning," Agricultural Systems, Elsevier, vol. 67(1), pages 21-30, January.
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    1. Xu, Zhiying & Govereh, Jones & Black, J. Roy & Jayne, Thomas S., 2006. "Maize Yield Response to Fertilizer and Profitability of Fertilizer Use Among Small-Scale Maize Producers in Zambia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25730, International Association of Agricultural Economists.
    2. Govereh, Jones & Jayne, Thomas S. & Nijhoff, Jan J. & Shawa, Julius J. & Haantuba, Hyde H. & Belemu, A. & Ngulube, E. & Zulu, Ballard & Banda, A.K., 2002. "Developments in Fertilizer Marketing in Zambia: Commercial Trading, Government Programs and the Smallholder Farmer," Food Security Collaborative Policy Briefs 54604, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Jayne, T. S. & Govereh, J. & Wanzala, M. & Demeke, M., 2003. "Fertilizer market development: a comparative analysis of Ethiopia, Kenya, and Zambia," Food Policy, Elsevier, vol. 28(4), pages 293-316, August.
    4. Snapp, S. S. & Blackie, M. J. & Donovan, C., 2003. "Realigning research and extension to focus on farmers' constraints and opportunities," Food Policy, Elsevier, vol. 28(4), pages 349-363, August.
    5. Xu, Zhiying & Jayne, Thomas S. & Black, J. Roy & Govereh, Jones, 2005. "Profitability Of Fertilizer Use On Maize By Small-Scale Farming Households In Zambia," 2005 Annual meeting, July 24-27, Providence, RI 19141, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. World Bank, 2004. "Zambia - Country Economic Memorandum : Policies for Growth and Diversification, Volume 1. Main Report," World Bank Publications - Reports 15666, The World Bank Group.
    7. Kelly, Valerie A., 2005. "Farmers' Demand for Fertilizer in Sub-Saharan Africa," Staff Paper Series 11612, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Xu, Zhiying & Jayne, Thomas S. & Govereh, Jones, 2006. "Input Subsidy Programs and Commercial Market Development: Modeling Fertilizer Use Decisions in a Two-Channel Marketing System," 2006 Annual meeting, July 23-26, Long Beach, CA 21270, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Nijhoff, Jan J. & Tembo, Gelson & Shaffer, James D. & Jayne, Thomas S. & Shawa, Julius J., 2003. "How Will the Proposed Crop Marketing Authority Affect Food Market Performance in Zambia? An ex Ante Assessment to Inform Government Deliberation," Food Security Collaborative Policy Briefs 54611, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Kelly, Valerie & Adesina, Akinwumi A. & Gordon, Ann, 2003. "Expanding access to agricultural inputs in Africa: a review of recent market development experience," Food Policy, Elsevier, vol. 28(4), pages 379-404, August.
    11. Nijhoff, Jan J. & Tembo, Gelson & Shaffer, James D. & Jayne, Thomas S. & Shawa, Julius J., 2003. "How Will the Proposed Crop Marketing Authority Affect Food Market Performance in Zambia: An Ex Ante Assessment to Guide Government Deliberation," Food Security Collaborative Working Papers 54463, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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    More about this item

    Keywords

    Crop Production/Industries;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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