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Agricultural Production Incentives: Fertilizer Markets and Insights from Kenya

Author

Listed:
  • Wanzala, Maria N.
  • Jayne, Thomas S.
  • Staatz, John M.
  • Mugera, Amin W.
  • Kirimi, Justus
  • Owuor, Joseph

Abstract

The paper has several specific objectives. First, it identifies how fertilizer marketing costs and the types of fertilizers used have changed over the course of the liberalization process in Kenya. A second objective is to examine the fertilizer subsector in Kenya with a view to identifying organizational and institutional changes that could improve its performance. Various types of fertilizer supply chains serving farmers in western Kenya are identified, examine the cost structure of these supply chains, identify potential sources of cost reduction in these supply chains, and last, estimate the impact of illustrative scenarios for reducing fertilizer marketing costs on the profitability of maize production in western Kenya.

Suggested Citation

  • Wanzala, Maria N. & Jayne, Thomas S. & Staatz, John M. & Mugera, Amin W. & Kirimi, Justus & Owuor, Joseph, 2001. "Agricultural Production Incentives: Fertilizer Markets and Insights from Kenya," Food Security Collaborative Working Papers 55150, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcwp:55150
    DOI: 10.22004/ag.econ.55150
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    References listed on IDEAS

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    1. Nyoro, James K. & Kiiru, M.W. & Jayne, Thom S., 1999. "Evolution of Kenya's Maize Marketing Systems in the Post-Liberalization Era," Working Papers 202679, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    2. Steven Were Omamo, 1998. "Transport Costs and Smallholder Cropping Choices: An Application to Siaya District, Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 116-123.
    3. Steven Were Omamo, 1998. "Farm-to-market transaction costs and specialisation in small-scale agriculture: Explorations with a non-separable household model," Journal of Development Studies, Taylor & Francis Journals, vol. 35(2), pages 152-163.
    4. Demeke, Mulat & Kelly, Valerie A. & Jayne, Thomas S. & Said, Ali & Le Vallee, Jean-Charles & Chen, H., 1998. "Agricultural Market Performance and Determinants of Fertilizer Use in Ethiopia," Food Security Collaborative Working Papers 55599, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mathenge, Mary K. & Tschirley, David L., 2008. "Off-Farm Work and Farm Production Decisions: Evidence from Maize-Producing Households in Rural Kenya," Working Papers 202609, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    2. Sheahan, Megan & Ariga, Joshua & Jayne, Thomas S., 2013. "Modeling the Effects of Input Market Reforms on Fertilizer Demand and Maize Production: A Case Study of Kenya," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150697, Agricultural and Applied Economics Association.
    3. Tavneet Suri, 2009. "Selection and Comparative Advantage in Technology Adoption," NBER Working Papers 15346, National Bureau of Economic Research, Inc.
    4. Tavneet Suri, 2006. "Selection and Comparative Advantage in Technology Adoption," Working Papers 944, Economic Growth Center, Yale University.
    5. Megan Sheahan & Joshua Ariga & T. S. Jayne, 2016. "Modeling the Effects of Input Market Reforms on Fertiliser Demand and Maize Production: A Case Study from Kenya," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 420-447, June.
    6. Suri, Tavneet, 2006. "Selection and Comparative Advantage in Technology Adoption," Center Discussion Papers 28445, Yale University, Economic Growth Center.
    7. Govereh, Jones & Jayne, Thomas S. & Chapoto, Antony, 2008. "Assessment of Alternative Maize Trade and Market Policy Interventions in Zambia," Food Security Collaborative Working Papers 54492, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Nyoro, James K. & Ariga, Joshua, 2004. "Preparation of an Inventory of Research Work Undertaken in Agricultural/Rural Sector in Kenya," Food Security Collaborative Working Papers 55161, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. Guo, Zhe & Koo, Jawoo & Wood, Stanley, 2009. "Fertilizer profitability in East Africa: A Spatially Explicit Policy Analysis," 2009 Conference, August 16-22, 2009, Beijing, China 51710, International Association of Agricultural Economists.
    10. 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.
    11. Getnet, Kindie, 2008. "From market liberalization to market development: The need for market institutions in Ethiopia," Economic Systems, Elsevier, vol. 32(3), pages 239-252, September.
    12. Hugo De Groote & George Owuor & Cheryl Doss & James Ouma & Lutta Muhammad & K. Danda, 2005. "The Maize Green Revolution in Kenya Revisited," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 2(1), pages 32-49.

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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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