Strategies to strengthen the private sector capacity in agricultural input

128. To ensure the sustainability of agricultural input development in Africa, it is important to enrich the understanding of the private sector about the technological know-how of agricultural inputs. Future planning and implementation arrangements for agricultural input development in Africa need to be organized such that appropriate institutional and in-service training programmes are designed to equip people for their jobs; these include extension agents who can link both input suppliers and consumers without any socio-political interference.

129. In order to minimize the unsustainable fiscal burdens placed on African governments in input supply through input subsidies, public-private partnerships are encouraged in such a way to avoid disruption of the private input market. This will require capacity-building of the private sector in basic characteristics of the agricultural input network, such as their level of integration with other suppliers, the level of prevailing competition, different marketing practices in the input supply sector, information and communication technologies (ICTs) that can lead to increase in the value and volume of available of commercial inputs.

130. Building the capacities of the existing agricultural market exchanges and encouraging the establishment of exchanges in countries where they do not exist will strengthen information flow and create wider market networks in Africa. This will also lead to strong supportive frameworks that enhance competitiveness in the agricultural input trade. If African countries want to achieve potential gains of agricultural input business, emphasis should be in areas where they have comparative advantages to ensure efficiency of resource use. Further reforms in input supply should be adapted to each country’s specific economic and social characteristics, priorities, and level of development.

131. Multiple, duplicative and overlapping protocols, structures and mandates of institutions involved in regional trade arrangements should be dismantled to expeditiously clear and facilitate the movement of inputs across national borders, and building the capacity of trade associations to identify and advocate for needed improvements along the trade and transport corridors.

The capacities of government agencies, regional bodies, private sector trade associations, farmer organizations, and other development partners should be strengthened in order to identify and address the main bottlenecks to the marketing of agricultural inputs.

Key References

AfDB (African Development Bank), IFAD (International Fund for Agricultural Development), IWMI (International Water Management Institute) and World Bank. 2007. Investment in Agricultural Water for Poverty Reduction and Economic Growth in sub-Saharan Africa. Unpublished report.

Ariga, J., T. Jayne, B. Kibaara, and J. Nyoro. 2009. Trends and patterns in fertilizer use by smallholder farmers in Kenya: 1997-2007. Tegemeo Institute of Agricultural Policy and Development Working Paper 28/2008. Nairobi: Egerton University.

Crawford, E., V. Kelly, T. Jayne, and J. Howard. Input use and market development in sub-Saharan Africa: an overview. Food Policy 28 (2003): 277-292.

Donovan, G., 1999. Building markets and making them work. Background paper. The World Bank, Washington, DC.

Donovan, C., Damaseke, M., Govereh, J., Simumba, D., 2002. Framework and initial analyses of fertilizer profitability in maize and cotton in Zambia. Working paper 5. Food Security Research Project, Lusaka.

Dorward, A., E. Chirwa, V. Kelly, T. Jayne. 2008. Evaluation of the 2006/7 Agricultural Input Supply Programme, Malawi. Final report, School of Oriental and African Studies (SOAS), Wadonda Consult, Michigan State University, and Overseas Development Institute (ODI) undertaken for the Ministry of Agriculture and Food Security, Government of Malawi. March.

Dorward, A., Kydd, J., Poulton, C. (Eds.), 1998. Smallholder Cash Crop Production Under Market Liberalization. CAB International, Oxford and New York.

Gabre-Madhin, E., Barrett, C., Dorooh, P., 2003. Technological change and price effects in agriculture: Conceptual and comparative perspective. Discussion paper 62. International Food Policy Research Institute, Washington, DC.

Gabre-Madhin, E., 2003. From crop surplus to food shortage. what happened? The Daily Monitor, 23 January, Addis Ababa.

Gordon, A., 2000. Improving Small-Holder Access to Purchased Inputs in sub-Saharan Africa.

Policy

FAO (Food and Agriculture Organization of the United Nations). 1998. Seed policy and programmes for sub-Saharan Africa: proceedings of the Regional Technical Meeting on Seed Policy and

Programmes for sub-Saharan Africa, Abidjan, Côte d’Ivoire, November 23-27, 1998. Unpublished report. Rome. Food and Agriculture Organization of the United Nations.

FAO (2009). FAOSTAT. http://faostat.fao.org.

Heisey, P. and W. Mwangi. 1997. Fertilizer use and maize production. In Africa’s emerging maize revolution, ed. D. Byerlee and C. Eicher. Boulder, CO: Lynne Reiner.

IFDC (International Fertilizer Development Corporation). 2008. World fertilizer prices soar as food and fuel economies merge. Press release.

International Seed Federation, 2003. http://www.worldseed.org.

Jayne, T., J. Govereh, M. Wanzala, and M. Demeke. Fertilizer market development: a comparative analysis of Ethiopia, Kenya, and Zambia. Food Policy 28 (2003): 293-316.

Jayne, T., S. Rashid, N. Minot, and S. Kasule. June 15-16, 2009. Promoting fertilizer use in Africa: current issues and empirical evidence from the COMESA region. Presentation at the COMESA Africa Agricultural Markets Programme Policy Conference. Livingstone, Zambia.

Kelly, V., A. Adesina, and A. Gordon. Expanding access to agricultural inputs in Africa: a review of recent market development experience. Food Policy 28 (2003): 379-404.

Kelly, V., E. Crawford and T. Jayne. Agricultural input use and market development in Africa:

recent perspectives and insights. Policy Synthesis for Cooperating USAID Offices and Country Missions 70 (2003).

Kherallah, M., C. Delgado, E. Gabre-Madhin, N. Minot, and M. Johnson. 2002. Reforming agricultural markets in Africa. Washington, DC: International Food Policy Research Institute (IFPRI).

Minde, I., T. Jayne, E. Crawford, J. Ariga, and J. Govereh. 2008. Promoting fertilizer use in Africa: current issues and empirical evidence from Malawi, Zambia and Kenya. ReSAKSS Working Paper No. 13. International Crops Research Institute for the Semi arid Tropics (ICRISAT), International Food Policy Research Institute (IFPRI) and International Water Management Institute (IWMI).

Morris, M., V. Kelly, R. Kopicki, and D. Byerlee. 2007. Fertilizer use in African agriculture:

lessons learned and good practice guidelines. Washington, DC: World Bank.

Omilola, B. and Lambert, M. 2009. Weathering the Storm: Agricultural Development, Investment and Poverty in Africa following the recent Food Price Crisis, Regional Strategic Analysis and Knowledge Support System (ReSAKSS) Annual Trends and Outlook Report 2009. Washington DC: International Food Policy Research Institute (IFPRI).

Pinstrup-Andersen, P. 1993. Fertilizer subsidies: balancing short-term responses with long-term imperatives. In Policy options for agricultural development in sub-Saharan Africa, ed. N. Russell and C. Dowswell. Mexico City: Centre for Applied Studies in International Negotiations, Sasakawa Africa Association, and Global 2000.

Rohrbach, D., I. Minde, and J. Howard. Looking beyond national boundaries: regional harmonization of seed policies, laws and regulations. Food Policy 28 (2003): 317-333.

Rosegrant, M.W., M.S. Paisner, and S. Meijer. 2001. Global food projections to 2020: emerging trends and alternative futures. Washington, DC: International Food Policy Research Institute (IFPRI).

Stepanek, J. 1999. Lessons from Ethiopia’s high-input technology promotion programme: how the organization of the fertilizer subsector affects maize productivity. Ph.D dissertation. East Lansing, MI: Michigan State University.

Tripp, R. and D. Rohrbach. Policies for African seed enterprise development. Food Policy 26 (2001): 147-161.

World Bank. 1994. Adjustment in Africa: reforms, results and the road ahead. World Bank Policy Research Report. Washington, DC.

World Bank. 2008. World Development Indicators, 2008. Washington, D.C.

Yanggen, D., V. Kelly, T. Reardon, and A. Naseem. 1998. Incentives for fertilizer use in sub-Saharan Africa: a review of empirical evidence on fertilizer response and profitability. MSU International Development Working Paper No. 70. East Lansing, MI: Michigan State University.