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Publication Details
AFRICAN RESEARCH NEXUS
SHINING A SPOTLIGHT ON AFRICAN RESEARCH
Can modern input use be promoted without subsidies? An analysis of fertilizer in Ethiopia
Agricultural Economics (United Kingdom), Volume 44, No. 6, Year 2013
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Description
Fertilizer use in Ethiopia has nearly quintupled since official elimination of direct input subsidies in the early 1990s. During this time, policies changed from liberalization, with both private and public sector participation, to a government monopoly over imports along with exclusive marketing through farmers' cooperatives. This article presents estimates of detail costs and margins in the value chain, econometrically derived profitability and yield responses, as well as costs of the government's fertilizer promotion policies. Results suggest that (a) irrespective of the methods of calculation, fertilizer use in major cereal is profitable; (b) while there is no official subsidy program, fertilizer promotion has involved large fiscal costs-estimated at US$40 million per year since 2008; and (c) there has been a mismatch between government's policy targets and the effective fertilizer demand, resulting in large carryover stock with estimated implicit costs of US$30 million per year during 2008-2011. Areas of policy attention, value chain improvements, and ongoing efforts to improve for fertilizer use and profitability are discussed. © 2013 International Association of Agricultural Economists.
Authors & Co-Authors
Rashid, Shahidur
United States, Washington, D.c.
International Food Policy Research Institute
Tefera, Nigussie
Belgium, Brussels
European Commission Joint Research Centre
Minot, Nicholas W.
United States, Washington, D.c.
International Food Policy Research Institute
Ayele, Gezahegn
Ethiopia, Addis Ababa
Fintrac Inc
Statistics
Citations: 74
Authors: 4
Affiliations: 3
Identifiers
Doi:
10.1111/agec.12076
e-ISSN:
15740862
Research Areas
Health System And Policy
Study Locations
Ethiopia