Dynamics of the Fertilizer Value Chain in Mozambique

Helder Zavale, Greenwell Matchaya, Delfim Vilissa, Charles Nhemachena, Sibusiso Nhlengethwa and Duque Wilson
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Helder Zavale: Faculty of Agronomy and Forestry Engineering, Eduardo Mondlane University, Maputo 1102, Mozambique
Greenwell Matchaya: International Water Management Institute, Southern Africa Office, Pretoria 0127, South Africa
Delfim Vilissa: National Directorate of Cooperation and Markets, Ministry of Agriculture and Rural Development, Maputo 1108, Mozambique
Charles Nhemachena: International Water Management Institute, Southern Africa Office, Pretoria 0127, South Africa
Sibusiso Nhlengethwa: International Water Management Institute, Southern Africa Office, Pretoria 0127, South Africa
Duque Wilson: National Directorate of Cooperation and Markets, Ministry of Agriculture and Rural Development, Maputo 1108, Mozambique

Sustainability, 2020, vol. 12, issue 11, 1-18

Abstract: Mozambique is characterized by low agricultural productivity, which is associated with low use of yield-enhancing agricultural inputs. Fertilizer application rate averaged 5.7 kg ha −1 in Mozambique during the period 2006 to 2015, considerably low by regional targets, yet constraints that affect fertilizer use have not been thoroughly investigated. This study examined the constraints on fertilizer value chains in Mozambique to contribute to fertilizer supply chain strengthening. We used a combination of multivariate analysis and descriptive methods. Our findings indicate that fertilizer use has both demand and supply constraints. Key demand-side constraints include liquidity challenges, limited awareness about the benefits of using fertilizer, and low market participation, while the main supply-side constraints include high transaction costs, limited access to finance, and lack of soil testing results and corresponding fertilizer recommendations by soil type and crop uptake. These results suggest that scaling up the input subsidy program through vouchers (either paper-based vouchers or e-vouchers) with demonstration plots and effective targeting could drive up smallholders’ demand for fertilizer and fertilizer supply by strengthening a sustainable network of wholesalers and retailers. This would likely boost agricultural productivity.

Keywords: fertilizer use; yield-enhancing inputs; value chain; Mozambique (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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