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Low Quality, Low Returns, Low Adoption: Evidence from the Market for Fertilizer and Hybrid Seed in Uganda

Tessa Bold, Kayuki C. Kaizzi, Jakob Svensson and David Yanagizawa-Drott ()
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Kayuki C. Kaizzi: National Agricultural Research Laboratories, Kampala

Working Paper Series from Harvard University, John F. Kennedy School of Government

Abstract: To reduce poverty and food insecurity in Africa requires raising productivity in agriculture. Systematic use of fertilizer and hybrid seed is a pathway to increased productivity, but adoption of these technologies remains low. We investigate whether the quality of agricultural inputs can help explain low take-up. Testing modern products purchased in local markets, we find that 30% of nutrient is missing in fertilizer, and hybrid maize seed contains less than 50% authentic seeds. We document that such low quality results in negative average returns. If authentic technologies replaced these low-quality products, average returns for smallholder farmers would be over 50%.

Date: 2015-06
New Economics Papers: this item is included in nep-agr and nep-dev
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