Improving Access to Fertilizers
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- Elfreda Virginia Banks
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1 Improving Access to Fertilizers by Amit Roy IFDC Presented at the International Workshop on Strengthening and Widening Markets and Overcoming Supply Side Constraints for African Agriculture June 3-5, 2007 Lusaka, Zambia
2 4.50 Cereal Yields (Mt/Ha) Mt/Ha Developed Countries Asia Developing Latin America & Carribean Sub-Saharan Africa
3 Area Cereal Production, (% change) Yield South Asia Sub-Saharan Africa
4 Per Hectare Fertilizer Use by Markets 2002/03 (kg/ha)
5 Nutrient Mining in Agricultural Lands of Africa
6 Continent in need of fertilizer is well endowed with fertilizer resources
7 Significant Phosphate Deposits of Africa
8 Significant Potential Nitrogen and Potash Resources of Africa
9 The Africa Fertilizer Summit Abuja, Nigeria, June 9-13, An AU/NEPAD Initiative Implemented by IFDC
10 Guiding Principle Inorganic fertilizers are essential for agricultural growth in Africa but they are not enough Holistic approach needed to improve: Access Access: Increase volume, range, and quality of inputs using commercial channels Affordability: Reduce the price of all inputs Incentives: Improve functioning of the output markets
11 Abuja Declaration Fertilizer is a Strategic Commodity Without Borders Twelve Resolutions Adopted africafertilizersummit.org
12 AFS- Priority Actions Agro-dealer development National Agricultural Input Credit Guarantee Facilities Smart subsidies for the poor and vulnerable Regional procurement and production to realize economies of scale Fertilizer Development Financing Mech.
13 Selected COMESA Countries Total Fertilizer Production 1994 and 2004 Zambia Mauritius Zimbabwe Libya Egypt 895 1, ,200 1,500 1,800 '000 mt Nutrient Source: IFADATA Statistics CD, 2007.
14 Selected COMESA Countries Total Fertilizer Consumption 1994 and 2004 Libya Mauritius Zimbabwe Zambia Sudan Ethiopia Kenya Egypt , ,000 1,200 1,400 1,600 '000 mt Nutrient Source: IFADATA Statistics CD, 2007.
15 Selected COMESA Countries Total Fertilizer Exports 1994 and 2004 Mauritius Egypt Libya '000 mt Nutrient Source: IFADATA Statistics CD, 2007.
16 Selected COMESA Countries Total Fertilizer Imports 1994 and 2004 Libya Zimbabwe Mauritius Zambia Sudan Ethiopia Kenya Egypt '000 mt Nutrient Source: IFADATA Statistics CD, 2007.
17 Constraints Fertilizer Market Development Market Development-Related Constraints Technical Constraints Infrastructural Constraints
18 Market Development
19 The Five Pillars of Market Development Policy Human Capital Finance Market Information Regulation
20 Infrastructural
21 Freight Charges Through Alternative Routes in Zambia Route I. Johannesburg Lusaka Lusaka Kasama/Kapiri US $/ton Ia. Ib. Ic. II. IIa. IIb. Total Dar-es-Salaam Kapiri/Kasama Net savings in transportation cost via DSM route (Ia minus Ib) Johannesburg Lusaka Lusaka Chipata Total Nacala to Chipata IIc. Net savings in transportation cost via Nacala route (IIa minus IIb) Source: Action plan team calculations. 70
22 Technical
23 Products N P2O5 Fertilizer Products in Malawi K2O S B Urea CAN AS AN DAP SSP TSP MOP SOP S Compound B Compound C Compound D Compound J Compound S Compound 3D Compound Compound Super B Compound Super C Compound Super D
24 Potential Savings From an Efficient Marketing System Item Landlocked Country (US $/ton) Coastal Country (US $/ton) Improvements in market assessment, procurement, and logistics Importation of bulk with local bagging Importation of bulk with local blending and bagging for NPK fertilizers Improvements in marketing and distribution (transportation, storage, delivery, interest charges, etc.) Improvements in fertilizer use efficiency (better extension and education, move from low-analysis to high-analysis products, application methods, etc.) Total Potential Savings (US $/ton/year)
25 Who were the people that made the changes? The leaders! It was the leaders who made the science and technology useful Are there two or three, hopefully many more, who have the courage to take the recommendations on the use of fertilizer forward? Excerpt from the speech by Dr. Norman Borlaug,, 1970 Nobel Peace Prize Laureate, at the Head of State Session of the Africa Fertilizer Summit
26
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