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Browsing by Subject "Acidity"

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    Fertilizer Cost Chain Analysis
    (2018-10-16) Grace Chilande
    This document provides an overview of the major changes occurring in the fertilizer markets of Sub-Saharan Africa (SSA) with a specific focus on Kenya. The shift from commodity purchasing to value chain development is explored, highlighting the evolving roles of distribution channel players and the increasing integration by manufacturers and traders. The importance of balanced nutrition for productivity enhancement and the detrimental effects of soil acidity are recognized. Additionally, governments' growing awareness of mounting food security issues is discussed. The country overview section focuses on Kenya's fertilizer market, highlighting key statistics such as the subsidized market and the dominance of maize and tea crops. The presence of fertilizer blenders, the historical use of certain products like DAP, issues related to compound fertilizers' adulteration, and limited institutional capacity regarding balanced nutrition and product options are outlined. Farmers' reluctance to change and the significance of a reasonable distribution network are also addressed. The publication delves into the fertilizer value chain, encompassing manufacturing, logistics, and margins. The Port of Mombasa is highlighted as a crucial hub, emphasizing its expansion and the estimated discharge rates for fertilizers. The port operations, customs clearance, warehousing, and transportation costs are discussed. Furthermore, the structure of Kenya's fertilizer market, including the national government's procurement and distribution model, commodity-based input-credit-output models, and independent importers, wholesalers, and retailers, is examined. The document concludes by presenting a comparison of retail fertilizer prices in Kenya and global prices, emphasizing the logistics challenges faced in the country. The impact of freight costs, demurrage fees, and port congestion on fertilizer prices is highlighted. The publication raises the question of how to lower fertilizer prices and invites further exploration into potential solutions.


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