Farm input market system in Western Kenya:

constraints, opportunities and policy

Innovations as Key to the Green
Revolution in Africa: Exploring the
Scientific Facts
implications Innovations as Key to the Green
Revolution in Africa: Exploring the
Scientific Facts
Arusha, Tanzania, September 2007
Jonas N. Chianu*, Franklin Mairura, Isaac Ekise Arusha, Tanzania, September 2007

Tropical Soil Biology and Fertility institute of the International Centre for Tropical Agriculture
(TSBF-CIAT), Nairobi, Kenya
* Corresponding author: jchianu@cgiar.org

Introduction Results and discussions

 Low use of farm inputs by farmers in SSA is Agro-input dealers in the survey area (2003–2005)
responsible for the gap between potential farmers’
yields and actual crop yields at farm level. Table 1: Number of agro-input dealers selling different farm inputs (2003–2005)
 Fertilizer use in Africa is <10% of global mean (Figure
1). Even a 100% increase cannot significantly improve Number of input dealers* % Increase
SSA fertilizer profile or provide adequate support for a Agro-input 2003 2004 2005 2003-2005
green revolution in Africa.
 Few farmers in western Kenya use adequate levels of
Fertilizers 245 276 299 22
inputs or fertilizer.
Insecticides 314 351 372 19
Farm Machinery 69 78 82 19
Herbicides 61 67 72 18
250 Fungicide 234 255 275 18
202 Improved seeds 176 189 198 13
200 Storage chemical 244 263 271 11
175
Global average(93kg/ha) Seed treatment
* Responses chemicals
were collated for different input brands within43 43
each agro-input category 44 2
150 140
•Between 2003 and 2005, the increase in number of agro-input dealers ranged from 2% (seed treatment chemicals) to 22%
100 98 (mineral fertilizers); mean 16% across inputs.
72 78 80 84
69 •Differences in the magnitude of % increase reflects the demand for different inputs.
59 60 61
50 •Mean agro-input sourcing distance: 80 km (fertilizers) to 100 km (storage chemicals) (Table not shown).
20 20 •A positive correlation between selling price and sourcing distance; magnitude varied with inputs.
8
0
Other services provided by agro-dealers Business constraints
Table 2: Average number of farmers who 80
benefited from other services given by 70
. agro-dealers (According to dealers) 60
Figure 1: Mean fertilizer use by markets (kg/ha)
% frequency

50
Source: FAO, 2003 Number of farmers# 40
Other services
Female Male 30
This paper examines constraints and challenges 20
limiting expansion of farm input use by small Input packaging 3100 (2) 15000 (2) 10
farmers in Western Kenya by assessing input Soil suitability information 796 (7) 3650 (7) 0
High Low Lack of Lack of Limited
supply side issues. Soil fertility information 787 (7) 3645 (7) transport demand market storage business
Seed variety information 656 (13) 2656 (12) cost information facilities knowledge
Materials and methods
 Study was in 13 districts in western Kenya. Agrochemicals information 735 (14) 2328 (13)
Credit facilities 255 (12) 298 (12) Figure 2: Constraints faced by input
 A cross-sectional questionnaire survey of 130
agro-input dealers randomly selected. Spraying 30 (3) 75 (3) dealers in western Kenya
#
Values are effective sample sizes of dealers who offered
 Main parameters: Agro-inputs sold, other farm service
services to farmers, constraints and challenges,
favorable agro-input policies , etc. Only 2-11% of agro-input dealers surveyed provided other services to small-scale farmers
 Online distance calculator, based on the World Main constraints facing agro-input dealers: High transport cost and low demand.
Geodetic System (1984) ellipsoid, was used to
estimate distances between input selling and
•Major institutions agro-input dealers felt should
purchasing points.
 Data was analyzed using SPSS Version 11.5.
Policy and institutional framework intervene to remove business constraints:
•Government (48%): To facilitate loan access, tax
Table 3: Policy areas suggested by agro- reduction, and input quality control
dealers to enhance farm input supply sector •Universities and research institutions (26%).
Policy % dealers
Training 29
Enhanced access to credit 21 Conclusions and way forward
Extension, research, infrastructure 15
•Agro-input dealers in western Kenya face enormous problems
Tax reduction 14 (e.g., infrastructure, low demand) in their business.
Illegal trade and adulteration 13 •Only very few agro-input dealers are in a position to provide
Input supply management 8 other services (input-related information, credit, etc.).
Total 100 •High farm-level input price is mostly due to the input sourcing
distance.
•Government policy and institutional intervention are critical in
Important paradox stimulate the input supply sector and effectively usher in
sustainable green revolution in Africa.
Farmers everywhere in the world can find
Coca-cola but they cannot find most farm Acknowledgement Asante sana
A typical farm input shop inputs when they need them
We acknowledge the agro-input dealers and in western Kenya
and contributors for their co-operation in the study