Directed by

/ IGC
/ Publications

Dealing with fake agricultural inputs

Low quality, low returns, low adoption

Policy brief 18 Sep 2015 Firms and Farms

Authors

Tessa Bold

Associate Professor, Stockholm University

Kayuki Kaizzi

Senior Research Officer - Soil Scientist, National Agricultural Research Laboratories

Jakob Svensson

Professor of Economics, Stockholm University

David Yanagizawa-Drott

Associate Professor of Public Policy, Harvard University

Policy note: Low quality, low returns, low adoption Download
PDF document • 422.71 KB

The average quality of hybrid seeds and fertiliser is so poor that their adoption is not profitable at current prices, and this is a major reason why farmers in Uganda are not adopting modern agricultural inputs.
Urea fertiliser, the most common type on the market, typically has 33% less nitrogen content compared to what is stated on the label.
The average small bag of hybrid seeds is of the same quality as bag that contains 50% hybrid seeds and 50% (lower quality) farmer seeds.
The average return on investment in the sample of fertiliser and seeds purchased is a negative 12.2%.
It remains unclear where the quality deteriorates in the supply chain, and why. Is it flawed production, poor storage, or adulteration, and which interventions can address these problems?

Themes: Firms Farms
Countries: Uganda