Policy note: Low quality, low returns, low adoption
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- 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?