The last mile(s) in modern input distribution: Pricing, profitability, and adoption

Increasing adoption of modern inputs remains one of the best hopes for greater agricultural production in developing countries. Based on unique data from northwestern Ethiopia, this study examines the “last mile(s)”—from the input distribution center to the farmer—in the chemical fertilizer and impr...

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Autores principales: Minten, Bart, Koru, Bethlehem, Stifel, David
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2013
Materias:
Acceso en línea:https://hdl.handle.net/10568/152880
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author Minten, Bart
Koru, Bethlehem
Stifel, David
author_browse Koru, Bethlehem
Minten, Bart
Stifel, David
author_facet Minten, Bart
Koru, Bethlehem
Stifel, David
author_sort Minten, Bart
collection Repository of Agricultural Research Outputs (CGSpace)
description Increasing adoption of modern inputs remains one of the best hopes for greater agricultural production in developing countries. Based on unique data from northwestern Ethiopia, this study examines the “last mile(s)”—from the input distribution center to the farmer—in the chemical fertilizer and improved seed distribution system. We find that increasing transaction and transportation costs over a 35 km distance, along a route mainly accessible to only foot traffic, lead to a 50% increase of the price of chemical fertilizer and to a 75% reduction in its use. Farmers who live about 10 km from the distribution center face per unit transaction and transportation costs as high as the costs needed to bring the fertilizer from the international port to the input distribution center (about 1,000 km). Tackling the “last mile(s)” costs should thus be a priority to improve modern input adoption and use in these settings.
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spelling CGSpace1528802024-11-15T08:52:43Z The last mile(s) in modern input distribution: Pricing, profitability, and adoption Minten, Bart Koru, Bethlehem Stifel, David farm inputs inorganic fertilizers hybrids fertilizers seeds Increasing adoption of modern inputs remains one of the best hopes for greater agricultural production in developing countries. Based on unique data from northwestern Ethiopia, this study examines the “last mile(s)”—from the input distribution center to the farmer—in the chemical fertilizer and improved seed distribution system. We find that increasing transaction and transportation costs over a 35 km distance, along a route mainly accessible to only foot traffic, lead to a 50% increase of the price of chemical fertilizer and to a 75% reduction in its use. Farmers who live about 10 km from the distribution center face per unit transaction and transportation costs as high as the costs needed to bring the fertilizer from the international port to the input distribution center (about 1,000 km). Tackling the “last mile(s)” costs should thus be a priority to improve modern input adoption and use in these settings. 2013-11 2024-10-01T13:55:18Z 2024-10-01T13:55:18Z Journal Article https://hdl.handle.net/10568/152880 en Limited Access Wiley Minten, Bart; Koru, Bethlehem; and Stifel, David. 2013. The last mile(s) in modern input distribution: Pricing, profitability, and adoption. Agricultural Economics 44(6): 629-646. Special Issue on Input Subsidy Programs (ISPs) in Sub-Saharan Africa (SSA). http://onlinelibrary.wiley.com/doi/10.1111/agec.12078/abstract
spellingShingle farm inputs
inorganic fertilizers
hybrids
fertilizers
seeds
Minten, Bart
Koru, Bethlehem
Stifel, David
The last mile(s) in modern input distribution: Pricing, profitability, and adoption
title The last mile(s) in modern input distribution: Pricing, profitability, and adoption
title_full The last mile(s) in modern input distribution: Pricing, profitability, and adoption
title_fullStr The last mile(s) in modern input distribution: Pricing, profitability, and adoption
title_full_unstemmed The last mile(s) in modern input distribution: Pricing, profitability, and adoption
title_short The last mile(s) in modern input distribution: Pricing, profitability, and adoption
title_sort last mile s in modern input distribution pricing profitability and adoption
topic farm inputs
inorganic fertilizers
hybrids
fertilizers
seeds
url https://hdl.handle.net/10568/152880
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