This paper provides a description of the agricultural input market in Ghana in 2019 across six districts with high maize production and two municipal districts noted for agricultural marketing activities. Since 2017, Ghana’s agricultural policy has been heavily focused on implementation of the Planting for Food and Jobs (PFJ) program, which has rapidly scaled up the distribution of subsidized seed and fertilizer with the aim of increasing agricultural productivity and production. Agricultural input dealers play a crucial role in the PFJ program as the final node in the supply chain of seed and fertilizer for farmers. Their operations are expected to enhance the availability of and access to these agricultural inputs. Understanding the characteristics and operations of agricultural input dealers can help policymakers to formulate, implement, and reform seed and fertilizer policies. Our study shows low levels of specialization among agricultural input shops, high participation in the sector association, an increase in the entry of traders into the agricultural input market since the launch of PFJ, and a continuing concentration on fertilizer sales compared to seed sales. Major constraints that agricultural input supplier face in expanding their businesses include difficulties in obtaining financial support from the banking sector, still unreliable supplies, and, for subsidized inputs, the slow processing by government of the subsidy vouchers farmers gave them in exchange for inputs.

Fertilizer use in Sub-Saharan Africa remains below recommended rates, contributing to low yields, and increasing poverty. Poor quality fertilizer – whether perceived or real – is often cited as a reason for low adoption rates. In Ghana, for example, there are widespread but often unsubstantiated claims of substandard fertilizers. This is a concern for farmers with limited purchasing power and without the means to independently substantiate the quality of agricultural inputs. This paper describes the agricultural input sector in Ghana, compares farmers’ perception of fertilizer quality with those of input dealers, and analyses chemical tests of fertilizers performed in a laboratory. The fertilizers were sampled from selected districts participating in the Planting for Food and Jobs initiative, a large-scale farm input subsidy program. We find that input dealers and farmers are somewhat suspicious of the quality of commercially supplied and government subsidized fertilizers. However, the true quality measures based on laboratory testing of fertilizers sold in agricultural input shops were found to largely meet the labeled chemical composition.

This book takes forward our understanding of agricultural input subsidies in low income countries.

The good practice guidelines - which form the basis of an interactive policymaker's tool kit included on a CD accompanying the book - relate not only to the more focused problem of encouraging increased fertilizer use by farmers, but also to the broader challenge of creating the type of enabling environment that is needed to support the emergence of efficient, dynamic and commercially viable fertilizer marketing systems."--Jacket.

This study focuses on the feed milling industry, which serves as the link between maize and poultry, through a field assessment of feed millers in Ghana. The findings establish the importance of feed in the poultry value chain. In addition, they show how the sector has become more integrated with poultry production, especially on larger-scale poultry farms. Because maize accounts for 60 percent of poultry feed, its availability and price have important implications for the profitability and growth potential of feed and, therefore, for poultry production as well. We illustrate these linkages by means of a simple spatial market equilibrium model that ties together the three sectors of the poultry value chain: the primary inputs (maize and soybeans), intermediate inputs (feed), and final products (meat and eggs). This model also enables us to assess the future growth potential of the poultry industry given alternative policy-driven changes in productivity and the production capacities of all three sectors. The results show that for poultry meat, replacing imports with domestic production in the short term would be nearly impossible. For the egg industry, however, there is potential for Ghana to export to neighboring countries by reducing production costs through improvements in yellow maize production.