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Making a little go a long way Examining the economic viability of fertilizer microdosing in Northwestern Benin International Food Security Dialogue: Enhancing Food Production, Gender Equity and Nutritional Security in a Changing World Edmonton, Alberta May 2, 2014 Erika Bachmann

Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

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Page 1: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Making a little go a long wayExamining the economic viability of fertilizer microdosing in Northwestern Benin

International Food Security Dialogue:Enhancing Food Production, Gender Equity and Nutritional Security in a Changing WorldEdmonton, Alberta May 2, 2014

Erika Bachmann

Page 2: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Project Background• Limited crop production throughout the Sahel

due to poor soil fertility and frequent droughts

• An element of food insecurity among subsistence farmers

Page 3: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

INuWaM Project• Integrated Nutrient and Water Management

Project

• Collaborative IDRC funded CIFSRF research project between research centres and universities in West Africa and Canada

Page 4: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Project Background• Four project countries in West Africa: Benin, Mali, Niger

and Burkina Faso

Page 5: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

INuWaM Project Aim

• To research and promote the use of the technique of fertilizer “microdosing” in combination with indigenous rainwater harvesting techniques, so as to increase household income and ultimately, food security

Oneacrefund.org

• Maximize return on investment for resource constrained, risk averse farmers

Page 6: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Fertilizer Microdosing

©ICRISAT

• An alternative for fertilizer recommendations aimed at maximizing yields or profit

• Fertilizer microdosing: Using small* quantities of fertilizer at specified times

Page 7: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Rainwater HarvestingIncrease soil moisture, reduce erosion, trap organic matter,

reduce the speed of the water

Page 8: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

A Multidisciplinary approach• Soil scientists looking into soil degradation, crop

response, long term sustainability and interaction between RWH techniques and microdosing

• Social scientists (agricultural economists, rural sociologists, anthropologists) investigating the social and economic context

• Together, a more complete picture of the impact on farmers’ lives

Page 9: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Project Implementation- Benin• 20 demonstration farmers in each village

• Two demonstration plots per farmer: one microdosing technique, one conventional technique

• Maize crop

Page 10: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Socio-economic research in Benin

• Focused on one project site in North-western Benin

• In depth household surveys for every household in the village

• Soil samples taken for plots of each household

Page 11: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Research Questions

• What factors influence the profitability of microdosing?

• What micro-level factors influence the adoption of microdosing?

• How does the macro level context affect microdosing?

Page 12: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

VALUE CHAIN APPROACH

Page 13: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Maize Value Chain in West Africa

Boone et al. (2008) USAID ATP

Page 14: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

IDENTIFYING CONSTRAINTSExamining low input use

Page 15: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Cost of fertilizer • Subsidized, but relatively expensive for resource

constrained farmers

• Liquidity problem-farmers need to buy fertilizer during the lean time, when money is short

Page 16: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Access to credit• Emphasis on group borrowing

• Willingness to borrow money

Page 17: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Availability of fertilizer • Timing

• Infrastructure

• Priority groups

Page 18: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Transportation

Page 19: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

National Policies

• Government of Benin priorities

• Togo government policies regarding fertilizer sale to non-Togolese

Page 20: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Microdosing as part of the solution?

• Early findings suggest microdosing can provide acceptable yields for farmers, given a minimum level of soil fertility

• Potential to minimize cost and maximize return on investment-address the high cost of fertilizer for poor farmers

Page 21: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Complementary investments

• Importance of increasing organic matter in soil

• Investment into inventory credit shops to address credit constraint and liquidity problem

Page 22: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Where to from here• Investigation into the profitability of microdosing as a

function of soil quality

• Micro and macro factors influencing adoption of microdosing

• Long term sustainability investigation by soil scientists

Page 23: Economics, Policy and Value Chains: Making a little go a long way: Examining the economic viability of fertilizer microdosing in Northwestern Benin

Thank you to the IDRC for sponsoring, and the University of Alberta for hosting, the International

Food Security Dialogue, 2014