Zimbabwe Fertilizer Industry: A Conceptual Framework on Fertilizer Supply and Distribution Strategies

Abstract

This paper looks at and analyzes the key drivers for fertilizer consumption patterns, drawing from the trends in the supply of fertilizer in Zimbabwe. These patterns have been driven by key factors such as government policy, market information and infrastructure.  On the demand side, the paper asserts that the farmers' capacity to acquire fertilizers, availability of water through rainfall and farmers' knowledge on fertiliser use have been the key drivers. The paper traces the historical patterns of government control before and after Independence on fertiliser trading through foreign currency rationing. The country had its fair share of socio-economic challenges and crises, especially following The Fast Track Land Reform Programme in 2000 ranging from foreign currency shortages, political instability and hyper-inflation and this affected fertilizer production and consumption. Crop productivity dropped significantly and this was compounded by a series of droughts and against this backdrop the government started distributing subsidized seed.

The paper further examines different fertilizer types used in the country noted as Nitrogen, Phosphate and Potash, with the latter being imported. Another examined aspect are the price fluctuations and these to some extent affected resource-poor farmers.  The paper also notes that the enactment and enforcement of laws and regulations dealing with quality control, registration, packaging and labelling are important in the fertilizer industry and these have been non-existent or ineffective. Due to unaffordability by farmers, fertilizer was often distributed as part of the subsidy program. The paper argues that if fertilizer subsidies are a cost-effective way of assisting the poor, they can be justified on equity grounds.   (258 words)