Fertilizer Price Shocks in Smallholder Agriculture
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Washington, DC: World Bank
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Since 2020, many countries in
Sub-Saharan Africa have experienced disruptions to
agricultural activities due to the adverse effects of
multiple global crises. Notably, the Russian invasion of
Ukraine caused a surge in inorganic fertilizer prices, which
had potentially significant impacts on Sub-Saharan Africa’s
agriculture sector given that most countries in the region
are net importers of inorganic fertilizers and the Russian
Federation is the world’s largest exporter. Using
high-frequency longitudinal phone survey data spanning four
years from six Sub-Saharan African countries, this paper
examines the dynamics of smallholder agriculture against the
backdrop of these crises, with particular focus on prices,
availability, and use of inorganic fertilizer, as well as
the strategies employed by farmers to cope with high
fertilizer prices and other accessibility constraints. The
results show that inorganic fertilizer prices have increased
in the region since 2020, forcing smallholder farmers to
adopt coping mechanisms that are less
productivity-enhancing, making them even more susceptible to
future crises. Specifically, farming households reduced the
quantity of inorganic fertilizer applied, by applying it at
lower rates or to a smaller area. In some cases, households
sold assets or borrowed money to cope with the high prices
of inorganic fertilizers. This calls for policies to help
smallholder farmers in the region to build strong support
systems to be more resilient and better able to cope with
the adverse effects of rising inorganic fertilizer prices
during polycrises and related shocks.
Palabras clave
INORGANIC FERTILIZER, COPING STRATEGIES, PRICE SHOCKS, HOUSEHOLD SURVEYS, SUB-SAHARAN AFRICA, DECENT WORK AND ECONOMIC GROWTH, SDG 8