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The fertilizer industry is characterized by high levels of concentration along the supply chain. According to the International Fertilizer Development Center, nine countries control more than 50 percent of nitrogen (ammonia, urea) and phosphate (DAP/MAP) production capacity, while only five countries control 79 percent of potash (MOP) production capacity. Developing regions such as Africa south of the Sahara are also highly dependent on imported fertilizer. In addition, the level of fertilizer use in Africa south of the Sahara remains far below other developing regions (around 10kg.

Subsidies to promote fertilizer use have become a popular policy in Africa south of the Sahara, aimed at increasing the region’s lagging agricultural production. However, new research from Ghana , published in Food Security , suggest that fertilizer subsidies alone may not be enough to encourage greater fertilizer application and increase farm productivity.

Maize makes up an important staple crop in much of Africa south of the Sahara, but maize production carries with it some inherent risks. One of the most significant risks faced by maize farmers is weather. Variable and heterogeneous weather conditions pose a challenge for Africa’s rain-fed crops like maize and have been identified as one explanation for the region’s low rates of fertilizer use and improved seed variety adoption, according to a new working paper released by IFPRI’s HarvestChoice program.

Fertilizers, particularly inorganic (chemical) fertilizers, have the ability to substantially increase farmers’ agricultural productivity.  However, in Nigeria, fertilizer use remains low; according to a new AGRODEP working paper , inorganic fertilizer use in Nigeria is 11.3kg/ha and organic fertilizer use is only 0.2kg/ha. This puts Nigeria well below the targeted 50 kg/ha set forth in the Abuja Declaration. To address this low fertilizer use, the Nigerian Federal Government established a subsidy to help farmers access inorganic fertilizers.

For the second year in a row, Malawi is facing a national maize deficit. In the 2016-2017 marketing year, the maize supply gap is expected to be 953,000 MT, according to a new Food Security Outlook from FEWS Net.