Cost-pricing of Fertilizer and its Challenges in a Subsidized Market: The Case of Ghana

Abstract

This paper aims to examine the distribution of subsidized fertilizer in Ghana. In this regard, fertilizer cost, market price build-up and profit margins of five major fertilizer market centers in Ghana were analysed. The current challenges in the fertilizer industry identified by this study were also analysed. The objectives set out in this work were attained through desk reviews and in-depth interview with major actors in the fertilizer value chain in Ghana. The study found that in the supply chain of fertilizer handling, storage and transportation activities, costs increase from importers down to farmers. Also, the farther away a market center is from the Tema port, the more transportation adds on to the price buildup. In order to deal with bottlenecks regarding the fertilizer supply chain, this paper recommends tackling issues related to transportation lapses, as well as to timeliness of arrival and offloading of imported fertilizer