Transportation challenges in fertilizer supply chain in Malawi

Abstract

The high cost of fertilizer continues to hinder small holder farmers from accessing fertilizer resulting in low agricultural production. To solve this problem, Malawi government introduced the Farm Input Subsidy Program (FISP) in 2004/2005 growing season which constitute about 60% of all fertilizer imports. However, besides the huge investment into this program, the country still faces food insecurity leaving many households depending on food handouts during lean season forcing policy makers explore options on how to exploit the benefits of FISP. This investigation therefore was conducted on transportation challenges in fertilizer supply chain, as late delivery was reported to be one of the problems in the distribution process. The research objectives were to investigate the fertilizer supply chain challenges in Malawi by determining transportation challenges in the distribution of FISP fertilizer and recommend solutions for effective fertilizer distribution. To achieve this, a pragmatic philosophy was adopted by employing both qualitative as well as quantitative research methods in data collection. A snowball sampling method was used with the assistance of Road Transport Operators Association (RTOA) in Malawi. Three managers from both public as well as private fertilizer companies were interviewed while 38 questionnaires were administered to transporters that had been involved in subsidy fertilizer distribution. The findings of the research had revealed logistical problems in awarding contracts to fertilizer importers and transporters, beneficiary identification. High transportation costs, underutilization of ICT (ITS) and lack of Research and Development were the other challenges. And this research therefore proposed "group fertilizer procurement" in future fertilizer procurement policies, offering unbiased contract awards, conducting Research and Development and embracing ICT (ITS) in solving transportation problems. To do this, a Roadmap to Fertilizer Supply Chain as a reference material for future fertilizer supply chain studies had been provided.