| Abstract: | The role of the agricultural sector interms of its contribution to the economy of Ethiopia is
large. To accelerate the sector’s growth and increase its contribution to the overall
economic growth modern inputs particularly chemical fertilizers in the sector plays a great
role. This study is designed to identify factors affecting demand and supply chain of fertilizer
in Ethiopia as a case study in Kersa and Malima woreda in Oromiya National Regional
State of Ethiopia. The researcher used both secondary and primary data. Descriptive
statistics and econometric techniques were employed to analyze the data. Multiple linear
regression were employed to analysis factors affecting demand and supply chain for
fertilizer. Econometric estimation results depicted that estimation of demand for fertilizer
purchase, storage facility and collaboration of stakeholders were negatively influenced the
supply chain of fertilizer whereas distance from the village to market positively influenced
supply chain of fertilizer at standard significant levels. On the other hand, price of fertilizer,
farm size, access to credit, access to extension services, off-farm income, number of oxen
and on time-delivery of fertilizer negatively affected the demand of fertilizer. Therefore,
additional store building, computerized system of estimation of demand of fertilizer, subsidy
programs on the price of fertilizer, delivering credit, assign efficient extension system and
attention given for the timely distribution of fertilizer to the farmers are the most important
thing to be considered in the study area. |
