AFFORDABILITY

Many smallholders cannot afford to buy agricultural inputs because they are too expensive. The expense is due to a combination of factors including low volume of agro-chemical imports, dispersed local markets, and poor roads and telecommunications. Closely related to this is the high cost of obtaining cash to buy the inputs. Smallholders generally have few cash reserves (very limited cash flow), have to travel long distances (time and money) to obtain cash and are faced with high interest rates to borrow cash. All these factors militate against smallholders' ability to afford inputs.

Some inputs would be more affordable if they were available in smaller pack sizes.

Action: Exporting companies who work with smallholders can assist them greatly by making the necessary inputs affordable through bulk purchase and then packing to the appropriate size according to crop requirements.

Consider: Is it possible for smallholders to obtain credit to purchase the required inputs and if so, what are these sources of credit?.

More information on providing inputs: availability; access to information; uncertainty and risk, the commercial context.