1. Fertilizer Cost Build Up: Uganda
Cost Build-Up of DAP Fertilizer (18:46:0) ex Black Sea - port of Mombasa - Retail Outlets in Kisoro (2017)/mt (Following supply Chain 2)
$370
$24
$154
$29
$41
$34
Comment: From this cost breakdown analysis it is clear that apart from the CIF price of fertilizer, close to half of the retail price (43%) of DAP is explained by services and taxes on the product. Clearly, these costs create a challenge to improving the flow of fertilizers to farmers at attractive prices. The main cost is transport which accounts for 24% of the retail price hence efforts toward increasing fertilizer consumption in Uganda will have to design ways to improve the efficiency of transport. The following sections examine ways to gain such efficiencies by tackling domestic infrastructure constraints, particularly in light of estimates of increased fertilizer required to achieve the CAADP targets.