The formal agricultural input sector: A missing asset in developing nations?

Abstract

The formal input supply sector has received little attention in developing nations, including Haiti. We interviewed input store owners in Haiti and collected information on the availability and sources of inputs and challenges facing vendors. Three large suppliers import most inputs available to farmers. Second tier traders, mostly small stores that purchase from the major suppliers, play a critical role in making inputs accessible to rural communities. These formal stores have significant potential to transform the agricultural sector but face three major challenges. (1) Improved seed is a critically needed input, but older cultivars dominate because there is limited breeding in Haiti, few seed importers, and inadequate patent protections that make holders reluctant to move new varieties into Haiti. (2) The types of fertilizers and pesticides available to farmers are limited and many are technologically outdated. (3) In-country transportation is slow and relatively expensive and needed inputs often do not reach farmers in a timely manner. We conclude that approaches that bring together the strengths and assets of the public sector, the non-profit private sector and the for-profit private sector and increased attention to policy measures that benefit all three sectors are requisites for supply chain development in Haiti.