Fertilizer Markets and Agricultural Production Incentives - Tegemeo ...

TABLE 8.4 PORT TO FARMGATE COST BUILD-UP FOR DAP FERTILIZER (APRIL, 1999): CHANNEL 4,
con’t.
40 Wholesaler’s buying price (line 35) 1300
41 Operating Costs 148
42 Wholesaler/distributor’s transport costs Nairobi - Kitale 70
Handling Costs (cost of unloading (receiving) and loading (selling)
43 fertilizer 6
44 Labor costs to repair torn bag 0
45 Transit losses 8
47 Storage Costs(rent, labor, security, electricity) 10
48 Cost of credit 1
49 Opportunity cost of capital 53
51
Total Wholesalers Costs 1448
52 Wholesalers’ selling price 1550
53 Wholesalers’ net margin 102
54 % mark-up of large-scale wholesaler (line 53/52) 6.58
SMALL-SCALE WHOLESALER
55 Wholesaler’s buying price 1550
56 Operating Costs 77
57 Wholesaler/distributor’s transport costs Kitale - Matunda 40
Handling Costs (cost of unloading (receiving) and loading (selling)
58 fertilizer 0
59 Labor costs to repair torn bag 0
60 Transit losses 28
61 Storage Costs(rent, labor, security, electricity) 4
62 Cost of credit 1
63 Opportunity cost of capital 4
64 Total Wholesaler Costs (line 55+56) 1627
65 Wholesalers’ actual selling price (from survey data) 1650
66 Wholesalers’ net margin (line 65-64) 23
67 % mark-up of large-scale wholesaler (line 66/65) 1.39
SMALL-SCALE RETAILER
68 Retailer buying price 1650
69 Operating Costs 66
70 Retailer transport costs (from wholesaler) 0
Handling Costs (cost of unloading (receiving) and loading (selling)
71 fertilizer 0
72 Labor costs to repair torn bag 0
73 Transit losses 47
74 Rebagging 10
75 Storage Costs(rent, labor, security, electricity) 8
29