Fertilizer Markets and Agricultural Production Incentives - Tegemeo ...

APPENDIX A. COST-REDUCTION SCENARIOS, FARMGATE COST BUILD-UPS FOR DAP FERTILIZER (APRIL, 1999), con’t.
22 Other importer costs (lines 22 - 32) 309 309 309 274 274
23 Transport costs to Kitale 175 175 175 140 140
24 Transit losses 24 24 24 24 24
25 Bank (LC) (3% of CIF price) 35 35 35 35 35
26 Handling Costs (unloading, loading) 10 10 10 10 10
27 Labor costs to repair torn bag 1 1 1 1 1
30 Storage Costs(rent, labor, security, electricity) 16 16 16 16 16
31 Cost of credit 0 0 0 0 0
32 Opportunity cost of capital 48 48 48 48 48
33
34 Total importers costs (lines 21 + 22) 1677 1613 1622 1642 1523
35 Importers actual selling price = wholesaler’s buying price 1800 1736 1745 1765 1646
36 Importers net margin (lines 35 - 34) 123 123 123 123 123
37 % mark-up of importer (line 36/35) 6.83 7.09 7.05 6.97 7.47
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39 SMALL-SCALE WHOLESALER
40 Wholesaler’s buying price (line 35) 1800 1736 1745 1765 1646
41 Operating Costs 67 67 67 61 61
42 Wholesaler/distributor’s transport costs Kitale - Matunda 30 30 30 24 24
43 Handling Costs (unloading, loading) 0 0 0 0 0
44 Labor costs to repair torn bag 0 0 0 0 0
45 Transit losses 28 28 28 28 28
47 Storage Costs(rent, labor, security, electricity) 4 4 4 4 4
48 Cost of credit 1 1 1 1 1
49 Opportunity cost of capital 4 4 4 4 4
50
51 Total Wholesaler Costs (lines 40 + 41) 1867 1803 1812 1826 1707
52 Wholesalers’ actual selling price (from survey data) 1887 1823 1832 1846 1727
53 Wholesalers’ net margin (lines 52 - 51) 20 20 20 20 20
54 % mark-up of wholesaler (lines 53/53) 1.06 1.10 1.09 1.08 1.16
39