Smaller Fertiliser Bags Meet Bigger Doubts in the Fields

Jun 27 , 2026. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

The Ministry of Agriculture has distributed 10.7 million quintals of subsidised fertiliser for the 2026 season and has initiated a study to standardise smaller 10kg and 25kg packaging units. In the South Gondar Zone of the Amhara Regional State, smallholders like Melese Tadele find the standard 50kg bag financially out of reach, forcing them to rely on informal, unauthorised merchants. While a 50kg bag of Urea costs 5,000 Br, local farmers are buying it by the "tin", a one-kilogram local canister, for 140 Br to 160 Br.

The federal government has begun distributing heavily subsidised fertiliser for the current production season, and has launched a study to introduce smaller bag sizes for female and smallholder farmers.

Yet regional disparities and deep-seated attitudes toward chemical inputs threaten to blunt the effort.

The Ministry of Agriculture is conducting the study in response to repeated requests from female farmers and smallholders on less than half a hectare to set a formal standard for smaller packaging. Once approved, cooperative unions will receive bulk shipments from Djibouti and re-bag them into 25kg and 10kg units before distribution. By formalising the re-bagging, the Ministry hopes even farmers with the smallest plots can receive subsidised inputs suited to their holdings.

The initiative is intended to create a legal and technically sound alternative to unauthorised retail sales, which are now prohibited because exposing "white fertiliser" (Urea) to sunlight during loose retailing causes rapid nutrient loss. The Ministry officials continue to warn that illegal retail sales remain prohibited, particularly for Urea, which loses nutrient value when exposed to sunlight during unauthorised resale.

For the 2026 season, the Ministry has distributed 10.7 million quintals of fertiliser, backed by a federal subsidy of 84 billion Br. After 13.4 million quintals arrived at the Port of Djibouti, a logistics network moved 12.1 million quintals to central warehouses a daily inflow of up to 10,000tn carried by as many as 200 trucks. Available supply is 19.1 million quintals, including a seven-million-quintal carry-over from last year.

Distribution has increased by 1.5 million quintals compared with the same period last year, which the Ministry's officials attributed to expanded irrigation. To shield farmers from international price swings, the federal government claims to provide a subsidy of 4,972 Br a quintal.

Agriculture officials expect the subsidised fertiliser to support farming across 22.36 million hectares, targeting 730 million quintals of output. Hitting that target is seen as critical to stabilising prices for staples such as teff and wheat, which are kept under pressure by rising production costs and value chain bottlenecks.

According to State Minister for Investment & Input, Sofia Kassa (PhD), the procurement system was revised in 2024 to allow direct purchases from manufacturers, a policy decision meant to optimise foreign-currency use.

Unable to afford or fully use a whole bag on their small plots, many depend on individuals who buy full sacks and resell them in smaller amounts. A single tin now costs between 140 Br and 160 Br.

For Melese Tadele, who rents land from smallholders in the South Gondar Zone of the Amhara Regional State, every planting season brings its own economic problems. Like many on plots well below one hectare, he finds a standard 50kg bag out of reach. Instead, local farmers buy fertiliser by the tin, a local canister equivalent to one kilogram. According to Melese, the local agriculture office officially sells a 50kg bag of Urea for 5,000 Br, while "black" fertiliser (DAP/NPS) costs 6,100 Br.

"The piecemeal system is the only practical option for many," Melese said. "But it carries a cost. Buying by the tin caps the quantity farmers can afford, starving soils and lowering yields on already limited land."

The Ministry's focus is also shifting toward climate-resilient response, including fast-maturing seeds and moisture-retention techniques to soften El Niño effects in eastern zones, while balancing heavy subsidies against the need to feed a fast-growing population.

At the regional level, Leta Legesse, director for Agricultural Input under the Agriculture Bureau at the Sidama Regional State, notted that the study on re-bagging into smaller units is very significant.

"The move could matter," he told Fortune. "Fertiliser has traditionally come only in 50kg bags. In Sidama, most farmers cultivate less than half a hectare, many under a quarter."

He has long pressed for smaller packaging, arguing that the 50kg standard no longer reflects farmers' means; requiring someone who needs half that to buy a full bag encourages waste and feeds informal distribution. However, Leta acknowledged that producing 15kg or 20kg bags would inflate costs due to extra packaging, transport, and weighing. But he called the proposal "the perfect medicine" for smallholders.

"Female farmers have repeatedly asked for five-kilogram and 10kg packs they can buy to their needs, which would improve use and lift productivity," he said. "Weighed against the benefits, the extra packaging cost was 'like heaven and earth'."

Packaging operators, including those in Djibouti, have flagged higher costs and technical limitations, but he judged them minor compared with the gains from curbing informal trade and widening access. Shipments for the season, he noted, had arrived on schedule.

Research shows how small these holdings could be. According to the Ethiopian Economics Association, households average 1.62hct. A panel study by the African Development Bank found 1.55hct, while research in Cogent Food & Agriculture covering the central and southern wheat belt in Oromia Regional State found 1.94hct, and Haramaya University in the lowland Babille District found 1.26hct.

The Ministry's own plans, though, reveal sharp regional gaps. Officials disclosed the Gambella Regional State is not scheduled to receive fertiliser from the current bulk procurement, despite an earlier plan to allocate 3,600tn. In the Central Ethiopia Regional State, the Ministry allocated 140,000tn, but only 42,000tn had been procured, and only 2,500tn had been cleared from Djibouti Port.

Although prices have climbed to about 12,000 Br a quintal after the exchange-rate liberalisation, farmers now worry more about whether fertiliser can be found than about its cost, and are greeting shipments with relief. Demand also tracks soil productivity. Farmers in Amhara Regional State are "100pc convinced" of its necessity, while those in regional states such as Gambella and Benishangul-Gumuz remain less responsive, still viewing their land as naturally fertile.

According to Andrew Tut of the Gambella Agriculture Bureau, the low uptake is due to a persistent awareness gap that has led many farmers to believe their soils are naturally "blessed", creating a fear that chemical fertilisers could damage them over time and leaving only part of the community willing to adopt modern inputs. The Bureau recognises the need for scientific soil testing to set nutrient requirements for major crops, particularly oilseeds and root crops.

"A study is needed," he said, to move beyond traditional assumptions and ensure the right blends, including NPS, are applied. Average productivity in the Regional State is about 26Qtls a hectare, but field trials have shown more than 50Qtls a hectare with proper application.

"The Bureau has launched an awareness campaign to show the gains, with research recording individual plants producing as much as three times their normal grain output," Andrew told Fortune.

Marelign Adugna (PhD), an agricultural economist with two decades of teaching experience and a faculty member at the University of Gondar, offered a broader read. He argued that while the smaller-packaging plan is meant to help smallholders, the 50kg bag remains the practical minimum for most rural farmers. Even those on a quarter of a hectare need at least one 50kg bag.

"Demand for 5kg or 15kg packs speaks more to urban gardening than to conventional farming," he told Fortune.

According to Marelign, the government's main problem has shifted from affordability to availability.

PUBLISHED ON Jun 27,2026 [ VOL 27 , NO 1365]