Recent media reports from Sumbawanga and neighbouring districts in Rukwa region have revealed that over 10,000 50-kilogram cement bags of counterfeit fertilisers were sold to farmers. The reports had it that unscrupulous businessmen repacked Minjingu fertiliser into phosphate ‘DAP’ bags.

The demand for DAP fertiliser in the area is high and the input fetches a better price. ACT Executive Director Janet Bitegeko said, "The practice is not only dangerous to agricultural production in the country, but also unethical and a threat to innocent farmers".

According to the reports, in Rukwa a bag of subsidised DAP fertiliser sells at between 63,000/- and 70,000/-, while a bag of Minjingu fertiliser, which has proven to be unsuitable for the soil in the region sells at only 14,000/-. In March last year, similar media reports uncovered incidents of counterfeit seeds and agro-chemicals in Marangu ward, Moshi-rural district, Kilimanjaro region.

Likewise, in 2012 agro-dealers in Arusha region reported that packaging materials, worth 23m/-, were stolen and were being used to repack counterfeit seeds (maize grain bought from the market). The culprit was caught, but the case is still pending.

In Mbinga district, Ruvuma region some agro-dealers reportedly mixed DAP and Minjingu fertilisers in order to make huge profits. In Mbinga district, Minjingu fertiliser was being sold at 22,000/- per bag, while DAP fetched up to 85,000/- per bag.

Fake inputs in circulation

The Tanzania Official Seed Certification Institute (TOSCI) in collaboration with Morogoro-rural, Kilosa and Mvomero district councils discovered counterfeit fertilisers in circulation after conducting scientific tests.

The organisation defines poor seeds as those expired or counterfeits. These seeds have not been authorised for use or are not registered in the country. ACT member, CropLife Tanzania, which is a local organisation dealing in farmers’ affairs, estimates that about 35 per cent of agro-inputs in different markets are counterfeits.

Consequently, farmers lose out by spending more on inputs and getting low yields or loosing their crops all together. Furthermore, credibility of brand holders and reputable importers as well as manufacturers is lost.

Tanzania not alone

Tanzania is not the only country affected by counterfeit fertilisers. However, neighbouring countries have introduced measures to combat this fraud. Other neighbouring countries like Uganda for instance, the Uganda National Agro Dealers Association (UNADA) has resolved to train all certified agro-dealers in detecting fake inputs.

“Poor monitoring of demand and supply of agro-inputs in the region has resulted in uncertainty on actual supply at a particular time,” said ACT senior consultant Edmund Ringo. He explained that in case demand is higher than supply, counterfeits and expired inputs are brought into Tanzania to meet the demand.

Highlighting other aspects that contribute to the proliferation of counterfeits, he said, "In most cases, the distribution of inputs is done through ineffective networks, some traders lack relevant skills for handling agro-inputs and have poor storage."

Counterfeits’ market

Smallholder farmers have limited financial capacity; so are price conscious when it comes to purchasing fertilisers. The lack of technical knowledge on the usefulness of genuine fertilisers is also a problem. “Essentially, unscrupulous traders who supply counterfeit products capitalise on price led marketing and false promotion,” said Edmund Ringo, senior ACT consultant.

“Inefficient enforcement of laws, incidences of corruption and minimum penalties given to culprits have been unable to make people refrain from engaging in the sale of counterfeits. “The culprits can find their way around the system easily,” he stressed.

However, the ACT report states that a few measures have been taken to reduce counterfeit inputs. Some of these include reviewing the Seed Act (2003) and removal of monopolies in the agro-input supply and distribution business.

Curbing counterfeits

The Tanzania Farmers Association (TFA) Division Manager Gibson Kisamba has said that due to a lack of a common approach and instruments to promote availability and usage of genuine inputs, the entire value chain faces myriads of challenges. These challenges include joint initiatives for curbing networks of suppliers of counterfeit inputs.

“There must be deliberate efforts to review and forge new rules as well as regulations that will control and remove distribution systems of counterfeit inputs. Improved safety regulations will impact on transportation and storage as well as on handling of agricultural inputs,” Kisamba stated.

He noted that with all the agricultural technologies available, supply chains are directly applicable to agro-input supply and marketing in developing and developed countries. “There should be collective and deliberate efforts to set up an accreditation system coupled with enforcement mechanisms that will see airtight control of rampant production,” said the TFA manager.

He added that productivity and effective agro-input markets require investment in research and development on tools that will assist in the enforcement of accreditation rules, access to market information, as well as efficient transportation and communication networks.

“There must be deliberate efforts to review and forge new rules, [and] regulations that will control and remove distribution systems of counterfeit inputs”.

Kisamba suggested the adoption of the Geographical Information System (GIS) to map all primary chain actors for the accreditation system to work. This system has been tried in Kenya, Rwanda, Mali and Nigeria with positive results.

He further said that proper governance will prevent investments from being channelled to rent-seeking groups and will ensure that enforcement of regulations, rules and penalties are in use.

“Improved state capacity to monitor market development will allow governments to anticipate undesirable filtration of counterfeit agro-inputs in the market and devise appropriate responses to eventual short-term difficulties in a timely and effective manner,” he said.

Kisamba explained that although the government has set up a task-force to respond to counterfeit seeds penetrating the market, there is a deliberate need to build on this initiative to cover all agro-inputs in a much more holistic approach.

ACT, as the apex farmer’s organisation, in cooperation with donors ought to facilitate a multi stakeholder process of reviewing and developing an accreditation system that will improve distribution efficiencies and reduce incidences of supply of counterfeit agro-inputs.

It is proposed that the joint accreditation development process should observe the following steps: Gaining commitment and ownership of key stakeholders taking into account few ongoing initiatives, analysing pros and cons of all these initiatives, introducing a GIS mapping system, reviewing current accreditation, monitoring and handing out penalties.

What others do

Tanzania can learn from other countries by securing recommendations from key stakeholders on how to harmonise accreditation based on best practices.

In Kenya: Poor governance and a lack of transparency negatively affect performance of the agricultural sector. The input supply system is private sector driven and integrated in the Kenya’s Vision 2030, which includes specific strategies to improve input supply systems and from the strategy there are clear specific flagship projects.

In Malawi: The Farm Subsidy System (FISP) includes a strong governance system that is driven by very inclusive and transparent multi stakeholder pool of actors (civil society, local and regional authorities) for beneficiaries’ identification and support.