Assessing the Private Sector’s Efforts in Improving the Supply Chain of Hermetic Bags in East Africa

Abstract

Hermetic bags are effective at curbing grain losses due to insect pests, but their use remains low due to unavailability among smallholder farmers. This study used primary data from actors within the Purdue Improved Crop Storage (PICS) supply chain network, mostly the private sector, in Ethiopia, Tanzania, and Uganda, to understand the challenges and opportunities in improving the availability of hermetic bags in rural areas. It finds that supply-side distribution approaches played a critical role in improving PICS bag availability. Some of the supply-side constraints included poor inventory management, pricing, and limited access to capital. Inventory management can be improved through better forecasting using sales records and prediction of farmers’ harvests. Improved access to credit during peak season can improve the timely supply and reduce stockouts. Marketing inefficiency appears to be fueled by a high-profit margin at the distributor level. Using all available distribution channels in addition to ag-input dealers will enhance the availability of the bags in rural communities.