Smallholder potato farmers in Uganda face many production and marketing challenges including limited access to markets and low surpluses for sale into the market. This study sought to underscore the factors that influence smallholder farmers' decision to participate in the potato market and level of participation in such markets. Data were collected from 200 smallholder potato farmers in Kabale and Mbale districts. Descriptive statistics and a two-stage Heckman model were used to analyse the data. Results indicated that proximity to a village market positively and significantly (p ≤ 0.05) influenced decision to participate in the potato market. Results of the second stage of the model indicated that non-farm income earned negatively and significantly (p ≤ 0.01) affected the potato farmer's level of market participation.
Purpose
The study aimed at understanding the level of inefficiencies in the potato market chain. Farmers sell potato to traders but continue to complain of limited market access and low profits. The purpose of this paper is to determine market efficiency and profits of the potato market chain, and factors that influence the profits.
Design/methodology/approach
The study focussed on potato farmers, traders and small-scale processors. It was conducted in Kabale and Mbale districts being the major potato producing areas in Uganda, and Kampala being a major potato market. Data were collected from 180 farmers, 60 traders and 32 small-scale processors. Descriptive and regression methods were used to analyse the data.
Findings
There were three major potato market chains and all were profitable and efficient. The farmer-buyer node was the most efficient (efficiencies of 128-159 per cent). The trader node efficiency ranged between 56 and 81 per cent. Sex of chain actor, group marketing, contract duration and distance to market were among the factors that affected profits.
Research limitations/implications
Processors considered were those operating on very small scale, hence results do not apply to large-scale processing. Consumers were not included but the data and results are adequate for the study objective.
Originality/value
This paper provides empirical information that serves as a basis to adopt market options for increased benefits to various chain actors.
Following institutionalisation of certified organic agriculture in Uganda in 2002, more farmers have adopted organic pineapple farming to boost their economic livelihoods. However, farmers have continued to engage in the less profitable conventional market due to organic market's limited capacity to absorb all their produce. This study seeks to examine organic pineapple farmers' market choices, improve the empirical understanding of factors determining these choices and how they relate to the success of organic pineapple marketing in Uganda. Data was obtained from a random sample of 116 organic pineapple farmers from central region and three pineapple export companies, in crosssectional household and key informant surveys. Descriptive statistics revealed that 68% of the farmers sold organic pineapples via both organic and conventional market channels at the same time. The study employed a conditional logit model to explain the factors influencing organic farmers' market channel choice which established that organic and conventional market price differences in peak and lean seasons, pineapple harvests and losses significantly influenced farmers' market choice. Farmers' organic market share can be increased by policy makers' promotion of local and regional organic market outlets and value addition at farmer and company levels.
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