Governance structures in smallholder pig value chains in Uganda: constraints and opportunities for upgrading

Abstract

This paper analyses governance structures in Uganda’s smallholder pig value chains by applying the New Institutional Economics framework. It utilises cross sectional and qualitative survey data from randomly selected pig value chain actors in 4 districts. A multinomial logit model is applied to assess the determinants of vertical integration among pig traders. The findings indicate that most relationships at the pig production node of the value chain are based on spot market governance structures supported by personal relationships and trust. Live pig traders are mostly vertically integrated. High integration levels of the pig traders are positively influenced by access to market information, value of investments in the value chain, and dedicated asset specificity in terms of backyard slaughter premises. Upgrading opportunities in the value chain in the form of value addition strategies, policy implementation and promotion of business models that link producer organisations to quality inputs and service suppliers through contractual arrangements are identified.

Preferences in ‘Jalapeño’ Pepper Attributes: A Choice Study in Mexico

“…Choice experiments were originally used in communication and transport research [ 20 , 24 , 25 ]. Subsequently, they were adopted in other research areas such as environmental assessment [ 26 , 27 ], market research [ 28 , 29 , 30 ], plant and animal improvement programs [ 31 , 32 , 33 ], environmental and consumer studies [ 34 , 35 ] and, recently, in agricultural value chain research [ 36 , 37 , 38 ]. Choice experiments are based on Lancaster’s consumer behavior theory and McFadden’s random utility theory [ 39 , 40 ].…”

An assessment of pig feed diversity amongst smallholder pig farmers in Northern Uganda

“…According to Ouma et al (2017) access to market information is associated with high levels of market integration. Improved access to agricultural and market information usually leads to improvements in farming practices as a result of increased adoption of farm inputs.…”

A Framework for Assessing Food System Governance in Six Urban and Peri-Urban Regions in Sub-saharan Africa

“…The social environment refers to the social dynamics (i.e., customs, norms and traditions) within communities of actors, and the social capital of the individuals influences collective actions (Jordaan et al, 2014). The institutional environment contains the rules and regulations for creating order to protect individuals against opportunistic behavior, it also encompasses the incentives for guiding the behavior of economic agents (Milagrosa, 2007;Ouma et al, 2017).…”

“…Inclusive business is a powerful way of helping drive economic opportunities for small-scale farmers, local and small agribusinesses, and the rural unemployed who would otherwise be left behind (Achterbosch et al, 2014). Ouma et al (2017) suggested that horizontal integration of smallholder pig producers in Uganda into collectives helps improve their bargaining power and reduce transaction costs. Knickel et al (2008) also demonstrated that European farmers benefit from collective action due to the growing power of retailers and the pressure resulting from the decline of producer prices and agricultural subsidies.…”

“…Inclusive value chains tend to increase smallholder productivity and market integration. Knickel et al, 2008;Achterbosch et al, 2014;FAO, 2014;Ros-Tonen et al, 2015;Ouma et al, 2017 fosters adaptive learning and empowerment processes related to smallholder productivity and market integration. Based on the above, we can summarize the range of objectives that can relate to alternative food chain governance arrangements (Table 1).…”