Value chain, productivity and trade performance in the dairy industry

Abstract

PurposeThe purpose of this paper was to establish the contribution of value chain and productivity to trade performance in the dairy industry using evidence from Uganda.Design/methodology/approachThis study research design is cross-sectional and correlational. Data were collected through a questionnaire survey of 108 dairy farmers, processors and exporters. Data were analysed through correlation coefficients and linear regression using Statistical Package for Social Sciences.FindingsHierarchical regression results indicate that value chain and productivity contribute significantly to variances in trade performance of dairy products. Therefore, appropriate value chain processes and high levels of productivity lead to increased trade performance in the dairy industry.Research limitations/implicationsThis study focusses on trade performance of dairy products in Uganda. These research findings are useful for informing the deliberations of academicians, regulators and the business community. The results are applicable to all countries that carry out trade specifically in dairy products.Practical implicationsThe results are important for trade policy development in the dairy industry. For example, this study informs farmers, processors and exporters of dairy products how value chain activities in dairy farming can be re-aligned to achieve better quality and productivity for exportation. Similarly, the current study provides policy guidance for the relevant ministries such as ministry of trade and other players to come up with holistic policy actions aimed at improving the trade performance of dairy products in the country.Originality/valueTo the researchers' knowledge, this is the first study that provides an initial empirical evidence on the contribution of value chain and productivity on trade performance of dairy products in Uganda.

Innovativeness and export competitiveness in the East African Community

“…Accordingly, Pascucci (2018) reports that innovation helped Switzerland to emerge as a leading exporter in the world. The current study answers the call for several studies for extended and insightful practices for policymakers to improve the export competitiveness of developing countries such as those in the EAC (Kemitare et al, 2021). This has remained a burgeoning concern to date.…”

“…Nonetheless, a study by Pascucci (2018) indicates that the export competitive potential and performance of several developed and developing countries have been deteriorating since the second half of the early 21st century due to insufficient innovation. Yet, dismal export competitiveness worsens a country's balance of payment position and consequently reduces its GDP (Kemitare et al. , 2021).…”

Export logistics infrastructure and export competitiveness in the East African Community

“…Kenya's trade deficit in 2020 amounted to nearly 9.4 bn US dollars (World Integrated Trade Solution, 2020). The low levels of exports have been attributed to the dynamic changes and challenges in the trade environment and the increasing international trade costs (Kemitare et al. , 2021; Abdallah, 2019; EAC, 2017; Klaus, 2013).…”

“…Kenya's trade deficit in 2020 amounted to nearly 9.4 bn US dollars (World Integrated Trade Solution, 2020). The low levels of exports have been attributed to the dynamic changes and challenges in the trade environment and the increasing international trade costs (Kemitare et al, 2021;Abdallah, 2019;EAC, 2017;Klaus, 2013). Notably, the East African Economic Outlook (2018) indicates that there are low levels of trade facilitation in the EAC in terms of export logistics infrastructure components.…”

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“…farmers, cooperatives, dairy companies, etc.). Kemitare et al . (2021) placed an emphasis on the value chain and productivity enhancement as a means of improving the trade performance of the dairy sector in Uganda.…”