The Future of Smallholder Farming in Eastern Africa - Uganda ...

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sector divide, it must be recognised that a sizable population of Kenyan small scale farmers grows food crops for home consumption, partly, due to market imperfections or failure. Cultivation of high value crops for export on the other hand for these small scale farmers could be constrained by factors such as high investment requirements, unfavourable climatic and soil conditions, lack of proper infrastructure in rural areas and poor extension services. These possible outcomes suggest safety nets and supportive measures for the vulnerable smallholder farmers during the liberalisation and immediate post-liberalisation periods. Table 6: Macroeconomic, Trade Performance, and Employment Impacts of Trade Liberalisation Macro Indicators Percentage Deviation from Base Real GDP 0.5 Consumer price index -3.3 Balance of Trade (change) 1,633 Real government revenue -11.2 Sectoral output (value added) Agriculture 0.04 Manufacturing -1.6 Services -0.6 Export supply Agriculture 0.9 Manufacturing 2.3 Services 0.1 Import demand Agriculture 3.5 Manufacturing 0.1 Services -1.7 Investment demand Agriculture -1.4 Manufacturing -4.1 Services -11.6 Sectoral employment demand Agriculture 0.4 Manufacturing -5.2 Services -1.0 Labour demand by category Unskilled -2.2 Skilled -2.9 Semi-professional -1.8 Professional -1.6 Self-employed -1.0 Impacts on General Price The lower tariffs are also associated with a decline in the general price level, with the CPI declining by 3.3 percent. The lower price regime contributes to the reduction of the cost of doing business in the economy and partially explains the positive real GDP growth and marginal improvement in the agricultural sector. While the low price regime is an appropriate macroeconomic outcome, the downside is that it serves as a
disincentive to farmers. Inability to gain higher food prices may strengthen the argument that under trade liberalisation, food crops lost compared to export crops. Nyangito (1999) notes that, in deed, the food sub-sector was adversely affected by these policy reforms, especially as a result of poor prices induced by increased food imports. Impacts on Current Account The balance of trade improved under liberalization. This can be explained by the sectoral analysis of the exports and imports performance. Lower tariffs were accompanied by a higher import demand, especially in the agricultural sector, an increase that was more than compensated by the increase in manufactured exports. The manufactured exports growth reflected a possible shift between domestic consumption and exports. 15 While manufactured output declined due to tariff reduction, the increase in exports can be attributed to increased export supply at the expense of domestic demand. This is intuitive in that it is likely that the domestic demanded manufactured goods are not able to compete with imported substitutes leaving the manufacturers with the option of diversifying their products and their markets. Trade liberalisation acted as a catalyst for restructuring the domestic manufacturing sector, shifting into alternative products or higher value products and also diversifying product market. Evidence is given to support this argument by members of the Kenya Association of Manufacturers, explaining why Kenya’s market share within the Common Market for Eastern and Southern Africa (COMESA) has improved in spite of difficult economic conditions since mid-1980s. The argument advanced is that faced with higher competition after liberalisation, Kenyan businesses, particularly the manufacturing businesses had to restructure and minimise production costs in order to sustain their businesses. The results of these simulations counter arguments against trade liberalisation. Opponents of trade liberalisation, especially unilateral tariff reductions, argue that domestic manufactures would suffer from cheaper manufactured imports. However, the results show that for Kenya, reducing tariffs in the agricultural and manufacturing sectors does not necessarily imply adversity in domestic industries. Manufactured exports, contrary to expectations, rose by 2.3 percent in spite of the 1.6 percent decline in manufactured output. This is consistent with the fact that domestic production has high import content, to the extent that lower tariffs reduce production costs for domestic producers, raising their competitive position for some export products. The simulation results, therefore, show that reduced general price level in the domestic economy and lower costs of imported intermediate inputs produce a competitive position for the manufacturing sector that far exceeds the competition posed to the economy by imports in general. Another explanation to the outcome in manufactured exports could be the possibility of a shift in the product mix. That is, import substitution may have fallen while manufactured exports rose with trade liberalisation. These results indicate that it is possible to capitalise on the positive impacts of trade liberalisation by undertaking rationalisation and restructuring process in the 15 As explained by an anonymous referee to an earlier version of this study, the result that domestic industries are able to allocate a larger share of their output to exports is possible in the real world. However, we would like to concur with the view of the anonymous referee that these results should be treated more as indicative given the prevailing uncertainties to the constant elasticity of transformation parameters, aspects of the model structure and the data.
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Part One - Agricultural Productivit
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I. Introduction Agricultural Produc
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came about from expansion of cultiv
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study, therefore, limited itself to
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Land allocation and yields of 12 cr
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Table 6: Key economic variables for
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local seed in absolute terms and th
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Table 11: Crosscutting priority con
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Table 13: General constraints to ma
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These results clearly demonstrate t
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Table 18: Crosscutting constraints
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V. Policy Implications The findings
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References Appleton, Simon (2001).
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1.0 BACKGROUND 1.1 Introduction Low
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egins with a summary of the literat
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Source: National Wetlands Conservat
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shillings (§37-38). Every landowne
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Similarly, Howard (1995) used socia
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Uganda may well have more than a qu
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factors that explain household leve
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of inputs 18 , pests and diseases,
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(PMA p. 27). It also requires impro
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agriculturalists, who still do not
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to have covered 30,000 ha. During t
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4.0 RESEARCH METHODOLOGY The breadt
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• What is the current extent of w
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Figure 2. Changes in Sources of Com
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Figure 5. Proportion of Households
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estimates are remarkably consistent
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FSI - Percentage by District Distri
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was corrected using the White-Huber
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utilization for the household. Howe
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The nature of the structures to con
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impact of irrigation on horticultur
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growing population. Wetland protect
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APPENDICES Appendix 1. The Wetlands
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Appendix 2. THE 5V’s PRIORITY CLA
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Appendix 5. Determinants of Product
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Estimated covariances = 79 Number o
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International Food Policy Research
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Scherr, Sara J., 1999b. Poverty-env
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Land Tenure, Agricultural Productiv
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1.3 Statement of the problem Land s
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In order to achieve these objective
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densely populated Nyeri and Kakameg
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Figure 3: Conceptual Model Type of
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Figure 4: Location of the Study Dis
Page 95 and 96: By 2001, land demarcation and regis
Page 97 and 98: 3.4 Survey Design The survey was un
Page 99 and 100: 3.5.3 Model of Environmental Degrad
Page 101 and 102: questionnaire (Figure 8). Prominent
Page 103 and 104: Figure 10: Availability of hired la
Page 105 and 106: Figure 13 shows the level of cultiv
Page 107 and 108: joint significance test on the 4 dr
Page 109 and 110: Table 8: Regression Results on Maiz
Page 111 and 112: was classified into three categorie
Page 113 and 114: Table 9: Tobit Analysis with Enviro
Page 115 and 116: 5.0 CONCLUSIONS AND POLICY IMPLICAT
Page 117 and 118: 5.5 Access to Market A number of fa
Page 119 and 120: FAO (2003b). “Women and Food Secu
Page 121 and 122: Omiti John and Paul Obunde (2002).
Page 123 and 124: Annex 1: Pearson Correlation Coeffi
Page 125 and 126: SEXHH SEXLUSER TSECUR VEGCP1 CHILDE
Page 127 and 128: Part two - Agricultural Markets
Page 129 and 130: Market Liberalisation and Agricultu
Page 131 and 132: farms show annual fluctuations, wit
Page 133 and 134: Figure 2: Recent trends in domestic
Page 135 and 136: 5. The Model The interest of this s
Page 137 and 138: sources for each sector. α IM ji a
Page 139 and 140: Savings Households’ savings are a
Page 141 and 142: The value-added price is defined th
Page 143 and 144: Specifically, the Government polici
Page 145: Table 5: Calculated Tariff Rates (%
Page 149 and 150: competitiveness. The second one is
Page 151 and 152: Table 7: Wage Rates and Labour Inco
Page 153 and 154: Similar simulation is undertaken in
Page 155 and 156: References Block, S. and C.P. Timme
Page 157 and 158: Tyler, G. J. and Akinboade, O. 1992
Page 159 and 160: (A.10) ai ∑ P ϖ P i=1,...,3; j =
Page 161 and 162: (A.32) price (A.33) P Q = P ( 1+ td
Page 163 and 164: Table A.2: Variables of KEGEM Varia
Page 165 and 166: VA A i Efficiency parameter in valu
Page 167 and 168: CHAPTER FIVE Post-Liberalization Ma
Page 169 and 170: As alluded to earlier, initial agri
Page 171 and 172: directly to dairy farmers as animal
Page 173 and 174: to engage in this new role, the gov
Page 175 and 176: 2.0 RESEARCH METHODOLOGY 2.1 Overal
Page 177 and 178: markets with minor gaps in data ser
Page 179 and 180: Price-series correlations are conve
Page 181 and 182: Migori Awendo Postliberalization 1,
Page 183 and 184: model depends on whether or not the
Page 185 and 186: Table 6b--Unit root tests for price
Page 187 and 188: Table 8a--Unit root tests for OLS r
Page 189 and 190: 3.3 The Role of Infrastructure and
Page 191 and 192: Table 13--Reported distances from t
Page 193 and 194: Table 15--Reported maize storage pr
Page 195 and 196: Table 17--Traders’ perception of
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3.3.6.2 Awareness of the Liberaliza
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Retailer (open-air market) 21 13 7
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3.4 Maize Marketing Costs Traders w
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3.4.4 License and Market Fees Accor
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5.Develop farmers’ and traders’
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Coulter, J., and J. A. F. Compton.
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Meilink, A. H. 1987. Food consumpti
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Figure 1 Maize surplus and deficit
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Figure 3 Trends in Maize Prices 199
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Price per 90kg bag (Kshs) Mbeere Di
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Figure 4 Modes of transporting maiz
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Figure 6: Limitations to storage ca
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Figure 8: Problems experienced in a
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CHAPTER SIX Grain Marketing in Addi
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A third, related explanation argues
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educed marketing costs related to p
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1.4. Research questions This study
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1.6. Organization of the report Thi
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the cases, respectively (Table 2.4)
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Brokers believe that most regional
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There is also a close relationship
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Table 2.14: Buyers’ methods for i
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Source: Survey, 2002. Table 2.18: D
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Table 2.22: Method used to grade di
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Table 2.25: Access to credit broker
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It has been reported that grain pur
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3. GRAIN RETAILERS Retailers serve
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Like brokers, retailers use cash or
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Table 3.11: Buyers’ information a
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Table 3.14: Retailers’ views of g
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Getting reliable price information
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Table 4.4: How do you set a sales p
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Table 4.7: Means of settling disput
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a.m. The survey included wholesale
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Table 5.3: Instability index of dai
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Table 5.7: Seasonality index of who
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Figure 5.3: Ratio of wholesale to r
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Table 5.8: Results of stationary te
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Table 5.10: Summary of Granger caus
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holiday sales. The results of the r
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Table 6.1: Storage capacity of the
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Intermarket grain flow is coordinat
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• a legal, regulatory, and enforc
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REFERENCES Al-Hassen, R., A. Dorwar
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Seppala, P. 1998. Decisive liberali
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achieve some welfare objective. The
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Annex Table 2.10: Have you faced di
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Annex Table 2.21: Do you consider p
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Annex Table 3.3: Cost structure of
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Annex Table 4.2: Complementary acti
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CHAPTER SEVEN Post-Harvest Grain Ma
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only (see Abebe 2000: 80-83). That
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of processing as an important post-
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occur at all stages of post-harvest
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Endowment & access to Resources (e.
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Figure 2: The Study Areas (shaded a
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(6) β i = β 0 λ i , 0
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Intercrop differences Liquidity con
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eplace old animals (19 percent of h
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Table 5. Number and capacity of gra
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Table 7b.Estimated grain loss durin
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7.1.3. Grain Marketing Practices an
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1.8 Producers' price 1.6 1.4 1.2 1
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next season, grain prices tend to b
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Table 13: Regression results (Tobit
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of grain production was reportedly
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instruments to mitigate price risks
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Coulter, J. and G. Onumah, (2002).
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Appendix: Supplementary Tables Appe
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CHAPTER EIGHT Collective Action in
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The objectives of DRS were to popul
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increasing participation. Thus, the
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Table 2. Perceived change in benefi
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unsatisfactory (Table 8). Flaws in
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Table 14. Measures of wealth status
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Results from Regression Analysis Ta
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However, to maintain these benefits
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Table 18. Determinants of participa
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_______ 1981. Common property and c
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Management Regulations and Enforcem
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In theory, under PFM, the governmen
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3.2 Desk study The desk study invol
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Table 1: Number and gender of indiv
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Poverty Increase in number of fishe
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Table 5: Responses given by various
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wages after the catch is sold (see
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70 60 No of respondents 50 40 30 20
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4.2.3 Lack of attention to social i
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5.3 Regulate the construction of re
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REFERENCES Allison, E. H., and P. M
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APPENDIXES Appendix A: Districts of
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Questions and responses Government
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Questions and responses Lack of coo
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CHAPTER TEN Animal Health Service D
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• Individuals are selected for tr
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Makueni district was selected becau
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1.5 Justification of the study The
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more sustainable (Leonard 1993; Uma
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of defined roles for CBAHWs within
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Interviews with veterinary officers
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The estimated model was of the form
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Gender remains a sensitive issue. P
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The most common ailments and diseas
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4.3 Factors influencing the level o
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Table 9 -- Factors influencing the
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Table 10 - Factors determining the
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Table 12 -- Current mean numbers of
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Figure 4: Percentage of household h
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CBAHWs were the most utilized chann
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Users of veterinarians’ services
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Table 18 -- Levels of incomes and l
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higher average calving per cow, whi
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Table 21 -- CBAHWs’ ranking of sp
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epresentative of livestock keepers
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Despite the restriction imposed by
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veterinarians. Such associations co
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References Akabwai, D., V. Shean, a
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Johnson, P. J., and C. Chahuares. 1
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Appendix 1: The Logistic Procedure
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Social Capital and Sustainable Agri
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1.1 Soil conservation programs and
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1.3 Research Objectives and Hypothe
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Institutional and Policy factors -
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land pressure is high (Holden 1991)
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include density of membership in gr
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then summed up according to increas
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Social capital, resource use, and a
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Table 4.4 Farmers’ perception of
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Table 4.5: Empowerment and politica
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Table 4.8: Indicators of collective
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Table 4.10: Comparison of means of
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5. The influence of social capital
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especially when considered on an ad
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households may pay less attention t
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Table 5.3 Determinants of terracing
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and Gichuki 1994). In the 1940s, th
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Table 5.4. Determinants of soil con
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5.3. Social capital, resource use,
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6. Implications for policy and prog
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essential for the formation of exte
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BIBLIOGRPAHY Admassie, Y., L. I. Mw
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Gambetta, D. 1988. Can we trust tru
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Social capital and watershed develo
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Obare, G. A., S. W. Omamo, and J. C
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Washington D.C.: The World Bank Tem
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Appendix: A list of Contributors Ab
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Appendix: Projects Supported Under
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IFPRI Eastern Africa Food Policy Ne
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