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

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These results indicate that trade liberalisation has a positive impact on income poverty in real terms. This is well illustrated by the outcome in the household incomes. Table 7 shows the effects of trade liberalisation on the incomes of the three urban and seven rural household groups. On average, the losses in nominal terms are more for urban households when compared to the rural households. This is particularly the case for the low-income and middle-income urban households. These are the income group that contribute their labour services mainly to the unskilled and skilled labour categories that were seen to be affected most by the liberalisation and not surprisingly this is the result of the declining output in the manufacturing sector. The upper-income urban household’s real incomes rose by 2.3 percentage points. This is the group that is comprised mainly of the professional and semi-professional workers. Agricultural related activities in terms of their output only showed a marginal rise. On the aggregate however, labour demand also rose marginally. The rural household incomes, which are dependent on the performance in the agricultural sector, rose by at least 2 percents in real terms. While trade liberalisation results in falling labour demand in the economy, the impact on the agricultural sector is not that severe to the extent that the nominal falls in the rural incomes which are associated more to the developments in the nominal wage rate are more than compensated by the improvements in the general price level. Both the smallholder and large farmers benefit in real terms from the trade liberalisation. It is the large farmers however who benefit most as the real incomes for Rhh6 increased by 2.7 percentage points. The smaller farmers (Rhh1, Rhh2 and Rhh3) real incomes increase by an average 2.2 percentage points in real terms. Our results therefore demonstrate that the macroeconomic impacts of a trade liberalisation policy are very critical to the ability of this policy to influence positively poverty reduction efforts. Where the policy results at the macroeconomic level in a more stable macroeconomic environment exemplified by a decline in the general level of prices, then the real wages, labour incomes and household incomes are more likely to be favourable and welfare improving in spite of such a policy’s possible negative impact on output and employment of factor inputs such as labour. In the case of Kenya, it is evident from these results that trade liberalisation results in better real incomes for all income groups even though the performance of the agricultural and manufacturing sectors were poor in terms of output and in the case of manufacturing sector, there were employment declines.
Table 7: Wage Rates and Labour Incomes Wage rate Nominal Real Agriculture -1.0 2.4 Manufacturing -1.0 2.4 Services -1.0 2.4 Labour incomes by category Nominal Real Unskilled -3.1 0.2 Skilled -3.8 -0.6 Semi-professional -2.8 0.6 Professional -2.6 0.8 Self-employed -2.0 1.4 Incomes for households Nominal Real Uhh1 -2.8 0.5 Uhh2 -2.3 1.1 Uhh3 -1.1 2.3 Rhh1 -1.3 2.1 Rhh2 -1.2 2.2 Rhh3 -1.1 2.3 Rhh4 -1.2 2.2 Rhh5 -1.4 2.0 Rhh6 -0.8 2.7 Rhh7 -1.2 2.1 Overall welfare effects Proponents of trade liberalisation argue that tariffs reduction lead to overall welfare improvement for a country’s consumers since inefficient domestic producers are dislocated through their failure to compete with cheaper and higher quality imported goods. Improvements in consumer demand and diversification of products available is seen as an important indicator for poverty reduction. The trade liberalisation simulation undertaken in this study also provides some results of the implications of the policy to household demand. From the results discussed above, the real incomes of the households improved after the import tariffs for agricultural and manufactured goods were reduced. The results have also shown that there is a possibility of some substitution of domestic manufactures for imported manufactures since in spite of the manufactured output decline, the exports of the same also increased. Table 8 illustrates the implications of trade liberalisation for consumption demand in Kenya. The results are consistent with expectation since the demand for manufactured goods rise significantly both for the rural and urban households. The demand increase is more significant for rural households. These results indicate that with declining manufactured output, imported manufactures are able to be good substitutes. For instance the Rhh3 income group, demand for manufactured goods increases by 5.1 percentage points. An important observation worth noting is that rural households engaged in agricultural activities (Rhh1 – Rhh6) experience an increase in consumer demand for manufactured goods of 4.8 percentage points. Demand for agricultural commodities by the urban households declines on average with trade liberalisation. Rural households on the other hand register improved demand for agricultural output. Like in the case of manufactured goods, rural households experience
Page 1 and 2:
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
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By 2001, land demarcation and regis
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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 and 146: Table 5: Calculated Tariff Rates (%
Page 147 and 148: disincentive to farmers. Inability
Page 149: competitiveness. The second one is
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
Page 197 and 198: 3.3.6.2 Awareness of the Liberaliza
Page 199 and 200: 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
Page 484 and 485:
Obare, G. A., S. W. Omamo, and J. C
Page 486 and 487:
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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