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

Table 15--Reported maize storage problems by district
Problem Number of traders reporting problem in:
Mbeere Nairobi Trans Nzoia Migori Total
Rodents and other
pests
28 19 35 36 118
Theft/insecurity 2 10 6 3 21
Rain damage 1 2 3 0 6
Lack of storage 9 0 4 0 13
High storage costs 4 0 0 0 4
Source: Authors’ survey, 2001.
The traders also noted that provision of security and appropriate storage facilities, including
the opening up of NCPB storage facilities to both the large- and small-scale traders, could
help alleviate the storage problem.
The storage function of marketing under liberalization in Kenya should contribute to price
stabilization and long-range food security mainly by facilitating private sector involvement in
marketing. This study shows, however, that traders do not have the financial and managerial
capability to store maize and be able to exploit seasonal price changes. A similar observation
has been made for Ghana by Badiane and Shively (1998), who have suggested improvements
in local storage to reduce food price variability.
Improving grain storage requires investments in physical facilities, research, and extension
for on-farm and off-farm storage as advocated by Tyler and Bennett (1993), improvement of
credit access by farmers and traders, and reduction in market risk occasioned by policy
reversals.
3.3.3 Market Centers and Marketing Facilities
The existence of accessible market centers and adequate marketing facilities is a necessary
prerequisite for the development and acceleration of private trade. About 95 percent of the
sample respondents reported that between one and six markets exist near the locations where
they operate. About 48 percent of the respondents reported that these marketplaces are easily
accessible, whereas about 52 percent felt otherwise. About 48 percent of the respondents said
that these market centers have the necessary facilities for maize trading, whereas about 52
percent said that these marketing facilities are inadequate (Table 16).
Market centers are administered and run by the local governments, who are also supposed to
provide and maintain the market facilities. The traders in turn pay a market fee to the local
council. This fee varies from council to council depending on the market facilities provided,
but it is usually about KSh. 10 per 90 kg bag of maize. Apart from the market fee, those
traders who rent stalls also pay a monthly rent fee and security fee.
Table 16--Responses on availability of marketing facilities