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

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Lack of capital and credit hampers the entry and expansion of private trade. It affects transport operations, storage capacity, and the general efficiency of the entire maize marketing system. As Jones (1998) has observed, the limited capacity of the small-scale private sector to deepen and expand its operations beyond small-scale processing and assembly, wholesale, and retail activities points to the need for effective systems of credit and input supply, as well as market regulation to promote supply of public goods such as information and contracts. This is a key policy issue that has emerged across a wide range of countries. Credit, therefore, is a critical area of public support. The state must take into consideration the particular needs facing the large number of small-scale private sector participants by, for instance, designing group lending schemes. 3.3.6: Government Policy This section considers the role of the government in facilitating private maize trade, the role of the NCPB in a liberalized market, and the problems associated with actions of government that traders have been facing in the liberalized maize market. Apart from the itinerant open-air maize traders who pay a market fee to the local authorities, maize traders and processors are required by law to have a trading license. The fee paid to acquire a trading license varies depending on the scale of business. Small-scale traders pay a license fee of approximately KSh. 500 per year, whereas the large-scale maize traders and processors pay more than KSh. 10,000 every year. Traders perceive the trading license requirement as an impediment to entry and expansion in the maize trade. Many small traders consider licenses costly and difficult to obtain owing to opaque requirements. Not only must traders go through a cumbersome bureaucracy, but also often have to bribe officials in order to acquire the license. The licensing procedure needs to be simplified and requirements publicized to ease the licensing process. 3.3.6.1 Traders Perception of the New Role of NCPB Before the reforms in the cereals sector, the bulk of the marketed maize surplus in Kenya went to the NCPB. This study seeks to determine whether the private traders understand the role of the NCPB under the new marketing arrangement. About 78 percent of the sampled private traders said that they know the role of NCPB in the post-liberalization era. Of the 176 respondents on the question “What are the roles of NCPB in maize marketing” about 55 percent said that under liberalization it is supposed to act as a buyer and seller of last resort, and about 45 percent saw it as a body that is supposed to maintain strategic maize reserves. On the question of whether the private traders find the NCPB an impediment to their participation in maize trade, 70 percent did not see it as an impediment, 24 percent saw it as an impediment, and 6 percent reserved their comments. Those who saw the NCPB as an impediment to their maize trade argued that the NCPB does not pay promptly for maize delivered. Also its requirement that maize of high quality be properly dried with a moisture content of less than 13 percent is perceived as very stringent. We also asked traders how famine relief maize, given out by the government and other food relief agencies, affects their maize trade. Seventy-two percent of the sampled respondents reported no effect, whereas 28 percent talked of some negative effects , such as increased cheap supply that depressed prices. In some instances the relief maize is clandestinely diverted to the market, once again maize prices to decline. Relief procurement procedures should be restructured to give farmers the opportunity to sell surplus to the relief agencies for subsequent delivery to deserving areas when needed.
3.3.6.2 Awareness of the Liberalization Policy This study further seeks to investigate what traders know about the liberalized maize market. About 89 percent of the respondents said they were aware that the maize market had been fully liberalized, whereas 11 percent were not aware. This awareness by sampled districts is shown in Table 18. Table 18--Traders’ awareness of the liberalization of the maize market District Traders reporting they are aware of liberalization Traders reporting they are not aware of liberalization Number % Number % Trans Nzoia 52 96 2 4 Mbeere 55 93 5 7 Nairobi 52 86 8 14 Migori 48 80 12 20 Total 207 88.5 27 11.5 Source: Authors’ survey, 2001. As the table shows, awareness of maize market liberalization is highest in Trans Nzoia (the major maize-producing district) and lowest in Migori (a minor maize-producing district). Of the 207 traders who responded to the question whether the liberalization policy is good or bad, 86 percent said that the policy is good and 14 percent said that it is bad. Those in support of the liberalization policy said that the free market enables them to move maize with few hurdles and that maize from farmers has become very cheap. Liberalization has enabled surpluses to find markets far and wide. In addition, many traders have entered the market, thereby alleviating the problem of unemployment. Farm inputs, especially fertilizers, have also become readily available, and there is healthy and stiff competition among the traders. Those that did not favor the liberalization policy reported that market conditions were unpredictable, making business decisionmaking difficult. They were particularly unhappy with the high price fluctuations that have been engendered by the policy. About 60 percent of the traders who responded to the question of government commitment to liberalization (n = 198) believed that the government is committed to the liberalization policy, whereas about 40 percent said that the government is not (Table 19). Table 19--Traders’ assessment of government commitment to liberalization policy District Traders who believe the government is committed to liberalization Traders who believe the government is not committed to liberalization Number % Number % Migori 44 88 4 8 Trans 45 85 7 13 Nzoia Nairobi 21 36 37 64 Mbeere 9 22 31 76 Total 119 60.1 79 39.9 Source: Authors’ survey, 2001.
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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
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By 2001, land demarcation and regis
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3.4 Survey Design The survey was un
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3.5.3 Model of Environmental Degrad
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questionnaire (Figure 8). Prominent
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Figure 10: Availability of hired la
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Figure 13 shows the level of cultiv
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joint significance test on the 4 dr
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Table 8: Regression Results on Maiz
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was classified into three categorie
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Table 9: Tobit Analysis with Enviro
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5.0 CONCLUSIONS AND POLICY IMPLICAT
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5.5 Access to Market A number of fa
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FAO (2003b). “Women and Food Secu
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Omiti John and Paul Obunde (2002).
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Annex 1: Pearson Correlation Coeffi
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SEXHH SEXLUSER TSECUR VEGCP1 CHILDE
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Part two - Agricultural Markets
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Market Liberalisation and Agricultu
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farms show annual fluctuations, wit
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Figure 2: Recent trends in domestic
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5. The Model The interest of this s
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sources for each sector. α IM ji a
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Savings Households’ savings are a
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The value-added price is defined th
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Specifically, the Government polici
Page 145 and 146: Table 5: Calculated Tariff Rates (%
Page 147 and 148: disincentive to farmers. Inability
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: Table 17--Traders’ perception of
Page 199 and 200: Retailer (open-air market) 21 13 7
Page 201 and 202: 3.4 Maize Marketing Costs Traders w
Page 203 and 204: 3.4.4 License and Market Fees Accor
Page 205 and 206: 5.Develop farmers’ and traders’
Page 207 and 208: Coulter, J., and J. A. F. Compton.
Page 209 and 210: Meilink, A. H. 1987. Food consumpti
Page 211 and 212: Figure 1 Maize surplus and deficit
Page 213 and 214: Figure 3 Trends in Maize Prices 199
Page 215 and 216: Price per 90kg bag (Kshs) Mbeere Di
Page 217 and 218: Figure 4 Modes of transporting maiz
Page 219 and 220: Figure 6: Limitations to storage ca
Page 221 and 222: Figure 8: Problems experienced in a
Page 223 and 224: CHAPTER SIX Grain Marketing in Addi
Page 225 and 226: A third, related explanation argues
Page 227 and 228: educed marketing costs related to p
Page 229 and 230: 1.4. Research questions This study
Page 231 and 232: 1.6. Organization of the report Thi
Page 233 and 234: the cases, respectively (Table 2.4)
Page 235 and 236: Brokers believe that most regional
Page 237 and 238: There is also a close relationship
Page 239 and 240: Table 2.14: Buyers’ methods for i
Page 241 and 242: Source: Survey, 2002. Table 2.18: D
Page 243 and 244: Table 2.22: Method used to grade di
Page 245 and 246: 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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