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

As Table 19 shows, traders in the surplus districts (Trans Nzoia and Migori) have the
perception that the government is committed to the liberalization policy while traders in the
deficit districts (Mbeere and Nairobi) are a bit skeptical of the government’s commitment.
A majority of the traders were aware that they do not need a movement permit to move maize
from one district to another. They were also aware that they can sell maize anywhere in the
country and not necessarily to the NCPB and that they can import maize into the country
subject to payment of a variable duty.
However, as shown in Figure 9, traders have faced myriad problems since liberalization of
the maize trade. The major problems cited include low maize prices, lack of market,
uncertain government policy, and competition from other traders and processors.
The traders suggested a number of measures that can be implemented to alleviate these
problems. As Table 20 shows, solutions include enhancement of trader bargaining power,
provision of soft loans to traders, and a ban on importation of maize. It seems, however, that
traders like some aspects of liberalization and not others. They like, for instance, the free
movement of maize and prompt receipt of payments for stocks sold, but they do not like
unstable prices, which are sometimes very low. This result implies that the NCPB must be
empowered to play its market stabilization role more effectively. In addition there is a need to
enhance the bargaining position of the small-scale farmers and traders by helping them form
associations organizations and cooperatives. Government should also show greater
commitment to empowering farmers and traders by maintaining law and order (security) and
enforcing contracts.
3.3.6.3 Liberalization of the Maize Market and Trader Entry
The results of this study indicate the existence of all seven major categories of traders
identified in section 1.2. Traders who were identified by their use of intermediate means of
transport (bicycles, oxcarts, donkeys, handcarts, and head load) were found to be an
important emerging category. They perform various functions in the marketing chains,
including bulking at the farm level and delivering the grain to assemblers, retailers, and posho
millers. The numbers of sampled actors in private maize trade in the four districts are shown
in Table 21.
Table 20--Traders’ suggestions for alleviating maize marketing problems
Measure
Number of traders %
suggesting measure
Enhance bargaining power 53 34.0
Offer soft loans to traders 39 25.0
Stop importation of maize 20 12.8
Provide stores 18 11.5
Reduce transport costs 17 10.9
Provide security 5 3.2
Maintain roads 3 2.1
Standardize weighing equipment 1 0.6
Total 156 100.0
Source: Authors’ survey, 2001.
Table 21--Types of traders by district
Type Mbeere Nairobi Trans Nzoia Migori Total %
Wholesaler (store owner) 17 8 23 9 57 24.4