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

legal requirements Are there differences between the official stipulations and the actual
demands of the field What are the different support measures used to promote grain trade
1.5. Methodology
1.5.1 Description of dataset
For the reasons already described, the focus of this study is the Addis Ababa central grain
market. Although a number of cereals, pulses, and oilseeds are traded at the central market,
only teff, wheat, and maize have been selected for the study because of their importance in
total grain trade. There are different grades within each crop type. For instance, there three
major origins of teff: Adda, Wollonkomi, and Gojjam Bechena. Within each origin, various
grades can be identified: three grades for Adda, four grades for Wollonkomi and
Gojjam/Bechena teff. Similarly, only four grades for wheat and two for maize can be
identified based on color and uniformity.
Both secondary and primary data have been collected. Primary data were collected through a
market survey using a structured questionnaire for traders and price observation. The survey
was conducted during March 2002 to June 2002. The main focus was the central grain market
and merchants who buy and sell grain; brokers and transporters operating at or visiting this
market were also included in the survey. Initially, a list of traders was obtained and a random
sample was drawn from the list. The focus was limited mainly to brokers, retailers, regional
traders, and transporters. Accordingly, a random sample of 67 brokers, 107 retailers, 32
regional traders, and 20 grain transporters dealing with the three crops at the central grain
market were interviewed. Retailers also include small flourmill operators engaged in selling
grain. Different questionnaires were designed for each occupation category,i.e, brokers,
retailers, regional traders and transporters covering major issues such as basic background
information, working capital requirement, price determination, volume of transactions and
commissions, grading, access to credit, regulatory framework and policy, sources of
information, barriers to entry, and marketing problems.
Finally, wholesale and retail prices were also collected from traders during March to July
2002. The daily prices of each grade of teff, wheat, and maize were collected between the
opening (6:00 a.m.), middle (7:30 a.m.) and closing (9:00 a.m.) of market operations.
1.5.2. Data analysis
Analysis of data involves qualitative evaluation as well as quantitative analysis (descriptive
statistical and econometric techniques). All the major factors that wholesalers/brokers
consider in setting prices and the extent to which prices are influenced by major traders have
been examined to establish whether price leadership or collusion exists at the central market.
A hedonic model was used to identify the determinants of the daily price of the different
crops. In addition, instability indexes have been constructed for each crop and grade to see
the behavior of prices (both retail and wholesale) over time. And market integration analysis
has been conducted to assess grain market integration.