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

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Source: Survey, 2002.<br />

Table 2.18: Do brokers assume responsibility for<br />

money lost<br />

Response Number %<br />

Yes 15 46.9<br />

No 17 53.1<br />

Total 32 100.0<br />

Table 2.19: Reasons for us<strong>in</strong>g transporters for<br />

transferr<strong>in</strong>g money<br />

Reason Yes No<br />

No banks 23 (71.9%) 9 (28.1%)<br />

No transaction cost 8 (25.0%) 24 (75.0%)<br />

Regional traders’<br />

preference<br />

7 (21.9) 0<br />

Source: Survey, 2002.<br />

Table 2.20: Have brokers experienced betrayal by<br />

transporters<br />

Response Number %<br />

Yes 4 6.0<br />

No 63 94.0<br />

Total 67 100.0<br />

Source: Survey, 2002.<br />

2.3. Grad<strong>in</strong>g systems and access to storage and credit<br />

A well-function<strong>in</strong>g gra<strong>in</strong> market requires a system <strong>of</strong> grades and standards, as well as access<br />

to reliable storage and credit facilities, <strong>in</strong> order to reduce transaction costs. Inadequacies <strong>in</strong><br />

such services have undoubtedly affected the performance <strong>of</strong> brokers at the central market.<br />

2.3.1. Grad<strong>in</strong>g and standards<br />

Brokers consider the orig<strong>in</strong> <strong>of</strong> gra<strong>in</strong>, seed purity, extent <strong>of</strong> germ<strong>in</strong>ation, seed color, variety,<br />

<strong>in</strong>sect damage, and season <strong>of</strong> harvest to arrive at grades (Table 2.21). Accord<strong>in</strong>gly, there are<br />

at least three major orig<strong>in</strong>s <strong>of</strong> teff: Adda (around Debre Zeit, known as Adda teff), which is<br />

considered the best-quality teff <strong>in</strong> the country. <strong>The</strong> second- and third-quality gra<strong>in</strong> are<br />

Wollenkomi and Gojjam/Bechena teff, respectively. Different grades are also recognized<br />

with<strong>in</strong> each type <strong>of</strong> teff: three grades (grade 1, 2, and 3) <strong>in</strong> the case <strong>of</strong> Adda teff, four grades<br />

<strong>in</strong> the case <strong>of</strong> Wollenkomi, and another four grades for Gojjam/Bechena teff. <strong>The</strong> grades are

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