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

Table 2.22: Method used to grade different grains and reasons for not using
instruments
Method Yes No Total
Visual inspection by brokers 67 (100.0%) 0 67
Use instruments 0 67 (100.0%) 67
Use information supplied by 38 (56.7%) 29 (43.3%) 67
regional traders
Visual inspection by experts 2 (3.0%) 65 (97.0%) 67
Reason for not using modern
instruments
Not aware of any instrument 49 (73.1%) 18 (26.9) 67
Instruments are not
44 (65.7%) 23(34.3%) 67
affordable
Lack of know-how in using 44 (65.7%) 23(34.3%) 67
instruments
Source: Survey, 2002.
Buyers and sellers must negotiate over grades, not just prices, before transactions are
effected. As already shown, buyers have an upper hand in setting grades and standards,
compared with sellers, who are under pressure to get cash for the next round of purchasing.
But not all buyers have such bargaining power. Uninformed or small buyers are likely to buy
lower grades than what they are actually told by the sellers and also pay higher prices than
the market price. Purchasers often look for well-known and regularly contacted brokers to get
a fair deal. The central market works against buyers with little information and weak
bargaining skill. Market information is also of little value in the absence of an objective
system of grades and standards.
2.3.2. Access to storage
The storage capacity of brokers is very small: the maximum average storage capacity of the
sample brokers was only 570 quintals at the central grain market). About 70 percent of the
brokers reported that their storage space is not adequate, even though they are operating with
a small amount of capital (Annex Table 2.9). Most brokers (70 percent) do not have clients
that provide storage services, and 30 percent reported having such clients. Storeowners
charge birr 2 per quintal per month on the average. The majority of the sample brokers (57
percent) felt that the storage charge was expensive (Table 2.23).
Brokers were asked about the quality of storage they rent. About 83 percent reported that the
quality of the storage is average or adequate (Table 2.23). Although most brokers seem to
think that the quality of storage is acceptable, about 49 percent of the brokers reported
damage during storage (Table 2.24). Maize is extremely susceptible to pest damage by
weevils during storage. The 51 percent who did not experience any incidence of damage were
mainly traders of teff, the crop least susceptible to storage pests.