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

Almost 33 percent of the sample retailers perform their activities from premises rented from
the government. The average area of the stall is 36 square meters. Another 50 percent conduct
their business in space rented from private individuals (Table 3.3).
Table 3.3: Ownership of the premises
Response Number %
Own 19 17.8
Rent from government 35 32.7
Rent from private 53 49.5
individual
Total 107 100.0
Source: Survey, 2002.
A few retailers (11 out of 107 or 10 percent) are also involved in other activities, such as
merchandise trade and flourmills. Only one retailer operates a small flourmill. Limited capital
is believed to discourage diversification into various activities.
Only 24 percent of the workers in the sample retail establishments have completed secondary
school. The majority of the workers (96 percent) had not received any training related to their
business in the preceding three years.
3.1. Operation of grain retailers
Ninety-eight percent of retailers get their grain supplies from the central market. Some
purchase directly from farmers (18 percent) and others from nearby rural markets (15
percent) (Table 3.4). Purchases at the central market are carried out through brokers or
through direct contact with truck owners. Retailers often go to any broker in the market,
implying no established client relationship. Only 24 percent have brokers who regularly assist
them in purchasing (Table 3.5).
Table 3.4: Place of grain purchase for retailing
Place of grain
Yes
No
purchase
Directly from farmers 19 (17.8%) 88 (82.2%)
From rural markets 15 (15.0%) 91 (85.0%)
Central market 105 (98.1%) 2 (1.9%)
Source: Survey, 2002.
Table 3.5: Means of purchasing grain from central market
Means of purchase Yes No
Through brokers from trucks (no client brokers)105 (98.1%) 2 (1.9%)
Through direct contact with truck owners 19 (17.8%) 88 (82.2%)
Through client brokers from trucks 26 (24.3%) 81 (75.7%)
Source: Survey, 2002.