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

Purchase price is subject to negotiations for retailers. Of the sample retailers, about 43
percent reported that they bargain and get lower prices. Negotiation skills are very important
in the absence of a single market-clearing price.
The main types of buyers that commonly purchase grain from retailers include salaried
people (88.8 percent), low-income informal sector workers (67.3 percent), bread (enjera)
sellers (49.5 percent), and small restaurants (29.9 percent) (Table 3.9). These buyers are
regular clients and visit retailers every week, every two weeks, or every month (Table 3.10).
The quantity of grain purchased is less than 100 kilograms in most cases.
Table 3.9: Types of buyers who frequently visit retailers’ stalls
Buyer type Yes No
Salaried people 95 (88.8%) 12 (11.2%)
Small restaurants 32 (29.9%)75 (70.1%)
Bread (enjera) sellers 53 (49.5%)54 (50.5%)
Informal sector workers 72 (67.3%) 35 (32.7%)
Medium- and high-income business owners 28 (27.5%) 74 (72.5%)
Source: Survey, 2002.
Table 3.10: Most commonly observed buyers and frequency of purchase
Every two
Type of buyer Weekly Monthly Bimonthly months
Salaried people 1 (1.1%) 91 (95.8%) 1 (1.1%) 1 (1.1%)
Salaried people 1 (1.1%) 91 (95.8%) 1 (1.1%) 1 (1.1%)
Small restaurants 17 (51.5%) 2 (6.1%) 7 (21.2%)
Bread (enjera) sellers 31 (59.6%) 1 (1.9%) 13 (25.0%) 1 (1.9%)
Low-income informal 22 (32.8%) 11 (16.4%) 23 (34.3%) 6 (9.0%)
sector workers
Medium- and highincome
business
owners
1 (3.3%) 17 (56.7%) 2 (6.7%) 8 (26.7%)
Source: Survey, 2002.
Retailers reported that most buyers (about 72 percent) come with adequate information about
the prevailing market prices. Specifically, 62 percent of salaried people, 82 percent of small
restaurants, 79 percent of bread sellers, and 77 percent of informal sector workers were
reported to have adequate information about prevailing market prices (Table 3.11). It is
common to check the prices of two or more sellers before making a purchase decision. This
information enables buyers to bargain for lower prices.