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

Table 3.11: Buyers’ information about grain prices
Buyer type
Most come with
adequate information
Most come with
limited information
Most come with no
information
Salaried people 59 (62.1%) 33 (34.7%) 3 (3.2%)
Small restaurants 28(82.4%) 6 (17.6%) 0
Bread (Enjera) sellers 42 (79.2%) 10 (18.9%) 1 (1.9%)
Low income informal 52 (76.5%) 14 (20.6%) 2 (2.9%)
sector workers
Medium and high
income business owners
20(69.0%) 6 (20.7%) 3 (10.3%)
Source: Survey, 2002.
It is also observed that buyers react differently under conditions of high grain prices. They
may reduce the quantity of their purchase or switch from higher to lower grade grains (Table
3.12). Sellers are often pressurized to lower prices unless there is a series shortage of supply
in the market.
Table 3.12: Buyers’ response to higher grain prices
Response Yes No
Mix lower grades with higher grades25 (23.4%) 82(76.6%)
Reduce quantity purchased 91 (85.0%) 16 (15.0%)
Switch from higher to lower grades 80 (74.8%) 27 (25.2%)
Accept the given price 7 (100%) 0
Ask for credit sales 13 (1005%) 0
Source: Survey, 2002.
3.2. Premises and transport facilities
As already indicated, the majority of retailers (about 76 percent) do not have their own
premises (Annex Table 3.4). They depend on rented premises. Retailers pay, on average, birr
462 and 567 for government-owned and private-owned premises per month, respectively
(Annex Table 3.5). 5 The average capacity of each facility was only 203 quintals. In terms of
quality, about 74 percent reported that their premise is a proper stall with a locker, whereas
26 percent reported that they use only simple shades (Annex Table 3.6). None of the sample
retailers own trucks or personal automobiles (Annex Table 3.7).
5 Renting storage from individuals is more expensive than renting from government.