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

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A number of problems undermine the efficient operation of the retail market. The sample retailers were asked to rank the problems of the retail market on a four-point scale: (1) no obstacle, (2) minor obstacle, (3) moderate obstacle, and (4) very severe obstacle. High tax rates, expensive stall rent, unlicensed operators, lack of access to operating premises, and problems in tax administration were the major constraints identified (Table 3.17). These problems were also reported by flour factories and trading companies. Table 3.17: Mean score of major problems in retail market Obstacle Extent of obstacle Poor telecommunications 1.80 Lack of electricity 1.77 Lack of transportation 1.96 Poor access to operating place 2.53 High tax rates 2.86 Poor tax administration 2.69 Lack of standards 1.60 Unlicensed operators 2.69 Weak legal system for contract enforcement 2.00 Congestion at marketplace 2.51 Expensive stall rent 3.12 Long procedures for license and registration 1.73 Limited access to credit 2.28 Crime, theft, disorder, and lack of trust 1.81 Anticompetitive practices 1.64 Weak access to market information 1.98 Source: Own computation. Limited capital, inadequate human resources, a weak regulatory framework, poor infrastructure, and other factors have also constrained the operation of retailers. They were unable to improve the retail market by expanding into milling and packing. Operators of flourmills (not included in this survey), however, have increasingly expanded their activities to include retailing milled teff to their customers. Inefficiencies in the retail sector have also caused difficulties for consumers. A group discussion with consumers revealed that lack of reliable information about the quality and price of grain is a major constraint in the retail market. Households have two options in buying teff: buy unmilled grain from retailers and get it milled at flourmills or buy milled product from owners of flour mills. Consumers are certainly better off if they can buy milled teff, but they have difficulty knowing the exact quality and grade of milled teff as visual inspection is less precise in the case of milled grain. For the most part, they can only depend on what mill operators tell them. There is widespread mistrust, however, of operators at the central market. Consumers generally perceive the quality of teff or other grain they bought as poorer than what they were told or led to believe. In particular, the extent of impurities or unwanted type or grade can be high if the seller or intermediary is not a trusted client. In addition, there is little protection against traders using inappropriate scales.
Getting reliable price information is one of the other most difficult aspects of the retail market. Consumers who do not have time to go around the central market and check are likely to face higher prices. Uninformed buyers are often met by gangs acting as intermediaries and can be easily cheated. Having a trusted client is often the only protection against overcharging and cheating. 4. REGIONAL TRADERS Regional traders buy grain from farmers and supply the central market. The effects of trade liberalization on producers can be examined through its impact on regional traders. This section examines how regional traders operate and how they interact with brokers at the central market of Addis Ababa. Almost all sample respondents are male traders, and the majority are owner-managers. The majority of regional traders started their business after the 1991 reform. A vast majority of the traders, 87.5 percent, established their own business, while 6.3 percent inherited the business from their parents and relatives (Table 4.1). Table 4.1: How was the business started Response Number % Set it 28 87.5 up/established it Inherited 2 6.3 Bought 1 3.1 Do not know 1 3.1 Total 32 100.0 Source: Survey, 2002. Not many regional traders reported having diversified into other business activities. Only 7 out of the 32 cases (22 percent) run merchandise trade and flourmills (Annex Table 4.2). The majority of the regional traders appear to have devoted all their resources to grain trade. The average capital of regional traders is birr 35,906.25, and the main source of initial capital is iqub (66 percent), followed by gift from family (9 percent) and borrowing from relatives and friends (9 percent). Unlike the brokers and most of the retailers in Addis Ababa, regional traders need a large amount of capital to buy grain in cash and transport it to Addis Ababa. Only two of the sample respondents managed to get loans from formal financial institutions (Table 4.2).
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Part One - Agricultural Productivit
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I. Introduction Agricultural Produc
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came about from expansion of cultiv
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study, therefore, limited itself to
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Land allocation and yields of 12 cr
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Table 6: Key economic variables for
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local seed in absolute terms and th
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Table 11: Crosscutting priority con
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Table 13: General constraints to ma
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These results clearly demonstrate t
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Table 18: Crosscutting constraints
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V. Policy Implications The findings
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References Appleton, Simon (2001).
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1.0 BACKGROUND 1.1 Introduction Low
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egins with a summary of the literat
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Source: National Wetlands Conservat
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shillings (§37-38). Every landowne
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Similarly, Howard (1995) used socia
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Uganda may well have more than a qu
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factors that explain household leve
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of inputs 18 , pests and diseases,
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(PMA p. 27). It also requires impro
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agriculturalists, who still do not
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to have covered 30,000 ha. During t
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4.0 RESEARCH METHODOLOGY The breadt
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• What is the current extent of w
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Figure 2. Changes in Sources of Com
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Figure 5. Proportion of Households
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estimates are remarkably consistent
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FSI - Percentage by District Distri
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was corrected using the White-Huber
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utilization for the household. Howe
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The nature of the structures to con
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impact of irrigation on horticultur
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growing population. Wetland protect
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APPENDICES Appendix 1. The Wetlands
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Appendix 2. THE 5V’s PRIORITY CLA
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Appendix 5. Determinants of Product
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Estimated covariances = 79 Number o
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International Food Policy Research
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Scherr, Sara J., 1999b. Poverty-env
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Land Tenure, Agricultural Productiv
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1.3 Statement of the problem Land s
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In order to achieve these objective
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densely populated Nyeri and Kakameg
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Figure 3: Conceptual Model Type of
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Figure 4: Location of the Study Dis
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By 2001, land demarcation and regis
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3.4 Survey Design The survey was un
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3.5.3 Model of Environmental Degrad
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questionnaire (Figure 8). Prominent
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Figure 10: Availability of hired la
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Figure 13 shows the level of cultiv
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joint significance test on the 4 dr
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Table 8: Regression Results on Maiz
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was classified into three categorie
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Table 9: Tobit Analysis with Enviro
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5.0 CONCLUSIONS AND POLICY IMPLICAT
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5.5 Access to Market A number of fa
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FAO (2003b). “Women and Food Secu
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Omiti John and Paul Obunde (2002).
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Annex 1: Pearson Correlation Coeffi
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SEXHH SEXLUSER TSECUR VEGCP1 CHILDE
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Part two - Agricultural Markets
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Market Liberalisation and Agricultu
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farms show annual fluctuations, wit
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Figure 2: Recent trends in domestic
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5. The Model The interest of this s
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sources for each sector. α IM ji a
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Savings Households’ savings are a
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The value-added price is defined th
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Specifically, the Government polici
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Table 5: Calculated Tariff Rates (%
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disincentive to farmers. Inability
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competitiveness. The second one is
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Table 7: Wage Rates and Labour Inco
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Similar simulation is undertaken in
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References Block, S. and C.P. Timme
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Tyler, G. J. and Akinboade, O. 1992
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(A.10) ai ∑ P ϖ P i=1,...,3; j =
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(A.32) price (A.33) P Q = P ( 1+ td
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Table A.2: Variables of KEGEM Varia
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VA A i Efficiency parameter in valu
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CHAPTER FIVE Post-Liberalization Ma
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As alluded to earlier, initial agri
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directly to dairy farmers as animal
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to engage in this new role, the gov
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2.0 RESEARCH METHODOLOGY 2.1 Overal
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markets with minor gaps in data ser
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Price-series correlations are conve
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Migori Awendo Postliberalization 1,
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model depends on whether or not the
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Table 6b--Unit root tests for price
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Table 8a--Unit root tests for OLS r
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3.3 The Role of Infrastructure and
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Table 13--Reported distances from t
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Table 15--Reported maize storage pr
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Table 17--Traders’ perception of
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3.3.6.2 Awareness of the Liberaliza
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Retailer (open-air market) 21 13 7
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3.4 Maize Marketing Costs Traders w
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3.4.4 License and Market Fees Accor
Page 205 and 206: 5.Develop farmers’ and traders’
Page 207 and 208: Coulter, J., and J. A. F. Compton.
Page 209 and 210: Meilink, A. H. 1987. Food consumpti
Page 211 and 212: Figure 1 Maize surplus and deficit
Page 213 and 214: Figure 3 Trends in Maize Prices 199
Page 215 and 216: Price per 90kg bag (Kshs) Mbeere Di
Page 217 and 218: Figure 4 Modes of transporting maiz
Page 219 and 220: Figure 6: Limitations to storage ca
Page 221 and 222: Figure 8: Problems experienced in a
Page 223 and 224: CHAPTER SIX Grain Marketing in Addi
Page 225 and 226: A third, related explanation argues
Page 227 and 228: educed marketing costs related to p
Page 229 and 230: 1.4. Research questions This study
Page 231 and 232: 1.6. Organization of the report Thi
Page 233 and 234: the cases, respectively (Table 2.4)
Page 235 and 236: Brokers believe that most regional
Page 237 and 238: There is also a close relationship
Page 239 and 240: Table 2.14: Buyers’ methods for i
Page 241 and 242: Source: Survey, 2002. Table 2.18: D
Page 243 and 244: Table 2.22: Method used to grade di
Page 245 and 246: Table 2.25: Access to credit broker
Page 247 and 248: It has been reported that grain pur
Page 249 and 250: 3. GRAIN RETAILERS Retailers serve
Page 251 and 252: Like brokers, retailers use cash or
Page 253 and 254: Table 3.11: Buyers’ information a
Page 255: Table 3.14: Retailers’ views of g
Page 259 and 260: Table 4.4: How do you set a sales p
Page 261 and 262: Table 4.7: Means of settling disput
Page 263 and 264: a.m. The survey included wholesale
Page 265 and 266: Table 5.3: Instability index of dai
Page 267 and 268: Table 5.7: Seasonality index of who
Page 269 and 270: Figure 5.3: Ratio of wholesale to r
Page 271 and 272: Table 5.8: Results of stationary te
Page 273 and 274: Table 5.10: Summary of Granger caus
Page 275 and 276: holiday sales. The results of the r
Page 277 and 278: Table 6.1: Storage capacity of the
Page 279 and 280: Intermarket grain flow is coordinat
Page 281 and 282: • a legal, regulatory, and enforc
Page 283 and 284: REFERENCES Al-Hassen, R., A. Dorwar
Page 285 and 286: Seppala, P. 1998. Decisive liberali
Page 287 and 288: achieve some welfare objective. The
Page 289 and 290: Annex Table 2.10: Have you faced di
Page 291 and 292: Annex Table 2.21: Do you consider p
Page 293 and 294: Annex Table 3.3: Cost structure of
Page 295 and 296: Annex Table 4.2: Complementary acti
Page 297 and 298: CHAPTER SEVEN Post-Harvest Grain Ma
Page 299 and 300: only (see Abebe 2000: 80-83). That
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Page 303 and 304: occur at all stages of post-harvest
Page 305 and 306: Endowment & access to Resources (e.
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Figure 2: The Study Areas (shaded a
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(6) β i = β 0 λ i , 0
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Intercrop differences Liquidity con
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eplace old animals (19 percent of h
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Table 5. Number and capacity of gra
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Table 7b.Estimated grain loss durin
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7.1.3. Grain Marketing Practices an
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1.8 Producers' price 1.6 1.4 1.2 1
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next season, grain prices tend to b
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Table 13: Regression results (Tobit
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of grain production was reportedly
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instruments to mitigate price risks
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Coulter, J. and G. Onumah, (2002).
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Appendix: Supplementary Tables Appe
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CHAPTER EIGHT Collective Action in
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The objectives of DRS were to popul
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increasing participation. Thus, the
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Table 2. Perceived change in benefi
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unsatisfactory (Table 8). Flaws in
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Table 14. Measures of wealth status
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Results from Regression Analysis Ta
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However, to maintain these benefits
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Table 18. Determinants of participa
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_______ 1981. Common property and c
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Management Regulations and Enforcem
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In theory, under PFM, the governmen
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3.2 Desk study The desk study invol
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Table 1: Number and gender of indiv
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Poverty Increase in number of fishe
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Table 5: Responses given by various
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wages after the catch is sold (see
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70 60 No of respondents 50 40 30 20
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4.2.3 Lack of attention to social i
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5.3 Regulate the construction of re
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REFERENCES Allison, E. H., and P. M
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APPENDIXES Appendix A: Districts of
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Questions and responses Government
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Questions and responses Lack of coo
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CHAPTER TEN Animal Health Service D
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• Individuals are selected for tr
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Makueni district was selected becau
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1.5 Justification of the study The
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more sustainable (Leonard 1993; Uma
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of defined roles for CBAHWs within
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Interviews with veterinary officers
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The estimated model was of the form
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Gender remains a sensitive issue. P
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The most common ailments and diseas
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4.3 Factors influencing the level o
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Table 9 -- Factors influencing the
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Table 10 - Factors determining the
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Table 12 -- Current mean numbers of
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Figure 4: Percentage of household h
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CBAHWs were the most utilized chann
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Users of veterinarians’ services
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Table 18 -- Levels of incomes and l
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higher average calving per cow, whi
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Table 21 -- CBAHWs’ ranking of sp
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epresentative of livestock keepers
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Despite the restriction imposed by
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veterinarians. Such associations co
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References Akabwai, D., V. Shean, a
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Johnson, P. J., and C. Chahuares. 1
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Appendix 1: The Logistic Procedure
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Social Capital and Sustainable Agri
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1.1 Soil conservation programs and
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1.3 Research Objectives and Hypothe
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Institutional and Policy factors -
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land pressure is high (Holden 1991)
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include density of membership in gr
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then summed up according to increas
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Social capital, resource use, and a
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Table 4.4 Farmers’ perception of
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Table 4.5: Empowerment and politica
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Table 4.8: Indicators of collective
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Table 4.10: Comparison of means of
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5. The influence of social capital
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especially when considered on an ad
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households may pay less attention t
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Table 5.3 Determinants of terracing
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and Gichuki 1994). In the 1940s, th
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Table 5.4. Determinants of soil con
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5.3. Social capital, resource use,
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6. Implications for policy and prog
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essential for the formation of exte
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BIBLIOGRPAHY Admassie, Y., L. I. Mw
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Gambetta, D. 1988. Can we trust tru
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Social capital and watershed develo
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Obare, G. A., S. W. Omamo, and J. C
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Washington D.C.: The World Bank Tem
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Appendix: A list of Contributors Ab
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Appendix: Projects Supported Under
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IFPRI Eastern Africa Food Policy Ne
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