28.01.2015 Views

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

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

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

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

Table 4.2: Sources <strong>of</strong> <strong>in</strong>itial capital<br />

Source Number %<br />

Gift from family 3 9.4<br />

Bank loan 2 6.3<br />

Borrowed from relatives and 3 9.4<br />

friends<br />

Iqub 21 65.6<br />

Source: Survey, 2002.<br />

4.1. Prices and transport charges<br />

Operat<strong>in</strong>g without a broker would require regional traders to travel to Addis Ababa and<br />

search for buyers by themselves at the central market. Consequently, more than 90 percent <strong>of</strong><br />

the sample traders have client brokers at the Addis Ababa central gra<strong>in</strong> market. Regional<br />

traders reported establish<strong>in</strong>g <strong>in</strong>itial contact with brokers at Addis Ababa through friends (59<br />

percent) and personal contacts (53 percent). Others are approached by the brokers themselves<br />

(53 percent) (Table 4.3).<br />

Table 4.3: How was the <strong>in</strong>itial contact with a broker<br />

established<br />

Response Yes No Total<br />

Approached by the broker 17 (53.1%) 15 (46.9) 32<br />

himself<br />

Approached myself 14 (43.8%) 18 (56.2%) 32<br />

Through friends 19 (59.4%) 13 (40.6) 32<br />

Source: Survey, 2002.<br />

Regional traders consider a number <strong>of</strong> factors, <strong>in</strong>clud<strong>in</strong>g purchase price, handl<strong>in</strong>g costs,<br />

demand, and quality <strong>of</strong> gra<strong>in</strong>, <strong>in</strong> propos<strong>in</strong>g sales prices at the central market <strong>in</strong> Addis.<br />

Purchase prices and trad<strong>in</strong>g costs are obviously the most important factors <strong>in</strong>fluenc<strong>in</strong>g sell<strong>in</strong>g<br />

prices (Table 4.4), but gra<strong>in</strong> is sold at what the central market <strong>of</strong>fers. Hence, many regional<br />

traders (about 87 percent) reported consult<strong>in</strong>g brokers to get <strong>in</strong>formation about prices <strong>in</strong><br />

Addis <strong>in</strong> order to set a price at which they have to buy from farmers. Unfortunately, not many<br />

regional traders have access to telephone or other means <strong>of</strong> communication to get market<br />

<strong>in</strong>formation on a regular basis.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!