Potential determinants of profits and market efficiency of potato market chains in Uganda
Abstract
227 words
Purpose – The study aimed at understanding the level of inefficiencies in the potato market chain.
Farmers sell potato to traders but continue to complain of limited market access and low profits. The purpose
of this paper is to determine market efficiency and profits of the potato market chain, and factors that
influence the profits.
Design/methodology/approach – The study focused on potato farmers, traders and small-scale
processors. It was conducted in Kabale and Mbale districts being the major potato producing areas in
Uganda, and Kampala being a major potato market. Data were collected from 180 farmers, 60 traders and
32 small-scale processors. Descriptive and regression methods were used to analyse the data.
Findings – There were three major potato market chains and all were profitable and efficient. The farmer-buyer
node was the most efficient (efficiencies of 128-159 per cent). The trader node efficiency ranged between 56 and
81 per cent. Sex of chain actor, group marketing, contract duration and distance to market were among the
factors that affected profits.
Research limitations/implications – Processors considered were those operating on very small scale,
hence results do not apply to large-scale processing. Consumers were not included but the data and results are
adequate for the study objective.
Originality/value – This paper provides empirical information that serves as a basis to adopt market
options for increased benefits to various chain actors.
Keywords
Subjects
3 categoriesRelated papers
More in Journal articles →- Measurement of constraints’ influence on cassava value chain development and commercialization in Migori County, Kenya
- Potato market access, marketing efficiency and on-farm value addition in Uganda
- An analysis of language use and content in communicating agricultural technologies to farmers in Ethiopia
- The analysis of agricultural policies in Malawi: The maize political economy