Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 552

Full Length Research Paper

The performance of potato markets in South Western Uganda

J. Bonabana-Wabbi
  • J. Bonabana-Wabbi
  • Department of Agribusiness and Natural Resource Economics, Makerere University, P. O. Box 7062 Kampala, Uganda
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S. Ayo
  • S. Ayo
  • Department of Agribusiness and Natural Resource Economics, Makerere University, P. O. Box 7062 Kampala, Uganda
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B. Mugonola
  • B. Mugonola
  • Department of Agribusiness and Rural Development, Gulu University. P. O. Box 166, Gulu, Uganda
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D. B. Taylor
  • D. B. Taylor
  • Department of Agricultural and Applied Economics, VirginiaTech, Blacksburg, VA, 24060, USA
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J. Kirinya
  • J. Kirinya
  • Department of Agribusiness and Natural Resource Economics, Makerere University, P. O. Box 7062 Kampala, Uganda
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M. Tenywa
  • M. Tenywa
  • Department of Agricultural Production, Makerere University, P.O. Box 7062 Kampala, Uganda
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  •  Accepted: 14 May 2013
  •  Published: 30 June 2013

Abstract

 

Market-oriented farmers play a significant role in the rural agricultural sector in Uganda. However, these trader-farmers are often disadvantaged by limited access to information, services, appropriate technology and capital. These factors restrict their capacity to effectively participate in the marketing of their produce. In many instances farmers, including those in the potato innovation platforms (IPs) of Southwestern (SW) Uganda are relegated to the lower end of value chains where they are price takers with little bargaining power. Therefore they end up earning little margins while giant chain actors along the chain like middlemen have the power to determine prices paid by the final consumer and thus extract huge marketing margins. This study aimed at identifying marketing channels of potatoes from the farm to consumption; identifying marketing constraints faced by farmers and traders in the potato marketing chain in SW Uganda; and assessing the marketing performance of potato markets. Data were collected in July 2010 from 291 respondents in 2 IPs in SW Uganda. Descriptive statistics were used to characterise potato traders and farmers while Gross Margin Analysis was used to determine the market performance for different potato varieties. Purchase prices varied by district between UgSh350/kg for Rwashaki variety and UgSh531/kg for Kinigi variety. Sutama and Victoria varieties had the highest marketing margins in Kabale and Kisoro districts respectively.

 

Key words: Marketing channels, marketing chains, marketing margin analysis, innovation platform, ware potato.