This study examined the household level factors affecting the intensity of crop commercialization... more This study examined the household level factors affecting the intensity of crop commercialization a and its impacts on livelihood of smallholder farmers. The study was conducted in six villages/tabias b in the Tigray Region, Ethiopia. The estimated results showed that ownership of oxen, amount and quality of yield harvested, and training on crop marketing have a positive and significant effect on intensity of crop commercialization. Outstanding debt and off-farm income were also identified among the driving forces of increased crop commercialization. However, family size, shortage of family labor, unreliable rainfall, costs of farm inputs such as fertilizers, crop pests and diseases, distance to market have a negative and significant effect on the intensity of crop commercialization. The study results indicated that the average crop commercialization index was about 19% of the total produce in the study area which shows the livelihood of the smallholder farm households is almost subsistence oriented. The crop commercialization index for cereals was lower than that of pulses and vegetable and fruits production, implying that in the dryland areas of Ethiopia, cereal production is more of subsistence nature than pulses and horticultural crops. Nevertheless, participation in crop commercialization has a positive and significant impact on smallholder livelihoods through improved income and asset holdings.
The study investigated factors influencing the choice of fish traders' marketing channel by fish ... more The study investigated factors influencing the choice of fish traders' marketing channel by fish trader and the determinants of their gross margins. A multistage sampling technique of 115 fish traders was used. Four key informants and two focus groups participated in the study. A Probit model was used to determine factors that influenced the choice of fish traders' marketing channel. Findings from the study revealed that volumes of fish traded per month, distance to market, membership to a fish marketing organization, payment mode, household size, presence of other sources of income were statistically significant in determining traders' choice of marketing channel. In addition, it was found that a formal trader on average sold 6.882 tons of fish whereas 2.095 tons of fish were sold by the informal trader per month. The study therefore recommends that Informal traders be clustered into a marketing organisation; through which they can be trained on business diversification, collective marketing, and group savings to ease access to credit. It is important to eliminate the challenges encouraging informal cross border fish trade by harmonizing regional fish standards, facilitating exchange and use of fishery trade information. Further, there is need to strengthen the data collection systems in order to have accurate estimates on the contribution of fish to trade and food security.
International Journal of Emerging Markets, Jul 2, 2008
Purpose-This paper aims to investigate the competitiveness of two enterprise chicken regimes (upg... more Purpose-This paper aims to investigate the competitiveness of two enterprise chicken regimes (upgraded and indigenous) in Eastern Uganda for poverty reduction in small farm enterprises. Design/methodology/approach-The paper utilizes primary data collected using a structured questionnaire from a randomly selected sample of 108 chicken farmers (54 crossbred and 54 indigenous). Econometric methods are employed to analyze the data. Competitiveness is measured using unit cost ratio while the determinant factors are identified by the use of regression analysis. Findings-The econometric results show that the most critical factors in increasing the competitiveness of the chicken enterprise are: proportion of birds weaned to the total flock, number of chickens reared and farmer's rearing experience. The main conclusion is that in order to increase performance of chicken enterprise and improve income of the rural population, upgrading of indigenous chickens through crossbreeding should be pursued. This approach should put emphasis on improving the management systems which will involve offering an enabling environment for farmers to access credit and markets. Originality/value-Given the importance of poultry rearing in every household in Uganda, the sub-sector provides a good entry point for poverty alleviation in this part of Uganda. However, limited information on economic analysis exists and hence the value of this study. The paper identifies a number of variables that must be addressed, if the sector is to play its rightful role in poverty reduction.
This article presents the use of a stochastic frontier production function to examine the efficie... more This article presents the use of a stochastic frontier production function to examine the efficiency of resource utilization in pond fish farming in Uganda. The study draws on data from a field survey administered to 200 small-scale fish farmers in three major fish farming districts in Central Uganda: Mukono, Mpigi and Wakiso. The districts were part of a large aquaculture development project funded by the United States Agency for International Development-Aquaculture and Fisheries Collaborative Research Support Program. Productive efficiency was analyzed using stochastic frontier analysis with a translog production function while assuming a truncated-normal distribution for the inefficiency term. The output variable was total quantity of fish produced, while input variables were quantity or value of inputs used in the production process, namely labor, pond size, stocking density, capital and feeds. The estimated index of resource-use efficiency revealed that small-scale farmers were inefficient in resource allocation by over-utilizing labor with an estimated allocative efficiency index of −0.94 and grossly under-utilized pond size, feeds and fingerlings with allocative efficient indices of 1.15, 1.64, 3.71, respectively. The results suggest that there is considerable scope to expand output and also productivity by increasing production efficiency at the relatively inefficient farms and sustaining the efficiency of those operating at or closer to the frontier.
International Journal of Fisheries and Aquaculture, Dec 23, 2011
The study had three overriding objectives. Firstly, to assess the profitability of small-scale aq... more The study had three overriding objectives. Firstly, to assess the profitability of small-scale aquaculture production enterprises in central Uganda; secondly, to ascertain the factors affecting profitability; and thirdly, to identify the constraints to fish farming in the region.The data were collected through a survey questionnaire administered to a random sample of 200 small scale fish farmers in the three major fish farming districts of Mpigi, Mukono and Wakiso in central Uganda. The analysis was carried out using descriptive statistics, enterprise budgeting and ordinary linear regression. Although the results show small-scale aquaculture enterprises to be profitable in the study region, the estimated profit margins are relatively small. Farming experience, fish price, record keeping, feed cost and volume of fish harvested were the most influential factors in explaining profitability. The key factors identified as hindrances to aquaculture development in the region included predators, unavailability of credit facilities, expensive feeds, shortage and poor quality of fingerlings.
This paper uses cost function analysis to examine the nature of technological change in sorghum p... more This paper uses cost function analysis to examine the nature of technological change in sorghum production between improved technology and traditional technology. We also estimate the returns to scale in sorghum production in Eastern Uganda. Results indicate that the production function has not yet undergone structural change between traditional and improved technologies contrary to the results of the cost function. The production function exhibited constant returns to scale contrary to increasing returns to scale exhibited by the cost function results for the two technologies. The implication is that the dual approach is not appropriate for sorghum production in Eastern Uganda.
This study was designed to generate information to support the development of marketing strategie... more This study was designed to generate information to support the development of marketing strategies for fishers and aquaculturalists producing product for the reseller markets in Uganda. The specific objectives were to: 1) identify the appropriate market segments and pricing mechanisms used by small-scale fish farmers in central Uganda; 2) analyze the commodity flows and price formation in the different fish reseller market channels; 3) evaluate the performance of the marketing system by calculating gross and net margins for selected fish species; and 4) assess the critical factors affecting market performance and propose policy recommendations for enhancing market performance. The study area was defined to include selected districts in central and eastern Uganda including: Buyende, Jinja, Nakasongola, Mukono, Kampala, Wakiso, Buikwe, and Luweero. With both metric and non-metric data collected, the analysis included descriptive as well as inferential statistics. The results revealed ...
Resume Aquaculture is an important fish subsector in Uganda. It provides alternative employment o... more Resume Aquaculture is an important fish subsector in Uganda. It provides alternative employment opportunity along the entire value chain. Though aquaculture is facing many limitations like market imperfections, it is still being promoted as a sector having strong and backward linkages and hence holds potential for development. However, there exists limited socioeconomic knowledge on the sector. The study was conducted in Sironko, Mbale and Manafwa districts located in Eastern Uganda. A sample of 120 households was randomly selected from whom data were collected using structured questionnaire. The results showed that tilapia farmers had a lower gross margin than catfish farmers. The average unit cost ratio of 0.89 for catfish indicated that it was more competitive than tilapia (0.94). Regression results revealed that experience, membership to organisation, pond size, number of extension staff visits, significantly influenced competitiveness of both species implying that if improved w...
Rice is among the emerging crops in Uganda that play an important role both as a food and a cash ... more Rice is among the emerging crops in Uganda that play an important role both as a food and a cash crop. It ranks fourth among the cereal crops in area cultivated, occupying a total of 80 thousand hectares of land with an estimated annual output of 120,000 metric tonnes. The study analyses sources of technical and allocative inefficiency and estimates the magnitude of profit losses and suggests policy interventions. A stochastic profit function and inefficiency function are estimated using cross-sectional data from a sample of 253 households from three districts of Eastern and Northern Uganda. The results show that rice farmers are not operating on the profit frontier. The main causes of inefficiency are firm-specific which include low education and limited access to extension services. These two factors have hampered the attainment of reasonable technical and allocative efficiency. From these results, it is clear that improvement in profit efficiency would require focused programmes ...
This study examined the household level factors affecting the intensity of crop commercialization... more This study examined the household level factors affecting the intensity of crop commercialization a and its impacts on livelihood of smallholder farmers. The study was conducted in six villages/tabias b in the Tigray Region, Ethiopia. The estimated results showed that ownership of oxen, amount and quality of yield harvested, and training on crop marketing have a positive and significant effect on intensity of crop commercialization. Outstanding debt and off-farm income were also identified among the driving forces of increased crop commercialization. However, family size, shortage of family labor, unreliable rainfall, costs of farm inputs such as fertilizers, crop pests and diseases, distance to market have a negative and significant effect on the intensity of crop commercialization. The study results indicated that the average crop commercialization index was about 19% of the total produce in the study area which shows the livelihood of the smallholder farm households is almost subsistence oriented. The crop commercialization index for cereals was lower than that of pulses and vegetable and fruits production, implying that in the dryland areas of Ethiopia, cereal production is more of subsistence nature than pulses and horticultural crops. Nevertheless, participation in crop commercialization has a positive and significant impact on smallholder livelihoods through improved income and asset holdings.
The study investigated factors influencing the choice of fish traders' marketing channel by fish ... more The study investigated factors influencing the choice of fish traders' marketing channel by fish trader and the determinants of their gross margins. A multistage sampling technique of 115 fish traders was used. Four key informants and two focus groups participated in the study. A Probit model was used to determine factors that influenced the choice of fish traders' marketing channel. Findings from the study revealed that volumes of fish traded per month, distance to market, membership to a fish marketing organization, payment mode, household size, presence of other sources of income were statistically significant in determining traders' choice of marketing channel. In addition, it was found that a formal trader on average sold 6.882 tons of fish whereas 2.095 tons of fish were sold by the informal trader per month. The study therefore recommends that Informal traders be clustered into a marketing organisation; through which they can be trained on business diversification, collective marketing, and group savings to ease access to credit. It is important to eliminate the challenges encouraging informal cross border fish trade by harmonizing regional fish standards, facilitating exchange and use of fishery trade information. Further, there is need to strengthen the data collection systems in order to have accurate estimates on the contribution of fish to trade and food security.
International Journal of Emerging Markets, Jul 2, 2008
Purpose-This paper aims to investigate the competitiveness of two enterprise chicken regimes (upg... more Purpose-This paper aims to investigate the competitiveness of two enterprise chicken regimes (upgraded and indigenous) in Eastern Uganda for poverty reduction in small farm enterprises. Design/methodology/approach-The paper utilizes primary data collected using a structured questionnaire from a randomly selected sample of 108 chicken farmers (54 crossbred and 54 indigenous). Econometric methods are employed to analyze the data. Competitiveness is measured using unit cost ratio while the determinant factors are identified by the use of regression analysis. Findings-The econometric results show that the most critical factors in increasing the competitiveness of the chicken enterprise are: proportion of birds weaned to the total flock, number of chickens reared and farmer's rearing experience. The main conclusion is that in order to increase performance of chicken enterprise and improve income of the rural population, upgrading of indigenous chickens through crossbreeding should be pursued. This approach should put emphasis on improving the management systems which will involve offering an enabling environment for farmers to access credit and markets. Originality/value-Given the importance of poultry rearing in every household in Uganda, the sub-sector provides a good entry point for poverty alleviation in this part of Uganda. However, limited information on economic analysis exists and hence the value of this study. The paper identifies a number of variables that must be addressed, if the sector is to play its rightful role in poverty reduction.
This article presents the use of a stochastic frontier production function to examine the efficie... more This article presents the use of a stochastic frontier production function to examine the efficiency of resource utilization in pond fish farming in Uganda. The study draws on data from a field survey administered to 200 small-scale fish farmers in three major fish farming districts in Central Uganda: Mukono, Mpigi and Wakiso. The districts were part of a large aquaculture development project funded by the United States Agency for International Development-Aquaculture and Fisheries Collaborative Research Support Program. Productive efficiency was analyzed using stochastic frontier analysis with a translog production function while assuming a truncated-normal distribution for the inefficiency term. The output variable was total quantity of fish produced, while input variables were quantity or value of inputs used in the production process, namely labor, pond size, stocking density, capital and feeds. The estimated index of resource-use efficiency revealed that small-scale farmers were inefficient in resource allocation by over-utilizing labor with an estimated allocative efficiency index of −0.94 and grossly under-utilized pond size, feeds and fingerlings with allocative efficient indices of 1.15, 1.64, 3.71, respectively. The results suggest that there is considerable scope to expand output and also productivity by increasing production efficiency at the relatively inefficient farms and sustaining the efficiency of those operating at or closer to the frontier.
International Journal of Fisheries and Aquaculture, Dec 23, 2011
The study had three overriding objectives. Firstly, to assess the profitability of small-scale aq... more The study had three overriding objectives. Firstly, to assess the profitability of small-scale aquaculture production enterprises in central Uganda; secondly, to ascertain the factors affecting profitability; and thirdly, to identify the constraints to fish farming in the region.The data were collected through a survey questionnaire administered to a random sample of 200 small scale fish farmers in the three major fish farming districts of Mpigi, Mukono and Wakiso in central Uganda. The analysis was carried out using descriptive statistics, enterprise budgeting and ordinary linear regression. Although the results show small-scale aquaculture enterprises to be profitable in the study region, the estimated profit margins are relatively small. Farming experience, fish price, record keeping, feed cost and volume of fish harvested were the most influential factors in explaining profitability. The key factors identified as hindrances to aquaculture development in the region included predators, unavailability of credit facilities, expensive feeds, shortage and poor quality of fingerlings.
This paper uses cost function analysis to examine the nature of technological change in sorghum p... more This paper uses cost function analysis to examine the nature of technological change in sorghum production between improved technology and traditional technology. We also estimate the returns to scale in sorghum production in Eastern Uganda. Results indicate that the production function has not yet undergone structural change between traditional and improved technologies contrary to the results of the cost function. The production function exhibited constant returns to scale contrary to increasing returns to scale exhibited by the cost function results for the two technologies. The implication is that the dual approach is not appropriate for sorghum production in Eastern Uganda.
This study was designed to generate information to support the development of marketing strategie... more This study was designed to generate information to support the development of marketing strategies for fishers and aquaculturalists producing product for the reseller markets in Uganda. The specific objectives were to: 1) identify the appropriate market segments and pricing mechanisms used by small-scale fish farmers in central Uganda; 2) analyze the commodity flows and price formation in the different fish reseller market channels; 3) evaluate the performance of the marketing system by calculating gross and net margins for selected fish species; and 4) assess the critical factors affecting market performance and propose policy recommendations for enhancing market performance. The study area was defined to include selected districts in central and eastern Uganda including: Buyende, Jinja, Nakasongola, Mukono, Kampala, Wakiso, Buikwe, and Luweero. With both metric and non-metric data collected, the analysis included descriptive as well as inferential statistics. The results revealed ...
Resume Aquaculture is an important fish subsector in Uganda. It provides alternative employment o... more Resume Aquaculture is an important fish subsector in Uganda. It provides alternative employment opportunity along the entire value chain. Though aquaculture is facing many limitations like market imperfections, it is still being promoted as a sector having strong and backward linkages and hence holds potential for development. However, there exists limited socioeconomic knowledge on the sector. The study was conducted in Sironko, Mbale and Manafwa districts located in Eastern Uganda. A sample of 120 households was randomly selected from whom data were collected using structured questionnaire. The results showed that tilapia farmers had a lower gross margin than catfish farmers. The average unit cost ratio of 0.89 for catfish indicated that it was more competitive than tilapia (0.94). Regression results revealed that experience, membership to organisation, pond size, number of extension staff visits, significantly influenced competitiveness of both species implying that if improved w...
Rice is among the emerging crops in Uganda that play an important role both as a food and a cash ... more Rice is among the emerging crops in Uganda that play an important role both as a food and a cash crop. It ranks fourth among the cereal crops in area cultivated, occupying a total of 80 thousand hectares of land with an estimated annual output of 120,000 metric tonnes. The study analyses sources of technical and allocative inefficiency and estimates the magnitude of profit losses and suggests policy interventions. A stochastic profit function and inefficiency function are estimated using cross-sectional data from a sample of 253 households from three districts of Eastern and Northern Uganda. The results show that rice farmers are not operating on the profit frontier. The main causes of inefficiency are firm-specific which include low education and limited access to extension services. These two factors have hampered the attainment of reasonable technical and allocative efficiency. From these results, it is clear that improvement in profit efficiency would require focused programmes ...
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