Determinants and disparities in profitability along the potato value chain in South-Western Uganda
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Date
2024
Journal Title
Journal ISSN
Volume Title
Publisher
IIARD – International Institute of Academic Research and Development
Abstract
Potato farming, while meeting the demands of new food consumption patterns emanating from
Uganda’s urbanization and dietary diversification due to globalization, has potential to
provide a steady and reliable stream of income to its value chain actors. However, challenges
and disparities such as unequal distribution of profits exist among the various value chain
actors (VCAs) and these include seed multipliers, producers, aggregators, traders, and
processors. The study aims at assessing determinants of profitability along the PVC in South-
Western (SW) Uganda, by examining factors that influence revenues, operational costs and
profits. A cross-sectional research design was adopted to collect data from a sample
population of 375 respondents from the districts of Kabale, Kisoro, Rubanda and Rukiga using
a semi-structured questionnaire. Using the International Business Machine (IBM) Statistical
Package for Social Sciences (SPSS), primary data was analysed to determine descriptive
statistics. In addition, the Logistic Regression Model (LRM) was used to determine the factors
associated with PVC actors’ profitability. Study findings show that PVC actors’ revenues,
operational costs and profit varied along the value chain with processors, aggregators and
traders reporting the highest profits in relation to their operational costs while farmers
reported the lowest. Notably, results indicated that sales turnover, lack of access to new
knowledge, and failure to realise effective collaboration significantly influenced profitability
along the chain. Thus, it is concluded that farmers do not benefit as much as the other actors
in the PVC due to factors of power imbalances, market structures and, knowledge access. It is,
therefore, recommended that the government of Uganda should formulate strategies to
increase producers’ profitability. Such as the introduction and strengthening of farmers’
cooperatives, undertaking focused capacity-building programs, and making policy reforms
Description
Journal Article
Keywords
Potato Value Chain, Inequalities, Profit Margins, South-Western Uganda
Citation
https://doi.org/10.56201/ijssmr.v8.no1.2022.pg32.40