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Title: Role of Risk Attituded And Social Capital In Pineapple Marketing Among Small Scale Farmers In Luwero District Uganda
Authors: Shammah, Arinaitwe
Keywords: Pineapple marketing among small holder farmers
Issue Date: Nov-2017
Publisher: Egerton University
Abstract: Agricultural marketing is of paramount importance especially to small-scale farmers in Uganda as farmers derive their livelihoods and employment from agriculture. However, many small-scale farmers are characterized as being risk averse and in lack of social capital especially when it comes to marketing their farm output. Despite these bottlenecks, in Luwero district, small-scale farmers have greatly embraced fruit farming in the pineapple sub-sector as it is perceived to have high market potential both in local and export markets. However inspite how farmer risk attitudes and social capital impact pineapple marketing, effects these factors have had on choice of market outlets and effect accessing high value markets has on household income have not been fully studied and quantified. The objectives of the study were therefore: to compare socio-economic, risk attitudes and social capital attributes of small-scale pineapple farmers in different pineapple market outlets, determine the effect of risk attitudes and social capital on choice of a market outlet and to determine the effect choice of market outlet on small-scale farmers‟ household income. The empirical analysis in this study was based on primary data collected using a semi structured questionnaire from 272 small-scale farmers in sub-counties of Kamira, Kikyusa, Butuntumula and Zirobwe using the multistage sampling technique. Data was analysed using descriptive statistics, Multinomial Logit model and Propensity Score Matching model. Results showed that risk attitudes influenced likelihood of farmers selling in local markets by 15.0% with a decreased probability of selling at the farm gate by 12.3%. Social capital dimension of density of membership negatively affected choice of high value markets by 2.3% while trust and frequency of meeting attendance positively by 2.6% and 21.6%, respectively. Choice of export market positively contributed to farmer‟s household income by UGX 9,110,000 to UGX 15,200,000 at the 1% level of significance. The study therefore, recommends that to promote farmers to sell pineapples in high value markets, stakeholders should encourage farmers reduce agricultural risks through building up self insurance strategies. This can be through participation in off-farm activities to build a capital asset base, which will diversify household sources of income and counterbalance variations in product demand and prices in agricultural markets. For farmers to further build social capital, government should develop strategies that help farmers develop trust for transaction partners. This can be through establishing product price floor and ceiling and making this information available to farmers through extension providers and newspapers as this will establish reliable public market information transparency.
Appears in Collections:Faculty of Agriculture

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