Technical Report Market and Value Chain Analysis of Ware Potato from Eastern Uganda with a Focus on Postharvest Management Practices and Losses
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Technical report Market and Value Chain Analysis of Ware Potato from Eastern Uganda with a focus on postharvest management practices and losses Expanding Utilization of Roots, Tubers, and Bananas and Reducing their Postharvest Losses September 2017 Alex Tatwangire1 and Caroline Nabukeera1 1 Department of Agribusiness and Natural Resource Economics, School of Agricultural Sciences, College of Agricultural and Environmental Sciences, Makerere University, Kampala, Uganda * Contact person: Alex Tatwangire ([email protected]) 1 Expanding Utilization of Roots, Tubers and Bananas and Reducing Their Postharvest Losses (RTB-ENDURE) is a 3 year project (2014-2016) implemented by the CGIAR Research Program on Roots, Tubers and Bananas (RTB) with funding by the European Union and technical support of IFAD. http://www.rtb.cgiar.org/endure The CGIAR Research Program on Roots, Tubers and Bananas (RTB) is a broad alliance led by the International Potato Center (CIP) jointly with Bioversity International, the International Center for Tropical Agriculture (CIAT), the International Institute for Tropical Agriculture (IITA), and CIRAD in collaboration with research and development partners. Our shared purpose is to tap the underutilized potential of root, tuber and banana crops for improving nutrition and food security, increasing incomes and fostering greater gender equity, especially among the world's poorest and most vulnerable populations. ii TABLE OF CONTENTS LIST OF FIGURES .......................................................................................................................................... vii LIST OF TABLES ........................................................................................................................................... viii ACKNOWLEDGEMENTS ................................................................................................................................ xi LIST OF ABBREVIATIONS AND ACRONYMS ................................................................................................. xii DEFINITION OF TERMS ................................................................................................................................xiii DETAILED EXECUTIVE SUMMARY ............................................................................................................... xiv 1. INTRODUCTION ......................................................................................................................................... 1 1.1 OBJECTIVES OF THE STUDY ............................................................................................................. 2 2. LITERATURE REVIEW ................................................................................................................................. 4 2.1 The importance of ware potato ...................................................................................................... 4 2.2 Access to potato markets and market supply ................................................................................ 5 2.3 Ware potato marketing in Uganda ................................................................................................. 5 2.4 Participation in PHM practices and marketing performance ......................................................... 6 2.5 Market imperfections and transaction costs .................................................................................. 7 2.6 Evidence on market performance along the value chain ............................................................... 8 3. FIELD SAMPLING AND METHODOLOGY .................................................................................................. 10 3.1 Survey areas .................................................................................................................................. 10 3.2 Sampling and data collection method .......................................................................................... 11 3.4 Data analysis ................................................................................................................................. 11 4. HOUSEHOLD DEMOGRAPHIC CHARACTERISTICS .................................................................................... 12 4.1 Demographics and household composition ................................................................................. 14 Summary ............................................................................................................................................. 15 5. PRODUCTION OF WARE POTATO IN UGANDA ........................................................................................ 16 5.1 Trends in potato production and productivity in Uganda ............................................................ 16 5.2 Potato production system in Eastern Uganda .............................................................................. 19 5.3 Land access in the study area ....................................................................................................... 21 iii 5.4 Potato production and supply in the peak and off-peak seasons ................................................ 23 5.6 Access to seed potato ................................................................................................................... 28 5.7 Access to fertilizers, extension services, and market information. .............................................. 31 5.8 Gender roles and disparities in prices received ............................................................................ 32 5.9 Main challenges faced by farmers in potato production ............................................................. 33 Summary ............................................................................................................................................. 35 6. CONSUMPTION OF WARE POTATO IN UGANDA .................................................................................... 37 Summary ............................................................................................................................................. 39 7. VALUE CHAIN ANALYSIS .......................................................................................................................... 40 7.1 Key players along the potato value chain ..................................................................................... 40 7.2 Activities being done in the value chain ....................................................................................... 42 7.3 Movement of potato products up to the end markets ................................................................ 42 7.4 Ware potato market channels available up to the end markets .................................................. 43 7.5 Value chain analysis ...................................................................................................................... 43 7.6 Current status of ware potato value addition in Eastern region .................................................. 44 7.7 Pricing and payment mechanism .................................................................................................. 45 7.8 Value chain marketing constraints ............................................................................................... 47 Summary ............................................................................................................................................. 47 8. MARKETING OF POTATOES AND COSTS INCURRED ................................................................................ 50 8.1 Marketing performance and postharvest management practices ............................................... 51 8.2 Results from analysis of survey data ............................................................................................ 52 Summary ............................................................................................................................................. 59 9. MARGINS ................................................................................................................................................. 61 9.1 Margins and other measures of profitability ................................................................................ 61 9.2 Gross margin analysis (GMA) as an indicator of market performance ......................................... 62 9.3. Opportunities to market performance of traders and processors .............................................. 66 9.4 Barriers to market performance of traders and processors ......................................................... 69 Summary ............................................................................................................................................. 69 10. POLICIES AND ENABLING ENVIRONMENT ............................................................................................ 71 iv 10.1 Poverty Eradication Action Plan (PEAP) ...................................................................................... 71 10.2 Plan for the Modernization of Agriculture (PMA) ...................................................................... 72 10.3 National Development Plan and other important policy frameworks ....................................... 72 10.4 Uganda Vision 2040 .................................................................................................................... 73 10.5 Current interventions and strategies .........................................................................................