Katusiime-CAES-BAGM.Pdf

MAKERERE UNIVERSITY

ASSESSING MARKETING OF TOMATOES IN KAMPALA, UGANDA

KATUSIIME CLAIRE

Reg. No: 17/U/4858/PS

STUDENT’S NO: 217007075

A SPECIAL PROJECT REPORT SUBMITTED TO THE SCHOOL OF AGRICULTURAL

SCIENCES IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF A DEGREE OF BACHELOR OF

AGRIBUSINESS MANAGEMENTOF

MAKERERE UNIVERSITY

MARCH, 2021

i ii iii DEDICATION

The dissertation is dedicated to my dear family, friends, supervisors, and all those who helped me come up with this research work, especially Mrs. Annociata Niwagaba, Mrs. Evalyne Katushabe and the family of Mr. Arinaitwe Julius

ACKNOWLEDGEMENT

I extend my sincere gratitude to my parents and my friends, for their unconditional love, guidance and financial support rendered to me throughout this research.

I owe special thanks to my supervisor for the support supervision, guidance and opportunity provided to me as a student of the institution. I would like to acknowledge the contribution from the tomato traders from the different markets of Wandegeya Nakawa, Kalerwe, and Nakasero for their support in terms of data collection, field related and educative support delivered to me for the successful completion of this dissertation.

I can’t forget to appreciate my fellow colleagues for keeping the virtuous spirit of hard work and guidance. But even with the assistance from the above persons, the completion of this work would not have been possible without the wisdom, guidance and gift of life from the Almighty God, whom I owe everything.

Table of Contents DECLARATION ...... ii APPROVAL ...... iii DEDICATION ...... iv ACKNOWLEDGEMENT ...... v LIST OF TABLES ...... viii LIST OF FIGURES ...... ix ABSTRACT...... x CHAPTER ONE: INTRODUCTION ...... 12 1.1 Background ...... 12 1.2 Statement of the problem ...... 13 1.3 Objectives of the study ...... 14 1.3.1 General objective ...... 14 1.3.2 Specific Objectives ...... 14 1.4 Research Questions ...... 14 1.5.1 Content scope...... 14 1.5.2 Geographical scope ...... 15 1.5.3 Time scope ...... 15 1.6 Justification of the Study ...... 15 CHAPTER TWO: LITERATURE REVIEW ...... 16 2.1 Introduction ...... 16 2.2 Marketing of tomatoes ...... 16 2.3 Profitability of Tomato Production ...... 17 2.4 Agricultural Productivity ...... 18 2.5 Risks Related to Tomato Production and Trade ...... 20 2.6 Risks Management Strategies ...... 22 2.7 Conclusion of literature review ...... 24 CHAPTER THREE: RESEARCH METHODOLOGY ...... 25 3.1 Introduction ...... 25 3.2 Research Design ...... 25 3.3 Study Population ...... 25

3.4 Sample Size Determination...... 26 3.5 Sampling techniques and procedures ...... 27 3.6 Data Sources ...... 27 3. 6.1 Primary Data Sources ...... 27 3.6.1 Secondary Data Sources ...... 27 3.7 Data collection methods ...... 28 3.7.1 Questionnaires ...... 28 3.8 Data Management and Processing ...... 28 3.9 Data Analysis ...... 28 3.10 Ethical Considerations ...... 29 3.11 Limitations of the Study ...... 29 CHAPTER FOUR: ANALYSIS, PRESENTATION AND INTERPRETATION OF RESULTS ...... 30 4.1 Introduction ...... 30 4.2 Characteristics of Respondents ...... 30 4.3 Market efficiency ...... 34 4.4 Policy considerations to mitigate risks involved in tomato marketing ...... 37 4.5 Correlation analysis ...... 39 CHAPTER SIX: SUMMARY, RECOMMENDATIONS AND CONCLUSION ...... 41 5.0 Introduction ...... 41 5.1 Summary of findings ...... 41 5.2 Conclusion ...... 44 5.4 Areas for further studies ...... 45

vii

LIST OF TABLES Table 3.1: Distribution of respondents by each food markets ...... 26 Table 4.1: Characteristics of farmers and transporters ...... 31 Table 4.2: Characteristics of traders (Wholesalers and retailers) ...... 33 Table 4.3Profits earned and marketing efficiency at farmer level of the marketing chain ...... 35 Table 4.4 Profits earned and marketing efficiency at Transportation level of the marketing chain ...... 35 Table4.5 Profits earned and marketing efficiency at trader level of the marketing chain ...... 36 Table 4.6 Cross tabulation of the dependent variable and independent variables ...... 39

viii

LIST OF FIGURES Figure 4.1:Common marketing possibilities for fresh market tomatoes ...... 36 Figure 4.2: Risks involved in selling tomatoes ...... 37 Figure 4.3: Management strategies for tomato marketing risks ...... 38

ABSTRACT

The study focused on assessing the marketing of tomatoes in Kampala, Uganda using the different markets of Wandegeya, Kalerwe, Nakawa, and Nakasero as the case study. The study was based on different specific objectuves that included; to characterize the market and market players of tomato in Kampala, determine the efficiency of tomato marketing channels in Kampala, and propose policy recommendations to improve marketing efficiency of tomato in Kampala, Uganda.

Data was collected using a questionnaire from a sample of 90 respondents who were the different farmers, transporters and retailers or wholesalers involved in the tomato business.

The study found that there was a statistically significant relationship price of tomatoes and marketing efficiency in Kampala. The study identified three major tomato chains: where farmers sold tomatoes directly to wholesalers who in turn sold to retailers; farmers selling directly to retailers who then sold to consumers; and farmers selling to wholesalers through transporters, and the wholesalers selling to retailers who finally sold the tomatoes to consumers. These market chains were profitable and efficient because on average, all the chain actors realized profits, and the profits in relation to total marketing costs were high. At farmer node, the chain in which farmers sold tomatoes directly to rural traders was the most efficient and profitable. This was followed by the one in which farmers sold to wholesalers through transporters. The marketing techniques of tomatoes showed a positive correlation with marketing efficiency of tomatoes. The commonly used tomato marketing techniques in Kampala were identified as advertising through radios and televisions (40.0%). The study also revealed that tomato producers and traders face several different types of risk in the marketing of tomatoes. The uncertainty of the tomato market is one major risk whereby over production or under production may occur leading to losses.

This study recommended that farmer/producer and seller sensitization should be enforced by different agricultural authorities concerning the best marketing techniques and the rightful tomato varieties to invest in as a way of avoiding low yields in times of bad climate. This can also help in

x improving the longevity of tomatoes after harvest which also addresses the use of perishability and consequently enhances tomato marketing efficiency.

CHAPTER ONE: INTRODUCTION

1.1 Background The tomato (Lycopersicon esculentum Mill) is a herbaceous fruiting plant which originated from

Latin America and has become one of the most widely grown and consumed vegetables in

Africa. Tomato is considered to be a top priority among other vegetables in Uganda (NARO

1999). Uganda’s population can generally be characterized as very poor with 86 percent of the population living in rural areas (Aphane, Chadha & Oluoch, 2002). Tomatoes are high value crops which can be produced by all gender groups (males, youths and females).

Tomato production in Uganda contributes to economic development and poverty alleviation because tomatoes is a source of foreign exchange earnings for economic growth over the last 5 years (Sonko et al., 2005). About 3,000 small-scale farmers grow fresh fruits and vegetables for export with more than 20,000 smallholders growing vegetables for income (Sonko et al., 2005).

The horticultural sector has the potential to contribute to poverty alleviation through income generation from a whole range of marketed products in local, regional and international markets.

Production of tomatoes also contributes to rural development in terms of job creation, incomes, public services, widening of the tax base, and human resource development through training of researchers, technicians and supervisors. In addition, the social infrastructure has been set up or extended to the rural areas producing tomatoes.

Tomato growing is one of the most promising areas for horticultural expansion and development in Uganda MAAIF (1998) and yet tomatoes are affected by a number of pests and diseases.

Tomatoes are among the vegetable crops grown in the country for both home use and domestic markets and can be grown all year round. Onion, tomatoes, cabbages, garlic and some

12 indigenous vegetable species (Sonko et al., 2005) are among the most widely consumed vegetable crops in Uganda. The tomato is an important cash crop for small-scale growers with a potential for increasing income in rural areas, improving the living standards, and creating employment opportunities for all gender groups.

Tomato is consumed by about 3 million households in every meal in almost every district of

Uganda Mukiibi (2001) and it is economically important as a source of income. Tomatoes also have a number of importance for example nutritional values like having beta-carotene an antioxidant, have lycopene a food component known to reduce the incidence of prostate cancer, heart and age related diseases AVDRC (2003), also provide good quantities of vitamins A and C.

Tomatoes are consumed fresh in combination with salads or used in cooking as a recipe. The popularity of tomatoes and high demand for tomato makes it a high value crop with high potential for value addition and income generation to farmers.

1.2 Statement of the problem Agriculture is one of the most important sectors of the Ugandan economy, As such; increase in agricultural productivity depends heavily on market access so as to improve its vital roles in a national economy. Efficient market does not only link sellers and buyers in reacting to current situations in supply and demand but rather has a dynamic role to play in stimulating consumption of agricultural products which are essential elements of economic development. Marketing can play an active role in agricultural and economic development by holding down cost of food and increase demand, thereby encouraging expansion in farming and other related economic activities.

Uganda has favorable environmental conditions throughout the country suitable for the cultivation of tomatoes all year round. In spite of the country’s potentials and intensification of

13 tomato production nationwide, the tomato industry in Uganda has failed to reach its potential.

This is most especially in terms of marketing and improvement of the livelihoods of those households involved in the tomato production and marketing chain. This justifies the need to conduct study about the determinants of allocative efficiency and marketability of tomatoes.

1.3 Objectives of the study 1.3.1 General objective The general objective of the study is to understand the marketing of tomato in Kampala, Uganda.

1.3.2 Specific Objectives  To characterize the market and market players of tomato in Kampala

 Determine the efficiency of tomato marketing channels in Kampala

 To propose policy recommendations to improve marketing efficiency of tomato in

Kampala, Uganda.

1.4 Research Questions

1. What are the characteristics of the market and market players in relation to tomato selling

in Kampala?

2. What is the level of efficiency of tomato marketing channels in Kampala?

3. What are the policy considerations needed to improve the marketing of tomatoes in

Kampala, Uganda?

1.5 Scope of the study

This section discusses the scope of the study. This includes the content scope, the geographical scope and the time scope.

1.5.1 Content scope

The study focused on understanding the market for tomatoes in Kampala, Uganda

1.5.2 Geographical scope

This study was conducted among the different tomato marketing agents in Kampala. The marketing agents included in this study are farmers, transporters, wholesalers, and retailer.

Kampala district is located 0.32 latitude, 32.58 longitude and at an elevation of 1223 meters above sea level.

1.5.3 Time scope

This study was carried out among the different traders of tomatoes in Kampala for the period ranging from December 2019 to February, 2021.

1.6 Justification of the Study

The helped in adding to the current knowledge on the market of tomatoes in different markets in

Kampala and Uganda as a whole. This in addition to awareness among the different traders or farmers dealing in tomatoes about the possible factors that may influence prices of tomatoes and how such factors can be addressed. It also increased awareness among the various actors in the tomato value chain of ways/means to improve tomato marketing efficiency.

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction

This chapter outlines the literature review pertaining to the various aspects of the tomato value chain and marketing.

2.2 Marketing of tomatoes Tomato marketing is characterized mainly by the problem of seasonality and perishability amongst others (Nkamnebe, 2003). Efficient harvesting, handling, transportation and marketing techniques are extremely important in tomato production because it is seasonal and highly perishable in nature. Subsequently, in their study on “food marketing and its role in food security in Uganda, " Nkamnebe (2003) concluded that an efficient food marketing system would reduce post-harvest losses, ensure adequate returns to farmer's investments and stimulate expansion in food production thereby enhancing the level of food security in Uganda.

Tomato produced must be distributed efficiently at a minimum cost in other to guarantee continuous availability of the produce. Ahmad, et al., (2002) argued that availability of food is a function of food production, stock holding and food marketing. Tomato is one of the most important vegetables in the world, Uganda is ranked among the largest producers of tomato in

East Africa, with current production of 15.6 metric toones and area harvested as 2.7 million

Hectares of farm land (Nehme, 2007).

Tomatoes contribute to a healthy well balanced diet; It is mostly processed into paste, puree, juices and ketch up. Its shelve life can be prolonged by sun drying, pre boiling or processing into cans. The important factor that energizes agriculture development towards commercialization

16 and diversification is the development of proper marketing system. Despite the fact that vegetable production is a viable option to increase farm income and alleviate widespread poverty considerable attention has not been given for its marketing aspects. The marketing of horticultural crops, in general and vegetables in particular is more complex and risky because of the special characteristics of tomatoes which is high perishability , seasonality, bulkiness and wide fluctuation in prices , It requires special care and immediate disposal of the product

(Adepet, 2005).

Ugandan tomato farmers are often exposed to high market risk hence, influencing their

(farmers’) decision on the level of total output to produce. Due to the perishable nature of fruits and vegetables such as tomatoes, seasonality is chiefly observed in their production. The perishable nature of tomato usually forces farmers to sell their tomato at whatever price offered them, and this is predominantly observed during major harvesting seasons. This therefore serves as a disincentive to commercialize production (World Bank, 2008).

2.3 Profitability of Tomato Production The economic underpinning of every business activity/firm is profit maximization, thus entrepreneurs will take informed decisions on the allocation of scarce resources to achieve desired results in the future. Profitability is the long run goal of all business ventures, and the survival of a business in the long run, thus depends on how profitable it is (Hofstrand, 2009).

To enhance coherence in the analysis of profitability, an in-depth knowledge of the costs and returns associated with various activities is desired since the costs and returns form the basis for the computation of profit. Thus, for the purpose of this study, information on the costs and returns components of tomato production is of tremendous importance, since that will help enhance cogent margin analysis of production (Hillson & Murray-Webster, 2006).

The tomato industry is composed of three major interdependent sectors. These sectors include; production, processing and marketing. For the purpose of this study, profitability analysis on the industry would be focused on the production sector. The tomato production sector refers to the section of the industry responsible for the acquisition and utilization of inputs (factors)

(labour, land and capital) to achieve some desired output (tomatoes). Operationally, the tomato marketing sector also refers to the section of the industry that supplies farmers with inputs and also ensures the trade of fresh tomatoes (World Bank, 2009).

Afolabi, et al., (2013) used gross margin and net income to compute the Profitability of poultry egg farming. The results of the gross margin and net income showed that, poultry egg farming was profitable. The net income analysis has certain drawbacks such as the difficulty to accurately compute the total cost. This could result from the difficulty in valuing unpaid farm labour and management. Gross margin analysis has an advantage over net margin analysis because it gives estimates and does not erroneously conclude on overall cost and returns that might be miscalculated. Gross margin only gives a simplified picture of profitability, by considering only variable cost. On the one hand, gross margin analysis cannot also be used to assess the overall profitability of an enterprise since it does not take into account all the cost components, whereas, net income analysis has an advantage over this. Hence, for the purpose of this study the conventional gross margin formula was applied in analyzing the profitability of irrigated tomato production.

2.4 Agricultural Productivity Agricultural productivity refers to the transformation of a given level of input(s) into output in the agricultural sector of a given economy. Productivity is a measure of efficiency, since the

18 result of the output to input ratio depicts a simplified picture of returns from engaging a given level of inputs. There exists a varied range of productivity measures, and the choice between them is influenced by the purpose of the productivity measurement and the availability of data

(OECD, 2001). The measures of productivity are broadly categorised into single factor productivity measures (relating to the ratio of output to an individual input) or multifactor productivity measures (relating to the ratio of output to a bundle of inputs).

Kuwornu et al. (2012) argued that growth in productivity constitutes one of the key determinants of per capita income growth in all economies. Higher productivity of agricultural resources lowers production costs, increases output (often involving less land), and releases some resources such as labour, from agriculture to other sectors of the economy”. This implies that the productivity of productive resources in agriculture often exerts a consequential effect on the profitability of farm enterprises with higher productivity levels leading to higher profitability and vice versa (World Bank, 2008).

Mallawaarachchi et al. (2009) also argued that higher agricultural production (expansion), which is the reciprocal effect of high productivity leads to lower commodity prices, hence, passing some of the benefits of innovation onto the food industry and consumers and also promotes general economic growth. The indispensable role played by productivity in ensuring food security and economic development has been recognized worldwide and captured in the millennium development goals. The millennium development authority has set an annual agricultural productivity target of 6% against the year 2015 (World Bank, 2015).

Mallawaarachchi et al. (2009) observed that within the boundaries of agricultural production, the principal inputs of production, which influence productivity include land, labour, capital and material inputs, while outputs include crop, forestry and livestock products. Literature has further unveiled quite a notable amounts of other factors that affect productivity changes in agriculture and these factors include research and development, extension, education, infrastructure and government programs inter alia (Osteen, Gottlieb & Vasavada, 2012). An understanding of the determinants of productivity has the potential to influence policies and producers’ decision making abilities. Improvement in productivity also increases the economic fortunes of farmers.

2.5 Risks Related to Tomato Production and Trade Uganda’s agriculture is sometimes characterized by low yields and productivity due, in particular, to natural factors plus a high incidence of market failures. In some seasons, averages are said to range from 20% to 30% of the potential yield for traditional staples. However, due to data scarcity such estimates are unavailable for vegetables but there is no doubt such low yields exist. A recent study has reported that environmental damage from drought, pests and diseases accounts for the low productivity and that these constraints are compounded in vegetables than in other crops (IFPRI, 2017). This observation falls in line with an earlier report that horticultural crops tend to be riskier than staple crops, since the higher production costs, market volatility and perishability impose a greater income risk.

Farmers’ reaction to environmental and climatic changes such as floods is heavily dependent on personal knowledge and experience. Farmers have historically relied on their personal perception of plant water requirements which lack scientific proof. These include reliance on soil surface cracks, folding of the leaves in response to incipient midday stress; or simply

20 determining the need for irrigation shortly after water dries off from the soil surface (IFAD,

2003)

Another risk is related to the tomato market and farmers’ decisions. Historically, poor farmers are said to have taken risks by investing their limited resources in production with a strong hope for good markets. However, their knowledge in marketing patterns remains rudimentary, thus increasing the risk factors. This is one reason for scientists’ indifference to traditional agriculture.

Traditional farming practices appear inadequate, almost a failure, since he compares their productivity with the potential yields of new technology. According to him, the success of traditional agriculture has been demonstrated by the fact that it supported his ancestors to survive and gave rise to surviving descendants, as he hopes to do himself. The traditional farmer has inherited his farm practices, and the social structure which goes with them, as part of a cultural tradition which has roots in the distant past, but which has been constantly modified to adapt to changing circumstances (Hillson & Murray-Webster, 2006).

Despite the experiences gained over centuries in production, farmers are unable to grasp the opportunities for controlling the marketing of their products. On the contrary, traders and middlemen have accumulated marketing strategies that enable them to bargain for lesser prices at farm gates. The goods are then sold at high prices in towns and city markets, benefiting the trader or the middleman rather than the producer. Producers are almost isolated from the market due to poor market information and weak bargaining power against powerful networks of traders

(Nehme, 2007).

The highly perishable nature of tomatoes presents a market risk. Due to lack of processing and storage facilities, farmers are compelled to sell at low prices rather than lose the entire product.

In addition, transactions in the tomato market are conducted in social settings therefore cultural values and norms are intrinsically unavoidable features (Nehme, 2007).

2.6 Risks Management Strategies The high risk nature of agriculture has led to the employment of measures to manage and reduce the shock when it occurs. Against this background, households have developed a number of mechanisms to manage risks. Risk management, or coping, is any action undertaken by an economic agent with the aim of minimising risk before or after the occurrence of a negative event (Nehme, 2007). “It is recognised as an essential contributor to business and project success, since it focuses on addressing uncertainties in a proactive manner in order to minimise threats, maximise opportunities, and optimise the achievement of objectives” (Hillson & Murray-

Webster, 2006). To achieve an appreciable level of risk reduction, agents engage in cost: benefit analysis to identify the most efficient and cost-effective tool that can be used. Risk management strategies are classified under “ex-ante and ex-post strategies”.

Ex-ante strategies are those employed to avoid or reduce exposure to risks before a shock occurs.

According to Holsmann, (2001) risk prevention strategies are aimed at decreasing shocks because of their ability to increase profits or reduce income fluctuations, which can have positive effects on household consumptions. Ex-ante prevention strategies include economic policies, and investment in education or health. Similarly, Dercon, 2002 explains ex-ante mitigation strategies as those that are employed by members of a household to reduce the risk before its occurrence e.g. diversification.

Ex-post strategies are mechanisms that are employed to cope with the consequences once the risk has occurred. Self-insurance, either formal or informal has been widely used as an ex-post strategy. Asset sales, migration, labour re-allocation, and credit are typical insurance responses for households. The problem with risks management is that the process of risk management itself is seen as a risk because it involves committing resources to change the setting where the action will occur. This poses a challenge to many households as they have no means to pay for these mitigation measures due to their high poverty levels (World Bank, 2008). Among rural communities in Uganda, farmers have, from experience, coped with risks in various strategic ways such as migration; however, diversification and insurance remain common practices in risks management theories.

Diversification: This is a common practice among farmers worldwide with the intention of s spreading risks and thereby protecting themselves against low consumption rates. In a broader perspective, agricultural diversification involves the employment of unrelated production practices that ensure one product against the risk of another; this is usually referred to as the

'Portfolio Theory' (Nehme, 2007). The underlying principle behind this technique is that a portfolio with varied ventures will yield higher profits and reduce risk than a single investment on its own. The practice is geared towards economic growth where steps are taken to move into market oriented products influenced by rural improvements instead of subsistence agriculture.

Insurance: Insurance is the major and the most popular means for risk transfer worldwide. “It is a contract by which one party (the insurer) agrees to pay a compensation (the indemnity) to another party (the insured) if a certain event occurs, in exchange for a fixed payment (the premium). This can come in several forms but the basic concept remains that the insurer provides the insured the possibility to transfer his or her risk” (Nehme, 2007). In agriculture, insurance is

23 mainly used to spread the risks in production by either insuring the crops themselves or the marketing of the crops. There are, however, several challenges that insurance companies face.

Despite the challenges, the practices are effective and well sustained in developed countries with government-supported, large scale agriculture as against developing countries where subsistence agriculture dominates. Developing countries where stable commodity markets are lacking, the consequences of risks can have severe effects. In the context of these uncertainties, producers and traders resort to various other measures in an attempt to minimise risks (Holzmann, 2001).

2.7 Conclusion of literature review An extensive review of existing literature reveals that tomato farmers’ productivity is influenced by the use agricultural inputs which also has an effect on the final market for the produce. Hence stressing the need for an efficient and effective input market to ensure that farmers obtain appropriate inputs for production. It was realized that the role of government in supplying agricultural inputs in developing countries like Uganda is very vital, since it helps farmers obtain needed quantities of inputs through subsidy programs. Literature also found that access to inputs alone cannot enhance optimal productivity levels without efficient application of these inputs.

Literature has further revealed that the marketing of fresh tomato in Uganda can be done through diverse channels and therefore asserting that a particular marketing channel adopted by a farmer has a consequential effect on his/her level of profit.

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction This chapter discusses the design of the study, the target population, sample size determination, selection of the sample, and methods and tools that were used by the researcher in conducting the study.

3.2 Research Design The study was quantitative in nature and used a cross-sectional survey design. This type of design was used because it is cost effective, saves time and more information can be collected in a relatively short period of time. It allows data to be collected at one point in time from different individuals and this will enable the researcher to study the issues under investigation in a detailed manner.

3.3 Study Population The study population comprises of the different marketing agents of tomatoes in the different markets around Kampala. The marketing agents considered for this study were; farmers, transporters, wholesalers, and retailers. The markets considered for this study were Wandegeya

Nakawa, Kalerwe, and Nakasero food markets.

3.4 Sample Size Determination Four urban markets of Wandegeya, Nakawa, Kalerwe and Nakaasero were selected from all the markets in Kampala. These markets were selected because business is conducted in full capacity daily in these markets when compared to those in rural and semi urban markets. Stratified sampling was used to select 90 respondents (20 farmers, 10 transporters, 20 wholesalers and 40 retailers) from each market respectively, to produce a total sample size of 90 respondents for the study.

To establish sample size we assume that the population is approximately normally distributed hence the sample size n is obtained as shown below.

( )

Where,

=allowable error (%),

=response rate, and

N = Number of people in the population.

Substitute numbers in formula:

Table 3.1: Distribution of respondents by each food markets

Market Farmers transporters, wholesalers retailers Total Wandegeya 2 3 5 9 19 Kalerwe 2 4 8 13 27 Nakawa 3 3 7 10 23 Nakasero 2 2 6 11 21 Total 9 12 26 43 90

3.5 Sampling techniques and procedures

According to Polit & Beck (2004), probability sampling is a sampling technique, in which the subjects of the population get an equal opportunity to be selected as a representative sample.

During the process of data collection, stratified probability sampling technique was employed since it ensures each subgroup (markets) within the population receives proper representation within the sample. As a result, stratified random sampling provides better coverage of the population since the researchers have control over the subgroups to ensure all of them are represented in the sampling.

3.6 Data Sources

3. 6.1 Primary Data Sources

Primary data means original data that has been collected specially for the purpose in mind.

Primary data were obtained from the selected tomato marketing agents or players in the different markets of Wandegeya, Nakawa, Kalerwe and Nakaasero. The different respondents was requested to provide their opinions concerning the different questions as were given in the questionnaires.

3.6.1 Secondary Data Sources

Secondary data is data that has been collected for another purpose or data that is being reused by a similar or different researcher (Hox & Boeije, 2005). Secondary datum was obtained from different online and offline sources such as journals and textbooks that have information about marketing of tomatoes.

3.7 Data collection methods

3.7.1 Questionnaires

A structured questionnaire was used to collect data from 90 respondents from the selected markets of Nakaasero, Kalerwe, Nakawa, and Wandegeya altogether. Questionnaires are written set of questions to which respondents record their answers, usually within rather closely defined alternatives (Sekaran, 2003). The questionnaires was used on the basis that the variables under study can be observed for instance the views, opinions, perceptions, and feelings of the respondents concerning marketability of Tomatoes in Kampala.

To answer research question one, the questionnaire focused on obtaining information about the characteristics of the market and market players in relation to tomato selling in Kampala such as the price range, the availability of the market, the level of profitability etc.

To answer research question two, the questionnaire presented interrogative questions to help in measuring efficiency of tomato marketing channels in Kampala.

3.8 Data Management and Processing To enhance data management, the researcher coded the respondents’ responses in preparation for data capturing. Data was processed through data entry, checking for consistency, editing and summarizing the data in order to extract useful information.

3.9 Data Analysis

Data collected were analyzed using simple descriptive statistics and relevant market efficiency formulae. Descriptive statistics and relevant market efficiency formulae were used to interpret and guide the drawing of conclusions or implications and recommendations. An interpretation of output was made to explain inferences. With regard to the nominal data, the researcher calculated

28 frequency statistics and the percentages. The percentages were calculated for statistical purposes, namely to serve as basis for comparison. The descriptive statistics were calculated to summarize the responses to each group of respondents.

3.10 Ethical Considerations

There are different ethical requirements that must be put into consideration if any research study is to be successful. The researcher observed quite number of ethical issues which are aimed at avoiding any occurrence of harm during the process of the study.

Firstly, permission to carry out the study was obtained from relevant authorities at the university.

Secondly the researcher ensured that there is informed consent whereby respondents was informed about the details of the study and consequently the researcher assessed their willingness to participate.

The researcher also observed a high level of confidentiality and privacy when handling the data collected from respondents.

Finally, respondents were given freedom to answer questions based on their own interpretation of the different opinion questions.

3.11 Limitations of the Study

Financial challenges: Doing research is always a hectic and costly prices that involve travelling to the study area and engaging with the respondents that also need to be facilitated. In this case raising the necessary finances may become a challenge. However the researcher intends equip himself with enough funds to compete the study successfully.

Limited time: Undertaking a research study involves several activities that require sufficient time however the time available is limited hence he researcher has to complete all the research task in the limited time available. This involved working more tirelessly to complete in the speculate timeframe.

Less cooperative respondents: Some respondents may also not find interest in answering some questions which may affect the accuracy or consistency of results in the longrun. To overcome this limitation, the researcher keenly explained the aims of the study and consequently assure the respondents that the data collected was kept confidential and is purposely for academic reasons.

CHAPTER FOUR: ANALYSIS, PRESENTATION AND INTERPRETATION OF RESULTS

4.1 Introduction

This chapter presents a detailed account of the analysis, presentation and interpretation of the research findings obtained using the different quantitative research tools. The results presented were based on the different objectives of the study that included; to characterize the market and market players of tomato in Kampala. To determine the efficiency of tomato marketing channels in Kampala, and to propose policy recommendations to improve marketing efficiency of tomato in Kampala, Uganda.

4.2 Characteristics of Respondents

This section presents the background characteristics of respondents and how they vary in relation to marketing of tomatoes. Results in this section are summarized in Tables 4.1 and 4.2 as means comparing different characteristics of the tomato market chain actors. Tomato farmers and

30 transporters characteristics that were considered include; age, household size, income received from potato per season, years of formal schooling, off-farm monthly income and total land owned (Table 4.1). For this study, a season stands for about three months of tomato production plus about two months of trading.

Results in Table 4.1 show that farmers who had put significantly (p⩽0.10) more land under tomato farming. Farmers had assured markets for their produce which motivated them to allocate more land to tomato production. Similarly, average tomato output by farmers per season was significantly higher (p⩽0.01). This could also be explained by the assured markets of tomatoes too most farmers. Results further indicate that the average quantity of ware potato sold by farmers was significantly higher (p⩽0.01). There was a statistically significant difference

(p⩽0.01) between incomes got from ware tomatoes by farmers and transporters.

Table 4.1: Characteristics of farmers and transporters

Characteristics Farmers Transporters t- p- value value Mean SD Mean SD

Age (years) 39.51 11.96 40.97 12.50 0.62 0.53 Education (years of 7.09 2.91 6.46 3.22 −1.05 0.30 formal schooling) Total land owned by 1.55 2.72 1.35 1.42 −0.58 0.56 farmer (ha) Land under tomato per 0.40 0.28 0.0 0.0 0.0 0.09 season (ha) Average tomato output 2,626.43 2,705.60 0.0 0.0 0.0 0.00 (kg) per season Distance to market (km) 4.00 5.26 7.46 7.57 2.64 0.01 Tomato marketing 11.89 7.40 10.59 8.88 −0.80 0.43 experience (years) Tomatoes sold (kg) per 1,775.71 2,500.32 843.54 1,010.18 −3.48 0.00 season Transportation costs per 516.34 758.39 414.00 971.22 0.62 0.41 season (’000USh)

Income from ware 935.91 471.73 448.36 591.20 −3.26 0.00 tomato per season (’000 USh)

Off-farm monthly 72,110 105,270 00 00 00 00 income (USh)

Source: Researcher’s analysis (2021) Tomato traders that were involved in the study included wholesalers and retailers. Some of the socio-economic characteristics that were considered at this node include trader’s years of formal education, distance travelled to source for tomato, quantity of tomato handled per trip and transport costs incurred in marketing tomatoes. Comparing wholesalers and retailers traders,

Table 4.2 shows a significant difference in marketing experience, with rural traders having more years of experience. Wholesaler have several opportunities other than retailers. Most wholesalers were directly linked to farmers unlike most retailers who had to go through wholesalers or reporters in procuring tomato from farmers.

All the other variables considered, including years of formal education, quantity of tomato handled and costs incurred were not statistically significantly different. To note is that some standard deviations of some variables are larger than the mean values in Table 4.2. For instance the mean values for distance covered by both rural and urban traders were lower than their standard deviations. This was because some wholesalers were stationed in their markets and supplied by either transporters or other wholesalers that get the produce from the farmers. A few of them moved longer distances thus a large variation and bigger standard deviations. This corresponds with the quantity of tomatoes handled per trip, damage costs incurred, income received per season and the main means of transport used. There were few traders who used trucks to transport tomatoes from rural areas and supply the rest of the traders that were stationed in some markets.

Table 4.2: Characteristics of traders (Wholesalers and retailers)

Characteristics Wholesalers Retailers t- p- value value Mean SD Mean SD

Years of formal 6.68 3.72 6.00 3.20 −0.65 0.52 education Tomato marketing 6.23 5.96 9.56 5.98 1.92 0.06 experience (years) Distance to market (km) 105.56 193.38 50.81 107.10 −1.07 0.29

Tomato quantity (kg) 3,181.36 4,133.22 2,191.25 3,851.64 −0.83 0.41 handled per trip Total costs incurred by 625.58 743.69 759.41 1,035.11 0.55 0.58 trader per season in marketing tomatoes(’000USh) Tomato income per 36.80 67.20 38.80 76.70 0.09 0.92 season (million USh) Transportation costs per 526.34 658.39 654.00 971.22 0.58 0.56 season (’000USh)

Market fees (’000USh) 23.78 49.06 11.75 15.53 −0.96 0.34 per month

Market fees (’000USh) 46.82 73.07 72.05 106.87 1.04 0.30 per month

Damage costs incurred 6.68 3.72 6.00 3.20 −0.65 0.52 per season in form of tomato that rots (’000USh)

4.3 Market efficiency The study identified three major tomato chains: where farmers sold tomatoes directly to wholesalers who in turn sold to retailers; farmers selling directly to retailers who then sold to consumers; and farmers selling to wholesalers through transporters, and the wholesalers selling to retailers who finally sold the tomatoes to consumers.

Study results indicate that the tomato market chains were generally efficient and profitable, consistent with the study hypothesis. Market efficiency estimations at different chain nodes are presented in Tables below. At farmer node, the highest efficiency (46.3%) was noted where farmers sold tomatoes to wholesalers (Table 4.3). This was attributed to the proximity of the traders and farmers which lowers some marketing costs. In the second chain, farmers sold tomatoes directly to retailers with relatively higher transport costs; hence a relatively lower market efficiency. In the third chain, where transporters were involved, some portion of the profits went to the transporters in form of commissions. Fafchamps (2005) noted that the burden of sustaining transporters in a chain reduces the value of returns/profits available to other actors, farmers inclusive. However, large-scale traders lack time to directly link up with many small- scale and scattered farmers who are allocated in the rural areas with poor market infrastructure

34 especially roads and market information. As a result, the brokers necessarily fill the market gap, without which the market efficiency would be lower. Although the brokers benefit greatly from mediating sales between farmers and traders as noted by Phillips and Tallontire (2007), the commission they earned was much lower than the cost farmers and traders would have incurred in search for the market. Howells (2006) and Klerkx and Leeuwis (2009) noted that transporters are necessary to help rural farmers improve their collective efficiency and in particular to build the bridge between farmers and market chain traders.

Table 2.3: Profits earned and marketing efficiency at farmer level of the marketing chain

Farmer node Mean market SD Mean Rank efficiency (% profit(million USh) Farmer–wholesaler 46.3 312 0.48 1 (chain 1) Farmer–Retailer (chain 22.1 281 0.35 3 2) Farmer–transporter– 33.7 307 0.42 2 retailer(chain 3)

Market efficiencies at trader nodes ranged between 425 and 33% (Table 4.4).On average, efficiency was highest (42) among transporters who transacted directly with wholesalers. Transporters in this chain sold in large quantities to wholesalers who offered better prices as compared to retailers that offered relatively lower prices. Some transporters in the second chain who sold to retailers had a much lower market efficiency ratio of 21%. This was largely because they sold mostly to small-scale traders with limited capacity to demand large quantities.

Table 4.4: Profits earned and marketing efficiency at Transportation level of the marketing chain

Transporter node Mean market SD Mean Rank efficiency (% profit(million USh)

Transporter–wholesaler 42 56 8.12 1 (chain 1) Transporter–Retailer 21 34 2.35 3 (chain 2) Transporter– 33 41 4.42 2 wholesaler– retailer(chain 3)

Market efficiencies at trader nodes ranged between 32% and 62% per cent (Table 4.5).On average, efficiency was highest (62%) among wholesalers who sold directly to consumers. Wholesalers in this chain sold the produce to consumers which offered better prices as compared to the retailers that offered relatively lower prices.

Table 4.5: Profits earned and marketing efficiency at trader level of the marketing chain

Trader node Mean market SD Mean Rank efficiency (% profit(million USh) Wholesaler–consumer 62 113 7.42 1 (chain 1) Retailer–consumer 56 81 3.35 2 (chain 2) Wholesaler-retailer– 31 122 1.48 3 consumer (chain 3)

The study also sought to establish the different common marketing possibilities for fresh market tomatoes in Uganda and the results obtained are presented below

Figure 4.1:Common marketing possibilities for fresh market tomatoes

40.0% 36.4% 35.0% 31.3% 30.0% 25.0% 20.0% 16.1% 12.3% 15.0%

10.0% 3.9% 5.0% 0.0% Roadside Farmers Community Local Wholesale or stands markets supported supermarkets retail produce agriculture auctions (CSA) subscriptions

Source: Primary data (2021)

The results in figure 4.2 show that high possibility of getting fresh tomatoes is from farmers markets (36.4%) followed by local supermarkets (31.3%), wholesale or retail produce auctions

(16.1%) roadside stands (12.3%), and the least number of respondents(3.9%) indicated that fresh tomatoes can be gotten from community supported agriculture (CSA) subscriptions.

4.4 Policy considerations to mitigate risks involved in tomato marketing In a bid to propose the different policy considerations required to mitigate the several risks involved in the marketing of tomatoes, the study first focused on establishing the different risks associated with marketing of tomatoes and the results are presented in figure below

Figure 4.2: Risks involved in selling tomatoes

Robbery while on transit

High taxes both on road and market

Bad climate

Limited finances to maintain high productivity

Low market

The perishability of tomatoes

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Source: Primary data (2021)

From figure 4.2, the major risk involved in the selling of tomatoes was identified as low market.

Most respondents indicated that the uncertainty of the market for tomatoes greatly affects sales thereby lowering the profitability of the tomatoes selling business. The respondents also identified bad climate as one major risk associated with selling tomatoes. It was argued that bad climate affects the freshness of tomatoes

The findings on the different risk management strategies for the risks involved in the marketing of tomatoes are presented in figure 4.3

Figure 4.3: Management strategies for tomato marketing risks

Joining marketing cooperatives

Insurance

Signing contracts to manage market risks

Improving security while on transit and on market

Adopting advanced technologies of tomato storage

Understanding tomato market trends

Avoiding over production in times of marketing uncertainty

Investing in drought- or pest-resistant tomato varieties

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Source: Primary data (2021)

From figure 4.3, Majority of the respondents suggested that the most effective risk management strategy in the tomato business is investing in drought or pest resistant tomato varieties. This helps in enhancing the ability if tomatoes to cope with the changing climatic conditions thereby improving on tomato yields in times of drought. Respondents also suggested signing of contracts as one way of managing risks involved in marketing of tomatoes. Other strategies suggested included; insurance, avoiding production in times of market uncertainty and joining market cooperatives, among others.

4.5 Correlation analysis To assess the different dynamics associated with marketing of tomatoes, correlation analysis was done. The results were given as in Table below. Table 4.6: Cross tabulation of the dependent variable and independent variables

Price Market trends Marketing Marketing techniques efficiency Price 1 Market trends 0.751** 1

0.00 Marketing .658* 0.719* 1 techniques 0.00 0.001 Marketing 0.657* 0.905* 0.957* 1 efficiency (dep.) 0.00 0.00 0.00 **.Correlation is significant at the 0.01 level (1-tailed).

The analysis of the results indicate a positive correlation between price of tomatoes and marketing efficiency (r = 0.657) and is significant at 0.01. This shows that the price of tomatoes at farm level, whole sale or retail level greatly determines the efficiency of the tomato market.

There is positive relationship between market trends and marketing efficiency of tomatoes. The correlation coefficient (r = 0.905) is significant at 0.01. The marketing techniques of tomatoes showed a positive correlation with marketing efficiency of tomatoes (r = 0.957) at 0.01 level of significance (p=0.00<0.01) showing that the nature of techniques used in marketing tomatoes play a key role in enhancing the efficiency of the tomato market in Kampala and Uganda as a whole.

CHAPTER FIVE : SUMMARY, RECOMMENDATIONS AND CONCLUSION

5.0 Introduction

This study sought to assess the marketing of tomatoes in Kampala, Uganda. This chapter is all about the summary, recommendations gathered for the study and the conclusion of the study.

5.1 Summary of findings

The general objective of the study was to assess the marketing of tomatoes in Kampala, Uganda, using the different markets of Wandegaya, Kalerwe, Nakawa and Nakasero as the case study.

Below is the summary of the findings based on each objective. Using the STATA to carry out the descriptive analysis, several factors associated with marketing of tomatoes were assessed based on different specific objectives that include; to characterize the market and market players of tomato in Kampala, determine the efficiency of tomato marketing channels in Kampala, and propose policy recommendations to improve marketing efficiency of tomato in Kampala,

Uganda.

The study identified three major tomato chains: where farmers sold tomatoes directly to wholesalers who in turn sold to retailers; farmers selling directly to retailers who then sold to consumers; and farmers selling to wholesalers through transporters, and the wholesalers selling to retailers who finally sold the tomatoes to consumers. These market chains were profitable and efficient because on average, all the chain actors realized profits, and the profits in relation to total marketing costs were high. At farmer node, the chain in which farmers sold tomatoes directly to rural traders was the most efficient and profitable. This was followed by the one in which farmers sold to wholesalers through transporters.

The study also revealed that tomato producers and traders face several different types of risk in the marketing of tomatoes. The uncertainty of the tomato market is one major risk whereby over production or under production may occur leading to losses. Production risk refers to uncertainty in the quantity and quality of output. Growers’ yields are affected substantially by factors beyond their control, including fluctuations in weather, pressure from disease or other pests, and varying availability of essential inputs such as irrigation water. Dealers in the tomato business may also face uncertainty about production costs, due to fluctuating prices for inputs such as labor or fuel.

Market risk refers to uncertainty about the price that producers will receive for their crops or livestock, and also the possibility that no buyer can be found at all, also known as placement risk.

These various risks can be magnified in some types of agricultural production. For example, tomatoes are highly perishable crops for which quality attributes can be especially important.

These characteristics may limit a tomato grower’s ability to conduct an extensive search for buyers or better prices, thus rendering the grower more vulnerable to volatile prices at the time of harvest.

Tomato producers and traders use a range of tools to manage these risks. Contracts were commonly cited as one of these tools, especially for managing market risks. A simple forward contract establishes a price to be paid for a certain quantity of product at some date in the future.

From the grower’s perspective, this arrangement reduces uncertainty about the price received for the product and the availability of a buyer. Contracts may also be used to manage production risks. In a production contract, a grower’s payment may be directly tied to services provided, rather the quantity or quality of output, thus shifting risks associated with uncertain yields to the buyer. With a relative performance contract, or tournament contract, a grower’s production is compared to that of other growers in the area, with bonuses for outperforming or penalties for

42 under-performing that benchmark. This type of incentive structure, while controversial, can mitigate some aspects of production risk, such as adverse weather that affects all producers in a region.

In agricultural economics, traditional contract theory builds from this idea that contracts are used to manage risk by shifting it from a more risk-averse party to a more risk-neutral one (Hueth and

Hennessy, 2001). In this framework, a key issue is balancing the advantages of this risk- management feature against potential problems created by the use of contracts, such as moral hazard–for example, when one party in a transaction knows more information about risks than the party incurring the consequences of a choice–or other misaligned incentives. However, the empirical evidence that agricultural contracts are used primarily for risk-shifting is mixed (Allen and Lueck, 1995). It may be that producers employ other methods for managing their various risks, and that contracts are used to create other advantages.

Producers have access to a range of tools for managing risk, in addition to contracts, with downstream users of agricultural commodities. Growers may be able to purchase crop insurance or participate in programs deigned to stabilize agricultural revenues. For many commodities, price risks can be hedged in financial markets. For example, Mark et al. (2008) discuss some options, other than forward contracts with intermediaries that grain growers use for managing price risk. Membership in a marketing cooperative can help to smooth price volatility for growers in a region. To deal with production risks, growers can choose different management strategies, such as using drought- or pest-resistant crop varieties or diversifying production across different commodities. Contracts can provide benefits other than risk management. They will be chosen over other options–spot markets or vertical integration–if they do a better job of

43 lowering transaction costs or coordinating agricultural production with the needs of the buyers.

For example, if a buyer needs a reliable supply of a commodity on a schedule, then contracts may better serve the grower-buyer relationship than do spot markets. Contracts can also provide incentives for tomato growersand retailers to invest in equipment and capital that will improve the quantity or quality of production, especially in terms of meeting buyer-specific requirements

(MacDonald et al., 2004), and may facilitate credit financing of such investments.

5.2 Conclusion

The findings reveal that the marketing efficiency of tomatoes is highly influenced by the prices of tomatoes, the market trends and the different techniques used in marketing. The study confirmed that transporters did not necessarily reduce the profits of farmers nor did they reduce market efficiency. They instead enhanced profits by breaking market access barriers such as limited market information and search costs. As a policy recommendation, therefore, farmers should be empowered to have increased access to market information, and to create an environment of trust between them and traders. The study revealed that several risks are involved in the tomato marketing and tomato business as a while most especially the uncertainty of the tomato market and this greatly affects the profitability of the business. Most farmers of producing more than what is required on the market and this results in several losses. Bad claim ate and perishability of tomatoes were also confirmed as major risks that affect the market efficiency of tomatoes and profitability of the tomato business in the longrun. Investing in pest and drought resistant varieties as well as signing contracts were suggested s major strategies to managing risks in the tomato market. Contracts also facilitate the marketing of products with high-value attributes, such as organic, locally grown, or compliance with buyer-driven animal welfare or environmental standards. When such attributes are hard to verify by inspection of the

44 physical output or cannot be monitored via third-party certification, contracts help to assure buyers that the products meet their requirements and ensure that growers are compensated for those efforts. Generally the efficiency of the tomato greatly relies on the farmer’s or retailer’s knowledge on the exact price to charge, the effective marketing techniques, and the rightful amount of production required for the market.

Recommendations

The following recommendation are put forward based on the study findings;

This study also recommends farmer/producer and seller sensitization should be enforced by different agricultural authorities concerning the best marketing techniques and the rightful tomato varieties to invest in as a way of avoiding low yields in times of bad climate. This can also help in improving the longevity of tomatoes after harvest which also addresses the use of perishability and consequently enhances tomato marketing efficiency.

The government should also establish policies that favour the growing and marketing of tomatoes. With government backing and supportive policies this approach could help to transform production, and bring real benefits to small-scale tomato producers. Therefore the

Government of Uganda should invest in adapting and refining these methods, in training, post- harvest infrastructure and knowledge exchange as a priority in new agricultural programs, in conjunction with tomato crop varieties which do not lead to reliance on pesticides.

5.4 Areas for further studies

More research should be conducted on the rationale of investing in pest and disease resistant tomato varieties on the profitability of the tomato business.

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Appendix one: Questionnaire (Farmers) Dear respondent, I am conducting a research study about the determinants of marketability of

tomatoes in Kampala. I kindly request you to provide your opinion by indicating on the box the

most appropriate answer of your choice. The confidentiality of the respondents profile will not

be compromised in any way and will thus not pose any consequences on the respondent. Please

give correct answers to the following questions.

SECTION A: Background Information

1. Name of retailer (optional)......

2. Sex

3. What is your age………………………………………………….

4. Marital status:

5. What is your main occupation? ……………………………………......

6. What is your religion?:

7. How many years of formal education?:

8. How many children do you have? ………………………………......

9. How many are going to school? ......

10. How much land do you use for tomato farming

SECTION B: Characteristics of the market and market players in relation to tomato selling in Kampala.

11. How do you rate the current market of tomatoes? 12. Who determines the prices of tomatoes in the Ugandan Market? 13. What has been the trend of the tomato market for the past two years? 14. Where do you sell your tomatoes most?

15. How long does it take to grow and produce tomatoes?

……………………………………………………………..

16. How muchdo you spned on tomato marketing

SECTION C: Level of efficiency of tomato marketing channels in Kampala. 17. How do you rate the efficiency of tomato marketing channels in Kampala 18. How would you describe your output in tomato selling over the years?

17. How much do you sell a box of tomatoes? 18. What are the common marketing possibilities for fresh market tomatoes? SECTION D: Policy considerations to mitigate risks involved in tomato marketing. 22. What are the risks involved in tomato marketing

1. weather change, 2. disease and pest infestation, 3. market demand, supply variations 4. price variation/fluctuations . 5. Others specify………………………………….. 23. How can the instabilities in the market of tomatoes be solved? …………………………………………………………………………………………………

Appendix two: Questionnaire (Transporters) Dear respondent, I am conducting a research study about the determinants of marketability of tomatoes in Kampala. I kindly request you to provide your opinion by indicating on the box the most appropriate answer of your choice. The confidentiality of the respondents profile will not be compromised in any way and will thus not pose any consequences on the respondent. Please give correct answers to the following questions. SECTION A: Background information 19. Name of retailer (optional)......

20. Sex

21. What is your age………………………………………………….

22. Marital status: 23. What is your main occupation? ……………………………………......

24. What is your religion?:

25. How many years of formal education?:

26. How many children do you have? ………………………………......

27. How many are going to school? ......

SECTION B: Characteristics of the market and market players in relation to tomato selling in Kampala.

28. How do you rate the current market of tomatoes? 29. Who determines the prices of tomatoes in the Ugandan Market? 30. What has been the trend of the tomato market for the past two years? 31. How do you describe the market process of tomatoes? SECTION C: Level of efficiency of tomato marketing channels in Kampala. 32. Is there a relationship between transportation methods and efficiency of tomato marketing channels? b) If yes, how does the method of transport affect the final efficiency of marketing channels? ……………………………………………………………………………………………. …………………………………………………………………………………………… 33. How much do you sell your tomatoes…………………… 34. To which people do you sell the tomatoes …………………… 35. Ho much do you spend on marketing of tomatoes SECTION D: Policy considerations to mitigate risks involved in tomato marketing.

36. What are the common difficulties or challenges encountered in transportation of tomatoes? 1. Poor roads 2. The perishability of tomatoes 3. High fuel prices relative to process of tomatoes 4. Labor costs especially in offloading and loading of tomatoes 5. Others specify…………………………….. 37. What are the risks involved in the transportation of tomatoes to the market 1. Accidental incidences during transit 2. Rotting of tomatoes before delivery top the market 3. Delay in the delivery of tomatoes due to unavoidable circumstances 4. Others specify…………………………… 38. What are the possible policy considerations to address the risks in tomato marketing? ……………………………………………………………………………………….. …………………………………………………………………………………….. …………………………………………………………………………………………..

Appendix Three: Questionnaire (Retailers) Dear respondent, I am conducting a research study about the determinants of marketability of tomatoes in Kampala. I kindly request you to provide your opinion by indicating on the box the most appropriate answer of your choice. The confidentiality of the respondents profile will not be compromised in any way and will thus not pose any consequences on the respondent. Please give correct answers to the following questions. SECTION A: Background Information 39. Name of retailer (optional)......

40. Sex 41. What is your age…………………………………………………. 42. Marital status:

43. What is your main occupation? ……………………………………......

44. What is your religion?:

45. What is your level of education?:

46. How many children do you have? ………………………………......

47. How many are going to school? ......

SECTION B: Characteristics of the market and market players in relation to tomato selling in Kampala. 48. How do you rate the current market of tomatoes? 49. Who determined the market price for tomatoes? 50. What has been the trend of the tomato market for the past two years? 51. How do you describe the market prices of tomatoes? 14. What has been the price trend in the past 5years? SECTION C: Level of efficiency of tomato marketing channels in Kampala. 15a). Do you always get ready market? 1. Yes 2. No b) If no to ” why?

1. lack of information 2. Low price 3. Inaccessibility of market 4. Others (specify)…………………………………………………………… 16 What are the terms of trade used in selling tomatoes? 1. Cash 2. Credit 3. Advance payment 17. How much do you sell a box of tomatoe 18. How much do you sell your tomato 19. To which people do you sell the tomatoes 20. How much do you spend on marketing of tomatoes 21. What are the common marketing possibilities for fresh market tomatoes? 1. Roadside stands, 2. Farmers markets, 3. Community supported agriculture (CSA) subscriptions, 4. Local supermarkets, 5. Wholesale or retail produce auctions SECTION D: Effect of chemicals on marketing of tomatoes. 19. Do chemicals affect the final market of tomatoes? 1. Yes 2. No 20. How does the application of chemicals on tomatoes affect their ability to attract customers?

……………………………………………………………………………………. …………………………………………………………………………………… SECTION E: Policy considerations to mitigate risks involved in tomato marketing.

21. What are the different risks involved in selling tomatoes?

……………………………………………………………………………..

22. What are the different risk management strategies?

…………………………………………………………………………………..

23. What is the role of government in enhancing the market of tomatoes at wholesale/retailer level?

…………………………………………………………………………………………….

……………………………………………………………………………………………

Appendix Four: Questionnaire (Wholesalers) Dear respondent, I am conducting a research study about the determinants of marketability of tomatoes in Kampala. I kindly request you to provide your opinion by indicating on the box the most appropriate answer of your choice. The confidentiality of the respondents profile will not be compromised in any way and will thus not pose any consequences on the respondent. Please give correct answers to the following questions. SECTION A: Background Information 52. Name of retailer (optional)......

53. Sex

1. Male 2. Female

54. What is your age………………………………………………….

55. Marital status:

56. What is your main occupation? ……………………………………......

57. What is your religion?:

58. What is your level of education?:

59. How many children do you have? ………………………………......

60. How many are going to school? ......

61. How much do you earn from tomato business

SECTION B: Characteristics of the market and market players in relation to tomato selling in Kampala. 62. How do you rate the current market of tomatoes? 63. Who determines the prices of tomatoes in the Ugandan Market? 64. What has been the trend of the tomato market for the past two years? 65. How do you describe the market process of tomatoes? 66. What other benefits do you derive from tomato selling as a wholesaler?

……………………………………………………………………………………………………… ………………………….. 67. How much do you sell your tomatoes 68. To which people do you sell the tomatoes 69. How much do you spend on marketing of tomatoes SECTION C: Level of efficiency of tomato marketing channels in Kampala. 70. What marketing techniques do use in improving the market for tomatoes?

...... 71. How efficient are the different marketing techniques used in marketing tomatoes? 17. What are the common marketing possibilities for fresh market tomatoes? 1. roadside stands,

2. farmers markets, 3. community supported agriculture (CSA) subscriptions, 4. local supermarkets, 5. Wholesale or retail produce auctions

SECTION E: Policy considerations to mitigate risks involved in tomato marketing. 21. What are the different risks involved in selling tomatoes?

……………………………………………………………………………..

22. What are the different risk management strategies?

…………………………………………………………………………………..

23. What is the role of government in enhancing the market of tomatoes at wholesale/retailer level?

…………………………………………………………………………………………….

……………………………………………………………………………………………