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Towards agricultural transformation : factors influencing the cultivation of high value agricultural products in Uganda

Jayne, Ryan (2017-03)

Thesis (MCom)--Stellenbosch University, 2018.

Thesis

ENGLISH SUMMARY : Growing global markets have created opportunities that much of sub-Saharan Africa has been leveraging through the expansion of export diversification. The share of high-value agriculture (HVA) in total exports out of sub-Saharan Africa has increased from 8.4% in 2001 to 10.2% in 2016, although it is believed this is far beneath SSA’s true potential. The emergence of domestic and international markets for high value agricultural products presents a real opportunity for growth and development, specifically for smallholder famers by providing increased economic returns and marketing opportunities. It is becoming widely recognized that various development indicators can improve if smallholder farmers are better integrated into these markets. Using Ugandan household panel data, this study seeks to understand the factors related to the decision to cultivate HVA and the households’ marketing outcomes. A triple-hurdle model is employed to robustly examine market-related decisions made by smallholder farmers beyond common approaches to market participation models. Results indicate that policies that encourage HVA market participation simultaneously increase the likelihood of non-producers of HVA to commence producing and lead to greater levels of net sales in the market. Furthermore, HVA producers have greater likelihoods associated with being net sellers in the market.

AFRIKAANSE OPSOMMING : Groeiende internasionale markte het geleenthede vir ʼn beduidende gedeelte van Afrika suid van die Sahara (SSA) geskep, hierdie is deur die groei in uitvoer diversifikasie versterk. Die aandeel van hoë-waarde landbou (HWL) uitvoere in totale uitvoere in SSA het tussen 2001 en 2016 van 8.4% tot 10.2% gestyg, maar sommiges is steeds van mening dat hierdie onder die streek se potensiaal is. Die totstandkoming van plaaslike en internasionale markte vir HWL produkte bied ware geleenthede vir groei en ontwikkeling, spesifiek vir kleinboere deur die skep van ekonomiese- en bemarkingsgeleenthede. Dit is nou alombekend dat verskeie ontwikkelingsaanduiders verbeter kan word indien kleinboere beter met markte geïntegreer word. Hierdie studie gebruik ʼn Ugandese huishoudelike-paneeldatastel om huishoudings se besluit om HWL produkte te produseer beter te verstaan en die bemarkingsuitkomste daarvan te kwantifiseer. In teenstelling met die meer algemene markdeelname-benadering gebruik hierdie studie ʼn driedubbele-versperringsmodel om die markverwante besluite van kleinskaalse boere op meer robuuste wyse te ondersoek. Die resultate dui aan dat die beleid wat HWL mark deelname aanmoedig beide die waarskynlikheid van HWL produksie onder nie-HWL kleinboere verhoog en tot hoër netto mark verkope lei. Verder het HWL produsente ook ʼn groter waarskynlikheid om met netto verkopers in die mark geassosieer te word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/103562
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