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... This widespread cultivation places Uganda among the top ten coffeeproducing countries in the world. Approximately 500,000 smallholder families are engaged directly in its production, with over seven million people depending on the crop for their livelihood ( Masiga et al. 2007). The crop once generated more than 95 percent of the export income but its importance has declined over time as nontraditional exports have picked up and coffee now represents only around 20 percent of total export earnings. ...
... The CMB in turn reprocessed the crop and exported it as green coffee. The prices paid at each level were predetermined by the authorities and did not change with movements in the international coffee market ( Masiga et al. 2007). ...
... Over the years, the importance of the WRS in Uganda has been motivated by various factors. After the liberalization of markets of many sub-Saharan countries in the 1990s, farmers faced financial challenges due to a coffee/cotton price slump; mismanagement of and corruption by marketing boards (Varangis and Larson, 1996;Masiga and Ruhweza, 2007;CTA, ACP and EU, 2013) and heavy taxes imposed on export crops (Ilorah, 2006). As such, WRS operations under the public sector are observed as early as 1995/96 when the WRS was proposed under the now Ministry of Trade Industry and Cooperatives (MTIC). ...
Warehouse receipt systems (WRS) allow farmers and traders to access markets and financial systems. While this system is not new in Uganda, as seen by both public and private effort since 2004 during its pilot, very little is known why it failed to ensure market access and credit. With the Uganda Warehouse Receipt System Authority in place, the government of Uganda seeks to reinstate the public warehouse receipt system with a focus on the electronic WRS (E-WRS). This study therefore seeks to document perceived benefits and challenges of private sector stakeholders of the WRS in Uganda. This paper relies on qualitative data and follows the Structure-Conduct-Performance framework used to analyse agricultural commodity markets. The results reveal that while the market structure and conduct of the pilot WRS was implemented as theorized, it faced various barriers that led to poor market performance. Despite the challenges, actors are optimistic that reinstating the WRS will lead to better access to markets and credit. The paper draws important policy implications for the implementation of the WRS including the need for government to spearhead promotion of standards; improvements in smallholder productivity; capacity strengthening of collective action; and the importance of increased sensitization on all aspects of the WRS.
... Ugandan market liberalisation reforms in the 1990s led to the subsequent emergence of member-owned grassroots RPOs (Mrema, 2008;Kwapong and Korugyendo, 2010). These RPOs are especially common in the coffee sector (Masiga and Ruhweza, 2007;Mrema, 2008;Kwapong and Korugyendo, 2010). They organise the collective marketing of smallholder produce, thus enabling farmers to achieve economies of scale and negotiate better prices, bypassing local middlemen. ...
Voluntary sustainability standards, aimed at improving the environmental, social and economic aspects of agricultural production and trade, are becoming increasingly common. The coffee sector is a prime example, where sustainability certification could improve livelihoods for poor smallholders. However, as individual production volumes are low, smallholder farmers need to cooperate in certification as a group, which makes impact assessment more complicated. Previous empirical studies, reporting premia of up to 30%, have neglected the costs associated with group certification. We explore the issue using an agent-based simulation of coffee producer organisations in Uganda, including the certification-related costs for farmers. Our results suggest that certification can have a small positive impact on participating households. But the added value of certification is substantially lower than the price premium, because of certification costs. Increasing both the membership of the producer groups and their deliveries of certified coffee are necessary to improve the rewards of certification.
... The first organizations of agricultural producers were formed in Uganda during the first half of the 20th century under the British colonial government and were traditionally involved in the marketing of coffee and cotton (Kasozi, 2008; Masiga & Ruhweza, 2007; Mrema, 2008, chap. 5). ...
Rural producer organizations (RPOs) are currently seen as mechanisms of reducing transaction costs and improving market access of smallholder farmers. Yet little is known about the determinants of RPO effectiveness, especially in Sub-Saharan African countries. In this article we assess functioning of Ugandan RPO using a combination of participatory research and survey methods. We recommend areas for development interventions that would enhance the positive impact of RPO on livelihoods of their members. The proposed interventions refer to monetary transactions between RPO and their members, information channels within RPO, access to inputs and finance, member knowledge capacity and motivation of leaders.
... The estimated area under coffee and banana in Uganda was 265,000 and 1,815,000 ha, respectively in 2008 (FAO, 2010a). Arabica (Coffea arabica) and Robusta (Coffea canephora) are the two types of coffee grown and are estimated to comprise 10% and 90% of the total production in Uganda, respectively (Masiga and Ruhweza, 2007). The East African highland banana (Musa spp. ...
Coffee and banana are major cash and food crops, respectively, for many smallholders in the East African highlands. Uganda is the largest banana producer and 2nd largest coffee producer in Africa. Both crops are predominantly grown as monocultures. However, coffee-banana intercropping is common in densely populated areas. This study assessed the profitability of intercropped coffee-banana systems compared to mono-cropped systems in regions growing Arabica (Mt. Elgon) and Robusta (south and west) coffee in Uganda. The study was carried out in 152 plots in 2006/2007. Data were collected through structured farmer interviews, field measurements and observations. Coffee yields did not differ significantly (P <= 0.05) between mono-crops and intercrops. Arabica coffee yields were 1.23 and 1.18 t ha(-1) year(-1) of green beans in mono-cropped and intercropped plots, respectively. Robusta yields averaged 1.25 and 1.09 t ha(-1) year(-1) of green beans in mono-crops and intercrops, respectively. Banana yields were significantly higher (P <= 0.05) in intercrops (20.19 t ha(-1) year(-1)) compared with mono-crops (14.82 t ha(-1) year(-1)) in Arabica growing region. In Robusta growing region, banana yields were significantly lower (P <= 0.05) in intercrops (8.89 t ha(-1) year(-1)) compared with mono-crops (15.04 t ha(-1) year(-1)). Marginal rate of returns of adding banana to mono-cropped coffee was 911% and 200% in Arabica and Robusta growing regions, respectively. Fluctuations in coffee prices are not likely to affect the acceptability of intercrops when compared with coffee mono-crops in both regions, but an increase in wage rates by 100% can make intercropping unacceptable in Robusta growing region. This study showed that coffee-banana intercropping is much more beneficial than banana or coffee mono-cropping and that agricultural intensification of food and cash crops in African smallholder systems should not solely depend on the mono-crop pathway.
... The CMB in turn reprocessed the crop and exported it as green 27 coffee. The prices paid at each level were pre-determined by the authorities and did not change with movements in the international coffee market (Masiga et al, 2007). The Coffee Marketing Board monopoly was abolished in 1991. ...
This paper studies how the internal structure of agriculture export markets and the level of competition affect poverty and welfare in rural areas in Africa. We develop a game-theory model of supply chains in cash crop agriculture between many atomistic smallholders and a few exporters. The model provides the tools needed to simulate the changes in farm-gate prices of export crops given hypothetical changes in the structure of the supply chain. Using household surveys, we assess the poverty impacts of those changes in the value chains for twelve case studies. We investigate the average impact for all rural households, the distribution of these impacts for poor vis-à-vis non-poor households, and the differences in impacts between male- and female-headed households. Overall we find that an increase in competition among processors is good for the farmers. However, small changes to the level of competition are unlikely to have significant effects on farmers’ livelihood. We also find that, on average, non-poor, male headed household are the ones that benefit the most from an increase in competition. The introduction of outgrower contracts in our model only produces significant changes in the simulations of one of our case studies.
... See Figure 8for Ugandan coffee export value and volume data.5 The sector accounts for around one-quarter of total employment in Uganda (seeLewin et al., 2004;Masiga et al., 2007). However, information on the proportion of coffee export 6 See alsoSsewanyana and Bategeka (2010); teVelde et al. (2010). ...
... Approximately 500,000 smallholder families are engaged directly in its production, with over seven million people depending on the crop for their livelihoods (Masiga et al, 2007). The crop once generated more than 95% of the export income but its importance has declined over time as non-traditional exports had picked up and coffee represents nowadays only around 20% of total export earnings. ...
... The CMB in turn reprocessed the crop and exported it as green coffee. The prices paid at each level were pre-determined by the authorities and did not change with movements in the international coffee market (Masiga et al, 2007). ...
... This section is based mostly onCheyns et al (2006),Masiga et al (2007), andVargas Hill (2010) ...
This article takes the food crisis that began in 2007 as an occasion to draw attention to the deleterious impact of agricultural market volatility on poor farmers and food importing low-income countries. The article presents a menu of mechanisms that may reduce volatility or farmer and low-income country exposure to it. This is followed by a discussion of mechanisms that allow for the transfer of price risk through the use of instruments such as futures and options. Surveying empirical cases and experimental studies, the article focuses on potential applications of such mechanisms in low-income country settings.
