In Uganda, rice production and marketing are profitable business opportunities. In the sector, women provide production and postharvest labour, while men dominate processing and marketing of the product. The limited participation of women in lucrative nodes of the rice value chain not only reduces chain performance but may also widen the gender gap in income and productivity hence reinforcing food insecurity and poverty in the country. A qualitative study was conducted in six districts of Eastern Uganda, with 21 key informants and 15 focus-groups, which involved participation of 93 women and 19 men. This study sought to generate robust information on women's participation in downstream segments of the rice value chain (DS-RVC), challenges to entry in the DS-RVC and how they can be addressed. The main result confirmed limited participation of women in DS-RVC, constrained by social-economic and institutional challenges in addition to limited opportunities and gains from engagement.
The study applies the conjectural variations approach to determine whether Ugandan rice traders exercise oligopsony power in the market for domestic rice. The trader margin for milled rice is found to be 10.20% on average. Using an econometric system of four equations, the null hypothesis of competitive behaviour holds at different price elasticities of farm supply, ranging from inelastic to elastic supply. This implies that there is no evidence that rice traders apply oligopsony power when procuring milled rice from farmers. However, since the study does not examine the existence of trader bargaining power, we cannot completely rule out the existence of market power at this node of the value chain. Therefore, future studies should examine trader bargaining power to be able to ultimately determine if there is need to intervene at this segment of rice value chains to ensure competitive behaviour.
PurposeImproving the competitiveness of East Africa's rice industries necessitates increased and viable production of rice of the quality desired by consumers. This paper aims to understand consumer preferences for rice quality attributes in Uganda and Kenya to inform the countries' rice breeding programs and value chain development interventions.Design/methodology/approachRice samples are obtained from retail markets in various districts/counties across the two countries. The samples are analyzed in a grain quality laboratory for the rice's physicochemical characteristics and the resulting data are used to non-parametrically estimate hedonic price functions. District/county dummies are included to account for potential heterogeneity in consumer preferences.FindingsUgandan consumers are willing to pay a price premium for rice with a relatively high proportion of intact grains, but the consumers discount chalkiness. Kenyan consumers discount high amylose content and impurities. There is evidence of heterogeneity in consumer preferences for rice in Mbale, Butaleja and Arua districts of Uganda and in Kericho and Busia counties of Kenya.Originality/valueThe study makes a novel contribution to the literature on consumer preferences for rice in East Africa by applying a hedonic pricing model to the data generated from a laboratory analysis of the physicochemical characteristics of rice samples obtained from the market. Rather than base our analysis on consumers' subjective sensory assessment of the quality characteristics of rice, standard laboratory methods are used to generate the data, which enables a more objective assessment of the relationship between market prices and the quantities of attributes present in the rice samples.
The study applies parametric and nonparametric estimation methods to determine hedonic prices of rice quality attributes, and a partial equilibrium model to determine the payoff to investing in quality improvement in five countries in Sub-Saharan Africa. Results indicate that consumers are willing to pay price premiums for head rice, slender grains, peak viscosity, parboiled rice, and rice sold in urban markets. However, they strongly discount amylose content, rice with impurities and imported rice. Investing in quality improvement through amylose content reduction leads to net welfare gains with a benefit-cost ratio of 47.86 and internal rate of return of 90%.
Purpose Improving milling quality is expected to improve the quality of domestic rice and hence the competitiveness of Uganda's rice industry. Therefore, this study aims to assess the determinants of four aspects of milling, namely, choice of milling technology, millers' perceptions of the importance of paddy quality attributes, milling return and milling capacity. Design/methodology/approach Multinomial logit, semi-nonparametric extended ordered probit, linear regression and additive nonparametric models are applied to cross-sectional data obtained from a sample of 196 rice millers. Findings Physical, economic, institutional, technological and sociodemographic factors are found to be important determinants of the four aspects of milling. Physical factors include the distance of the mill from major town and availability of storage space at the milling premises, while economic factors include milling charge and backward integration of miller into paddy production. Contracting and use of a single-pass mill are important institutional and technological factors, respectively, and miller's household size, age, gender and education are the key sociodemographic variables. Originality/value The study's originality lies in its scope, especially in terms of its breadth. Without compromising the needed analytical rigor, it focuses on four aspects of milling that are critical to improving the marketing of Uganda's rice. In doing so, it provides a holistic understanding of this segment of the value chain and offers specific recommendations for improving the marketing of Uganda's rice.
Abstract Latent class analysis is applied to a hedonic price model to examine the presence of heterogeneity in consumer valuation of quality attributes in the Beninese rice market. Three classes of consumers are found in proportions of 5, 56, and 39 percent. We employ a partial equilibrium model and find modest gains in consumer surplus from an increase in head rice and reduction in chalkiness. The results provide evidence of market sorting, which should be taken into consideration in upgrading rice value chains. Also, it is important to assess potential gains from quality improvement to determine priorities for research and development.
Dairy business hubs present opportunities for efficiently linking farmers to input and output markets. Yet participation by smallholder dairy farmers in these hubs will only be realized if the hub options are adapted to fit the needs of farmers. In this study we have analyzed preference for dairy business hubs in Tanzania where ILRI is currently implementing adapted hub options. Using survey data from smallholder dairy producers from Tanga and Morogoro and applying the choice experiment method we find significant preference for hub options with higher milk prices and payment for milk on a fortnight rather than cash basis. Farmers also prefer hub options that bundle milk marketing with input provision. For bundled inputs, smallholder dairy farmers prefer hub options that allow payment for such inputs via credit or check-off rather than cash. Our analyses also reveal significant heterogeneity in preference among farmers hence the need for advanced analytical approaches that can handle such heterogeneity. Emerging dairy hubs in Tanzania should be supported to either establish in-house input provision arrangements or to enter into contracts with major agro-input dealers in their environs.
Improving the economic, social and environmental sustainability of milk production in Tanzania requires relevant indicators to monitor its progress. There is no existing set of indicators to assess sustainability of smallholder dairy farming systems in Tanzania. This study was carried out to identify relevant indicators for assessing sustainability of smallholder dairy and traditional cattle milk production farms in Tanzania. In four districts, selected based on their potential in milk production, within two regions of Tanzania, a two-round Delphi approach involving 44 diverse experts and stakeholders was used. An “initial set” of 57 indicators was selected based on their relevance to the study context and measurability using literature review as well as discussions with experts and stakeholders. Then, the ‘initial set’ was refined to a final set of 29. The final set includes 18 indicators on economic, 4 on social and 7 on environment pillars. The key economic indicators were milk hygiene and cow productivity; social indicators were participation in organizations and women’s empowerment; environmental indicators were access to water and water conservation. The study showed that a large number of existing indicators might not be relevant in the context of Tanzania’s smallholder dairy and traditional cattle systems. The indicators identified here demonstrate the importance of matching any set of indicators to the characteristics and realities of the specific production system being examined. These indicators should help farmers and other stakeholders to monitor farm sustainability and guide decision makers to make appropriate policies for Tanzania.
One of the targets of Sustainable Development Goal 2 is to double agricultural productivity and incomes of small-scale food producers through, among other things, improving access to financial services including credit. However, designing appropriate mechanisms for increasing access to credit by poor households remains a challenge, especially in Sub-Saharan Africa. This paper argues that technology adoption and collective action could provide pathways to enhancing access to credit. Evidence from milk-producing households in Tanzania suggests that group membership increases the probability of borrowing and the amount of funds borrowed by households, while adoption of artificial insemination increases the amount of funds borrowed. Two major conclusions are that public policy for increasing rural households' access to credit should promote collective action, and that the likely increase in amount of funds demanded by households due to technology adoption and collective action will require policy to address issues pertaining to credit rationing of rural households.
Demonstrating how agricultural research contributes to development outcomes is difficult but necessary given competing demands for scarce resources. This article summarises an adaptation of the “theory of change” approach and lessons derived from its application to improve the design and implementation of an agricultural research for development programme for greater impact. It was applied to Maziwa Zaidi, a programme that tested integrated interventions to catalyse the transformation of smallholder dairy value chains in Tanzania. Despite challenges, the approach was found useful for planning, communication, managing complexity, monitoring behavioural changes and deriving lessons to adapt future programme activities amid complexity and uncertainties.
The study evaluates the impact of risk on enterprises of male, female and young farmers operating in the formal and informal smallholder dairy value chains in Tanzania. It also examines the effect of uncertainty on the decision to invest in milk production in the two value chains. Results indicate that youths in the informal dairy value chain face the greatest level of risk followed by men in the formal value chain, and then men in the informal value chain. Women in both value chains and youths in the formal value chain face relatively low risk. Overall, milk production in the informal value chain is found to be substantially riskier than production in the formal chain. Optimal investment triggers are found to be much larger than the conventional triggers and are sensitive to volatility of returns. The results' managerial and policy implications for inclusive dairy industry development in Tanzania are highlighted.
Key messages Risk and uncertainty are persistent problems for farmers, often leading to sub-optimal production and investment decisions Risk and uncertainty exists in formal and informal dairy value chains – the latter value chain is considerably riskier than the former Youth producing milk in the informal value chain face significantly higher risks Tailored risk mitigation measures should be directed towards different categories of milk producers Opportunities to invest and scale Public investment in physical (e.g. roads, electricity) and institutional (e.g. regulations, producer associations) infrastructure to mitigate uncertainty in dairy value chains Private investors to produce concentrate feed; private sector use of input supply contracts (perhaps through dairy market hubs) Milk producers should invest (be supported to invest) in growing capacity in strategic management that includes ability to exercise flexibility in decision making to enable adaptation to uncertainty Public/private investors to provide market information services to dairy farmers to enable them exercise flexibility in decision making (could be achieved through DMHs)
Key messages Maziwa Zaidi lessons are relevant to ASDP-2 Component 3 on rural commercialization that emphasizes “market pull” factors. The lessons can be applied to strengthen and grow competitive value chains in the following areas: • Improving access and use of inputs and services including credit among pre-commercial producers • Increasing participation of smallholders in output markets • Improving enabling environment for value chain actors to generate innovation Opportunities to invest and scale • Focus on growing pre-commercial value chains • Public investments to strengthen partnerships involving upstream and systems research with problem-solving focus in value chains • Public and private investments to strengthen MSPs and research-extension linkages • Extrapolate lessons from Maziwa Zaidi to other highvalue commodity value chains and enhance synergies across them
Key messages • Transforming dairy value chains requires efforts of a range of stakeholders • Hubs and “Innovation platforms” are effective multi-stakeholder processes (MSPs) to bring together these stakeholders to solve common problems. • Multi-stakeholder processes can be organised at village level with links to farmer groups and local market actors; at district and regional levels, to integrate research, innovation and extension interventions, alongside business actions; and, at national level, where the Dairy Development Forum plays a strategic role in national policy dialogue to catalyze widespread innovation Opportunities to invest and scale • Public investments for dairy sector R&D to include effective linkages of MSPs to existing public extension system
ABSTRACTThis paper examines the impact of mandatory Country of Origin Labeling on American imports of Canadian hogs and pork by testing for structural change. Given the uncertainties over the timing of the implementation and reform of COOL, we implement statistical procedures that endogenously test for structural change over multiple time periods. We find evidence that COOL has impacted U.S./Canada feeder and slaughter hog trade flows. In contrast, we found no evidence of structural change for pork trade flows that could be associated with COOL. [EconLit citations: Q17; C12].
Mandatory country of origin labeling (COOL) has become a thorny issue in U.S.–Canada bilateral trade relations. We undertake an ex post investigation of the impact of the law on U.S. imports of Canadian beef, feeder, and fed cattle. Using a partial equilibrium framework, we derive U.S. import demand equations for Canadian cattle and beef, and employ the Bai and Perron (1998, 2003) procedure for detecting multiple structural breaks with break points being endogenously determined. We find evidence that COOL may have caused significant structural change in U.S. imports of Canadian feeder and fed cattle.L’étiquetage du pays d'origine obligatoire est devenu un sujet épineux des relations commerciales entre le Canada et les États‐Unis. Dans la présente étude, nous effectuons une analyse ex post des répercussions de la Loi sur les importations américaines de viande de bœuf, de bovins d'engraissement et de bovins finis. À l'aide d'un modèle d’équilibre partiel, nous avons dérivé des équations de demande d'importation de bovins et de viande de bœuf de la part des États‐Unis et nous avons utilisé les tests de Bai et Perron (1998, 2003) pour déceler les ruptures structurelles multiples, dont les points de rupture ont été déterminés de façon endogène. Les résultats de notre étude montrent que l’étiquetage du pays d'origine peut avoir causé un changement structurel considérable sur les importations de bovins d'engraissement et de bovins finis.