The economics of groundnut production and marketing: a case study Kaberamaido Kalaki sub-county, Teso sub-region.

Abstract

Groundnut is one of the dominant crops in Uganda that enable most of smallholder farmers earn both food and income. It is one of the biggest sources of fats, protein, carbohydrates, and vitamins for human consumption. The crop is also a source of human nutritious minerals, as well as other manufactured animal feeds. But, despite the cited overall importance of the crop amongst smallholder farmers in the country; its production countrywide, is often affected by a number of socio-economic factors. As one of the cases in point, Teso region is not an exception from this consequence, and, it was from this viewpoint that this study was proposed. The study was conducted in Teso Region, and basically in Kalaki sub-county where household groundnut production is becoming increasingly limited overtime. The major study-objective was to investigate the main factors leading to decrease in productivity of groundnut under rain-fed conditions in kalaki, to analyze the cost of production and productivity and to identify the marketing constraints of groundnut production in the area. A multivariate regression analysis was adopted so as to both identify and quantify such potential causal factors. The sample size for the study comprised of 50 farmers. A semi-structured questionnaire for the Focus Group Discussion (FGD) was used to solicit data on qualitative aspects of the study, and, a Statistical Package called SPSS was used for data analysis. The study results suggest that lack of markets, low price and lack of credit facilities were the major constraints. Additionally, the farm size was identified as another important factor in determining groundnut production. Most of the respondents reported pests and diseases as major constraints in groundnut farming and few reported poor seed variety and weeds as major constraints in the production. Basically, the overall contribution of groundnut production on household income was significant. It is recommended that among other things, the government through the extension department should ensure that smallholder groundnut farmers have access to pesticides and disease resistant varieties.