Value chain analysis of cooking type of bananas in Wakiso district

Abstract

Banana is a very important crop in the world including East Africa. Bananas are a staple food to 16 million people in Uganda, and 75% of all farmers in Uganda grow bananas. The main objective of the study was to carry out value chain analysis of cooking bananas in Wakiso district. The specific objectives were; 1) to identify the main players in the banana value chain, 2) to identify the challenges faced by value chain actors involved in cooking banana, 3) to determine the profitability of marketing cooking type bananas. Data were collected from 60 respondents who were randomly selected. Descriptive statistics and gross margins analysis were used in analyzing the data, Using SPSS and EXCEL programs. The results indicated that the major players in the banana value chain are wholesalers, processors, bicycle hawkers, brokers, lorry traders and retailers being the majority. The study showed that value chain actors faced several challenges which included low banana prices, perishability of bananas, high competition from other food crops, fluctuating banana prices, poor climatic conditions, long distance to the market, low demand of bananas, unfavorable season, long distance to the farmers, high taxes and lack of proper means to transport bananas to the market. Results indicated that on average, famers earn a gross margin of 3000 shillings per bunch, retailers receive 5000 shillings per bunch, processor receive 2000 shillings per bunch, bicycle hawkers receive 4000 shillings per bunch, brokers and lorry traders receive 3000 shillings per bunch as their gross margins per bunch. The overall marketing margin was 22000 shillings per bunch. The study recommends that the government subsidizes farmers to reduce the cost of inputs thus reducing the cost of production. In addition, value addition should be encouraged among farmers to reduce on the bananas lost due to perishability. Infrastructural development to ease movement of bananas from farmers to the market is also key. Farmer associations should lobby for their respective member farmers and jointly procure inputs and materials to share the costs thus improve the profitability of the business.