Collective marketing and profitability of tomatoes among small scale farmers in Mpeefu sub county Kagadi district.

Abstract

This special project report was compiled after conducting a survey on the impact of collective marketing on profitability of tomato farmers in Kagadi district. Despite the significant roles of farmer groups in collective marketing of tomatoes, limited literature has studied the farmer- level determinants of participation in collective action in Mid western Uganda, Kagadi district. This study examined factors associated with participation in collective marketing Specifically, the study sought to characterize the tomato farmers based on marketing mode, as well as assess the level of profitability across different modes of marketing and assessing the determinants of farmer’s choice of marketing mode of tomato products. Primary data was collected by a combined use of survey questions, informal interview methods and observation from a sample size of 80 respondents. Data was then analyzed using descriptive statistics, gross margin analysis and Linear regression analysis and this was computed using statistical software (Stata). The gross margin analysis indicated that collective marketing among tomato farmers is more profitable with an average gross margin of Uganda shillings 1,019,375 earned by farmers per season compared to individual marketing mode that is less profitable with an average Gross margin of 349,325 The results showed that adjusted R squared was 0.5884 implying that 58.84% of the variations in profitability is explained by the independent variables. The model was estimated using 10 variables. Basing on the p values the results showed that three variables were significant at 1% significance level. The results showed that collective marketing, type of labour and access to extension services are significant in affecting the profitability of farmers. The findings suggest that economic benefits from participation in tomato farmer groups should be enhanced in order to increase the collective marketing of tomatoes. However, the government should provide alternative employment opportunities, knowledge-based training, and low-interest credit to support collective marketing of tomatoes Reliable technical support, and support towards the formation of farmer cooperatives or associations to strengthen bargaining power and enable collective marketing initiatives should be looked at.