Impact of changing prices of cassava on its profitability among smallholder farmers of Vurra sub-county, Arua district.

Abstract

This research was about assessing the impact of changing prices of cassava on its profitability among smallholder farmers of Vurra sub-county, Arua district. The research aimed at the socioeconomic and demographic factors affecting the changing prices of cassava and its profitability among smallholder farmers in Vurra sub-county. The sampling frame was the cassava farmers of Vurra sub-county, Arua. A sample of 138 farmers was used and this estimated using purposive sampling technique in which the farmers from Vurra were selected. Data was collected using questionnaires drafted and interviews carried out. Analysis of collected data was done using multiple linear regression, log linear regression and descriptive statistics with the help of SPSS and stata. From the findings, it was found out that unit change in expense on machinery leads to change in price of cassava by 9.497 which was the greatest among the factors that were associated with the price of cassava and this was at significance level of 5%. The price of cassava was found out to be 2009.421 at 5% significance level. It was also found out that decrease in price of cassava by 1 unit reduces the profitability of cassava among the smallholder farmers by 10.62% and this was at significance level of 5%. The farmers who sold their cassava in processed form experienced 2.7% increase in the profitability of their cassava and the farmers who had increased the size of area for cassava growing experienced increase in profitability by 2.2%. The farmers who were able to sale their cassava in the international market had an increase in profitability by 6.5 % compared to the ones who were selling in the local markets. The farmers who studied up to University experienced higher profitability of 4.1% compared to the farmers who stopped at other levels. This was attributed towards the high level knowledge these farmers obtain from the University. The farmers who spent more years in cassava growing had increased profitability. This was because these farmers are exposed to more ways of growing cassava and they are in position to know the diseases that attack cassava and be able to provide ways of controlling them. It was also found out that majority of the farmers do other side jobs besides cassava growing in order to cope up with these changing cassava prices.