Understanding the welfare effects of contract farming in egg production in Uganda

Abstract

This report is about the study entitled “understanding the effects of contract farming in Egg production acase of Terrah poultry farm.” The area of study was Terrah in Kayunga Wakiso with specific objectives being to analyze supplier development activities used in enterprises. Identify how profitability is attained through identify the profitability is attained through supplier development by contract farming. Relevant literature related to the study has also been reviewed. Within the methodology the research design was qualitative and quantitative in nature with 50 respondents covering both administrators and lower level employees obtained using the stratified random sampling technique. The sources of data were both primary and secondary with the primary being obtained from questionnaires and interviews with the guidance of an interview guide while the secondary was obtained from the review of text books, journals and reports with data related to the study. The study variables used were supplier development as the independent and profitability being the dependent in contract farming. Findings of the study showed that contract farming benefited both consumers and enterprise it eased enterprises identifications and inspection levels of desired product quality standards and had image created in the minds of the enterprise thus casing operations and ensuring profitability effective supply management involves dedicating majority of company resources to suppliers that provide critical and unique goods, profitability was attained through supplier audits to ensure the supplier is following the processes and procedures agreed upon during the selection process, enterprises also engaged suppliers in all aspects of the quality management systems which helped them achieve profitability. Recommendations made were that management should sensitize involvement in efficient surplus research and development compare companies products against competitors products not to only to create impression of the existence of the market, supplier workshops should be intensified as it make suppliers fee; part in the production of final products, development of even the minor (out grower) suppliers and not only major ones. Them the company should even search for more vi suppliers abroad as this improves delivery and ensures sustainability. The study recommended that more research should be done to understanding the effect of contract farming in sunflower production to ensure quality of output in enterprise.