Profitability assessment of ginger retail marketing in Kampala district

Abstract

There is still a knowledge gap in ginger trade, its profitability and what influences profitability levels. This study was conducted to assess the profitability and the factors that affect the profitability of ginger among retail traders in Kampala district. A total of 80 respondents (21 males and 51 females) were interviewed using a structured questionnaire. The results indicated that many ginger traders in Kampala were generally youth (mean age of 32.61 years), that are married (70%); and have at least attained 7 years of education. Majority of the respondents (93.75%) indicated that they did not get support from the government. However, the Chi-square test of association indicated that this response was significantly related (χ 2 = 16; P < 0.001) to the market of the respondent. Respondents from Kalerwe market mostly agreed to this. Variety of ginger traded and how often the respondent stocks ginger was significantly (P ≤ 0.05) between the markets unlike time taken to sell a batch of ginger and quantities of ginger sold (P > 0.05). According to the respondents, ginger was profitable and this was ascertained by the profit calculation. Mean profits earned by the traders were Shs. 127,475.9 per 250 kilograms per week. Results of the regression model showed that this was significantly (P ≤ 0.05) influenced by education level attained by the respondent and sex of the trader. Price fluctuation (32.5%) and low prices (18.75%) were the major constraints cited by the ginger retail traders. 25% of the retail traders said that the reason they have been sustained in the ginger business is attributed to the fact that ginger is not as perishable as other horticultural produce. As a recommendation, adequate security, standard prices, quality standards and well-built market structures should be put in place. These recommendations once addressed could also improve profitability