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.