Assessing the profitability of soybean production among smallholder outgrower farmers in Wakiso.

Abstract

Soybean production is an important agricultural activity in Uganda, and it has gained increasing attention due to its potential to provide a source of protein for both human and animal consumption. Outgrower schemes have been promoted as strategy to enhance smallholder farmers’ access to production inputs, technical assistance, and markets which are critical for increasing productivity and profitability. This study aimed to assess the profitability of soybean production among smallholder outgrower farmers in Wakiso district, Uganda. The study mainly looked at demographic and socio-economic characteristics, factors that affect the profitability of soybean production among smallholder outgrower farmers and the constraints faced by the soybean farmers in Wakiso. Data were collected from 70 soybean outgrower farmers using structured questionnaires. The data was analyzed using descriptive statistics, gross margin analysis and multiple linear regression analysis. The findings revealed that majority of the farmers (74.3%) were above 45 years of age. Majority of the farmers (98.6%) strongly agreed that poor access to credit was a major factor that affected their profitability. Delayed payments after supply of the soybean harvest was also pointed at as a major challenge that affects the soybean farmers’ production. The study concludes that outgrower soybean production is profitable and this profitability can highly increase if the challenges faced by the farmers are addressed.