The effect of access to storage facilities on the profitability of fruit and vegetable vendors in urban food markets in Kampala.

Abstract

This study investigates the factors influencing access to storage facilities among fruit and vegetable vendors in four major markets in Kampala, Uganda (Kalerwe, Nakawa, Nakasero and Owino), and examines their effect on profitability and spoilage. Despite their critical role in urban food supply chains, vendors face significant postharvest losses due to inadequate storage, which undermines profitability. Primary data were collected from 60 vendors using a structured questionnaire and analyzed using Tobit regression, one-sample t-tests, one-way ANOVA, profitability ratio analysis, and descriptive statistics. The findings show that all vendors (100%) reported some form of storage, but the type and quality varied. Low-cost options such as open-air spaces, vending shelves, and market shades were the most common, while refrigerated storage was rarely used due to high costs and unreliable electricity. Vendors in Kalerwe and Nakawa, who mainly relied on open-air storage, recorded higher profit margins (28% and 27.5%) but suffered significant spoilage losses, with Kalerwe losing up to UGX 50,871 weekly. In contrast, Nakasero and Owino vendors, who invested in refrigeration, achieved lower profit margins (24.9% and 20.7%) because of high operational costs, despite charging premium prices. Hybrid storage strategies, combining refrigeration for perishables and open-air storage for hardy produce, appeared more sustainable. Tobit regression results showed that gender significantly influenced storage access with coefficient of –0.033,( p = 0.007), with female vendors disadvantaged compared to males. Education ( p = 0.031), cost (β = 0.052, p < 0.001), and market infrastructure (e.g., shade storage, β = 0.049, p = 0.004) enhanced access. The study concludes that while storage type affects profitability, affordable and accessible facilities are critical. It recommends targeted support for women, subsidized storage options, and improved market infrastructure to reduce losses and enhance vendor profitability.