Assessing profitability of chicken marketing for traders in selected markets of Kampala

Abstract

Chicken are the most commonly traded and consumed type of poultry in Uganda. The demand for chicken is also projected to increase with an increase in population. It is therefore important to examine the market for the chicken as well as trader’s ability to meet consumer demand and make profits. This special project research analyzed the factors that affect the profitability of trading in chicken by small-scale traders in selected markets of Kasubi, Kalerwe and Owino markets. Specifically, the research examined the levels of profits and margins, the constraints faced in marketing and the factors affecting the profits obtained by the traders. A survey research design was used, whereby a questionnaire was administered to the traders that were randomly selected from the markets. The analysis of the data was done by using profitability analysis and also by using a Likert scale. The results indicate that trading in all chicken types was profitable, with the highest profits coming in from the trade of off-layers and local chicken. The results also showed that the main factors that affected profitability of trading in chicken were the location of the market, type of chicken, infrastructural development and limited cooperation among traders. The main recommendations to improve efficiency of marketing systems noted in the results included improvement of road infrastructure, more skilling and training of traders in better business management and also availing flexible credit services to the traders.