Analysis of the maize value chain in Budaka District Eastern Uganda.

Abstract

The purpose of this study was to analyze the maize value chain in Budaka District, Eastern Uganda. The specific objectives were; i) to describe the actors in the maize value chain and the activities they perform ii) to determine the profitability of maize handling and trading at the different maize value chain nodes and iii) to conduct SWOT analysis of the maize value chain in Budaka District. The study applied a descriptive design utilizing quantitative approach to collect data from a sample size of 83 respondents using questionnaires. Findings revealed that packaging (21.7%) was the most frequently performed activity by farmers while agro-input suppliers focused mainly on providing agrochemicals (30.8%). Processors performed packaging processed maize products (27.8%), while wholesalers were primarily engaged in sorting and grading maize for quality (27.5%). Profitability analysis revealed that processors and wholesalers earned average gross profits of UGX 118,624 and UGX 166,647 respectively, while farmers reported a modest profit of UGX 14,971 in the first season (March-July 2024) In contrast, agro-input suppliers incurred an average loss of UGX 41,200, reflecting the impact of high input costs and operational inefficiencies. The SWOT analysis of the maize value chain revealed that farmers benefit from experience and knowledge in maize farming (24.2%), while processors benefit from access to processing technology (26.5%); agro-input suppliers from have technical knowledge (29.4%) and wholesalers showed strengths in storage capacity (23.6%). The key weaknesses identified included limited access to credit or financing (26.9%) for farmers, limited access to investment capital (26.8%) among processors and lack of consistent farmer education on correct input use (33.3%) for agro input suppliers. The threats among farmers were land degradation and soil infertility (25.0%) and wholesalers reported influx of low-quality (26.4%), which erodes competitiveness. In conclusion, the study indicated that maize value chain in Budaka District shows potential for growth despite existing limitations and it is recommended that stakeholders should prioritize improved access to markets, financial services, and agricultural extension support across all value chain actors.