Assessing the Profitability of Maize Grain Trade in Selected Markets of Kampala

Abstract

This special project was compiled after conducting research in selected markets of Kampala (kalerwe, kasubi, owino and Nakasero) on assessing the profitability of maize grain trade in selected markets of Kampala. The main objective was to assess the profitability of maize grain trade in selected Kampala markets. The information attained in this report was collected mainly using questionnaires, mainly primary and secondary data was used.A total of 70 maize traders were interviewed using questionnaires. The specific objectives were to identify the characteristic of maize grain traders and marketing channels used,to examine the marketing margins for the traders and to identity the factors affecting the marketing of maize grain in Kampala. Results showed that the main fixed expected was rent and variable cost was labour costs among traders. The gross margin analysis indicated that maize business is profitable with an average gross margin per maize grain trader was of Ug.shs 271008.15 and 231878.89 during the peak and lean season respectively though still low. The study recommends that the relevant authorities reduce taxes, educate and train Traders, establish processing machines, carry out value addition, provide loans and encourage exports and all these can help in increasing profitability from maize grain trade.