the structure of emerging rice markets in uganda

7/29/2019 The structure of emerging rice markets in Uganda

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The structure of emerging

rice markets in Uganda

Masako FujiieChiba University


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1961 1971 1981 1991 2001 2011

mt/haRice Yield by Region

Africa South America Asia

Source: faostat


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How rapidly the green revolution canbe achieved?

Japan:started in the late 19 centuryIt took 100 years to raise the yield of rice

from 1t to 2t.

Asia :started in 196040 years from 2t/ha to 4t/ha.

South America :started in 1980

20 years from 2t/ha to 4t/ha. Uganda :started in 200?

CARDCoalition for African Rice Development

aims to double rice production in 10 years


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Glaberrima NERICA

NERICA High yield variety in Africa


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Is underdevelopment of local rice market hinder thedevelopment of rice production?

What are the characteristics of local rice market inUganda?

how middlemen at various levels are organized into anentire network of rice marketing and how efficientlythe system works ?


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Study Area1) Traditional rice growing area (Eastern part of Uganda)

2 villages in Namutumba Distrit

2) New rice growing area ( Western part of Uganda)

2 villages in Hoima District

Samples240 farmers

Namutumba : Near town 60far from town 60

Hoima : Near town 60far from town 60

60 traders30 ricemillers


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Miller Miller

Farmers

Village middlemen

Agent/Independent

collector

Village

Villagemiddleman

Town middlemen

Wholesaler

Retailer

UrbanTrader

Urban area

Outside/Urban Trader

Townmiddleman

RetailerMiller

Local Town

Trading center


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Transaction between farmers and middlemen

Payment mode

Selling rice in several times (when farmers need cash)

due to bad security condition

Competition among middlemen

every year farmers sell rice to different middlemen

In Namutumba Distrit , 85% of farmers sell milled rice

while in Hoima district, 90 % of farmers sell paddy rice.


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Findings on the characteristics of the middlemen of rice in Uganda

1. Most millers do not deal rice sale. (1/30 of millers deal rice in a large scale.)

2. Most village middlemen are farmers at the same time. (about 80%)

3. There are no restriction to enter the rice market. Average initial investment forbecoming a middleman is about $200.

4. Average education level of middlemen is statistically higher than that of farmers

5. Most rice traders are also dealing other crops.

6. All Middlemen buy maize at farm gates before milling.


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Transaction between local middlemen and urban traders

Buying rice from Selling rice to

Village middlemen Farmers 88%Other village middlemen12%

Outside traders 56%

Town traders and others44%

Town middlemenFarmers 47% (includingthrough collectors)Village middlemen &others 53%

Outside traders 87%

Wholesalers inKampala 11%Retailers & others 2%


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- Outside traders generally come once or twice a week

and make order of rice to local middlemen with price,

volume to buy, and deadline.- Outside traders give some fund in advance to

middlemen to buy the rice

- Only the middlemen who possess physical assetssuch us stores or storage can get order fromoutside traders.

- Outside traders and local middlemen generallykeep long relationship.

Institutional arrangements between middlemen and traders

Customs of rice trading between local middlemen and outside traders.


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Lack local information on the conditions of production.

Use local middlemen to save searching cost of farmers.

Have local information but lacking funds to buy

rice. Always monitor the rice production conditions

of farmers so that they can respond the riceorder from outside immediately.

Complementary relationship between outside traders and local middlemen.-Under the conditions of communication development in Uganda-

Outside traders

Local middlemen


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Why in eastern region most farmers sell milledrice while in west region most farmers sell paddy

rice?

Problemof lemon market

the structure of emerging rice markets in uganda

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