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African Journal of Food, Agriculture, Nutrition and Development
Rural Outreach Program
ISSN: 1684-5358 EISSN: 1684-5358
Vol. 18, No. 1, 2018, pp. 13226-13238
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Bioline Code: nd18024
Full paper language: English
Document type: Research Article
Document available free of charge
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African Journal of Food, Agriculture, Nutrition and Development, Vol. 18, No. 1, 2018, pp. 13226-13238
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VALUE CHAIN AND MARKETING MARGINS OF CASSAVA: AN ASSESSMENT OF CASSAVA MARKETING IN NORTHERN UGANDA
Odongo, W & Etany, S
Abstract
Cassava is one of the emerging market oriented agricultural commodities with potential
to contribute to improved livelihoods of smallholder farmers in Uganda. Besides being a
food crop, cassava is attracting more attention as a commercial commodity. The rise in
the commercial orientation of cassava is due to the fact that cassava products have
important industrial applications for plywood, textile, bakery, pharmaceutical, paper,
alcohol, and food industries. However, this commercial potential of cassava has not been
fully realized in Uganda, with cassava being largely produced and consumed
domestically. There is need to understand the factors hindering the commercialization of
cassava and its products if it’s full potential are to be realized. This paper assessed the
market potentials of cassava and its products in northern Uganda with the aim of
improving its commercialization. Data was collected through a quantitative survey of
110 cassava producers and traders in Lira District between 2012 and 2013. Analysis was
done using SPSS and Excel. Results show that fresh tubers dominated the marketed
products by both producers and retailers (50 %). Among the three cassava marketing
channels, the producer – retailer channel had the highest gross margins; sold as a bag at
the farm gate price of $ 12, the retailer realizes a markup price of $ 8 per bag. Selling
cassava as a “heap” on the street was even more valuable as the price is pegged at an
average 50% above the farm gate price. Processing of cassava increased the gross
margins by at least 40% compared to fresh tubers. Producers realized gross margins that
were 112% above those for fresh tubers, suggesting that producers can benefit from
processing cassava into chips. Wholesalers had advantage only when they marketed
cassava flour (US$ 0.32) second to retailers at US$0.56. These findings suggest that
cassava has good market potential to improve the incomes and livelihoods of households
in northern Uganda. This, however, can only be realized if cassava can be processed into
value added products such as starch and high quality cassava flour which have high
commercial values.
Keywords
Cassava; cassava products; value chain; marketing margin; northern Uganda
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