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Dairy farmers’ access to market in Uganda: Observing the unobservable

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  • Mtimet, Nadhem
  • Pica-Ciamarra, Ugo

Abstract

Enhancing access to output markets for smallholder farmers is recognized as an effective tool for poverty reduction: the more smallholders produce and sell to the market, the higher their income and overall livelihoods. The underlying assumption, which is rarely spelled-out, is that market access represents a major incentive for smallholders to shift their production objective from subsistence to commercial, i.e. to set up sustainable businesses, be they either small or large, around their agricultural assets. This paper relies on the Uganda 2011/12 National Panel Survey (NPS) to investigate the linkages between access to market and dairy farmers’ self-reported subsistence and commercial production objectives. Market access, including both market participation and intensity of participation, is found to depend on a variety of observable farmers’ characteristics. Market participation, however, does also depend on whether the farmer considers himself or herself as commercially-oriented. There are thus some unobservable characteristics, such as smallholder’s risk attitude and willingness to invest in dairy, that influence farmer’s decision to participate in markets, and that are difficult to capture using traditional household and farm level data. This makes it challenging for decision-makers to design and implement policies that utilize markets as a tool out of poverty.

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  • Mtimet, Nadhem & Pica-Ciamarra, Ugo, 2016. "Dairy farmers’ access to market in Uganda: Observing the unobservable," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249282, African Association of Agricultural Economists (AAAE).
  • Handle: RePEc:ags:aaae16:249282
    DOI: 10.22004/ag.econ.249282
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    References listed on IDEAS

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    3. Bardhan, Dwaipayan & Sharma, M.L. & Saxena, Raka, 2012. "Market Participation Behaviour of Smallholder Dairy Farmers in Uttarakhand: A Disaggregated Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(2).
    4. Chamberlin, Jordan & Jayne, T.S., 2013. "Unpacking the Meaning of ‘Market Access’: Evidence from Rural Kenya," World Development, Elsevier, vol. 41(C), pages 245-264.
    5. Balagtas, Joseph Valdes & Coulibaly, Jeanne Y. & Mohammad, Jabbar & Negassa, Asfaw, 2007. "Dairy Market Participation with Endogenous Livestock Ownership: Evidence from Cote d'Ivoire," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9728, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Isabelle Baltenweck & Steve Staal, 2007. "Beyond One‐Size‐Fits‐All: Differentiating Market Access Measures for Commodity Systems in the Kenyan Highlands," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 536-548, September.
    7. Omiti, John M. & Otieno, David Jakinda & Nyanamba, Timothy O. & McCullough, Ellen B., 2009. "Factors influencing the intensity of market participation by smallholder farmers: A case study of rural and peri-urban areas of Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 3(1), pages 1-26, March.
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    Keywords

    Consumer/Household Economics; Livestock Production/Industries; Marketing;
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