Prices, profit margins and intermediary market power: evidence from the matooke value chain in Uganda

IF 2.4 Q2 AGRICULTURAL ECONOMICS & POLICY Journal of Agribusiness in Developing and Emerging Economies Pub Date : 2023-02-28 DOI:10.1108/jadee-06-2022-0105
R. Kuijpers, Esther Smits, C.P.C.M. Steijn, Nasser Mulumba, M. Asindu, F. Kruijssen, E. Kikulwe
{"title":"Prices, profit margins and intermediary market power: evidence from the matooke value chain in Uganda","authors":"R. Kuijpers, Esther Smits, C.P.C.M. Steijn, Nasser Mulumba, M. Asindu, F. Kruijssen, E. Kikulwe","doi":"10.1108/jadee-06-2022-0105","DOIUrl":null,"url":null,"abstract":"PurposeThere is widespread belief that intermediaries in African agri-food value chains have disproportionate market power. In this paper, the authors examine this belief by uncovering the purchasing and selling prices, costs and profit margins by farmers, intermediaries and retailers in the matooke (cooking banana) value chain in Uganda, and by analysing the prevailing value chain and market structures, seasonal entry and exit dynamics and the trading relationships in the chain.Design/methodology/approachData for this study were collected along the trading routes from the main matooke producing districts in South-West Uganda (Kabarole, Bunyangabo, Bushenyi, Isingiro and Mbarara) to the main urban markets around the capital Kampala. A structured survey was administered with 383 producers, 172 collectors and wholesalers and 71 retailers. In addition, key informant interviews and focus group discussions were held.FindingsThe authors find that price mark-ups by intermediaries (selling prices minus purchasing prices) vary with the type of intermediary, season and location but generally reflect the costs of moving matooke down the value chain to the urban consumer. The authors do not find evidence for disproportionate market power among the intermediaries in the chain. Intermediaries enter and exit the market in peak and off-peak season, such that profits are kept in check. This seasonality does imply a small shift in market power in favour of farmers in off-peak season and in favour of intermediaries in the peak season.Research limitations/implicationsThe investigation concentrated on an important and relatively homogenous staple crop along its main trade route. More remote areas, where there is less of an abundance of matooke, might still be characterised by local monopsonies where intermediaries have more market power due to high search and transport costs. Similarly, (local) monopsonies might exist for products for which there is a smaller market (segment), for products with a stronger seasonal variation in supply and for more perishable products.Originality/valueWhile there is an important literature on the role of intermediaries in African agri-food value chains, the evidence on intermediary market power is scant. Beliefs on intermediary market power are largely based on anecdotal evidence from farmers or inferred from observed prices or market structures. The paper contributes in addressing this important knowledge gap by studying the matooke value chain in Uganda.","PeriodicalId":45976,"journal":{"name":"Journal of Agribusiness in Developing and Emerging Economies","volume":" ","pages":""},"PeriodicalIF":2.4000,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Agribusiness in Developing and Emerging Economies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jadee-06-2022-0105","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}
引用次数: 2

Abstract

PurposeThere is widespread belief that intermediaries in African agri-food value chains have disproportionate market power. In this paper, the authors examine this belief by uncovering the purchasing and selling prices, costs and profit margins by farmers, intermediaries and retailers in the matooke (cooking banana) value chain in Uganda, and by analysing the prevailing value chain and market structures, seasonal entry and exit dynamics and the trading relationships in the chain.Design/methodology/approachData for this study were collected along the trading routes from the main matooke producing districts in South-West Uganda (Kabarole, Bunyangabo, Bushenyi, Isingiro and Mbarara) to the main urban markets around the capital Kampala. A structured survey was administered with 383 producers, 172 collectors and wholesalers and 71 retailers. In addition, key informant interviews and focus group discussions were held.FindingsThe authors find that price mark-ups by intermediaries (selling prices minus purchasing prices) vary with the type of intermediary, season and location but generally reflect the costs of moving matooke down the value chain to the urban consumer. The authors do not find evidence for disproportionate market power among the intermediaries in the chain. Intermediaries enter and exit the market in peak and off-peak season, such that profits are kept in check. This seasonality does imply a small shift in market power in favour of farmers in off-peak season and in favour of intermediaries in the peak season.Research limitations/implicationsThe investigation concentrated on an important and relatively homogenous staple crop along its main trade route. More remote areas, where there is less of an abundance of matooke, might still be characterised by local monopsonies where intermediaries have more market power due to high search and transport costs. Similarly, (local) monopsonies might exist for products for which there is a smaller market (segment), for products with a stronger seasonal variation in supply and for more perishable products.Originality/valueWhile there is an important literature on the role of intermediaries in African agri-food value chains, the evidence on intermediary market power is scant. Beliefs on intermediary market power are largely based on anecdotal evidence from farmers or inferred from observed prices or market structures. The paper contributes in addressing this important knowledge gap by studying the matooke value chain in Uganda.
查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
价格、利润率和中介市场力量:来自乌干达matooke价值链的证据
人们普遍认为,非洲农业食品价值链中的中间商拥有不成比例的市场力量。在本文中,作者通过揭示乌干达matooke(煮香蕉)价值链中农民、中间商和零售商的购买和销售价格、成本和利润率,并通过分析主流价值链和市场结构、季节性进入和退出动态以及链中的贸易关系来检验这一信念。设计/方法/方法本研究的数据是从乌干达西南部主要的matooke产区(Kabarole、Bunyangabo、Bushenyi、Isingiro和Mbarara)到首都坎帕拉周围主要城市市场的贸易路线上收集的。对383家生产商、172家收藏家和批发商以及71家零售商进行了结构化调查。此外,还举行了主要资料提供者访谈和焦点小组讨论。研究结果作者发现,中间商的价格加价(销售价格减去采购价格)因中间商的类型、季节和地点而异,但通常反映了将农产品从价值链下游转移到城市消费者手中的成本。作者没有找到证据表明在产业链中的中介机构中存在不成比例的市场力量。中介机构在旺季和淡季进入和退出市场,从而控制利润。这种季节性确实意味着市场力量在淡季有利于农民,而在旺季有利于中间商。研究局限/启示调查集中在其主要贸易路线上的一种重要且相对同质的主要作物上。更偏远的地区,没有那么多的马图克,可能仍然以当地垄断为特征,在那里,由于高昂的搜索和运输成本,中介机构拥有更大的市场力量。同样,(当地)垄断可能存在于市场(细分)较小的产品、供应季节性变化较大的产品和易腐产品。原创性/价值虽然有关于中介机构在非洲农业食品价值链中的作用的重要文献,但关于中介机构市场力量的证据很少。对中介市场力量的看法主要基于农民的轶事证据,或从观察到的价格或市场结构中推断出来。本文通过研究乌干达的马图克价值链,有助于解决这一重要的知识差距。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
CiteScore
4.60
自引率
37.50%
发文量
58
期刊介绍: The Journal of Agribusiness in Developing and Emerging Economies publishes double-blind peer-reviewed research on issues relevant to agriculture and food value chain in emerging economies in Asia, Africa, Latin America and Eastern Europe. The journal welcomes original research, particularly empirical/applied, quantitative and qualitative work on topics pertaining to policies, processes, and practices in the agribusiness arena in emerging economies to inform researchers, practitioners and policy makers
期刊最新文献
Impact of agricultural credit sources heterogeneity on rice production efficiency in Côte d'Ivoire Triple Helix approach to innovation in Rwanda's agriculture resulted in a partnership between educational institutions and a private firm producing clean seed potatoes Affordability and sustainability in the human right to water Regional heterogeneity in undernourishment: the case of Nepal The effect of COVID-19 containment measures on fresh food market vendors in Uganda
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1