Market channel options for smallholders in dual markets: A case of organic pineapple farmers in Uganda

Abstract

Following institutionalisation of certified organic agriculture in Uganda in 2002, more farmers have adopted organic pineapple farming to boost their economic livelihoods. However, farmers have continued to engage in the less profitable conventional market due to organic market’s limited capacity to absorb all their produce. This study seeks to examine organic pineapple farmers’ market choices, improve the empirical understanding of factors determining these choices and how they relate to the success of organic pineapple marketing in Uganda. Data was obtained from a random sample of 116 organic pineapple farmers from central region and three pineapple export companies, in cross-sectional household and key informant surveys. Descriptive statistics revealed that 68% of the farmers sold organic pineapples via both organic and conventional market channels at the same time. The study employed a conditional logit model to explain the factors influencing organic farmers’ market channel choice which established that organic and conventional market price differences in peak and lean seasons, pineapple harvests and losses significantly influenced farmers’ market choice. Farmers’ organic market share can be increased by policy makers’ promotion of local and regional organic market outlets and value addition at farmer and company levels. Key words: Organic pineapple, market choice, Uganda.