The impact of changing marketing conditions on Ugandan banana farmers

Abstract

PurposeLow productivity and the prevalence of marketing and demand constraints are all interrelated problems for banana growers in East Africa. The purpose of this paper is to examine how different marketing policies can alter the incomes of banana‐growing households in the Ntungamo district of Uganda.Design/methodology/approachA partial equilibrium model and a trader profit‐maximisation model are used to analyse changes in banana market equilibrium conditions, marketing costs and market competitiveness.FindingsThe results indicate that increasing supply relative to demand reduces grower returns. It appears that reducing market power and lowering middlemen marketing costs may lead to higher grower returns. Policies facilitating lower marketing costs for traders are proposed in conjunction with strategies that promote banana processing.Originality/valueDrawing on both primary and secondary data, this paper examines how increasing demand and reducing marketing costs impacts on banana‐grower returns. Furthermore, sources of price movements in the Ugandan banana industry are assessed.