Strategic business decisions of retailers in the edible insect value chain in Uganda

Abstract

Edible insect value chains are expected to contribute to sustainable food and nutrition security, poverty alleviation and job creation in Sub-Saharan Africa. However, there is little empirical evidence on the strategic business decisions of midstream-actors in edible insect value chain. This study fills this knowledge gap by analysing the factors that influence retailers’ strategic business decisions, that is, choices of supplier, product to purchase, procurement strategy and the quantity of product purchased in the grasshopper value chain in central Uganda. Using a primary dataset collected from 500 randomly selected retailers from two districts in central Uganda, Cragg’s tobit alternative and binary probit models are applied in the empirical analysis. Retailers mainly procure grasshopper products from wholesalers and collectors. The study shows that demographic, economic, transactional and processing-related factors significantly influence retailers’ strategic business decisions in the grasshopper markets. Developing retailers’ human capital in business management practices and collective action is important to enable them to make informed strategic business decisions in the agrifood chain.