Determinants for Choice of Fish Market Channels: The Case of Busia (Uganda/Kenya) Border

Mastulah Kawala,Ekere William,Gabriel Elepu,Sloans Chimatiro Kalumba,Peter Walekwa,Theodora Shuwu Hyuha

doi:10.5539/jas.v10n8p118

Abstract

The study investigated factors influencing the choice of fish traders’ marketing channel by fish trader and the determinants of their gross margins. A multistage sampling technique of 115 fish traders was used. Four key informants and two focus groups participated in the study. A Probit model was used to determine factors that influenced the choice of fish traders’ marketing channel. Findings from the study revealed that volumes of fish traded per month, distance to market, membership to a fish marketing organization, payment mode, household size, presence of other sources of income were statistically significant in determining traders’ choice of marketing channel. In addition, it was found that a formal trader on average sold 6.882 tons of fish whereas 2.095 tons of fish were sold by the informal trader per month. The study therefore recommends that Informal traders be clustered into a marketing organisation; through which they can be trained on business diversification, collective marketing, and group savings to ease access to credit. It is important to eliminate the challenges encouraging informal cross border fish trade by harmonizing regional fish standards, facilitating exchange and use of fishery trade information. Further, there is need to strengthen the data collection systems in order to have accurate estimates on the contribution of fish to trade and food security.

Highlights

Fish trade contributes a total trade value of US$217.5 billion globally (Umaru et al, 2015)
The results revealed that 93% of the Tilapia fish traders were married
Results as shown in table 9 revealed that large families tend to have negative effects on the choice of the channel traders sell their commodities. This is probably due to the fact that large families place on financial burden on the traders who require their ready cash payments offered by informal marketing channels their preference for this mode of marketing

Summary

Introduction

Fish trade contributes a total trade value of US$217.5 billion globally (Umaru et al, 2015). In 2014 Africa was at 18% of the intra-regional trade whereas Europe exported 69% to other countries on the continent, Asia had 52% of intra-regional trade and 50% in North America. This statistics clearly shows that Africa has a low level of intra-regional trade which could be attributed to the flourishing informal trade which trade goes unrecorded (Musiitwa, 2016). Fisheries sub-sector plays an important role in terms of employment, income, food and livelihood to the riparian communities with the East-Africa regional total value of about US $ 600 million (Obiero et al, 2014). The sector accounted for 3.1% of the total national GDP of Uganda with an export value of US $126,757,000 in 2013 (UBOS, 2014)

Methods

Results

Conclusion