Effect of Access to Formal Market Information on Prices Received by Smallholder Farmers in Uganda

Abstract

Much work has been done to improve smallholder farmers’ adoption of new agricultural technology packages in Uganda; however, little commensurate effort has been made to improve their access to formal market information channels like mobile telephony, FM radio stations, Internet, and other information centers. This study is based on data obtained in 2006 from farmers affiliated to Uganda Cooperative Alliance and those who are not; however, both cohorts are located in the districts of Mukono and Masaka. Findings show that households in more remote locations are less likely to use formal channels, and conversely, perception of reliability of the information, membership in a farmers’ group and commercial orientation of the farmer, all increase the likelihood of their use. The authors’ findings indicate that farmers who have access to information from formal channels consistently obtain higher farm-gate prices than those who obtain information from informal channels.