Abstract
PurposeThe purpose of this paper was to establish the contribution of value chain and productivity to trade performance in the dairy industry using evidence from Uganda.Design/methodology/approachThis study research design is cross-sectional and correlational. Data were collected through a questionnaire survey of 108 dairy farmers, processors and exporters. Data were analysed through correlation coefficients and linear regression using Statistical Package for Social Sciences.FindingsHierarchical regression results indicate that value chain and productivity contribute significantly to variances in trade performance of dairy products. Therefore, appropriate value chain processes and high levels of productivity lead to increased trade performance in the dairy industry.Research limitations/implicationsThis study focusses on trade performance of dairy products in Uganda. These research findings are useful for informing the deliberations of academicians, regulators and the business community. The results are applicable to all countries that carry out trade specifically in dairy products.Practical implicationsThe results are important for trade policy development in the dairy industry. For example, this study informs farmers, processors and exporters of dairy products how value chain activities in dairy farming can be re-aligned to achieve better quality and productivity for exportation. Similarly, the current study provides policy guidance for the relevant ministries such as ministry of trade and other players to come up with holistic policy actions aimed at improving the trade performance of dairy products in the country.Originality/valueTo the researchers' knowledge, this is the first study that provides an initial empirical evidence on the contribution of value chain and productivity on trade performance of dairy products in Uganda.
Highlights
Trade performance is a major concern for both developed and developing countries since trade has been known as an engine for growth for quite a long time (Gnangnon, 2019; Omojimite and Akpokodje, 2010)
Model 2 shows that the addition of value chain to the equation accounts for an extra 26.4% of the variance explained by the model (R2 5 0.280; fΔ; 5 37.750; p < 0.05), and value chain is a significant predictor of trade performance, providing support for H1
Summary and conclusion The purpose of this study was to establish the contribution of value chain and productivity to trade performance
Summary
Trade performance is a major concern for both developed and developing countries since trade has been known as an engine for growth for quite a long time (Gnangnon, 2019; Omojimite and Akpokodje, 2010). Developing countries are seen to be major players in world markets for supply-dynamic and high-tech products, they still account for only 10% of world exports of products which score high in research and development content, technological complexity and/or economies of scale (Akyu€z, 2003). Developing countries such as those in Africa are faced with a weak export performance (Bıçakcıoglu-Peynirci et al, 2019; Freinkman et al, 2004), and this has an impact on its balance of payments given that exports are always less than the imports
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