Farm-gate Prices Research Articles

Rice Farmgate Price Estimation and Collection Modality in Oromia, Ethiopia

The main aim of this analysis to estimate minimum farmgate price for paddy rice and to indicate paddy rice collection modalities from farmers and provide an overview of current rice production status in Oromia. Rice (Oryza sativa) is one of the most stable foods and expected to contribute to ensuring food security in Ethiopia. The success of rice production depends somewhat on its high yield potential, processing technologies and marketing facilities. Improving rice production and productivity as well as facilitating its processing and marketing access is therefore one of a key part of the economic growth strategies in the Oromia government’s food self-sufficiency initiatives. Both local production and import are the two key sources of rice grain supply and meet consumption demand of Oromia people. Consumption trends in Oromia as well as in Ethiopia have shown a substantial increase from time to time. Using a quantitative secondary data and a review of existing literature, this study provides an overview of the rice production and estimating the farmgate price of paddy rice. The study stresses the need for estimation of farmgate price, formulation of rice processing technologies and market-enhancing policies, such as supplying and installing rice processing technologies, better access to market facilities and market information and to improve rice productivity.

Unraveling the Shift: Exploring Factors Influencing Protein Preference and Consumption Patterns in Ga South Municipality of Ghana

This study endeavors to elucidate the factors influencing protein preference and consumption patterns in the Ga South Municipality of Ghana. Understanding these determinants is pivotal for promoting environmentally sustainable and healthy dietary habits. Utilizing a random sampling approach, the study collected 150 meticulously structured questionnaires from a representative sample of municipality residents. It delved into the socio-cultural and economic factors shaping protein preferences and consumption behaviors, alongside investigating the impact of awareness, knowledge, and availability of protein sources on dietary choices. The findings unveiled that respondents partake of protein daily, albeit with variations in patterns based on sources: plant protein consumption occurred weekly, while animal protein was consumed daily. Moreover, respondents exhibited awareness of the nutritional benefits associated with protein consumption. While awareness for protein nutrition is high, the price remains a deterrent to accessing protein in Ga South Municipality. Calling on policymakers to support local food production and supply, invest in food literacy, and develop good transportation to reduce logistics bottlenecks that often create a massive difference between farm gate and market prices.

Role of Commodity Market in Economic Development: A Study of Major Markets of Bagamati Province

Market usually plays a vigorous role fulfilled peoples demand and also strengthen the capacity of trade management system, always support the national economy of the country. Supply system and demands maintain the requirement and functional operations in a market. This study aims to analysis the role of commodity markets in the positive economic development in context of Nepal. The major markets such as Narayanghat, Nuwakot, and Banepa from the Bagamati Province were chosen representative purposively samples. The study was further executed through the primary and secondary research mode as well as consultative meetings and Key Informant Interview were conducted. The study revealed that Paddy, wheat and maize cereals are the topmost commodities in the area. Paddy is high in demands due to consumption. The local producers sufficient for some 2-3 months during season, for the rest of the months,’ supply from neighbor’s district, Terai region and India playing a leading role to fill the demand, agent booking is another mode of supply, India and Terai region are the major sources of supply management. Some 60 % local production are available for 2-3 months in the local market making income and contributing the national economy. Study concluded, as local production played a vital role in the economy of the nations due to comprehensive farm gate price and ongoing supply. Local production strengthening is advised.

Financing and Farm-Gate Pricing Strategies for Agricultural Cooperatives With Cash-Constrained Farmers

Equity investment in agricultural cooperatives (co-ops) is typically limited to farmer-members; yet farmers are usually cash-constrained. In addition to the common stock that is held by farmer-members, many co-ops are changing their financial structure by raising equity from external investors. This helps co-ops to collect capital, but also brings to the fore the conflicting benefits of farmers and external investors. In this paper, we develop a two-stage game-theoretic model to examine a start-up co-op’s farm-gate pricing and financing strategies, considering two types of external fund: preferred stock that bears a fixed return rate and outside stock that shares the net profit (in proportion to equity) with common stock. We characterize the co-op’s strategies in different scenarios and generate the following insights. First, while both types of external equity outperform the case with common stock only, the preferred stock generally outperforms outside stock due to its lower financial cost, higher tolerance for fund size limits, and flexibility in setting farm-gate prices. However, outside stock can outperform preferred stock if it allows a higher fund size limit. Second, the co-op’s financial strategy exhibits a similar structure in equilibrium regardless of whether it is preferred stock or outside stock, despite their distinct financial terms. Finally, farm-gate pricing has a unique role in co-ops affecting the returns to farmers and external investors, which also highlights the conflicting roles of farmers as both patrons and investors when external equity is used.

Is parity pricing enough? A critical analysis of parity pricing and the case for additional strategies

Producers in the U.S., particularly small-scale farmers and specialty crop growers, are unable to maintain their livelihoods with farming alone. This issue is convoluted by low farm gate prices stemming from the unequal distribution of market share and political support within the U.S. food supply chain. As a result, many farm activists and scholars have recommended a revitalization of parity pricing within U.S. policy. Parity pricing once served to set price floors considered to represent “fair” farm gate prices determined by the farm gate price and purchasing power of commodities during the parity period of 1910–1914. In this paper, we evaluate whether parity did exist during the set period of 1910–1914, showing farm incomes and non-farm incomes were not significantly different from one another during the parity period. We then explore the extent to which parity prices correspond to farm-gate prices, transfer terminal prices, and retail prices for a select group of twelve specialty crops. We show that farm gate prices are significantly lower than parity prices, do not necessarily translate into low prices for consumers, and do not consistently correlate with production costs. Lastly, we display the temporal correspondence between the end of parity pricing and declines in farm income. Our analysis contributes important evidence of the inequalities within production, payment, and pricing structures of specialty crops in the U.S. As such, we provide a critique of parity pricing arguing that parity pricing alone will not be sufficient to solve the complex and deeply rooted issues underpinning low farm gate prices and injustices within the U.S. food system. We conclude with a discussion of the impacts of low farm gate prices and areas for policy interventions.

Climate change, production and trade in apples

AbstractIn this paper, we investigate the impacts of climate extremes on the production and trade of apples. Apple production being notoriously sensitive to climate shocks, we show that March and April temperatures and precipitations beyond estimated thresholds cause large yield reductions in Quebec and Ontario. In years when climate shocks are large and highly correlated across space, large variations in national production cause major variations in trade flows. Hence, we exploit the theoretical foundations of a sectoral structural gravity model to implement counterfactual trade experiments about harvest shocks in Canada and the United States. We report changes in tariffs, imports, exports, farmgate prices, and in consumer welfare. The shocks greatly impact trade between North American countries but have little impact on other countries except for Chile and New Zealand which see their exports grow.

Fostering cocoa industry resilience: A collaborative approach to managing farm gate price fluctuations in West Sulawesi, Indonesia

Abstract Agricultural price fluctuations impact the economy and society, highlighting the importance of price stability for sustainable development, poverty alleviation, food security, and economic stability. This issue is particularly pronounced in the cocoa industry, where volatile prices and inefficient supply chains often harm the livelihoods of cocoa farmers. This study aimed to develop a mitigation plan to address cocoa price volatility at the farm level. The study was conducted in Tubbi Taramanu Sub-district, Polewali Mandar District, Indonesia. Through the innovative use of Interpretative Structural Modeling (ISM), the key elements are delineated in their hierarchical relationships and categorized into four quadrants: autonomous, independent, dependent, and linkage, to formulate a strategy for stabilizing cocoa prices at the farm level. This research’s findings underscored the importance of reducing farmers’ dependency on middlemen as the primary strategy for mitigating fluctuations in cocoa bean prices at the farm level. This approach is particularly vital due to the excessive reliance on middlemen, a key driver of price instability at the farm level. Furthermore, it is evident that promoting and nurturing cooperation between farmers and cocoa industry stakeholders can prove highly effective and significant when fortified by the local government’s support through the implementation of appropriate public policies.

Agroecology beyond the statist quo? Transforming U.S. imperial agricultural policy

Agroecology—with its diverse, multifaceted, and liberatory principles, methods, and commitments—seems incommensurate with the U.S. Department of Agriculture (USDA), with its settler colonial origins, imperial histories, racist legacies, neoliberal hegemonies, and contemporary reproduction of the unjust and ecocidal agricultural status quo. And yet, is it possible to make use of what the behemoth department has to offer, in its attempts, albeit paltry, at reform and restitution? More pressingly, can we engage and demand more from the non-monolithic ministry—call for it to stave off further corporate capture of markets, land, germplasm, data, and water? Can we pressure the USDA to protect farmworkers from exploita­tion, animals from abuse, cooperatives from corpo­rate co-optation, and small-scale farmers from farmgate price degradation? Is abandoning the USDA tantamount to ceding its resources to agro-industries intent on dispossessing Black, Indige­nous, and other essential agricultures? Shouldn’t we at least attempt to obstruct the USDA’s obstruc­tionist international stance, as it thwarts the right to food, climate justice, labor rights, and redistributive reforms globally? . . .

Comparative performance assessment of pilot irrigation schemes in Uganda

Irrigation schemes across sub-Saharan Africa are constructed with the intention of increasing agricultural production to increase food security, reduce poverty and improve economic growth. However, most of these schemes are not performing as expected. This study therefore, diagnosed performance gaps in the pilot irrigation schemes of Mubuku and Doho in Uganda and analysed sustainable improvement options. Data was collected through systematic review of literature and scheme data, direct measurements at the schemes, field surveys, inspections, and key informant interviews. For each scheme, data for climate, irrigation, flow measurements, crop yields and farm gate prices were collected. Comparative indicators of agricultural output, water supply, financial and physical sustainability were used to assess scheme performance using standard approaches by International Water Management Institute (IWMI). The findings showed that the schemes were not performing optimally with crop yields being far below the attainable potential. The major contributing factors to the low performance were low water use efficiency and low agricultural output. Poor flow control, poor water distribution, and poor on-farm water application contributed to low water use efficiency. Low agricultural production was attributed to poor crop yields resulting from poor agronomic practices, poor irrigation scheduling and low produce prices. The financial self-sufficiency indicator pointed to farmers’ inability to operate and maintain irrigation schemes effectively. Improving the irrigation schemes performance requires a multidisciplinary approach targeting the improvement water use efficiency and agricultural output.

Potential yield losses caused by the adults of Schizonycha ruficollis on pomegranate (Punica granatum) flowers

Pomegranate is an important fruit crop that is capturing international attention for its rich antioxidants and nutraceutical value. The demand for the fruit is rapidly increasing in major national and international markets. Therefore, any serious pest is of great importance and here we report the severe incidence of adult beetles of Schizonycha ruficollis that resulted in potential yield loss due to its feeding on pomegranate flowers in Devanahalli, Karnataka. Usually June/July adult beetle emerge and feed on hosts like neem and Melia rubra which the farmers plant them as wind breaks along the borders. These attract the beetles into pomegranate field and the pomegranate flowers are then infested by the adult beetles. The pomegranate on an average possess 223 female flowers per tree, which when damaged fails to set fruits causing economic loss. A documentation study during 2023 was taken up to evaluate the crop loss caused by S. ruficollis in pomegranate resulted in potential seven percent yield loss accounting to ₹ 53215/acre at the farm gate price. This loss can be avoided by initiating a management practice at the first site of the beetles especially after the first monsoon rain. This study also helped us to alert pomegranate exporters and extension officials about the need of preventive measures to avoid the yield loss.

Adapting agroforestry to upland farming systems: narratives from smallholder farmers in Northwest Vietnam

Fruit tree–based agroforestry has been promoted as an alternative farming practice in upland Northwest Vietnam to replace monocultures of staple crops. Although many studies have focused on evaluating the performance of agroforestry systems at the plot level, research on how farmers perceive and evaluate agroforestry considering whole-farm contexts is limited. We explored the perceptions and reasoned management decisions of agroforestry farmers to uncover challenges that hinder the wider use of agroforestry, and we assessed farmers’ strategies for effective management of adoption challenges. We combined the Q methodology and the systems thinking approach. With the Q methodology, we explored prevalent discourses among the members of the farming community on the impact of agroforestry. Systems thinking elucidated a system-wide understanding of farmers’ adaptive decision-making processes. By combining the two approaches, we uncovered the dynamics that shape farmers’ perceptions and the rationale behind their management of the adoption process. Through the Q method, we identified three distinct discourses among participants. Two of these discourses are in favor of agroforestry, highlighting its beneficial impacts on livelihoods and the environment, e.g., through diversification of household income and through soil erosion control. We also generated a collective development pathway outlining how farmers navigated and adapted agroforestry practices to overcome adoption challenges through a whole-system approach to farm resource management. We identified structural barriers, such as unstable farm-gate prices, that may need high-level interventions. Our study adds a new dimension to the assessment of agroforestry through farmers’ perspectives and contributes to the existing body of research on knowledge systems in agroforestry. Considering farmers’ views and their ways of reasoning during innovation processes may allow tailoring appropriate innovations by accounting for unique farm situations and local farming systems. Such locally generated knowledge will have relevance for real-world contexts and therefore be useful for guiding actions.

Evidencing the importance of the functional unit in comparative life cycle assessment of organic berry crops.

LCA methodology provides the best framework to evaluate environmental impacts in agriculture systems. However, the interpretation of LCA results, in particular when the objective was to compare different production systems, could be affected by the selection of the functional unit (FU). That is why an accurate definition of the FU, in agreement with the function considered for the systems analysed, is essential. In this work, the organic production at small scale of blueberry, raspberry, blackberry and cape gooseberry in North Spain has been analysed following LCA methodology. Although a different distribution of environmental loads was obtained for each crop, in all cases, the main contributions to most of the considered environmental categories were electric and fertiliser consumptions. The different production systems have been compared on the basis of the environmental impacts associated considering different FUs, i.e. based on fruit mass, cultivated area, farm-gate price and nutritional quality of fruits. Carbon footprints (CF) have been also calculated. It was observed that the order of the crops with respect to their environmental performances was the same for the blueberry and raspberry crops (with the lowest and the highest CF, respectively), independently of the selected FU, whereas the order of the blackberry and cape gooseberry crops was interchanged, depending on the FU used. This work supports the need of being aware of the final objective of the orchards when choosing the FU (i.e. producing fruits, cultivating an area, economic benefits or nourishing people), so that valid conclusions can be achieved from the environmental comparison, even for different agricultural products.

Introducing Gliricidia sepium as a Fuel Wood in Rubber Smallholdings of Sri Lanka: A Case Study in Kalutara District


 A pilot project has been initiated to introduce Gliricidia sepium with Hevea brasiliensis under three different spatial arrangements ((i.)8'×27', (ii.)8'×40, and (iii.)88'×60’) as a fuel wood to improve the income status of rubber smallholders in Kalutara District by Rubber Research Institute of Sri Lanka in 2018. Primary data were collected through a questionnaire survey and field observations. The financial analysis was done for one hectare of smallholding. Certain assumptions were made in the financial feasibility analysis as financial analysis was done for 30 years giving consideration to the 30 year life span of rubber. Costs and benefits were discounted at 10% discount rate as practiced by the Department of National Planning to obtain 2019 market prices. The farm gate prices of 1kg of rubber and Gliricidia were considered as LKR 280.00 and LKR 4.00. The cost for hired labour was considered LKR 1,500.00 per day. Period of intercropping of Gliricida under rubber in the 88'×40' and 88'×60' models was considered as 30 years and in the 88'×27' model, it was considered as eight years. Financial feasibility of models was tested using the indices of Net Present Value (NPV) and Benefit Cost Ratio (BCR). A qualitative SWOT was conducted to identify the strengths, weaknesses, opportunities and threats relevant to introduction of Gliricidia as an intercrop in rubber plantations based on a thorough documentation review and on the opinions of Rubber Extension Officers. From the three models introduced, the highest fuel wood value can be obtained by intercropping Gliricidia with rubber under the spacing of 88'×60'. NPV for growing gliricidia with rubber under three different spatial arrangements, (i.)88'×27', (ii.)88'×40' and (iii.)88'×60' would be LKR 0.74 million, LKR 5.47 million and LKR 5.89 million respectively. The values obtain for BCR for growing gliricidia with rubber under three different spatial arrangements, (i.)88'×27', (ii.)88'×40' and (iii.)88'×60' would be 1.37, 2.26 and 2.27, respectively. All fuel wood growing models indicated positive NPV and BC Ratios were greater than one, suggesting that these introduced models are economically viable. Although there are no established market channels available for fuel wood especially in the smallholder rubber sector of Sri Lanka, there is a demand for Gliricidia which is fulfilled through adhoc markets. Also, development of sustainable supply chains through setting up of Pilot Biomass Energy Terminals with the objective of collection and distribution of fuel wood under the Project of Promoting Sustainable Biomass Energy Production and Modern Bio-Energy Technologies has widened the opportunity of using Gliricidia as a promising fuel wood species Gliricidia with rubber has the potential to improve income generation of rubber smallholders substantially especially during the immature stage of rubber and provide a solution to overcome uncertainty in rubber prices and low productivity of rubber lands.
 
 Keywords: Fuel wood growing models, Rubber farming

CAN THE SMALL-SCALE PRODUCERS OF NAVEL ORANGE RESIST THE STABILITY OF THE FARM GATE PRICES AND THE SOAR OF THE INPUT PRICES WITHIN THE BIOPHYSICAL FACTORS?

Egypt Navel orange planted area reached about 174.6 thousand acres during the average period of 2012-2020. Delta governorates is the major orange’s productive region in Egypt with 97.4% of the total production of the country. 87.2% of orange’s planted area came from only five Delta governorates. The top planted area governorates are El Behera with an acreage area representing about (41.3%), followed by Qalyoubia (16.7%), Ismailia (11.1%), Menufia (9.54%) and Sharqiya (8.52%) of total planted areas during the period 2012-2020. El-Behera is the major Navel orange’s productive governorate in Egypt with (43.9%) of Egyptian total production of Navel orange, followed by Qalyoubia (18.8%), Menufia (9.2%), Ismailia (8.3) and Sharqiya (7.7%) of Navel orange total production during the period 2012-2020. In recent years, small scale farmers have experienced technical, environmental and economic problems. This study will shade light on the economic problems because fruit prices have come to a standstill or even decreased while the production costs have risen continuously. The present study depends on data collected from the private small farm planted with Washington Navel orange trees [Citrus sinensis L.(Osbeck)] since 1968, which is located in Minyat as Siba, Benha-Qalyoubia governorate, Egypt. The result shows that the average values of fertilizers, pests and diseases account for a large proportion of the total costs, representing about 42.57% and 26.47% respectively from the total production costs during 2012-2022. Prices received for Navel oranges fluctuate markedly from year to year. This combined with fluctuations in yields. Over the period 2012 to 2022 farm gate prices of Navel orange averaged 2905 Egyptian pound (LE) per ton, with the minimum of LE 1750 per ton in 2012 and the maximum of LE 4000 per ton in the 2019, 2020 and 2021.

A New Approach to Monitoring Farmer Prices: Method and an Application to Malawi

This paper proposes a new approach to monitoring farmer prices in low-income developing countries. This crowdsourcing approach involves broadcasting radio jingles inviting farmers to report the prices and locations at which they sold their crops to a toll-free call centre, with weekly prizes to incentivize reporting. An application to Malawi illustrates the feasibility of this approach in a setting where internet connectivity is limited but mobile phone coverage is reasonable. The majority of farmers reporting sold to assemblers or small traders and received substantially less than official minimum farm gate prices. Non-parametric analysis shows that farmer prices vary according to bargaining power and sales volume but not by distance to the point of sale. These findings may be explained by the fragmented and monopsonistic nature of food markets in Malawi, and farmers’ mode of transport to the point of sale.

Rice Production in Davao Region: A Time Series Model

This study generates trend analysis on the data of rice production and farm gate price, insights on the initiatives to address issues on rice production and farm gate price and relevance of the quantitative data and initiatives. This paper employed the five-tier model of the Theory of Needs by Abraham Maslow which solidifies the urgency of analyzing trends in rice production and farm gate prices to gauge their implication for the food security of humans (Mcleod, 2020). As such, this study utilized a mixed method of quantitative and qualitative design. Trend analysis and moving average were used for the quantitative aspect while content analysis and systems synthesis for the qualitative part. This study did not require any interviews because it used secondary data from open-source statistics. Findings show that rice production and farm gate prices seemed to be affected following the Rice Tariffication Law (RTL) passage. Following the deregulation, rice imports have significantly increased, resulting in the prices at the farm gate declining (Briones, 2019). Moreover, the communal irrigation initiative for the Davao Region should also be examined for the decrease in rice production during the 13th (January-March 2020) and 17th (January-March 2021) caused by the periodic dry season of rice. As this study focuses on a regional scope, the researchers recommend future researchers conduct national studies on a broader spectrum, to examine government actions on rice production and farm gate prices, and to provide a nationally appropriate hypothesis. Other techniques may also be used by future researchers such as in-depth interviews with farmers providing a more comprehensive view of the data and evaluating the impact of government efforts.

Investigating the Profitability of Government-Funded Small-Scale Broiler Projects in Northern KwaZulu-Natal, South Africa

The frequent failures of government-funded broiler enterprises raise concerns about the viability and wisdom of government funding for smallholders. This study therefore investigates the scope for the profitability of the small-scale broiler production and the range of socio-demographic and production issues that are implicated. The study area was the Northern KwaZulu-Natal (KZN) Province of South Africa, where smallholder broiler production is popular. A total of 75 randomly selected, small-scale broiler producers from three districts in Northern KZN, namely, King Cetshwayo, uMkhanyakude, and Zululand, participated in the survey out of the 134 small-scale broiler producers supported by the government. The analyses employed diverse descriptive analysis and included the calculation of the gross margin to proxy broiler chicken profitability. Three models were fitted for the empirical analysis, namely, the OLS, the Two-Stage Least Squares, and the Stochastic Frontier models, to determine the factors influencing profitability, correcting for endogeneity, and computing the technical efficiency and inefficiency of the small-scale broiler production system. The results show that the primary production and marketing challenges were the lack of infrastructure (abattoirs and refrigeration) and the lack of formal markets, including the lack of market information and high transport costs. On average, the sampled government-funded small-scale broiler enterprises achieved a positive gross profit margin of 31 percent, which is relatively low when compared to the small-scale farmers that work for a large-scale enterprise—the Commercial Chicken Farm, near Pietermaritzburg. It was revealed that the profits are significantly influenced by gender, farmgate price, access to market information, and access to extension services. The production system was also shown to be operating at a reasonably high technical efficiency, which is strongly influenced by flock size, feeds, and labour input, while age, gender, and educational level contributed to technical inefficiency. The recent crisis that was experienced by the poultry industry in South Africa linked to the outbreak of the Avian Flu and its devastating consequences point up the urgency for more investment in infrastructure to enhance bird safety at affordable costs. Although the government-funded small-scale broiler enterprises in Northern KZN were found to be viable, it is evident that they can be better, possibly through more capacity building and collective action to take full advantage of the economies of scale.

Welfare effects of food-processing development in agriculture-based economies: a CGE analysis for Benin

ABSTRACTMost agriculture-based economies in Africa are working on increasing their agricultural productivity and production following the African Union (AU) recommendations. However, it has been shown that increasing agricultural production without ensuring value-chain development may end up in welfare losses for farmers due to falling farm-gate prices. Little research has been conducted so far on the economy-wide effects of food value-chain development. This article contributes to filling this gap by analysing the effects of food-processing sector development on welfare in an agriculture-based economy, taking the example of Benin. We calibrate a Computable General Equilibrium (CGE) model to a comprehensive 2019 Social Accounting Matrix (SAM) for Benin. We introduce a novel welfare measure, accounting for changes in savings. Results show that enhancing the food-processing sector increases demand for agricultural raw materials and hence agricultural production and prices. Accordingly, the price of low-skilled labour increases. This primarily benefits low-income households, who derive most of their income from this factor. The overall income and welfare effects are pro-poor. Accordingly, income disparity as well as poverty incidence and gap decrease. We conclude, that the development of food-processing has the potential to make agricultural development in agriculture-based economies more pro-poor.

Unlocking the nexus potential: A techno-economic analysis of joint deployment of minigrids with smallholder irrigation

Sub-Saharan Africa (SSA) has the lowest rate of electricity access and irrigation in the world, at 45% and 5% respectively. The problem is in part due to the low economic viability of rural electrification, particularly through grid extension, lack of low-cost irrigation energy, and limited access to finance for the high cost of irrigation infrastructure. Despite their promising potential, minigrids’ deployment has been rather slow in SSA, partly due to the lack of viable business models for the dispersed low-income rural population. In this paper, we present an integrated model that couples a minigrid model with a crop model to explore the nexus potential of joint deployment of minigrids with smallholder irrigation to alleviate barriers to both minigrid scale-up and irrigation adoption. We apply the proposed model to three rural case studies in different geographical contexts in SSA. Our simulation results show the potential of irrigation loads to lower the unit cost of minigrid energy (LCOE) by up to 47%, depending on the quantity of irrigable land and its spatial distribution. A further scenario-based sensitivity analysis of the minigrid with and without aggregate irrigation load shows wide variations in LCOE–between a minimum of $0.24/kWh and a maximum of $1.2/kWh–with changes in the cost of capital and technology cost. Regarding irrigation viability, our model results show that irrigation profitability is a function of a complex interplay of factors, including crop type, soil fertility, infrastructure costs, energy prices, fertiliser application rate, and crop farm gate prices. We further test the effects of pay-as-you-go (PAYGo) business model incentives on the profitability of irrigation with minigrids; our results show that various incentives that alleviate either all or a fraction of upfront capital cost do not only mitigate irrigation adoption barrier but also enhances its profitability on the part of the farmer. Finally, our model results underscore that the economic viability of joint deployment of minigrids with smallholder irrigation depends on the optimal combination of agro-ecological factors of production (location suitability), type of crop (on a descending order, onion, tomato, and potato are the most profitable crops in our model), fertiliser application rate (near-optimal to optimal soil fertility is recommended) and cost scenarios (low cost of capital and technology preferred). In the main, our model and the results thereof highlight the potential benefits of co-planning minigrids and irrigation projects. Our model and results presented in this paper can be used as high-level decision-making pointers on the nexus planning of minigrids with smallholder irrigation farming.

Determinants of Gross Margin of Watermelon Traders in Kampala, Uganda

Watermelon is one of the most important tropical fruits, very nutritious and traded globally. Despite of its importance worldwide, watermelon trade faces challenges accrued from its transportation, poor storage facilities and lack of organized marketing system. This study on market performance of watermelon was conducted in the six selected markets of Kampala district. The study objectives were to; establish socioeconomic characteristics of watermelon traders, compute gross margin and marketing margin of watermelon trade along selected value chain and determine factors influencing watermelon gross margin. Simple random sampling was used to select 90 retailers stratified by the selected markets and retail trade levels and 30 wholesalers. Data was collected using a structured survey questionnaire, analyzed using descriptive statistics marketing margin, multiple linear regression and gross margin analysis. The finding reveals that they were more men than females and zebra F1 was the most traded variety. Generally, the determinants of retailers’ Gross margin were gender of the traders, age in years, education, membership of trade association, watermelon variety, financial source, record keeping and storage facilities access significantly influenced the retailer’s gross margin at p>0.01, p>0.05 and p>0.10, levels of probability in the selected Kampala markets, Uganda. The study established that average prices charged at the farm gate, wholesale, retail stall, retail wheelbarrow and retail small truck level were UGX 1,054, UGX 1,952, UGX 3136, UGX 5,899 and UGX 3,164 respectively. Overall, the retail prices are higher than the farm gate prices. The marketing margins of the stall traders, wheelbarrow traders, small truck traders and wholesalers of watermelon was UGX1183, UGX3947 and UGX1212 and UGX898 with percentage share of 39%,68%,39% and 15% respectively. The study concluded that socioeconomic characteristics of watermelon traders do affect gross margins of traders, watermelon trade is profitable with gross margins above 55% for the selected value chain actors thus great market performance and watermelon retail price is greater than farm gate price. The study suggested that watermelon traders should pursue membership to associations and seek financial assistance to expand operational scale. The government should adopt watermelon export promotion strategies that aim at improving storage facilities, promote mostly production, trading Zebra F1 variety in Kampala district and traders should embark on accurate record keeping since it is a parameter in finance access. There is a need to conduct further research on the effects of government policies on gross margin and export volumes of watermelon.