CHILD FUND IBAKARA

MARKET ASSESSMENT
REPORT FOR SELECTED
ENTERPRISES
Simsim, Maize, Bean, Groundnut, Pork,
Sunflower, Piglets and Honey
By: Mr. Robert Babu of Hallmark Development Agency

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EXECUTIVE SUMMARY
This assessment was meant to establish the market situation, risks and opportunities surrounding
commodities currently being produced by youth and caregiver enterprise groups under the
sponsorship of Child Fund Ibakara to maximize their sales and revenue.
The report underscores the huge agricultural potential that the country especially northern
Uganda has. The report also highlights the contribution of agriculture to the countrys economy,
foreign exchange earnings and poverty eradication among others. Tribute is paid to the
considered government effort to enhance and modernize the agricultural sector through various
programs including the Plan for Modernization of Agriculture (PMA) and the National
Agricultural Advisory Services among others. The report also notes that those farmers who
engage in the cultivation of traditional cash crops like coffee, tea and cotton get more income
than those in subsistence farming.
The study applied the survey method with a mix of both quantitative and qualitative approaches.
Both primary data and secondary data were collected by administering structured questionnaires
and document review respectively. 100 respondents including buyers and sellers located in the
main agricultural commodity market destinations of the country i.e. Lira, Gulu, Kampala and
Kitgum were interviewed. The data collected was analyzed using SPSS and content analysis
whereupon the report was written.
The study findings paint a rather rosy situation for the selected commodities market noting that
there is ready market for most of them. The assessment also found that there is need for value
addition and entrepreneurship skills for the producers to make the right sales. Processed honey
and the right piglet breeds stood out as very valuable commodities with undisputed
marketability. Pork was noted to sell at a higher price in western and central regions compared to
the other regions of the country..
The report gives a green light to the enterprise groups to continue to engage in their chosen
enterprises but broaden their perspective to engage with other key players (buyers, processors
and link organizations) to maximize sales and revenue, obtain relevant market information and
get access to quality farm supplies.

ACRONYMS
CFI

Child Fund Ibakara

FAAB

Farming as a Business

HEEC

Household and Economic Empowerment Project

MAAIF

Ministry Agriculture Animal and Fisheries

MFPED

Ministry of Financial Planning and Economic Development

NAADS

National Agricultural Advisory Services

PMA

Plan for Modernization of Agriculture

TABLE OF CONTENT
CHAPTER I...................................................................................................................................................... 6
BACKGROUND/INTRODUCTION ................................................................................................................. 6
STRUCTURE OF THE REPORT ........................................................................................................... 6
THE STATUS OF UGANDAS AGRICULTURE SECTOR ................................................................................... 6
THE SIGNIFICANCE OF THE AGRICULTURE SECTOR ................................................................................. 6
DYNAMICS OF GROWTH OF THE SECTOR ................................................................................................ 7
MAIN COMMODITIES PRODUCED ........................................................................................................... 7
MAIN CHALLENGES AND CONSTRAINTS .................................................................................................. 8
PURPOSE OF THE ASSESSMENT ........................................................................................................... 9
ASSESSMENT OBJECTIVE.................................................................................................................. 9
ENTERPRISES SELECTED FOR THE ASSESSMENT ............................................................................. 9
METHODOLOGY .................................................................................................................................... 10
STUDY DESIGN .................................................................................................................................. 10
STUDY AREA AND POPULATION: ................................................................................................. 10
SAMPLING ........................................................................................................................................... 10
DATA COLLECTION METHODS ...................................................................................................... 11
DATA ANALYSIS AND REPORTING ............................................................................................... 11
ETHICAL CONSIDERATIONS ........................................................................................................... 11
ANALYSIS, FINDINGS AND DISCUSSIONS ..................................................................................... 13
DEMOGRAPHICS ................................................................................................................................... 13
Demographic information of the buyers interviewed. ........................................................................... 13
Demographic information of cereals and pulses dealers interviewed. ................................................... 13
Demographic information of pork and piglets dealers interviewed. ...................................................... 14
Demographic data of honey dealers ....................................................................................................... 14
SIMSIM/SESAME ..................................................................................................................................... 14
Buyers views ........................................................................................................................................ 14
Sellers views ......................................................................................................................................... 14
MAIZE ...................................................................................................................................................... 17
Buyers views ........................................................................................................................................ 17
Sellers views ......................................................................................................................................... 18
4

BEANS ...................................................................................................................................................... 20
Buyers views ........................................................................................................................................ 20
Sellers views ......................................................................................................................................... 20
GROUNDNUTS........................................................................................................................................ 23
Buyers views ........................................................................................................................................ 23
Sellers views ......................................................................................................................................... 23
SUNFLOWER ........................................................................................................................................... 26
Buyers views ........................................................................................................................................ 26
Sellers views ......................................................................................................................................... 26
PORK........................................................................................................................................................ 28
Buyers views ........................................................................................................................................ 28
Sellers views ......................................................................................................................................... 28
PIGLETS .................................................................................................................................................. 31
HONEY ..................................................................................................................................................... 33
Buyers views ........................................................................................................................................ 33
Sellers views ......................................................................................................................................... 33
CHAPTER IV ............................................................................................................................................. 36
CONCLUSIONS AND RECOMMENDATIONS....................................................................................... 36
Simsim ................................................................................................................................................... 36
Maize ..................................................................................................................................................... 36
Beans...................................................................................................................................................... 37
Groundnuts............................................................................................................................................. 37
Sunflower ............................................................................................................................................... 38
Pork ........................................................................................................................................................ 38
Piglets .................................................................................................................................................... 39
Honey ..................................................................................................................................................... 39
REFERENCES ........................................................................................................................................... 40

CHAPTER I
BACKGROUND/INTRODUCTION
This assessment was aimed at supporting caregivers and youth engaged in Farming as a Business
(FAAB) and value addition with the purpose of ensuring that they benefit from the knowledge
and grants given by development partners especially Child Fund and Austrian Government in
order to improve the economic wellbeing of their respective households. The market assessment
was viewed as an objective strategy through which farmers would manage the value chain of
their produce so as to maximize profits in a competitive market space. The market assessment
would also pave way for the small farmers to network with higher level farmers, buyers and
exporters. The enterprises of interest include simsim, maize, bean, groundnut, apiary, piggery
and sunflower.
STRUCTURE OF THE REPORT
The report is divided in to four main chapters with chapter I setting out the background to the
study including an overview of the agricultural sector in the country, chapter II outlines the
purpose of the study and the methods used to conduct data collection, analysis and reporting,
chapter III presents the findings of the assessment, analysis and discussions and lastly chapter IV
offers conclusions and recommendations for the users of the report.

THE STATUS OF UGANDAS AGRICULTURE SECTOR

Uganda is a predominantly an agricultural economy. Agricultural production comes almost
exclusively from 2.2 million smallholders, mostly working 2 to 3 hectares of land, using
traditional methods of cultivation and family labor. Indeed, it was Ugandas subsistence
agricultural production that helped the population to survive the devastation and collapse of
the modern economy during the years of turmoil and to this day many people depend on plots
of land or gardens to provide a steady supply of food. Even in urban centers there is a farming
tradition, which (due to uncertain supply of food from rural areas), leads to urban agricultural
production. Estimates indicate that 30% 50% of families in Kampala engage in agriculture.
THE SIGNIFICANCE OF THE AGRICULTURE SECTOR
6

Agriculture has an important role to play in Ugandas economic development. It is a source of

food supply and raw materials, a supplier of foreign exchange, a market for non-agricultural
output and a source of surplus for investment (MAAIF, 2008). Agriculture is central to
Ugandas economic growth and the reduction of poverty, accounting for large share of GDP,
exports, and providing employment to a large section of the rural population.
As source of income and employment, agriculture accounts for about 69% of total
employment. Crop farming is the main source of household income contributing over 30% of
all household income in Uganda. Other incomes include farm enterprises such as animal
husbandry, poultry and cottage industries such as brewing. According to the MFPED (2004),
households engaged in the traditional cash crop sector are better off than those in the
traditional food crop sector and to that extent, areas and farmers growing coffee have
benefited more from price liberalization policies and increased access to markets than areas
growing mainly food crops.
DYNAMICS OF GROWTH OF THE SECTOR
The performance of Uganda's agriculture sector has been extremely variable over the
years. Because Ugandas agriculture depends on rainfall, poor weather conditions result
in low yields and poor performance, in some parts of the country or sometimes for the
sector as a whole. Prolonged dry conditions or wet conditions associated with heavy
rainfall, for example, have negatively affected agricultural production in recent years.
Growth in the agriculture sector doubled in 2008/09 and stood at 2.6% per annum (MFPED,
2009). This growth was driven mainly by an increase in production of food crops, which grew
at 2.9% in 2008/09 compared to 2.4% in the previous year. The improvement in food crops
production was attributed to refocusing of service delivery through the National Agricultural
Advisory and Delivery Services (NAADS), and the recovery of agriculture in the northern
parts of the country. Moreover, the high market prices for food crops were an incentive to
increased acreage.
MAIN COMMODITIES PRODUCED
With a favorable climate year-round and some of the best agricultural land in Africa, Uganda
produces a wide variety of tropical and sub-tropical agricultural products throughout the year.
7

There are four major sub-sectors in Uganda's agriculture sector: crops, livestock, fisheries,
and the forestry. Of the four, the crops sub-sector is by far the largest in terms of area and
contribution to GDP. Much of this is food crops for subsistence by smallholder households,
with only a third sold to domestic and export markets (World Bank, 2005).
The main food crops are tubers and roots, (cassava, sweet potatoes, yams, etc) bananas,
cereals (maize, millet, sorghum, etc), pulses (beans, peas, etc), oil seeds, fruits (pineapples,
papaya, bananas, avocadoes, mangoes, oranges, etc) vegetables, spices (vanilla, cardamom,
pepper) and flowers. About 49% of the food crops are marketed or bartered for subsistence
consumption outside the market system. In 2000 2007, there was a marked increase in food
production, although this has been achieved through increased acreage in cultivated land
rather than an improvement in yields overall. The major cash crops for the economy are:
coffee (accounting for 272,000 ha and generating about $300 million per annum), cotton
(previously the main export crop, earning up to US$ 30 million a year), tea (grown on 20,570
ha, but mostly for export markets earning about $30 million a year), tobacco (grown on
11,590 ha and now earning over $10 million a year), sugar cane (grown almost exclusively for
the local market) and cocoa (which is a relatively new crop).
MAIN CHALLENGES AND CONSTRAINTS
During the 1970-1980s growth in the sector was hampered by a series of policy and structural
constraints which are well articulated in the Plan for Modernization of Agriculture (PMA).
While many of these constraints have been removed, nonetheless, a number of fundamental
ones do persist to this day. They include poor infrastructure (such as feeder roads,
communication facilities, power supply, water, etc), lack of efficient and cost-effective
technology, low rates of adoption of appropriate technology, lack of finance, a complicated
land tenure system, information constraints, weak farmers organizations, lack of market
information, high post-harvest losses, environmental degradation, etc.
(Source: Market assessment and baseline study of staple foods-Country report Uganda 2010,
USAID, Chemonics International Inc.)

PURPOSE OF THE ASSESSMENT

To establish the market situation, risks and opportunities surrounding commodities currently
being produced by youth and caregiver enterprise groups under the sponsorship of Child Fund
Ibakara to maximize their sales and revenue.
ASSESSMENT OBJECTIVE
To establish the current and future market opportunities of the selected agricultural
commodities within and outside the country.

To explore the possibilities of value addition for the selected agricultural commodities for
both the local and international markets.

To identify potential linkages with upstream and downstream investors in the selected
agricultural produce within and outside the country.

ENTERPRISES SELECTED FOR THE ASSESSMENT

The enterprises listed 1 at the beginning of this report were the ones chosen for the market
assessment. This selection followed the choice of farmer groups (caregivers and youth)
supported by Child Fund under its HEEC project. The groups which hail from Kitgum Matidi
and Lagoro sub counties in Kitgum District were thoroughly trained in farming as a business and
in making wise enterprise choices. As such considering the key factors for enterprise selection
most of the groups settled for these enterprises. CFI accordingly planned and implemented a
market assessment to ensure that the groups are well tuned in their production and marketing
strategy to get the best from the available market for their commodities.

Simsim, maize, bean, groundnut, apiary, piggery and sunflower.

CHAPTER II

METHODOLOGY
STUDY DESIGN
The study used cross sectional (survey design) applying carefully selected qualitative and
quantitative approaches to obtain data on previous and current market performance of the
selected enterprises. This design ensured that a representative sample was drawn from the key
market areas for the selected commodities to give valid and reliable findings. Survey design
offers the unique advantage of looking at numerous cases and comparing their responses to
arrive at an optimal finding.
STUDY AREA AND POPULATION:
The assessment was conducted in Kitgum, Gulu, Lira and Kampala districts at the main markets
of these towns as presented in the demographic component of this report. The study population
included produce dealers, pork and piglet dealers, and regular buyers at these markets. These
groups were adjudged by the survey team to be the best suited to provide the kinds of responses
that would address the research questions given their role in production and marketing of the
selected commodities.
The selected study areas on the other hand are renowned market destinations of the commodities
under investigation. The selected markets attract buyers from across the country as well as
abroad (the Sudan, the Congo, Rwanda and Kenya among others) making for an ideal location
for market assessment.

SAMPLING
The LQAS sampling technique was applied to ensure the minimum quality standards of the data
to be collected. A sample size of 100 respondents including 45 buyers and 65 dealers in the
selected commodities/enterprises was considered for four study areas (lots). The sample size was
arrived at on the basis of 95% confidence level and +/- 10% confidence interval. Once at the
study towns/markets, the enumerators applied non-probability purposive sampling to identify
10

suitable respondents to realize the agreed sample size for buyers and sellers. Purposive sampling
is not the best alternative but it served the purpose well enough since the respondents were fairly
homogenous.
DATA COLLECTION METHODS
Primary data were collected by enumerators from all the respondents using structured
questionnaires. Two main questionnaires were designed, one for buyers and the other for
sellers/dealers (see annex I). The questionnaires were derived from a professional website
dedicated for market research ensuring that the industry standard for market assessment is met.
The questions contained in the questionnaires were therefore exhaustive of crucial areas of study
in this kind of research.
Document review was used to collect secondary data especially through the internet using the
Google search engine. By this means the research team was able to identify the relevant
materials and websites for the assessment.
DATA ANALYSIS AND REPORTING
Data analysis began with designing the tools by ensuring the use of concise and simple questions
so that relevant responses were easily solicited. Both primary and secondary data were collected
implying that at least two analysis methods used. Primary data from pre-coded response
categories were entered directly into a template for data entry designed using SPSS. Those data
from open ended questions were coded before entry. After entry, an SPSS output for each
questionnaire was generated for further analysis using Excel. Once exported to Excel the
frequency tables from SPSS were used to develop appropriate charts.
Secondary data were sourced from related market assessment reports by reputable agencies like
USAID and specialized agri-business websites like infotradeuganda.com. Content analysis was
used to identify relevant data from these sources to augment (triangulate) the primary data for a
more balance assessment report.
ETHICAL CONSIDERATIONS
Confidentiality was ensured by concealing the identity of the respondents by not recording their
names on the tools. A cover statement/paragraph was written at the top of each questionnaire and
11

administered to the respondents to seek their consent to participate in the exercise before
questioning commenced.
The respondents especially sellers were assured that this market intelligence would in no way
undermine their businesses but rather make them more affective.
The report shall be shared with stakeholders who participated in the exercise to reassure them
that its a true reflection of the information they provided.

12

CHAPTER III
ANALYSIS, FINDINGS AND DISCUSSIONS

DEMOGRAPHICS
Demographic information of the buyers interviewed.
A sum of 45 buyer respondents was interviewed with 64% being female and 36% male. Most
buyer respondents 65% came from an averaged sized household of 6-10 members and the rest of
them from households of between 1-5 members.
Of the 45 buyer respondents, 12 were from Gulu, 14 from Kampala, 13 from Kitgum and 6 from
Lira districts. The selection of the location is commensurate with key regional markets and the
market that the enterprise groups under Child Fund shall potentially sell their products in.
Particular markets were visited in these districts namely Gulu municipal main market, Lira
municipal main market, Kawempe division main market and Kitgum Town Council main market
among others.
Demographic information of cereals and pulses dealers interviewed.
Most of the respondents interviewed as pulses and cereal dealers deal in a variety of products
including beans, cassava, Gnut, simsim, maize, and sorghum among others. Their sales points
include produce stores and market stalls to mention but a few. 15 of the 30 sellers of cereals and
pulses interviewed established their shop in the 2010s, 12 in the 2000s and just 3 in the 1990s
decade. 8 of the sellers interviewed were from Gulu, another 8 from Kampala, 6 from Kitgum
and 6 from Lira. The following divisions, municipals and sub-counties were visited, in Kampala;
central, kawempe and Nakawa meanwhile in Lira and Gulu the exercise took place at the
Municipalities and the Town Council in Kitgum district.
In Kampala the following local markets were visited; Bwaise, Mulago, Owino, Kyebando, and
Nakawa; in Gulu district the main municipal market, Bar-dege, and Juba Road market among
others were visited; in Lira the main municipal market, Omodo and Oliya among others were
covered and lastly in Kitgum Aringobom, Ayul B, Quarters and Lulojo markets were visited.

13

Demographic information of pork and piglets dealers interviewed.

The respondents in this category comprised of operators of pork joints and barbecue ovens
located at various points in the sample areas like Happy Hours and El-classico in Kitgum Town.
Other areas visited include Luzira, Makindye, Pager crescent, Soweto market, and Namere
Village. Also farmers and other sellers were part of this interview. The businesses of respondents
in this category were established over a period of a decade from 1999 right up to date, 2014.
Demographic data of honey dealers
Six (6) dealers in honey products were interviewed in the four study districts. They included
specialist dealers, shops and supermarket.

SIMSIM/SESAME
Buyers views
Almost all the buyers interviewed consumed simsim/sesame in one form or the other. The largest
percentage 53% consumed a simsim product at least once a week. Only 2% of the buyers
interviewed did not consume the commodity at all. 20% consumed it after a period of one month
or more. Most buyers 71% would prefer to have their sesame in grain form and a few others
29% would rather have it in pasted form.
Most buyers 45% purchased their sesame from retailers and then produce dealers 30% and
farmers 25%. Most of them 90% contended that simsim was always available in their local
market.
Sellers views
Seasonality of market
Most sellers 80% thought simsim/sesame sold best at specific periods i.e. from August to
February. This time also coincides with the harvest season of sesame which starts around August
until early December. So it is just a question of the availability of the product but not seasonality
of the market

14

Regulations
The sellers interviewed were of the opinion that the product was not restricted by any specific
regulations. Hence there is no legal barrier/costs that must be met for to engage in trading in the
commodities.
Current trends
Most sellers asserted that simsim had in recent years enjoyed exponential price increases.
The leading buyers of simsim
More than a third of produce dealers 42% thought that companies/processors were the major
buyers of simsim followed by foreign traders, retailers and local buyers/end users.
Marketing strategies prevalent for simsim
Good customer care and bulk selling was ranked highly as a prevalent marketing strategy among
simsim dealers. The use of media as a marketing strategy also appealed to a lot to sellers of the
commodity.
Discounting for bulk buyers and the use of posters has proved quite successful in attracting
simsim customers according to the respondents.
The potential customers for simsim
The majority of produce dealers contended that simsim was mostly bought by local consumers.
Others said farmers, foreign traders and companies among others also buy the commodity.
The size of the commodities market
More than half of produce dealers contended that simsim had a big market. The rest still thought
the market was good enough.

15

The reason for the appeal of sesame

The appeal of simsim products is predicated on good quality, though customer care and display
also play a small part. All produce dealers interviewed were convinced that ensuring good
quality remains the sure option of attracting new customers and keeping old ones.
Room for new entrants in the commodity trade
Almost all the dealers interviewed maintained that the market for simsim was big enough to
support more players. 86% of the dealers interviewed believed they could still become key
players given the opportunity.
Competitors pricing structure
Simsim is priced largely depending on demand but also timing and quantity purchased asserted
most dealers interviewed. Costing in terms of expenses incurred also play an important in the
commodity pricing. In the chart below is a presentation on the prices of simsim across the four
traditional regions of the country in May 2014.
Simsim prices (per kilo) across Uganda, May 2014
wholesale prices
4,700
Retail prices
4,350
4,750

4,000

Western

Regions

Northern

4,950
5,350

Eastern

4,700

Central

4,600

Average
0

1,000

2,000

3,000

4,000

5,000

5,450

5,100
6,000

Price range

Source: infotradeuganda.com

16

As can be seen above simsim is a very lucrative enterprise with minimum wholesale price
averaging 4,000/= (western region) and maximum 4,950/= (eastern region). Northern region
recorded the second lowest wholesale price 4,350/= per kilo of simsim. Central region or
Kampala posted the highest retail price 5,450/= in the period, followed by Eastern.
Change in the product offering and marketing strategy
The produce dealers questioned in the assessment were of the opinion that their competitors are
making some major changes in their product offering and marketing strategy. Most dealers of
simsim nowadays put a lot of effort in customer care and market linkages to sell the commodity.
Customer loyalty
More than half of produce dealers were of the opinion that these commodities (i.e. simsim,
maize, groundnut, bean and sunflower) attract customer loyalty.
Uniqueness of dealers simsim products
The quality offered and competitive prices were the key factors that made most dealers cereal
and pulses products stand out from the rest.

MAIZE
Buyers views
The majority of buyers 71% interviewed consumed maize products at least once a week which
indicates a good market for the commodity. Some 22% of the buyers consumed maize products
at least once a month. Just 7% of the respondents did not consume maize products at all. 75% of
respondents preferred to have maize in flour form and 25% as grain. The enterprise groups
would therefore get better sales when they grind and package the maize they produce in form of
flour.
The majority of buyers 91% agreed that maize products were always available in their local
market throughout the year. Most buyers 58% purchased their maize products from
retailers/market vendors. The rest bought from produce dealers and farmers. The enterprise
17

groups should therefore target the retailers/market vendors as their primary clients or even sell
their maize products directly to end users.
Sellers views
Seasonality of market
Many sellers interviewed 73% contended that the market for maize was seasonal. Most say in
May and September which coincidentally are the times when maize are harvested in the country.
This again makes it implausible to assert that maize sells highest in these periods.
Regulations
The sellers interviewed were of the opinion that the product was not restricted by any specific
regulations. Hence there is no legal barrier/costs that must be met for to engage in trading in the
commodities.
Current trends
Maize consumption has remained steady given that its a staple food for most regions of the
country which promises a stable market.
The leading buyers of maize
Sellers contended that the leading buyers of maize were local buyers/consumers followed by
foreign traders, institutions and farmers respectively.
Marketing strategies prevalent for maize
According to most dealers interviewed, the use of media, flyers, posters and good customer care
were some of the common marketing strategies for maize with the use of posters being the most
successful one.
The size of maize market
More than two thirds of produce traders thought the market for maize was not that high but also
not very low.

18

The reason for the appeal of maize

Customer attraction to maize products according to produce dealers depends on quality and
display among others.
Room for new entrants in the commodity trade
The sellers were overwhelmingly convinced that market could still accommodate another player
and they could also still be leading dealers of the commodity.
Competitors pricing structured
Maize was priced according to competitors pricing and the quantity purchased. In the chart
below is a presentation on the prices of maize across the four traditional regions of the country.
Maize products wholesale and retail prices across Uganda, May 2014
750 950

Western

850 1,000

Northern

Regions

1,600

1,8502,050

800900

Eastern

850

Central

1,550 1,800
1,150

800 1,000

Average
0

500

1,000

1,900

1,600

1,900

1,650 1,900
1,500

2,000

2,500

Price range

Maize grain wholesale px

Maize grain retail px

Maize flour wholesale px

Maize flour retail px

Source: infotradeuganda.com
According to the chart above maize flour attracted the highest retail (2,050/=) and wholesale
(1,850/=) prices across the country in the month of May 2014. Maize grain fetched the highest
19

retail price 1,150/= in the central region/Kampala in May 2014 followed by 1,000/= in northern
Uganda.
Change in the product offering and marketing strategy
Dealers intimated that no much movement had been registered in the product offering or
marketing strategy of maize. The products which recorded minimal movement in these areas
have been about packaging, proximity to market and credit sales among others.
Customer loyalty
More than half of produce dealers are of the opinion that these commodities (i.e. simsim, maize,
groundnut, bean and sunflower) attract customer loyalty.
The products uniqueness
The quality offered and competitive prices were the key factors that made most dealers cereal
and pulses products stand out from the rest.

BEANS
Buyers views
A quarter of the respondents interviewed ate bean on a daily basis. This corresponds quite well
with the understanding that the commodity is a staple food in the country. More than three
quarters of the respondents/buyers revealed that they ate bean at least once a week. All but one
respondent would rather have their bean as dried pulses instead of fresh ones.
Two thirds of buyers would buy their bean from retailers and a third from farmers and produce
dealers. The buyers interviewed generally contend that they dont suffer any bean shortage in the
local at any given time of the year.
Sellers views
Seasonality of market
The opinions of sellers interviewed were divided on the seasonality of bean market in their local
markets. Two thirds said the commoditys market was seasonal while a third said its not
20

seasonal. Most sellers 68% said bean sell most at from May to August which like maize is the
period when the harvest occurs
Regulations
The sellers interviewed were of the opinion that the bean sale was not restricted by any specific
regulations. Hence there was no legal barrier/costs that must have been met for one to engage in
trading in the commodities.
Current trends
About a third of the sellers believed that the demand for bean increases markedly around the
planting season. This a period of hunger in most regions of the country and bean provides for a
heavy meal at this needy period.
The leading buyers of bean
The leading buyers of this commodity according to sellers were foreign traders, farmers and
local buyer respectively.
Marketing strategies prevalent for the bean
Good customer care, use of media and attractive design equally stood out as the most used
marketing strategy for bean. This was closely followed by targeting bulky buyers and attention to
quality among others.
The size of bean market
Most of the sellers 57% interviewed were of the opinion that bean market was big whereas the
rest regarded the market as moderate.
The reason for the appeal of bean
Good quality followed by customer care was a major factor in attracting buyers of bean.

21

Room for new entrants in the commoditys market

Bean dealers believe the bean market is still largely untapped and they can be captains in the
commodity trade.
Competitors pricing
Bean was priced depending on competitors pricing, quantity purchased and the costs incurred in
production and delivery. In the chart below is a presentation on the prices of bean (Agwede
K131) across the four traditional regions of the country.

3,000

Price range

2,500

Bean wholesale and retail prices across the country

retail px
May 2014
2,800
2,200
1,950

2,300

2,100
1,950

2,050
1,850

2,000

whole sale px
2,200
1,950

1,500
1,000
500
0
Average

Central

Eastern

Northern

Western

Regions

Source: infotradeuganda.com
Common bean (agwedde 131) attracted the highest prices for both retail 2,800/= and wholesale
2,300/=. This makes Kampala a favorite destination/market for the commodity.
Change in the product offering and marketing strategy
Dealers intimated that no much movement had been registered in the product offering or
marketing strategy of bean. The products which recorded minimal movement in these areas have
been about packaging, proximity to market and credit sales among others.
Customer loyalty
More than half of produce dealers were of the opinion that bean sales attracted customer loyalty.
22

The products uniqueness factor

The quality offered and competitive prices were the key factors that make most dealers cereal
and pulses products stood out from the rest.

GROUNDNUTS
Buyers views
A sizeable number of buyers 64% consumed groundnut products at least once a week. Just a few
of those interviewed consumed the products daily 13% or not at all 9%. More than a quarter of
buyers questioned consumed the products after a month or more. The majority of buyers
interviewed would prefer to consume groundnuts in the form of pulses 56% rather than paste
44%.
Again most buyers purchased their groundnut products from retailers at markets and shops.
Some of them also bought from produce dealers 29% and farmers 27%.
The buyers unanimously 93% agreed that groundnut products were available all year round in
their local market which indicates good supply levels.
Sellers views
Seasonality of market
Sellers were equally split on the seasonality of groundnut market. More than a third believed it
was not seasonal whereas about two thirds thought otherwise. A third of those who believed its
seasonal contends that the product sold highest around June.
Regulations
The sellers interviewed wer of the opinion that the products (cereals and pulses in the study)
were not restricted by any specific regulations. Hence there was no legal barrier/costs that must
be met for to engage in trading in the commodities.

23

Current trends
Groundnut was by the time of the assessment turning out to be a reliable cash crop among
farmers given its relatively high prices according to produce dealers.
The leading buyers of groundnut
Processing companies stood out as the leading buyers of groundnuts according to produce
dealers. This was followed by retailers and foreign traders.
Marketing strategies prevalent for groundnut
Targeting bulk buyers followed by use of media and attractive designs stood out as the most
prevalent marketing strategy for groundnut.
The size of the commodities market
The majority of produce dealers contended groundnut had a moderate to high market in terms of
number of customers and revenue.
The reason for the appeal of groundnut
Good quality remained the most important factor why customers keep coming back for
groundnuts
Room for new entrants in the commoditys market
In the same way as for bean and maize, produce dealers were of the opinion that the Groundnut
and Sunflower market was up for grabs and that they could still become major players in the
commodity trade.
Competitors pricing
Pricing for this commodity depended on costs incurred in its production and delivery and the
quantity purchased. In the chart below is a presentation on the prices of groundnut (per kilo)
across the four traditional regions of the country.

24

4,600

Groundnut wholesale and retail prices across Uganda, May

2014
4,500
4,500
4,400
4,300

4,400

Retail price

4,300

Wholesale price
Price range

4,200
4,000

4,000

3,950

3,900

3,950

3,750

3,800
3,600
3,400
3,200
Average

Central

Eastern

Northern

Western

Regions

Source: infotradeuganda.com
Northern and western regions posted the highest retail price 4,500/= for groundnut. These
regions are also the highest consumer of groundnut products. Northern region also registered the
highest wholesale price 4,000/= across the country in May 2014.
Change in the product offering and marketing strategy
Dealers intimated that no much movement had been registered in the product offering or
marketing strategy of the products which recorded minimal movement in these areas have been
about packaging, proximity to market and credit sales among others.
Customer loyalty
More than half of produce dealers were of the opinion that these commodities (i.e. simsim,
maize, groundnut, bean and sunflower) attracted customer loyalty.
The products uniqueness factor
The quality offered and competitive prices were the key factors that make most dealers of cereal
and pulses products stood out from the rest.
25

SUNFLOWER
Buyers views
A significant number (37%) of buyers did not consume sunflower products, some 17% consume
sunflower products frequently (Daily or weekly) and 47% consume the products after extended
periods of time (a month or more).
Most of the consumers (71%) of sunflower products buy them from farmers; others (24%) buy
from produce dealers and 5% representing just one consumer buys from market stalls.
Consumers had a divided opinion on the availability of sunflower products in their local market,
the majority 36% contended that it was always available, others 28% thought its there only in
specific seasons another 28% thought its rarely available.
Sellers views
Seasonality of market
Most of the sellers interviewed abstained from the question on the seasonality of sunflower
because sunflower products are not among their main dealership commodities.
Regulations
The sellers interviewed are of the opinion that sunflower sale is not restricted by any specific
regulations. Hence there is no legal barrier/costs that must be met for to engage in trading in the
commodities.
Current trends
Most of the produce dealers who commented (6 out of 30 respondents) on Sunflower thought the
commodity had a relatively high demand among buyers.
The leading buyers of sunflower
The few produce dealers who commented on this item expressed that its the local retailers
awarawara who were its chief buyers.

26

Marketing strategies prevalent for sunflower

As in the case of groundnut targeting bulk buyers is a strategy commonly used by produce
dealers to sell Sunflower. This is supported by ensuring good quality products for the customers.
The size of the commodities market
Interestingly many produce sellers 57% are of the opinion that the market for sunflower is
moderate to small. This is telling of the fact that the commodity might not be such a good choice
for the farmer groups under Child Fund.
Change in the product offering and marketing strategy
Dealers intimated that no much movement has been registered in the product offering or
marketing strategy of the above products. The products which recorded minimal movement in
these areas have been about packaging, proximity to market and credit sales among others. In the
graph below is a presentation on the prices of sunflower (per kilo) across the four traditional
regions of the country.

Sunflower prices (in kilos) across the country, May

800
2014
Western

1,000
1,000

Regions

Northern

1,100
1,000

Eastern

1,100
wholesale prices
600
650

Central

Retail prices
950

Average

1,050
0

200

400

600

800

1,000

1,200

Price range

Source: infotradeuganda.com
27

Northern and Eastern Uganda fetched the highest retail 1,100/= and wholesale 1,000/= prices
across the country. Remarkably, Central region/kampala posted the lowest retail and wholesale
prices for the commodity.
Customer loyalty
More than half of produce dealers interviewed were of the opinion that these commodities (i.e.
simsim, maize, groundnut, bean and sunflower) attract customer loyalty.
The products uniqueness factor
The quality offered and competitive prices were the key factors that made most dealers cereal
and pulses products stand out from the rest.

PORK
Buyers views
A sizeable number of buyers (one fifth) interviewed did not eat pork products which can be
attributed religious, cultural or personal preference/dictate. Uganda boasts a fairly large Muslim
population who by their faith are prohibited from consuming the product. Just one of the buyers
interviewed conceded that he/she ate pork products daily. However a third of buyers interviewed
ate pork products at least once a week. Almost a half of respondents consumed the products just
once after a month or more.
Most buyers 65% purchased their pork products from pork joints located in their neighborhoods.
A third of consumers interviewed bought their pork from other dealers or farmers. All the
respondents admitted that pork was always available in the local stalls whenever they needed it.
Sellers views
Seasonality of the product
Porks market was all year round according to the dealers.

28

Regulations
Dealers were split on the availability of regulations for dealing in pork products but they
generally asserted that there was no major regulation with the exception of regular checks of
weighing scales and trade licensing.
Market growth
Dealers were united in asserting that the pork market was exponentially growing
Current trends
The dealers interviewed were of the opinion that pork was sold at a high price.
Leading sellers of pork
The leading sellers of pork products according to the dealers interviewed were butchers and other
foreign companies with related investments in Uganda
Marketing strategies available for pork
The dealers highlighted customer care and quality products were some of their common
marketing strategies
The market size of pork products
Most dealers interviewed 58% were of the opinion that the pork market is high to moderate.
The products appeal
Most dealers 67% asserted that the key appeal for pork products were fair prices and good
hygiene respectively. They were of the opinion that these appeal factors would stay around for a
long time.

29

Room for new entrants in the commoditys trade

The port market according to 83% dealers was still largely untapped hence capable of supporting
new players. Many of the dealer in the assessment thought they could as well become key
players in the commodity trade.
The same market situation applied for piglets which the dealers asserted also had a huge market
and they too could become major players in its trade.
Rival dealers/competitors in pork products trade
Pork was mostly sold by local pork butchers and occasionally local farmers who then sold the
meat to end users including hotels and restaurants and local grillers for further value addition.
Farmers had at times out sold pork butchers because their pork suit customer needs in terms of
weighing and hygiene.
The commoditys pricing
Most dealers priced their pork depending on the current market price, discount price for bulk
purchases and the demand. In the chart below is a presentation on the prices of pork (per kilo)
across the four traditional regions of the Uganda.

Pork wholesale and retail prices (per kilo) across Uganda

7,150

Western

8,400
6,350

Region

Northern

7,400
6,450
7,150

Eastern

wholesale price
retail price

6,300

Central

8,150
6,650

Average

7,800
0

2,000

4,000

6,000

8,000

10,000

Price range

30

Source: infotradeuganda.com
Western and Central regions recorded the highest retail prices 8,400/= and 8,150/= respectively
across the country in May 2014. The wholesale price were fairly equal across the region,
averaging 6,650/= except for western region which was at 7,150/=.
Change in the product offering and marketing strategy
Most dealers believed there had been no significant change in the commodity offering by dealers
rather than
selling it at a reduced price at times and ensuring its available all the time.
Customer loyalty
Most dealers 67% were of the opinion that there was customer loyalty by pork buyers especially
when their needs for quality, reliability, size and price are met.
The products uniqueness factor
Ensuring good quality followed by competitive pricing were critical factors for the uniqueness of
many pork dealer enterprises.

PIGLETS
Seasonality of the commoditys market
Piglets were equally not a seasonal commodity but rather sell all year round.
Regulations
Piglet dealers were also unhindered by any major regulation except for the routine health checks.
Market growth
Just like pork, piglets market was also booming as expressed by most dealers interviewed in the
assessment.

31

Current trends
Like pork, dealers thought piglets were in high demand currently.
Leading sellers
The study also noted that the leading sellers of piglets were butchers and local farmers
Market size
The piglets market size was regarded by the dealers in this study to be moderate to high.
The appeal for piglets
Dealers 86% also believed the appeal of piglets was on their quality (breed, size, and growth
rate) and price. They also thought these appeal factors would obtain for a long time.
Room for new entrants in the commoditys trade
The pork market according to 83% dealers was still largely untapped hence capable of
supporting new players. Many of the dealers in the assessment thought they could as well
become key players in the commodity trade.
The same market situation went for piglets which the dealers asserted also had a huge market and
they too could become major players in its trade.
The commoditys competitors
Piglets were mainly sold by breeders and occasionally by local farmers.
The appeal for piglets
Pricing was a prerequisite for customer appeal in piglet trade.
The commoditys pricing
Most dealers priced their piglets depending on the current market price, discount price for bulk
purchases and the demand.
32

Change in the product offering and marketing strategy

Most dealers believed there had been no significant change in the commodity offering by dealers
other than
selling it at a reduced price at times and ensuring its available all the time.
Customer loyalty
Dealing

in

piglets

also

generated

some

customer

loyalty

according

to

67%

dealers/farmers/breeders interviewed.

HONEY
Buyers views
Most buyers interviewed (57%) consumed honey products after extended periods of time. This
depicts the low supply of the commodity in the market. 33% consumed the product at least once
a month which denotes a very low level of consumption. 10% do not consume honey at all for
one reason or another.
The majority of the current consumers interviewed would prefer to eat honey in its crude form
just a few would rather have honey in a purified form. Farmers dominate (72% of the time) the
supply of honey products to the current consumers, implying the enterprise groups can deal
directly with the end users of the product.
Most buyers 53% contended that honey products were always available in their local markets
though a similar number 47% thought otherwise.
Sellers views
Seasonality of the product
Most dealers 67% thought the products market was seasonal. Honey is harvested twice a year
with the first one being the main season.
Regulation

33

There was no particular regulation hindering trade in the commodity. Dealers were of the view
that the commodity market was growing.
Current trend of honey products
Currently honey products have enjoyed high prices and demand and an increasing rate of
consumption among the aged. Both beekeepers and processors were known to deal in honey
products. In the chart below is a presentation on the prices of processed honey (per kilo) across
the four traditional regions of the Uganda.
Wholesale and retail prices of processed honey across across Ugand
a in May 2014 10,850

Western

15,000
15,000

Regions

Northern

18,000

Eastern

10,600
11,400

Central

10,000
11,500

wholesale px
Retail px

10,850

Average

12,950
0

5,000

10,000

15,000

20,000

Price range

Source: infotradeuganda.com
Processed honey fetched the highest staggering price of 15,000/= and 18,000/= for retail and
wholesale respectively in the period. The average retail and wholesale prices of processed honey
across the country were 10,850/= and 12,950/= respectively.
The leading sellers of honey products

34

Beekeepers and processors have an edge in honey product trade because they control production
and advertize extensively, respectively. Most dealers advertize through product labeling and the
local media.
Main customers
The dealers interviewed sold the bulk of their honey products to end-users/households but also to
shop owners, foreign buyers and companies.
The appeal for honey products
Significantly dealers thought everybody loves honey, so there is ready market. The other pull
factors for honey products include being natural/organic and branding. The dealers were
unanimous in asserting the factors would remain for a long time.
Competitive Analysis
Apparently the dealers interviewed thought the market can support new players of which they
could be key. The other important dealer in honey products was supermarkets according to the
respondents.
Quality and packaging stood out as the main pull factors for honey product buyers.
Customer choice
When selecting honey products customers first and foremost consider the products price,
followed by quality and reliability. In the chart below is a presentation on the prices of processed
honey (per kilo) across the four traditional regions of the country.
Customer loyalty
Honey products dealership tends to create a very high customer loyalty according to the all
dealers interviewed.
Packaging style and quality were the main factors that set apart the various honey product
offerings on the market.
35

CHAPTER IV

CONCLUSIONS AND RECOMMENDATIONS

Simsim
Most buyers prefer their simsim in grain form implying the need for a gradual uptake of
value addition by local farmers including the farmer groups under the HEEC project.

Simsim market is available through the year hence producers can hoard the commodity until
such a time when the prices are good enough.

There has been an exponential increase in the price of simsim recently making it a
commodity of choice for the agri-business farmer. The assessment noted that the price of
simsim is very fluid (tending up-wards) with change in demand.

The findings indicate that simsim is mainly bought by foreign traders and processors which
make it recommendable to sell it directly to these parties for better prices rather than through
middlemen.

Good quality is an important factor in selling simsim. Producers therefore need to ensure
value addition, right from drying to sorting and packaging.

The market for simsim is vast, both local and foreign. New producers and dealers still have
enough room to join the commodity trade.

Local farmers should sell their simsim to regions with higher wholesale prices like eastern
Uganda followed by central/Kampala and may be northern but not western Uganda which
seems to traditionally have a low preference for simsim products. However, farmers should
factor in the delivery costs (transport) as they move to sell in these markets. Selling simsim at
retail price appears to be lucrative but handling costs need to be considered before farmers
engage in it.

Access to market information and formation of cooperatives/associations seem particularly

advisable for dealers and producers of simsim since the most paying markets are far and wide
(overseas, Kampala and Eastern region)

Maize
Maize is a staple food for most Ugandans especially in the north where the prices for maize
products (flour and grains) are particularly high. Consumers prefer maize in the form of flour
36

hence the need for value addition. The market for maize products is also largely found in the
northern region.

The target farmers should therefore add value to their maize grain so they can fetch better
revenue by selling the flour locally in northern Uganda.

Maize being a staple food for most people in the country implies a stable market for the
commodity.

Maize products are not very pricy compared to other commodities like simsim making it a bit
of a low earner for the business farmer.

Beans
Like maize, bean is also a staple food and a good percentage of those interviewed consumed
it daily. This makes bean market quite promising in the country. Farmers can as well sell
their bean produce to institutional buyers like schools, prisons and the army among others.

The study noted that bean supply is adequate which leaves bean producers with a few options
to ensure that they sell their bean i.e. customer care and ensuring high quality standard.

Bean has a good market in Kampala, attracting comparatively high prices. Business farmers
in the district therefore need to sell their bean produce there by creating market linkages and
associations for the purpose of efficiency.

Not much change has been registered in bean trade except for some efforts made towards
packaging and making of credit sales.

Groundnuts
Buyers are not so selective about the form (as in pulses or paste) in which they would have
their groundnuts. This implies a low need to take up value addition for the commodity in
terms of grinding the pulses into paste.

The groundnut market is seasonal i.e. around June. Producers would therefore serve their
businesses right by selling the commodity around this time.

Groundnut is a top earning enterprise which if chosen/ventured into by farmers would likely
generate for them adequate income to sustain their households and improve their standards of
living.

37

Like for the sales of all commodities, quality is important in marketing groundnuts and that is
what keeps customers coming back. Producers and dealers would therefore do well to ensure
that their g/nut is well dried, sorted and packaged before they put it up for sale.

Groundnut has better markets in northern and western Uganda. Farmers and producers
should therefore look towards marketing their groundnut products in the local market hence
avoiding needless handling costs in delivering their products to the central region

Sunflower
Sunflower is not a favorite commodity among Ugandan buyers and would not be such a wide
choice for business farmers according to the assessment.

Sunflower unlike other pulses is not commonly found in produce stores and market stalls
being sold to would be buyers. Buyers would buy sunflower cooking oil like any other with
no special demand attached to it. This makes sunflower as an enterprise choice for the
business farmer rather flat.

Very low demand and price was recorded for sunflower in the central in the assessment.
Given the high purchasing power of people in the central region and the high population
density there, the commodity should have registered high demand and prices if it was really a
favorite. Clearly its not a commodity that would generate a lot of revenue for the local
investor. Hence care should be taken when attempting to adventure into its production.

Pork
Pork is a target commodity with a niche market. Consumers normally have pork occasionally
as a treat making the commodity a non regular fixture on the buyer menu. Farmers/producers
should therefore identify their niche market for pork and ensure optimal supply to that
market.

Pork sells every time of the year making it possible for producers to be active and generate
revenue all year round. Farmers/producers should therefore take up the enterprise knowing
full well that they can engage in constant production and still sell their commodity.

Making quality sales is crucial in pork marketing though the study notes that most pork
dealers do their business in unhygienic marginal locations which pose a health risk to the
buyer. Making a change in this area would great enhance the sale outcomes of pork dealers
hence better revenues.
38

Pork prices vary widely depending on demand and the quantity of purchases made. This
therefore implies that the business farmer can/should deliberately choose who to sell the
pig/pork to i.e. the highest bidder for better sales revenue.

Local dealers sell pork better in fried form as a full meal in what is commonly known as pork
joints. Farmers should therefore consider selling their pigs/pork via this means, as it promises
a quicker turn over and higher sales revenue.

Piglets
Piglet enterprise is very lucrative and easier to manage than piggery/pork. A piglet can be
sold at a third of the price of a grown pig. By simple ranking piglet enterprise would be better
than pork/pig rearing enterprise.

Pricing is everything for a piglet breeder to make a sale. Farmer need to be careful in setting
their prices by considering the start-up costs, working capital and delivery/handling costs
among others.

Piglet prices vary according to the breed of pigs in question. The business farmer would be
well advised to choose their breed carefully. Breed such as the large white can go for
150,000/= a piglet.

Honey
Honey is an exotic commodity not consumed regular by Ugandans. This is partly explained
by the scarcity of the delicacy. This implies a huge market opportunity for those who would
like to engage in honey production.

Honey is the most valuable of all the enterprises reviewed in this study. The business farmer
would have made a very good choice by electing to invest in the product.

Honey is not always available in the local Ugandan market. Implying an opportunity to fill
the supply gap and good revenue by those who choose to undertake the apiary venture.

Processed honey greatly enhances the commodity value and appeal hence the need for value
addition

Honey products from Uganda especially the northern region is world renown. This offers a
ready market for those intending to engage in the commodity production.

39

REFERENCES
Market assessment and baseline study of staple foods-Country report Uganda 2010, USAID,
Chemonics International Inc.
Infotrade, May 2014, Current Prices for the week, Average Commodity Prices, viewed 10 May
2014, <http://www.infotradeuganda.com/index.php/market-information/food-prices.html >
USAID (2008), Stabilization-Driven Value Chain Analysis of Rice, Groundnuts and Maize in
Northern Uganda, October 2008;
NRI/IITA (2002), Transaction Cost Analysis Report.
ASARECA (Association for Strengthening Agricultural Research in Eastern and Central Africa)
2008. Responding to the food price crisis in Eastern and Southern Africa: Policy options for
national and regional action. ASARECA, Entebbe.

40

ANNEX I
BUYERS (CONSUMERS/END-USERS)
(Market shoppers-10 and farmers-4)
Introduction
This is a Child Fund sponsored market assessment for enterprises/products identified by farmer groups
currently being supported under its Household Economic Empowerment HEEC project in the Acholi
sub-region. The information you will offer will help to make these enterprises more effective and
beneficial to the vulnerable groups being supported by the organization. You are free to participate in or
abstain from this exercise should you desire so. The information you provide shall be kept strictly
confidential and no harm will arise to you as a result of your participation in the research.
Demographic information
I.
II.
III.
IV.
V.

Sex
Male
Household size
District
Sub/county, Town, municipality or city
Local market

Female

The product
Qn 101 How often do you buy these products?
S/NO

PRODUCT

CONSUMPTION RATE
Never

Daily

Weekly

Monthly

After long
periods

1. Sesame/sim sim
2. Maize
3. Bean
4. Groundnut
5. Pork
6. Piglets
7. Honey
8. Sunflower

41

Qn 102 In what form/type, period and size would you like to have this product from any given seller?
S/NO

Product

Form/type

Period (daily,
weekly,
fortnightly,
monthly, more..)

Size (kg/liter)

1. Sesame/sim sim
2. Maize
3. Bean
4. Groundnut
5. Pork
6. Piglets
7. Honey
8. Sunflower

Qn 103 From which sellers do you often buy these products? (Start with the commonest seller for each
commodity)
S/NO

PRODUCT

DEALER (S)

1. Sesame/sim sim
2. Maize
3. Bean
4. Groundnut
5. Pork
6. Piglets
7. Honey
8. Sunflower

42

Qn 104 What is the availability of the following commodities in your local market?
S/NO PRODUCT

Always

Seasonally

Rarely

Not available

1. Sesame/sim sim
2. Maize
3. Bean
4. Groundnut
5. Pork
6. Piglets
7. Honey
8. Sunflower

Qn 105 What has been the price trend of these products in your local market?
S/NO

PRODUCT/Kg

2012

2013

2014

1. Sesame/sim sim
2. Maize
3. Bean
4. Groundnut
5. Pork
6. Piglets
7. Honey
8. Sunflower

THANKS FOR YOUR COOPERATION

43