The Analysis of Traders in a Developing Country Value Chain: Pig traders in Uganda

Abstract

<p>This study analyzed pig traders in Mukono district in Uganda. The main objective was traders' characterization in terms of trading activities, seasonal fluctuations, networking, and business constraints. A second objective was comparison of results across sampling sources, and to assess the extent to which these sources influence research results. Data on traders was collected through a survey questionnaire. The survey employed samples from 3 separate sample frames: traders identified by each of retailers, farmers, and local authorities.</p><p> The results indicated a limited number of intermediaries (actors), in the pig value chain in the locality studied. A large proportion of traders are also involved in the retailing function (principally as butchers). Farmers/producers remain the main suppliers to pig traders, whereas retailers/butchers, and in lower proportion small scale producers, are the main customers of these traders. Pig traders are facing many constraints in their day-to-day operations. Limited funds, transport costs and poor transport facilities are the most-cited constraints to traders' buying activities. Business environment constraints (lack of customers, high competition between traders, unpredictable market conditions, etc.) are the most frequently-cited constraints to selling activities.</p><p> Traders were segmented into two groups in the basis of their sampling list origin: a first group composed of those drawn from the producers' or retailers' lists, and a second group composed by traders drawn from the local authority's list. Results indicated that the former group is mainly composed of young and inexperienced traders, in contrast to the second group which is composed of aged and experienced traders. Traders groups' constraints analysis showed that the two groups of traders are experiencing different constraints, especially the young and inexperienced traders who cited a large number of problems. These results highlight the importance of the sampling source.</p>