Smallholder Farmers’ Contextual Ingredients of Process, Functional and Product Upgrading Strategies for Improved Competitiveness in Uganda’s Rice Markets

Abstract

Rice value chain upgrading is regarded as an essential precursor for improving smallholder farmers’ access to profitable markets. However, key drivers of their participation in upgrading strategies haven’t been fully established. This study evaluated different upgrading strategies in the rice value chain in terms of profitability and market participation. The study employed a cross-sectional survey of 442 randomly selected rice farmers in northern Uganda using a structured questionnaire while ordered and binary logit models were used for analysis. Our results revealed that the main motivational factors for upgrading was the desire for better markets and higher profits. Further, location, income, credit access, contract, group and individual marketing were confirmed as key ingredients of upgrading. The study recommended that efforts should be directed toward developing stronger coordination through farmers’/actors’ associations coupled with infrastructural and affordable finance systems development. This would empower farmers to upgrade and access profitable markets for economic transformation.