Prices, profit margins and intermediary market power: evidence from the matooke value chain in Uganda

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cg.authorship.typesCGIAR and advanced research instituteen_US
cg.contributor.affiliationKIT Royal Tropical Instituteen_US
cg.contributor.affiliationBioversity Internationalen_US
cg.contributor.affiliationInternational Livestock Research Instituteen_US
cg.coverage.countryUgandaen_US
cg.coverage.iso3166-alpha2UGen_US
cg.coverage.regionAfricaen_US
cg.coverage.regionEastern Africaen_US
cg.coverage.regionSub-Saharan Africaen_US
cg.creator.identifierEnoch Kikulwe: 0000-0003-2433-1704en_US
cg.identifier.doihttps://doi.org/10.1108/jadee-06-2022-0105en_US
cg.isijournalISI Journalen_US
cg.issn2044-0839en_US
cg.issue4en_US
cg.journalJournal of Agribusiness in Developing and Emerging Economiesen_US
cg.reviewStatusPeer Reviewen_US
cg.subject.alliancebiovciatECONOMICSen_US
cg.subject.alliancebiovciatMARKETSen_US
cg.volume14en_US
dc.contributor.authorKuijpers, Roben_US
dc.contributor.authorSmits, Estheren_US
dc.contributor.authorSteijn, Cedricen_US
dc.contributor.authorMulumba, Nasseren_US
dc.contributor.authorAsindu, Marsyen_US
dc.contributor.authorKruijssen, Froukjeen_US
dc.contributor.authorKikulwe, Enoch Mutebien_US
dc.date.accessioned2024-04-16T10:16:51Zen_US
dc.date.available2024-04-16T10:16:51Zen_US
dc.identifier.urihttps://hdl.handle.net/10568/141478en_US
dc.titlePrices, profit margins and intermediary market power: evidence from the matooke value chain in Ugandaen_US
dcterms.abstractThere is widespread belief that intermediaries in African agri-food value chains have disproportionate market power. In this paper, the authors examine this belief by uncovering the purchasing and selling prices, costs and profit margins by farmers, intermediaries and retailers in the matooke (cooking banana) value chain in Uganda, and by analysing the prevailing value chain and market structures, seasonal entry and exit dynamics and the trading relationships in the chain.Data for this study were collected along the trading routes from the main matooke producing districts in South-West Uganda (Kabarole, Bunyangabo, Bushenyi, Isingiro and Mbarara) to the main urban markets around the capital Kampala. A structured survey was administered with 383 producers, 172 collectors and wholesalers and 71 retailers. In addition, key informant interviews and focus group discussions were held.The authors find that price mark-ups by intermediaries (selling prices minus purchasing prices) vary with the type of intermediary, season and location but generally reflect the costs of moving matooke down the value chain to the urban consumer. The authors do not find evidence for disproportionate market power among the intermediaries in the chain. Intermediaries enter and exit the market in peak and off-peak season, such that profits are kept in check. This seasonality does imply a small shift in market power in favour of farmers in off-peak season and in favour of intermediaries in the peak season.The investigation concentrated on an important and relatively homogenous staple crop along its main trade route. More remote areas, where there is less of an abundance of matooke, might still be characterised by local monopsonies where intermediaries have more market power due to high search and transport costs. Similarly, (local) monopsonies might exist for products for which there is a smaller market (segment), for products with a stronger seasonal variation in supply and for more perishable products.While there is an important literature on the role of intermediaries in African agri-food value chains, the evidence on intermediary market power is scant. Beliefs on intermediary market power are largely based on anecdotal evidence from farmers or inferred from observed prices or market structures. The paper contributes in addressing this important knowledge gap by studying the matooke value chain in Uganda.en_US
dcterms.accessRightsLimited Accessen_US
dcterms.audienceScientistsen_US
dcterms.available2023-02-28en_US
dcterms.bibliographicCitationKuijpers, R.; Smits, E.; Steijn, C.; Mulumba, N.; Asindu, M.; Kruijssen, F.; Kikulwe, E.M.(2023) Prices, profit margins and intermediary market power: evidence from the matooke value chain in Uganda. Journal of Agribusiness in Developing and Emerging Economies , Online first paper (2023-02-28). ISSN: 2044-0839en_US
dcterms.extentpp. 694-711en_US
dcterms.issued2023-02-28en_US
dcterms.languageenen_US
dcterms.licenseCopyrighted; Non-commercial educational use onlyen_US
dcterms.publisherEmerald Groupen_US
dcterms.subjectevaluationen_US
dcterms.subjectpricesen_US
dcterms.subjectprofiten_US
dcterms.subjecteconomic competition-market competitionen_US
dcterms.subjectmarketing margins-margins (marketing)en_US
dcterms.typeJournal Articleen_US

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