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Okoboi Geofrey International Institute of Tropical Agriculture
Table of contents REPORT SUMMARY......................................................................................................................4
POTATO PRODUCTION IN UGANDA ..................................................................................5
POTATO PRODUCTION AREAS..................................................................................................5 POTATO PRODUCTION STATISTICS ........................................................................................6 SEASONALITY OF POTATO PRODUCTION. ............................................................................9 POTATO VARIETIES................................................................................................................... 10 POTATO PRODUCTION COSTS ................................................................................................11
WARE POTATO MARKETING IN UGANDA .................................................................... 14
DESCRIPTION OF TRADING AND THE MARKETING CHAIN ............................................14 CONSUMPTION AND PRICES.................................................................................................... 17 SPATIAL ANALYSIS OF WARE POTATO MARKET .............................................................. 21 MARKETING COSTS AND MARGINS ...................................................................................... 22 WARE POTATO IMPORTS/EXPORTS. ..................................................................................... 24 SEED POTATO MARKETING IN UGANDA..............................................................................26 COMMENTARY ON UNSPPA SEED POTATO PRODUCTION MARKETING REPORTS...30
CONCLUSIONS AND RECOMMENDATIONS ....................................................................0
List of tables
Table 1: Output, Area planted and Yield of Potatoes from Major production Districts in Year 2000.......... 7 Table 2a: Potato Production Calendar for Kabale District. ........................................................ 9 Table 2b: Potato Production Calendar for Kisoro, Mbarara, Mbale and Kapchorwa Districts........... 10 Table 3: Characteristics of Potato Varieties Released/Grown in Uganda .................................... 10 Table 4: Ware Potato Production Costs in Kapchorwa District, Uganda for Year 2001. ................. 11 Table 5: Sensitivity Analysis of the effects of Changes in Costs and Revenues on farmers’ Margins. 12 Table 6: Average monthly household consumption expenditure on Potatoes by region in 1995........ 18 Table 7: Average monthly household consumption expenditure on Matooke by region in 1995 ....... 18 Table 8: Average monthly Household consumption expenditure on major food staples in Uganda in 1995 18 Table 9: Correlation Coefficients (r) for Potato between four towns using nominal prices .............. 22 Table 10: Correlation Coefficients (r) for Potato between four towns using real prices .................. 22 Table 11: Potato Marketing Cost and Margins ..................................................................... 23 Table 12: Assumptions used to derive costs in table 5 ........................................................... 24 Appendix 2: Grand Seasonal Index for Potato in Kampala Calculated from Real Retail prices ........ 32 Annex 1: PRODUCTION REPORTS FOR UGANDA NATIONAL SEED POTATO PRODUCERS’ ASSOCIATION (UNSPPA) FOR 2000A SEASON ..................................................... 33
List of figures
Map 1: Major districts producing Potato in Uganda ................................................................ 5 Figure 2: Percentage share of Area planted with Potato in 2000 by major districts.......................... 6 Figure 3: Potato production (‘000 Mt) in Uganda, 1980-2000 ................................................... 7 Figure 4: Potato production (‘000 Mt) in Uganda, 1980-2000 ................................................... 8 Figure 5: The Ware Potato trading chain. ........................................................................... 15 Figure 6: Trend of monthly nominal retail price of Potatoes in select district urban markets ........... 19 Figure 7: Trend of monthly nominal retail price of Potatoes in select district urban markets ........... 19 Figure 8: GSI for potatoes in Kampala, 1989-2000 ............................................................... 20
2000). a 100kg bag of seed potato is sold at 5 times that of ware potato! Potato chips is the most popular potato product in urban areas as evidenced the increasing number of fast food outlets. However. fertilizers. Monopolised by the 25 members of Uganda National Seed Potato Producers’ Association. Within the supply chain. travelling traders attain the highest net margins.Report Summary This report is the result of a rapid national Potato market survey designed to analyse the marketing potential of the Potato sub-sector in Uganda. • • 4 . where they have been promoted. While Potatoes are a major food staple and cash crop in the highland areas where they are cultivated. Potato yields are low in Uganda due to very low rates of quality inputs (clean seed. The high level of perishability and lack of appropriate long-term storage facilities has significantly influenced the degree of price uncertainty in the Potato market. and chemicals) utilisation. There is no significant cross border trade in ware potatoes between Uganda and the neighbouring countries. The potential of potato crisps is encouraging though currently not very popular. Seed potato production and marketing in Uganda is least developed. this suggests that more technical and farming systems investments is required to raise both production efficiency and levels of output. This is the most ideal time for Rwanda Potatoes to sell profitably in Uganda. limited formal and informal trade takes place along the Uganda-Rwanda border during the months of September to November when there is Potato supply shortage in Uganda. Key Findings • • • • • • • Production figures indicate that output of Potatoes in Uganda is stagnating. The survey involved formal and informal interviews to a cross-section of participants in the Potato sector. In Kabale 1% of farmers are reported to use fertilisers (Low. Brokers are a key link in the Potato marketing chain and this group appears to charge excessive fees for their services. they are considered a cash crop in the lowland areas.
Due to the wide adaptation of Victoria. they are inhabited by migrants from Kabale who have came along with their tradition of Potato cultivation.POTATO PRODUCTION Potato Production in Uganda Potato production areas Potato production is concentrated in two areas in Uganda.200-1. Ware potatoes are produced in both highland and lowland areas. Irish potato growing districts Lakes and Rivers Map 1: Major districts producing Potato in Uganda 5 . Mbale and Kapchorwa closely relate to those in Kabale. 2000).5oC with annual minimum below 10. Kisoro and Mwizi (Mbarara) in south-western Uganda and the mount Elgon districts of Mbale and Kapchorwa in eastern Uganda. the annual rainfall range is 1.500m.4002. Although the hills of Mwizi in Mbarara have relatively lower altitude (1. Altitudes range from 1. Victoria).g. The physical and climatic conditions of the mountainous districts of Kisoro.1.500mm occurring in two peaks and the mean annual maximum temperature is below 22. See Map 1. Low (2000) further states that the soil moisture and temperature regime make Kabale suitable for temperate crops. many new districts have taken to ware potato production. making Kabale one of the coldest districts in Uganda (Low. Kabale district is very hilly and interlaced with narrow and broad valleys. This was made possible through the introduction Potato varieties (e. Seed potato is exclusively produced in highland areas.000. which is adapted to high and low altitudes.600m) and rainfall (800-1100mm) ranges than Kabale.0oC. the highlands of Kabale.
Intensity of land use.In the highlands where Potatoes are grown. Figure 1: Percentage share of Potato Production in 2000 by major districts Figure 2: Percentage share of Area planted with Potato in 2000 by major districts Kabale 5% 3% 7% 5% 5% 3% 15% 57% Kisoro Mbarara Luwero Masaka Mbale Rukungiri Kapchorwa 4% 9% 7% 6% 6% 33% Kabale Kisoro Kapchorwa Luwero Masaka Mbale Mbarara 5% 30% Rukungiri Figures 1 and 2 show the percentage share of production and area planted by the major Potato producing districts in Uganda for the year 2000. Kisoro district produced 15% using about 30% of the land area.509 Metric tonnes more than Kapchorwa district (11. (See production by district table –Appendix 1). though the reliability of these is questionable. Table 1 shows that Potato yield in Kabale was approximately 16 Metric tonnes per hectare while in Kisoro the yield was only 5 Mt/Ha. the crop is not a major food staple but a cash crop. Thus even if the data is questionable nevertheless it is the only important reference source.791 Metric tonnes. the crop is both a major food staple and cash crop. Potato production statistics Potato production in Uganda has spread over the years from the highlands of Kigezi (Kabale and Kisoro) districts to many other districts of Uganda.Level of soil conservation and use of fertilizer to improve soil nutrients . a major buyer of Potatoes from Mbale produced 13. Animal Industry and Fisheries statistics in Appendix 1. Figure 1 shows that Kabale district produced 57% of the overall output of Potatoes on 33% land (Hectare) utilisation. In her study.Use pesticides and fungicides against a host of Potato vermin and diseases. In the low and mid altitudes zones that have adopted Potato cultivation. a dry and warm area where Potatoes are rare produced 11. According to the figures in Appendix 1. The figures in Appendix 1 also show that Kabale district is consistently the leading producer of Potatoes in Uganda and followed by Kisoro district. These charts were derived from Ministry of Agriculture. With the exclusion of minor Potato producing districts in Uganda. Animal Industry and Fisheries.194 Metric tonnes more than Mbarara. 6 . which produced 10. Lira district. information on yield indirectly relates to: . Due to poorer soils.058 Metric tonnes) in the year 2000. Similarly. This is reasonably realistic. Low (2000) noted that Potato and sorghum are by far the most important cash crops for both women and men in Kabale district. Data source for the production figures is Ministry of Agriculture. Information on yield is important in underpinning the agro-ecological conditions and farming practices of different communities in various districts. it is not possible that Soroti district. it is unlikely that in the year 2000. Number of seasons Potatoes planted in year . Furthermore.
2000-1 for the International Potato Centre.172 871 Rukungiri 15. there is critical need to increase farmers’ yields through increased use of high yielding certified seed. Low found out that farmers in Kalengyere who had high plant densities (50. soil type and fertility and management of potato diseases.000) per hectare whose yield was 20 Metric tonnes.332 Kapchorwa 11. Low also analysed other factors that affect yield such as the quality of seed.5 7. Thus.791 1.767 2.627 3. Figure 3: Potato production (‘000 Mt) in Uganda. Area planted and Yield of Potatoes from Major production Districts in Year 2000 District Output (Mt) Area planted (Ha) Yield (Mt/Ha) Kabale 179. 1980-2000 7 .285 Masaka 15.571 11.1 7. a derivative of Figure 3.127 15. fertilizers to supplement on soil nutrients and pesticides to control the destructive bacteria wilt and late blight.1 In a working paper No.Table 1: Output.78 6.433 Mbale 21.1 7.1 7.125 10.85 7.1 4. The trend line indicates a stead increase in output for the period albeit the fluctuating production graph. the growth rate is has stabilised in the past 10 years to about 2% per annum. Figure 3 shows the trend of Potato production (‘000 Mt) in Uganda for the period 1980-2000. Although Potato production and growth rates varied considerably in the earlier years (1980-1989).559 Kisoro 49. noted that potato yields are high in Kabale due high plant densities per hectare and good soils.084 2.050 Mbarara 10.000) per hectare also had better yields per hectare (29Mt) than those in Bukinda with low plant densities (40. Jan Low.058 1. Figure 4 is a production growth rate graph. In the study.522 Rakai 6.
0176x . 1980-2000 100 80 grow th rate 60 Linear (grow th rate) output growth rate 40 20 0 y = 0.0.645x + 166 200 100 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 98 19 Years Figure 4: Potato production (‘000 Mt) in Uganda.600 500 prodn Prodn ('000 mt) 400 Linear (prodn) 300 y = 10.0287 -20 -40 -60 80 82 84 86 88 90 92 94 96 19 19 19 19 19 19 19 19 19 20 00 Years 8 20 00 .
some farmers utilize non-swampy valley bottoms to plant Potatoes between December and January and harvest in March and April. Within this period of low rainfall. Farmers interviewed. repack them locally and sell as Kabale Potatoes.0 The second season is the most important commercial season in the potato cultivation calendar of Kabale. hence Potatoes are in production almost all year round.4 Mean monthly Rainfall 1990 72. Kisoro. there is very little supply of Potatoes from western and southern Uganda (Kabale. Commercially oriented farmers who often time planting so as to harvest when Potato price is high mostly exploit this season. swamps and valley bottoms (non-swampy) for cultivation.4 43. In Kabale. Mbarara.7 56.5 114. said there are three Potato cultivation seasons in the year. a relatively high price of Potatoes is also recorded in Kampala.9 98. The first season starts from mid February during the short rains with planting on the hills slopes and ends June when most farmers have harvested. (See Figure 8 for Kampala Grand Seasonal Index). Rukungiri and Rakai) to Kampala markets.4 98.Seasonality of Potato Production. This season has a long rain period from September to December when most farmers again plant Potatoes on the hills slopes and harvest mainly in January. Therefore these districts only have two major Potato seasons with the first season (minor) starting from February ending in May and the second season (major) starting September ending in January. Swampland planting is between May and July and a short harvesting season starts from August ending mid September. Mbale and Kapchorwa districts also have two Potato production seasons in a year. Table 2a shows the Potato cultivation calendar in Kabale in which the planting and harvesting times are presented.3 2000 (mm) 90. while the second season starts from August and ends in December. Table 2b. In Kisoro and Mwizi (Mbarara) Potato production closely follows that of Kabale except that these districts do not have significant swampland to warrant production of swamp irrigated Potato. 9 . The main reason why Potatoes are produced all year in Kabale is due to the intensive use of all available hills slopes. The first season is between March (planting) and June (harvesting).1 Potato harvesting 136. Interviews with the traders at the Uganda-Rwanda borders of Katuna and Kyanika also indicated that July to October is the window period when traders import Potatoes from Rwanda.0 13. There appears to be a seasonal overlap depending on weather conditions. During the second season planting (September to November). Figure 8. there are no clear-cut distinctive seasons for production of Potatoes. Third season Potato cultivation is done in the swamps using irrigation canals during the dry period. In December to January is the period when Potato production in Kabale is highest and there is over supply on the market leading to the lowest seasonal prices.8 131.4 88. During this period. Table 2a: Potato Production Calendar for Kabale District. Harvests from this season are relatively small and the farmers consume a big proportion. Potatoes are harvested from non-swampy valley bottoms and hills slopes hence a reasonable market supply from March to June. This means that in the first season. Area of cultivation Hill slopes Swamp land Valley bottom Jan Potato Harvesting Feb Mar Potato planting Apr May Jun Jul Aug Sept Oct Nov Dec Har vest ing Potato harvesting Potato planting Potato planting Harvesti ng Potato Planting Potato Planting 73.
Looking at the Potato productions in Tables 2a and 1b.2 104.8 85.6 29. there is virtually no supply from western and southern as it is the major planting period while this time also coincides the second planting season in eastern Uganda. &3.7 164.9 6. Some peasant farmers still grow old non-commercial local varieties such as Matare because it is tasty.2 30.1 6. the rate of variety adoption depended on the marketability of the variety. the greatest window of opportunity for Rwanda to sell Potatoes to Uganda is between late August and early November.9 68. Farmers interviewed said that they are cautious at adopting other potato varieties they are not familiar with.1 128. 2001).0 31. NAKPOT 1. Despite their good commercial characteristics.000/=) are relatively high in Owino market. maturity rate. District(s) Kisoro and Mbarara Mbale and Kapchorwa Rainfall (mm) 1994 Mbarara Jan Harvesting Feb Mar Apr May Jun Jul Aug Sept Oct Planting Nov Dec Harvesting Planting Harvesting Harvesting Planting Planting Harvesting 100. hence making it possible to sell Rwandan potatoes profitably. yield and tolerance to bacterial wilt and late blight and even the income level of households necessary for buying new seed. Table 3: Characteristics of Potato Varieties Released/Grown in Uganda Common name Yr 1st release Uganda 11 (1973) (Rutuku) Victoria (1992) Kisoro (1992) Kabale (1992) NAKPOT 1 (1999) NAKPOT 2 (1999) NAKPOT 3 (1999) Cruza 148 (1982) Ndinamagara Sangema Tuber size Large Skin colour Light red Red White Purple white White Rose red White Light red Pink Flesh colour Cream Tuber shape Vegetative cycle (days) 110-130 Seed dormancy (weeks) 11-13 Resistance/ Tolerance LB BW Toler Suscep Storability Oval round Good Large Medium large Large Large Medium large Medium Large Light yellow Cream White White Cream White Cream Round Oval long Round Oval long Round Round Oval round 90-110 110-120 110-125 80-90 85-100 85-100 110-130 8-10 10-12 11-13 9-12 9-11 9-12 4-6 Mod resist Resist Mod resist Resist Resist Resist Toler Toler Toler Suscep Toler Toler Toler Toler Good Good Excellent Good Good Good Fair Medium Yellow Oval oblong 90-110 10-12 Toler Suscep Good 10 . During this.8 156. due to low supply during this period Potato offlorry prices (28. Overall. 2 and 3 have not been adopted quickly since their release in 1999.2. Table 2b: Potato Production Calendar for Kisoro. Mbale and Kapchorwa Districts. which seems to be unknown. Furthermore.4 Potato varieties The range Potato varieties that have been released and are being grown in Uganda are shown in Table 3 (PRAPACE. Mbarara. The survey revealed that many farmers in south-western Uganda were growing different varieties identified in the table except NAKPOT 1.
000 365. red/light red skin colour and yellow/cream flesh) unscrupulous traders in Owino are said to be selling Victoria as Uganda Rutuku to unsuspecting buyers In Mbale a variety locally called Wanale with all the characteristics of Uganda Rutuku is also highly demanded by chips makers in eastern Uganda. From our field survey it was found that most respondents (farmers) complain experiencing declining yields because they do not use certified seed.(1980) large Victoria is the most common commercial variety that is high yielding. Uganda for Year 2001.000 % of sales Fertilizers (NPK) 1 bag (optional) Labour Ploughing 2 Times Making Ridges and Planting Adding more soil on the ridges Weeding 2 Times Fertilizer application (optional) Spraying Harvesting Total costs 35. also one of the most successful varieties in Kabale. Kabale and Kisoro easily adopted this variety because South Western Uganda Agricultural Rehabilitation Project (SWARP) and African Highland Initiative (AHI) promoted it Uganda Rutuku introduced in Uganda in 1972. However. Farmers said they use local seed retained from their harvests or buy from neighbours.000 5. early maturing. this variety sells at a premium price.000 10. The survey also revealed that the wholesale price of 100kg bag of Uganda Rutuku was 33. Seed quality significantly determines the yield.000 15.000 30.000 20.000/= in Owino market.000 150. The costs incurred and margins received by an average farmer in Mbale or Kapchorwa for cultivation of one acre of Potatoes using minimum inputs is shown in Table 4.000 15.000 30. Because Victoria has almost similar characteristics as Uganda Rutuku (large tuber size. the farmer can use any Potato tuber that can sprout be it certified seed or disease infected local seed.000 15.000 10. The farmers in Mbarara.000 35.000 15. Item Inputs Land Rent/Hire 1 Acre Seeds 15 bags (1 bag ~100kg) Chemicals (Ambush & Diathane) Unit price (U shs) 25.000/= while that of Victoria and other varieties was at 28.000 15. Uganda Rutuku is highly sought after by traders because it the best for making chips. Table 4: Ware Potato Production Costs in Kapchorwa District.800 metres). tolerant to bacteria wilt (BW). To produce ware Potatoes.000 11 . for a farmer to produce clean seed (certified seed) he must purchase to use basic seed from a recognised source.000 5.000 10. Mainly grown in Kabale at high elevations (+1.000 Total (U shs) 25.000 15.000 30. but susceptible to late blight (LB). Potato Production Costs Production of ware and seed potato effectively requires the same inputs and labour.000 20.
the farmer incurs about 300.000 35.000/=) situation is when the farmer produces offseason when the farm-gate price improves to 5. However. The table shows that with a total investment (cost) of 365. pesticides. The analysis further demonstrates that the most profitable (100.000/= per bag. certified seed and land hiring is the most common agricultural practice of peasant farmers in Uganda.000 8.000 Yield (bags) 1 bag ~100kg 80 Price per bag (U shs) 4.000 400.75% of the total sales.000/= Gross Revenue Net Margin 400.000 70 80 4.000 Profit/loss (U shs) -5.000 35.000 300.000 80 5.000/=.000 Remarks Common with peasant farmers Common with subsistence farmers Most common situation Most common situation with off season production 285. which is only 8. 12 . Table 5 illustrates the various cost options that the farmers may incur in cultivating 1 acre of Potatoes and the resultant revenue given the price.000 100.000 320.000/= only from a gross revenue of 320.000 Revenue (U shs) 320. the yield and returns as given to us by a number of farmers interviewed.000 300.000 Informal interviews with farmers in Mbale and Kapchorwa revealed that most farmers do not use fertilizers and pesticides in the production of Potatoes.000 320.000 4.000/=. data in Table 4 illustrates the probable costs of cultivating 1 acre of Potatoes. the likely yield given favourable weather conditions is 100-120 bags.75% Table 5: Sensitivity Analysis of the effects of Changes in Costs and Revenues on farmers’ Margins Variable option No fertilizer use No fertilizer & pesticide use No fertilizer use & land hire No fertilizer use & land hire Total costs (U shs) 325.000/= in production costs and earns 20.000/=. Non-use of fertilizers.Revenue return 1 acre = Yield = 100 bags Farm-gate price per bag = 4.000 20. Table 4 further shows that the farmer earns 35. Given the most common situation is that farmers do not use fertilizers and do not hire land.
Mukono. wholesale buyers and financial service providers. Farmers Farmers are the first link in the Potato market chain due to the high level of people depending on agriculture in Uganda (over 80%). in which case they at times regard themselves as brokers. that is. A sizeable portion of output is consumed by farmers from own production and by buying from neighbours and village markets. village traders contact their buyers using mobile telephones. To accelerate the process. When wholesaler requires Potatoes. western and southern Uganda. farmers also sell their Potatoes by the roadside and take them to the weekly village markets or sell them to the village retailer. Kampala is the main wholesale market for Potato traders from other towns such as Entebbe. but are now shifting their focus on Nebbi district that has become a dominant producer of Potatoes in Northern Uganda. Once an agreement is struck. 14 . Nakawa. It is rare that individuals or farmers groups harvest their Potatoes. The stages through which Potatoes move from the farmer to the consumer is described below. Farmers are both producers and consumers. there has to be demand before supplies come to the market.POTATO MARKETING Ware Potato Marketing in Uganda Description of trading and the marketing chain Constrained by high product perishability and limited storage facilities. Other than selling to village assemblers and brokers. Therefore. A small number of restaurant operators and retailers in Gulu and Lira occasionally used to get their supplies from Kampala. etc. Potatoes from Mbale and Kapchorwa generally go to Mbale main market first. Iganga. the focal destinations of the Potatoes are the Kampala markets (Owino. In most cases it is the farmer who harvests the Potatoes from the soil while village trader/broker provides the packing bags and does the packing. Potato trading is a demand-led business. transport and wholesale them at urban markets. After identifying farmers willing to sell and a price is agreed between the local farmer and wholesale buyers. For the production areas of central.g. Although there are travelling traders who may directly supply other towns and urban centres. Farmers harvest their Potatoes only when they have a buyer. farmers do not harvest Potatoes until they identify a buyer. loading and unloading) and others who undertake the economic activities of selling and buying. This caution aims to reduce post-harvest loses that are associated with fresh produce. Trade can also be initiated by the wholesaler who requires urgent supplies. transporting. produce is sold at farm-gate and on a cash basis. Mbale market is the main distribution centre for Tororo. packing. For goods to move from their origin (production) to their final destination (consumption). Pallisa. village traders are given cash advances from wholesalers. Natete and others). Village traders/assemblers also sell to travelling traders from Kampala and to contacts in other towns. They know what farmers have planted and when it is likely to be harvested. Village traders/assemblers Village traders from the product areas o and know the farmers in their village and surrounding areas. At the time of sale farmers either seek the local village trader/broker or the trader/broker approaches the farmers. Kumi and Soroti urban markets. Travelling traders/brokers also rarely buy from farmers before contacting their buyers in Kampala. there are various people who perform the physical functions (e. Kalerwe. sorting. See Figure 5 a schematic representation of the Potato trading chain. Most often. sorting and packing. Kayunga. the farmer and village trader/broker agree on activities such as harvest date. The village traders are in contact with transporters. After striking a price deal. he will call his contact (village trader) agree on a price and other marketing arrangements and in turn the village trader will assemble to fulfil the amount required by the wholesaler. the deal is concluded on a trust basis.
surrender it to the broker.Figure 5: The Ware Potato trading chain. The amount ranges from 500-1. Brokers get instant pay (commission) per Potato bag for their services. 15 . a number of issues are agreed.e. i. there are also brokers in most urban centres who link travelling traders to wholesalers and urban retailers.The number of bags that are on the lorry .000/= per bag depending on the quantity required and the urgency with which the consignment is required. . brokers are the contact for travelling traders and wholesale buyers to farmers and the key link of farmers to traders. Brokering is a lucrative activity and some successful village traders and wholesalers switched roles to brokers.The minimum price per bag at which the broker will sell.The price per bag that the travelling trader is going to receive . Rural broker Framers Village traders/ Rural retailers Travelling traders Urban Brokers Rural consumers Wholesalers Key Urban retailers Major Flow Minor Flow Consumers /processors Brokers Brokers are one of the prominent market participants in Potato trading. Apart from rural brokers who link farmers with the travelling traders. hence commission per bag. For example. In rural areas. in Kampala or Mbale travelling traders or village traders who have brought a lorry load of Potatoes. Before the broker accepts the responsibility.
Travelling traders with fresh Potatoes (high quality) typically hike their prices relative to those prevailing the market. Like wise few traders (travelling traders) can make such profit given the high marketing costs involved in Potato trading. Gross commission Market fees Offloadi ng fees Net commission Sometimes brokers make windfall gains.000-8. In Kampala. these traders reduce the price accordingly. While Kampala brokers usually accept to over the responsibility of paying for off loaders as a fraction of their gross commission. Travelling traders These are traders who either own trucks or hire them for buying Potatoes from farmers or village traders and then transport and sell to wholesalers and urban retailers in other district markets. They are a key link in the marketing chain. The broker will gain (10. Travelling traders will sell at clearance prices to avoid further overhead costs such as accommodation costs. travelling traders can station and sell their Potato truckload in one market or move from one market to another until the consignment is sold. Given the production costs.000/= per bag depending on demand and supply conditions in the market. On the whole. product loss and transport surcharge from truck owners.Who pays the market fees and off loading costs In Kampala markets. suppose a broker buys from the farmer is willing to sell 100 bags of Potatoes at 8.. by dashed lines (minor flow). Mbale brokers are not different from their kinfolk in Kampala. Mbale brokers negotiate to pay even for markets fees as shown below. we found out that after agreeing on the price that the travelling trader is to receive per bag. These traders supply most of the Potatoes to wholesalers and retailers through brokers.000/= per bag. brokers were free to sell at whatever price they could negotiate with the buyers. the market has now accepted brokers (urban and rural) as a necessary iniquity. They are the most informed about the market (demand and supply) conditions. overnight parking fees. they sell at the travelling traders’ reserve price otherwise a price above the reserve price guarantees them of a minimum commission.000/= per bag while the trader is willing to pay 10.000/= for a single transaction. when their stocks do not sell quickly as they anticipated and the quality starts to degenerate. Brokers do not incur losses. a farmer can hardly make such a profit margin from a production of hundred bags of Potatoes. At worst. Thus the commission that the brokers receive. 16 . Brokers are an organised and influential group in the market (especially Owino market) and few travelling and village traders can directly sell to wholesalers and urban retailers as shown in Figure 1. They also takeover the transaction activities of Potatoes as soon as the lorry load enters the market.000)x100 = 200. Urban brokers negotiate a fixed price with the travelling traders and sell at a higher price to the wholesalers while the rural brokers may negotiate a different price (higher price) with the buyers and pay a different price (lower price) to the farmers. However. For example. varied from 500-2.
The rapid rate at which fast food outlets (TakeAways) are becoming popular in urban centres is evidence to the high level of Potato (chips) consumption. Rarely do wholesalers venture out to buy directly from the farmers.000/= A heap sold at 1. In rural areas Potatoes are sold on the road sides heaps or tins.000/= weighs an average of 3kgs. or other vegetable stew. some supermarkets such as Shoprite have started selling Potatoes in 5kg packages. Most traders do not know the names of different varieties but can distinguish them according to the skin and flesh colours. Potatoes are eaten by all ages of people. At times they also eat Potatoes mixed in beans. the South African based fast food restaurants such as Nandos and Steers get their Potatoes from South Africa. more women eat chips than men. In urban areas. Table 6. over 50% of Potatoes are consumed as chips. They were complied from the Uganda National Household survey (1994-95) statistics report 17 . In other towns. This would appear to be a valuable niche market if Ugandan growers could produce the varieties grown in the Republic of South Africa to supply these outlets. snacks (crisps) and occasionally in a boiled or mashed form. Young people we interviewed said they prefered chips to other foods because it is tasty. A popular variety. The major consumers of Potatoes in towns are young people of working class and students of higher institutions of learning who eat Potatoes mainly as chips. Accordingly. In urban areas retailers in markets buy 1-5 bags from the wholesalers and then sell it in various heaps sizes for amounts ranging from 100-2. In these communities. Potatoes are consumed in a number of ways. Estimates from the 1994/95 Uganda National Household Survey indicated that the region with highest average monthly household consumption expenditure on Potatoes was western Uganda followed central and eastern and lastly northern Uganda. Market patterns indicated that almost no Potatoes moved to non-producing areas where Potatoes are not regarded as a staple food. In the urban areas of Uganda. where Potatoes are consumed as a major food staple. cheap easy to prepare.Wholesalers Major Potato wholesalers are largely found in Kampala (Owino and Nakawa) Mbale markets. The team was shocked to discover that despite the abundance of good quality Potatoes available in Uganda. cooking oil. Crisps being not a very popular product that is mainly eaten by students and young people in urban areas means that its market is limited thereby limiting its production. There are some small-scale food processors that make crisps from Potatoes. These inputs are locally available. Potato farming communities and rural dwellers. Potatoes are mainly consumed as chips. Minimum inputs needed to process chips include fresh Potatoes. 7 and 8 indicate the average monthly household consumption expenditure on major food staples in Uganda. traders double as wholesale and retail traders because of the lower volumes. More often. and considered a status food. Tables 6. Particularly. Retailers Potato retailers are many and range from supermarkets to village roadside sellers. wholesale traders sell different varieties at varying prices. As experienced traders they soon know which varieties that are most highly sought by restaurants (good for chips and crisps). The principle product of the take-ways is chips and chicken. mainly eat Potato boiled or mashed. fuel energy and a pan. wholesalers get their supplies from travelling traders.000/=. Processors Hotels. it is interesting to note that on average. sells for approximately 2. A heap which has an average weight of 10kgs. Potatoes are consumed in areas where they are produced and surplus is sold in urban areas. Recently. beef. Uganda 11 (Rutuku) most preferred for chips and crisps is sold at a premium price of 7-13% over that of other varieties. Consumption and prices In Uganda. restaurants and Take-Aways (Fast Food outlets) are the main business enterprises that process Potatoes into chips. Retailers sort and grade Potatoes according to variety and degree of freshness.
78 Urban Per H/H Monthly Exp in U.16 0. People in urban areas have a greater choice of buying other food staples such as matooke and rice brought from other districts.27 Total Per H/H Monthly Exp in U. 48 124 633 1. Min.9 0.58 1.250/= per month) on Potatoes than the urban areas of western Uganda (858/= per month). 1.58 2.shs . 5.850 % of total Exp on major food 6. 20 83 513 1.48 13.156 559 2.11 Northern Eastern Central Western Table 8: Average monthly Household consumption expenditure on major food staples in Uganda in 1995 Rural Food staple Per H/H Monthly Exp in U.477 11.862 % of total Exp on major food 7.84 Total Per H/H Monthly Exp in U.shs .04 0.shs .65 6. This finding is reasonable as potatoes are the main food staple for rural people in Kabale.222 % of total Exp on major food 0.59 9.74 8.42 5.6 2.92 7.45 0. Planning and Econ. Dev’t. it provides a guide to the magnitude and direction of expenditure flow by households on major food staples in various regions of the country.17 1.83 4.965 8.65 0.224 8.82 2.16 Urban Per H/H Monthly Exp in U.092 7.76 3.031 % of total Exp on major food 0.59 0. 332 1.shs .00 Northern Eastern Central Western Table 7: Average monthly household consumption expenditure on Matooke by region in 1995 Region Rural Per H/H Monthly Exp in U. Noticeably. 403 1.23 0.250 % of total Exp on major food 0.shs .779 841 1.030 % of total Exp on major food 7. 9. Kisoro and Rukungiri.43 3.309 8.shs . 450 563 946 858 % of total Exp on major food 0.492 8.458 4.13 0.shs .55 0. In the regions of central.Table 6: Average monthly household consumption expenditure on Potatoes by region in 1995 Region Rural Per H/H Monthly Exp in U.39 Total Per H/H Monthly Exp in U.442 3. the rural part of western Uganda has a higher monthly expenditure (1.73 2. flour) Source: Uganda National Household Survey (1994-95).385 512 3.shs . eastern and Northern Uganda. Although the estimates in the tables above may not portray an accurate status of the current levels of staple food consumption.986 % of total Exp on major food 0.1 0.89 Matooke Sweet Potato Potato Cassava (fresh. 4. Table 6 highlights the comparative household monthly expenditures on Potatoes between regions and between rural and urban areas. urban dwellers spend more on Potatoes than rural.866 4.93 Urban Per H/H Monthly Exp in U.612 % of total Exp on major food 1.020 2.shs.19 13. 18 .53 8.
Matooke is a very close substitute to Potatoes and it is ranked number one food staple in central and in some parts of eastern and western districts of Uganda. This graph shows how unstable Potato prices can be. supply shocks. the highest monthly household expenditure goes to matooke.9 Years Source: Uganda Bureau of Statistics.Comparatively. Figure 6: Trend of monthly nominal retail price of Potatoes in select district urban markets 800 700 Mbale cpi 600 Price in Uga. Table 8 shows that of all the 4 major food staples consumed in Uganda. Min. exchange rate instability. closely followed by sweet Potatoes. of Finance and Econ Dev’t. The linear trend shows that over time Potato prices have more than doubled in the last 10 years (see linear equation) in direct relation to the macroeconomic conditions (inflation. spend over 5 times their monthly consumption budget on cooking/bananas matooke than Potatoes. Figure 6 shows the nominal retail price of Potatoes in selected markets in Uganda.2219.) prevailing in the country. (See Tables 6 and 7). Shs. both rural and urban households in all the regions of Uganda. etc. and then cassava and lastly the least expenditure goes Potatoes. 500 400 300 200 100 0 Se p8 M 8 ar -8 Se 9 p8 M 9 ar -9 Se 0 p9 M 0 ar -9 Se 1 p9 M 1 ar -9 Se 2 p9 M 2 ar -9 Se 3 p9 M 3 ar -9 Se 4 p9 M 4 ar -9 Se 5 pM 95 ar -9 Se 6 p9 M 6 ar -9 Se 7 pM 97 ar -9 Se 8 p9 M 8 ar -9 Se 9 pM 99 ar -0 Se 0 p00 K'la/Ebb cpi Mbarara cpi Linear (K'la/Ebb cpi) y = 2. Figure 7: Trend of monthly nominal retail price of Potatoes in select district urban markets 19 .1933x . The data in Table 8 reveals that the urban community spends about twice as much on matooke and Potatoes than the rural populace while on the other hand the rural populace is observed to spend about two times more on sweet Potatoes and cassava.
In Uganda. Victoria. Examination of the graphs in figure 6 and 7 indicates that the seasonal fluctuation of Potato prices have existed over the entire period. These adverse weather conditions led to supply shocks of most agricultural output that exacerbated price volatilities. Another possible reason for the high level of Potato price instability is its high degree of perishability due to lack of appropriate packing. A likely reason why Potato real prices have remained almost constant over the long run is because whilst demand for Potatoes has increased. real prices have been stable. (For more on calculation see Appendix 2) Figure 8: GSI for potatoes in Kampala.0859x + 15. supply has matched this growth. handling and storage facilities.164 100 50 0 Se p8 M 9 ar -9 Se 0 p9 M 0 ar -9 Se 1 p9 M 1 ar -9 Se 2 p9 M 2 ar -9 Se 3 p9 M 3 ar -9 Se 4 p9 M 4 ar -9 Se 5 p9 M 5 ar -9 Se 6 p9 M 6 ar -9 Se 7 p9 M 7 ar -9 Se 8 p9 M 8 ar -9 Se 9 p9 M 9 ar -0 0 Years Figure 7 shows real (adjusted for inflation) retail price of Potatoes in Kampala. In 1998 Uganda experienced the famous El Nino phenomenon. While the graphs in Figure 7 clearly shows that Potato prices are highly unstable. However. The mode of production that depends on rain-fed agriculture also affects supply. and a change in transaction costs directly affects the price stability. The grand seasonal index (GSI) is a statistic that calculates the monthly average price from a price series for a given period of time. the trend line for the Kampala real price series indicate that over this period. Mbale. Figure 8 shows the seasonal real retail price movements for Potatoes in Kampala for the period 1989-2000. Masaka and Mbarara for the period September 1989 to June 2000. 1989-2000 20 .250 Mbale 200 Mbarara K'la/Ebb Linear (K'la/Ebb ) Real price per Kg. a closer scrutiny shows that price fluctuations have worsened since 1997. a versatile Potato variety with a short maturity period can be grown in virtually all parts of Uganda which have adequate rainfall. 150 y = 0. ware Potato production is no longer a monopoly of the highland regions of the old Kigezi districts.
d are graphs that were derived by adding to and subtracting from GSI a standard deviation of every month’s seasonal index. there are two more graphs that deserve an explanation. Therefore.5% of the annual mean. the rate of population growth and urbanisation is well correlated with the level of Potato consumption. In Uganda. Therefore. off-season production from swamplands and some imports from Rwanda usually filter into the market to ameliorate the erratic situation. speculation is common and price volatility increases. Spatial Analysis of ware potato market In an integrated market system scarcity in one location creates demand of products from other locations. we did not obtain any information suggesting that farmers or traders store ware potatoes for speculative purposes. when the market’s uncertainty is at its lowest level. Standard deviations measure the magnitude of variation of the series from their mean. Appendix 2.200 150 GSI 100 50 GSI GSI +1s. Standard deviations are at their peak just before harvests in May to July and November. the long-term future trends of Potato demand and supply are certain but changes are more difficult to judge. Lack of reliable information on supply and demand conditions tends to exacerbate the level of uncertainty. The standard deviations are lowest in August and December to February. From Tables 9 and 10. demand for Potatoes is likely to increase in the future and it is expected that supply from low and mid altitude zones where Potato cultivation is a cash crop will increase. local prices in an integrated market system would be more stable and only differ due to transaction costs between locations. Tables 9 and 10 contain results of correlation coefficients between four towns for Potato prices calculated using nominal and real prices respectively. however. GSI +1s. and at its minimum the seasonal index does not go below 12.d and GSI -1s. In Figure 8. The graph further indicates that the seasonal price index does not exceed the annual mean by 9%. especially in the form of chips and crisps. Second season harvests register their presence in the market in August but because production volumes are low in this season. Despite these erratic price movements. 21 . Major Potato harvests come to the market late in December and continue to early March.d GSI -1s. September to November is the opportune period for Rwanda to export potatoes to Uganda. Correlation coefficients (r) between pairs of markets are the quantitative estimation used to measure the level of the market’s spatial integration.d annual mean 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months Our calculations. These graphs show a significant pattern.19/= per kilogram. the following observation worth noting. The above graphs are thus introduced as a measure of the level of uncertainty in the seasonal price fluctuations. during these periods. as this will depend on competition. Consequently. Figure 8 shows that the trend in seasonal prices is more or less stable and shifts above and below the annual mean. indicate that the annual mean real retail price of Irish Potatoes is 113.
7017 1.3336 0. Masaka and Mbarara) are low indicating that Potato market conditions (demand and supply) in Mbale have nothing to do with Potato prices in Kampala.6239 1. If nominal prices are used in calculating correlation coefficients (Table 9). Masaka and Mbarara. correlation coefficients in Table 10 have been calculated using real prices.8983 1. a combination of high transport costs and low quality Potatoes make it unprofitable to sell Potatoes to Kampala. Apart from feeding its own urban population Mbale supplies most its Potatoes to the neighbouring districts Tororo. Rakai. calculation of correlation coefficients between pairs of markets is not enough to pass judgement on the level of integration between such markets as it needs to be backed with empirical and historical research of the markets under consideration.00 Masaka 0. Mbarara.000/= depending on the potato variety and also due to the lack of accurate and timely market information by the farmers As indicated in the Potato marketing chain. Soroti and Pallisa.7970 0.7220 1.00 Mbarara 0. Masaka and Mbarara in terms of Potato marketing.624) reveal a modest degree of correlation. While Table 12 shows the assumptions used to derive costs in Table 11.8) to high (r>0. From the survey we found that the farm-gate price varies between 5. These results suggest that Mbale markets are independent and even isolated from Kampala.5587 0. the coefficients between Kampala and Masaka (0. Kisoro. In Table 10. farmers sell Potatoes at 8.00 Table 10: Correlation Coefficients (r) for Potato between four towns using real prices Kampala Masaka Mbarara Mbale Kampala 1. The tables present the costs and returns on Potato trading between western Uganda (Kabale. Furthermore. Two markets with no possibility of exchanges between them (for example it is unlikely that Mbarara and Mbale can supply one another with Potatoes given that they are both among the major producers and the distance between the two towns make Potato trade unprofitable) but affected by the same macroeconomic factors (e. it can considerably increase research knowledge on the way such markets work.6<r<0.8938 1.00 Mbale 0. This may be one of the credible reasons why Kampala-Masaka and Masaka-Mbarara demonstrate a moderate form of spatial integration.7477 0. The coefficients between Mbale and other towns (Kampala. inflation) would exhibit high correlation coefficients.722) and between Masaka and Mbarara (0.8) correlation while all coefficients in Table 10 exhibit almost no correlation except for the moderate values indicated in bold. Table 11 illustrates that at farm-gate.00 Masaka 0. travelling traders are the main buyers of Potatoes from the farmers through a third party 22 .• All coefficients in Table 9 exhibit moderate (0. While Masaka. Marketing Costs and Margins Table 11 shows the practical costs and margins derived during the market survey for various market participants in Potato marketing chain. Figure 5. Kumi.000/= per 100kg bag.8834 0.g. The cost and price information used to assemble Tables 11 & 12 are part of the fieldwork data collected in August 2001.00 To overcome the inflationary bias.00 Mbale 0.1043 1. Although. most of their output is destined for the market and competes favourably in Kampala markets because of proximity that reduces on the transport cost. Mubende and Mbarara districts produce less compared to Kabale and Kisoro.000-15. Rakai) and Kampala.2521 0. Masaka and Mbarara. Table 9: Correlation Coefficients (r) for Potato between four towns using nominal prices Kampala Masaka Mbarara Mbale Kampala 1. an inflation bias is introduced.00 Mbarara 0.
(rural broker).000 22.3%).000 12.700/= (12. the higher the return to attract investment.316 63. While in transit. Travelling traders are exposed to a multitude of risks to move food from rural areas to urban centres.5 Net Margin Wholesaler Purchase price Selling price Gross margin 4.984 35.000 25. It is important to note that wholesalers usually have a higher turnover than retailers.000500. This is also true in Potato trading where the travelling trader gets more than 35% net margin. While wholesalers seem to earn a lower net margin of 2.64 4. For example a wholesaler may sell between 200-400 Potato bags per month giving him a net income ranging from 400. In business.393/= (9. traders may find that a section of the road was washed away or their truck may breakdown. To ensure quality and minimum post harvest losses.000 % of selling price 8.000-150.700 9. pay labour to sort and pack and incurs a host of other costs as indicated in Table 11.000 500 83 33 300 200 200 5. In such case travelling traders are faced with 50-100% loss of the consignment. travelling traders provide packing bags.000 7.016 4. Brokers who have an opportunity to handle 5 10-tonne lorries in a month can also get a monthly income of between 250.000-800. packing & sowing labour cost Loading Sub-county tax levy Transport Total cost before Kampala market In Kampala markets Market fee Offloading fee Commission (Urban broker) Costs in Kampala market Total costs 500 200 1.000 14.000 1. retailers get an average net margin of 3.60 22.5%) per bag of Potatoes.000/= Table 11: Potato Marketing Cost and Margins U Shs.000/= only. In Uganda Potatoes are grown in highlands that have the worst road network.5 Costs Commission (Rural broker) Packing bags Sisal rope for sowing top Grass for packing Sorting./100kg bag Farmer Farm-gate price Travelling trader Purchase price Selling price Gross margin 8. the higher the risk.000 3.00 Costs 23 .000 1.000/= per month while the retailer may sell between 20-40 bags giving him a monthly net income range between 70.
000/= Ware Potato Imports/Exports. a prominent Potato trader we interviewed showed us Uganda Revenue Authority Customs Department receipts indicating the custom taxes he paid for importing Potatoes from Rwanda.000/= 250/= 350/= Retail = 1.700 12. When there is a window of scarcity in Kabale (SeptemberNovember) amidst high demand from Kampala. Sometimes the adulteration of Kabale Potatoes with that from Rwanda is done by the Kabale brokers who are advanced credit by their trading patterns in Kampala. This is done to hoodwink travelling traders from Kampala that the whole consignment is from Kabale. traders from Kabale and Kisoro exploit the situation by importing Potatoes from Rwanda. This phenomenon of Potato repacking is influenced the fame (quality) of Kabale Potatoes.000 30.000 5.33 Table 12: Assumptions used to derive costs in table 5 Item 1 Sisal bundle 1 Bundle of packing grass Market stall rent per month Post harvest loss 1 Potato Heap Unit cost 2.50 25.3/= 33.000/= Capacity Sowing 30 bags Packing 30 bags Wholesaler sells 500 bags per month Retailer sell 35 bags per month Wholesaler loss = 2kg per bag Retailer loss = 2kg per bag 1 bag = 30 heaps Cost per bag 83.3/= 14/= 200/= 500/= 700/= 30.Market stall rent Miscellaneous Overhead costs Post harvest loss Total costs 14 100 500 614 Net margin Retailer (Owino market) Purchase price Selling price Gross margin 2386 9. At Katuna border (Uganda-Rwanda). The traders say they repack the Potatoes by mixing a large percentage of Rwanda Potatoes with a smaller amount from Kabale.300 16.500/= 1.000 200 300 100 700 1. repack them in Kabale and sell as Kabale Potatoes. 24 . Interviews held with traders and government revenue officials along the Uganda-Rwanda and UgandaKenya borders did not give the impression of a brisk business in Potatoes between Uganda and her neighbours.000/= 7.67 Costs Market stall rent Miscellaneous labour Miscellaneous Overhead costs Post harvest loss Total costs Net Margin 3.
Busia and Malaba districts that border Kenya claimed to have imported or exported Potatoes between Uganda and Kenya. No cross border Potato trade has reported along the Uganda-Kenya border. This means that all the Kenyan districts bordering Uganda have adequate and cheap Potato supplies from within Kenya. Even the TechnoServe/University Technical reports on Unrecorded Cross-Border Trade between Uganda and Kenya have no mention of Potato trade. Some traders occasionally bring Potatoes from Eastern Congo. Potato production map of Kenya shows a major Potato production belt at the slopes of mount Elgon on the Kenya side.Other than at Katuna border. Also no traders from Mbale. Traders from Kapchorwa who normally sell maize grain in Kenya said they have never attempted to sell Potatoes from Kapchorwa to Kenya. 25 . the traders revealed that Potato trade between Uganda and Rwanda exists informally along other smaller border crossings in Kabale and Kisoro such as kyanika border . Tororo.
the leaders of the association have been compiling detailed bi-annual reports on production and marketing of seed potatoes by the members of the association – See UNSPPA 2000A report by R. These reports give detailed cost-benefit analysis of seed potato production by the members.2 26 Beinamary o Bitarabeho F. Current membership stands at 25 people. The total capital investment was Sh.872.2 6. the membership stood at 25 people however. However. Kanyima who took three. The farmers as a group made a net profit Sh. Fifteen (15) members among 25 procured 120 bags equivalent to 9. only 12 farmers returned production reports equivalent to 101 bags (8.2 27 82.Seed potato Marketing in Uganda Other than the National Agricultural Research Organisation (NARO) potato research institutes. The farmers are Kiiza. Kakuhenzire and S.6 Mt.000 (Table 1). Rubereti had their plot downgraded to ware potatoes and made net losses (Table 1).442.3 191. Seed potato Procurement in 2000B. Kihumuro A Kikafunda Kisiizi Mwongyer a Rubereti Sentaro Tindimubo na Capital input (Shs) 87 82.3 38. Tindimubona below and others in Annex 2-3.2% of the investment (Table 1). Since the inception of Uganda National Seed potato Producers Association (UNSPPA).0 171.6 MT) of potato. there is only one recognised farmers group (UNSPPA) that produces high quality seed potatoes. (2000B). Thus 101 bags of seed were accounted for while 19 were not. Tindimubona Introduction.6 8. six and ten bags of seed potato respectively. Among the fifteen three did not submit production reports for 2000B. 15 men and 10 women.8 158.3 3.000 equivalent to 96. The farmers together produced 785 bags 160. Sentaro and Mrs.534.2 84.2 Gross return (Shs) 1788000 1064000 2150000 630000 1400000 445000 1170000 2860000 255000 560000 4520000 Net return (Shs) 982000 285800 1188000 414200 734000 97500 547500 1808000 -221000 -355000 2772500 Net return (%) 121. A detailed breakdown of how many bags each member plants.8 8.9 110. Gareeba. The Uganda National Seed potato Producers Association (UNSPPA) is a group of farmers whose main aim is to produce.2 6.9 -46. The association was started in 1996 with ten members. store and distribute quality seed potato to other Potato growers preferably at the community level. Thus these reports give a first hand analysis of the costs incurred.8 36.7 62 120.2 28. rate of seed potato utilisation and yield. only 15 farmers collected 120 bags seed potato. PRODUCTION REPORT FOR UGANDA NATIONAL SEED POTATO PRODUCERS ASSOCIATION (UNSPPA) FOR 2000B SEASON R. in Uganda.8 137. Mr.000 producing a gross return of Sh.8.0 8.6 100. In the second season of 2000. 8.0 6. all inputs used with costs and the total harvests.7 128. 17.7 Direct beneficiaries 1* 4* 4 2 4 1 1* 2* 0 0 5* . Two farmers.6 -38.1 88. Karibushe Kemani E. Table 1: Cost benefit analysis for seed potato producers in 2000B season Name 1 Bags planted 10 10 10 3 10 5 8 12 6 10 14 Bags harvested 70 66 82 18 66 19 48 100 29 68 115 Multiplica tion rate 7.0 6. Kakuhenzire and S.6 2.08MT) of seed (Table 1 and appendix1).7 6.6 26. gross revenues and net returns received by each member of the association.
0 8.3% pesticides 6.9 110.6 2.5 3 1.0 Net harvest 68.2 6. Kihumuro A Kikafunda Kisiizi Mwongyera Rubereti Sentaro Tindimubon a Twesigye V Sub-Total *Each bags weighs 80 kg Considering resource allocation by UNSPPA members.2%.6 182. 7.5 17.2 84.0 6. the expenditure on insecticides was low.969 10. The bulk of this item was used to procure fungicides (90%).2 28.5 63 77.2 27 1 One bag weighs 80 kg The level of tuber damage at harvest was minimal (Table 2) compared with previous seasons.0 171.791 11.8 252.0 6.0 35 600000 280500 87. the average marginal net rate ranged between 28.2%.091 respectively.2 8.2 45 148.9% (Table 2). 7.3 191.1% and 191.9 -46. fertilizers. 11.5 3 4. There was a marked increase to this ratio.6 17442000 8534000 96.456 15.3 3. Average marginal net return for all the members was 96.6 -38.2 59 1520.289 12.7 128.196 13. The mean production per bag was Sh.414 13.302 with a minimum and maximum break-even points at Sh.3 67.313 11. For farmers whose crops were not degraded to ware Potatoes.5%. which could be probably attributed to better crop management.302 Net return (%) 121.8 3 V Total 102 705 7.1514 11.520 16.2 Beinamaryo Bitarabeho F.8 96.6 8.1 88. transport.8 883.6 Production cost per bag (Shs) 1. Table 2: Analysis of production cost for UNSPPA members in 2000B season Name Bags* planted 10 10 10 3 10 5 8 12 6 10 14 3 101 Bags* Harve sted 70 66 82 18 66 19 48 100 29 68 115 24 705 Dama ged Bags 1.8 8.8 158. Karibushe Kemani E.5 45 94 26 0 112 23 755 Multipli cation rate 7.0 7.6 45. Farm labour took 18.7%.988 10.7 6.8 bags were harvested (Table 2). 8.Twesigye 3 24 8. 27 .5 .8 Capital input (Shs) 157 148.5 63 17. Farmers with low multiplication rates and high production costs per bag made less marginal net returns (Table 2). the greatest proportion of resources was spent on seed (Table 3).7 110 220.091 18.8 36. For every bag that was planted.4% and empty bags took 2.5 3 6 3 0 3 1 30. Among the pesticides.7 87.2 6.293 11. 10.
It can be argued that only half of the members were active in 2000B season. Resource allocation indicated that more money that previously has been allocated to purchase of fertilizer. Total Percent Cost of seed (Shs) 500000 500000 500000 150000 500000 250000 400000 600000 300000 500000 700000 150000 5050000 56. which could have improved productivity during the season. Bitarabeho F.3 Total cost (Shs) 1150000 1150200 1268000 316800 1057000 543500 912500 1471000 657000 1213000 2188500 382500 12310000 100. Rubereti E. Tindimubona Twesigye V. Kikafunda B. Sentaro P.7 Transport (Shs) 40000 5600 140000 2000 20000 5000 0 87000 7000 5000 310500 24000 646100 7.0 Conclusion.4 Empty bags (Shs) 20000 21600 36000 2000 15000 3500 12500 53000 10000 10000 50000 8500 242100 2. it is clear that the going price for seed in artificial and is cushioned by monopoly and subsidies from the NGO's and decentralized districts. 28 . Karibushe G. Considering average price of ware potatoes for 2000. Mwongyera A. Farmers who fail to send seasonal returns and those who do not participate in production led to the reduced performance of the association.Table 3: Resource allocation (UShs) in seed potato production by members of Uganda National Seed potato Producers Association (UNSPPA) in 2000 B Name Beinamaryo J. Kemani E.9 Farm labour (Shs) 500000 500000 500000 150000 500000 250000 400000 600000 300000 500000 700000 150000 5050000 18. Kisiizi K.2 Fertiliser (Shs) 40000 90000 42000 5000 0 0 42000 86000 0 106500 340000 0 751500 8.5 Pesticides (Shs) 50000 33000 50000 7800 22000 35000 58000 45000 40000 91500 88000 50000 570300 6. Kihumuro A. It is evident that the highest cost goes towards seed.
Name Bags* plted 10 10 10 3 10 5 8 12 6 10 14 3 101 3 6 10 120 Cost of seed 500000 500000 500000 150000 500000 250000 400000 600000 300000 500000 700000 150000 5050000 Land prep 60000 60000 30000 17000 50000 14000 45000 51000 65000 100000 110000 54000 656000 Plantin g 35000 20000 10000 3000 20000 10000 13000 28000 7000 40000 30000 6000 222000 Weeding Spraying Fertilis er 40000 90000 42000 5000 0 0 42000 86000 0 106500 340000 0 751500 Pesticide s 50000 33000 50000 7800 22000 35000 58000 45000 40000 91500 88000 50000 570300 Beinamaryo itarabeho Karibushe ani Kihumuro A. Kikafunda Kisiizi K. Mwongyera Rubereti Sentaro P. 25000 10000 25000 4000 10000 10000 18000 35000 15000 20000 17000 9000 198000 10000 5000 30000 3000 6000 6000 6000 16000 3000 8000 27000 8000 128000 Deha ualmi ng 6000 3000 2000 2000 3000 2000 2000 6000 4000 4000 10000 1000 45000 Guardi ng 0 15000 25000 15000 0 0 0 10000 0 0 40000 0 105000 Harvest ing 20000 15000 36000 5000 20000 12000 26000 35000 25000 30000 25000 9000 258000 Empty bags 20000 21600 36000 2000 15000 3500 12500 53000 10000 10000 50000 8500 242100 Transport Total cost 806010 778210 926010 215803 666010 347505 622508 1052012 476006 915010 1747514 319503 8872101 Gross return 40000 5600 140000 2000 20000 5000 0 87000 7000 5000 310500 24000 646100 178800 106400 215000 630000 140000 445000 117000 286000 255000 560000 452000 60000 169020 29 . Tindimubona Twesigye total Gareeba Kanyima Kiiza R.
That is the seed producer (farmer) sells directly to the input buyer (farmer). UNSPPA being the only organisation that is engaged in commercial seed potato production and marketing means that it is a monopoly in producing and selling high quality seed. 30 . it is mainly the NGOs and District agricultural offices that have been buying seed potato from UNSPPA for onward distribution to the farmers.500m) that UNSPPA enjoys.000/= while an 80kg bag of seed potato is sold at 50. the district agriculture office bought over 150 bags of seed. There are no brokers.000-20. In marketing of seed potato. it has unreasonably overpriced an 80kg bag of seed potato to the extent that apart from UNSPPA members and Non-government Organisations (NGOs) indeed very few Potato farmers can afford such a price (50. For example. the thick arrow shows the main way seed potatoes reach farmers is through NGOs. The reports indicate that the average production costs per bag of seed potatoes ranges from 10. 2. which compares unfavourably with that of uncertified local potato seed that goes for 10. there is no intermediary. Figure 5: One to One mapping of the Seed potato Marketing Chain Seed potato producer (Farmer) NGOs Seed potato buyer (Farmer) Certified seed potato being such an expensive input. particularly members of UNSPPA. A farmer with a meagre income has no time to think of an expensive input (seed potato) when there is a cheaper alternative.Commentary on UNSPPA Seed potato Production Marketing Reports 1. NGOs supporting Potato farmers in Rwanda also once bought seed from UNSPPA. village/travelling traders or wholesalers.000/= per 80 kg bag). to encourage Potato cultivation in Nebbi district. African Highlands Initiative (AHI) a food security NGO that is supporting farmers groups in Kabale with the provision of clean potato seed. It is a one to one mapping. The dashed line illustrates the few farmers who can afford using their own resources to purchase seed potatoes.000-15. Clearly there is need for other Potato farmers to join this association to learn techniques of better quality seed production and sell of surplus certified seed. Occasionally some NGOs or groups buy on behalf of their farmers. 3. Because of the natural monopoly (seed potato is best produced in highlands of altitude range 2.000-2.000/=. In Figure 5.000/= per 100kg bag.
613 8.005 4.118 4.315 10.920 49.667 5.388 7.765 3.872 1.816 6.460 8.371 2.637 27.673 16.913 1.054 2.955 32.833 17.190 12.000 5.131 10.145 161 10.757 2.703 1.711 1.415 151.478 3.861 9.599 13.254 146 9.136 4.808 2.513 7.512 13.224 9.209 14.288 8.691 12.227 1.317 13.300 Production ('000 Mt) of potatoes in Uganda 1980-1992 Year 1980 1981 175 1983 209 1984 132 1985 168 1986 98 1987 185 1988 190 1989 248 1990 224 1991 254 1992 268 Prodn ('000166 mt) 31 .216 6.568 8.000 1996 774 3.637 5.168 10.883 8.000 2.791 1998 935 4.061 2.308 317 3.787 10.188 9.931 1.732 3.785 7.843 7.500 318.136 377 4.605 7.084 11.125 171 1999 1.672 7.025 8.398 9.540 3.543 96 6.477 5.998 129 8.036 164 9.387 9.314 144 6.179 284 3.934 3.681 114 7.054 1.386 3.359 8.283 5.554 320.079 3.677 11.187 10.705 8.770 9.597 4.958 12.360 8.943 10.593 16.156 4.328 7.777 478.478 7.460 4.030 4.986 4.001 211 2.541 3.258 7.529 4.767 4.657 8.765 8.129 4.139 3.845 8.556 3.613 4.127 303 3.379 2.509 12.346 39.940 4.254 4.697 1.032 2.649 3.610 100.242 7.480 10.778 11.170 3.006 179.053 2.685 7.285 12.811 12.453 7.777 6.820 132 8.683 5.539 2.682 2.455 1.464 6.399 168.887 115 7.098 7.675 12.002 449.571 9.121 2.630 1.087 7.675 8.518 2.257 2.465 138 9.218 4.200 5.013 2.487 3.862 12.374 8.626 3.703 138.207 1.000 1995 979 4.864 8.288 10.000 1993 779 3.174 14.265 384.811 4.418 10.799 2.820 6.351 3.298 1.655 3.714 1.411 3.204 6.215 145 9.160 4.627 10.194 17.656 119.809 3.837 368.138 7.457 6.356 6.456 41.648 11.194 14.904 6.183 8.158 13.527 2.669 354 4.841 2.681 5.694 2.847 4.771 21.833 11.000 1992 652 3.248 37.199 36.105 10.299 8.342 218 2000 1.248 7.038 144.117 9.394 16.094 5.APPENDICES Appendix 1: production of Potatoes (‘000 tonnes) by district Appendix 1: PRODUCTION OF IRISH POTA TOES ('000 TONNES) BY DISTRICT District Apac Arua Bundibugyo Bushenyi Gulu Hoima Iganga Jinja Kabale Kabarole Kalangala Kampala Kamuli Kapchorw a Kasese Kibaale Kiboga Kisoro Kitgum Kotido Kumi Lira Luw ero Masaka Masindi Mbale Mbarara Moroto Moyo Mpigi Mubende Mukono Nebbi Ntungamo Pallisa Rakai Rukungiri Soroti Tororo TOTAL 2.751 11.224 290 3.076 251 3.623 360.260 4.416 1997 877 4.184 6.505 175 11.058 10.603 2.698 120.125 6.096 14.754 3.113 2.490 3.192 168 10.403 6.539 3.770 4.035 7.256 15.289 3.238 122 8.552 10.409 2.712 5.667 3.937 12.775 205 12.797 14.000 1994 896 4.743 46.012 18.668 9.155 8.943 32.203 3.020 7.536 135.172 15.746 402.246 10.555 2.164 5.191 3.050 252 3.819 3.677 8.481 20.496 9.569 9.875 3.632 3.686 9.037 2.650 8.156 11.591 4.680 10.087 3.856 184 8.996 11.112 3.273 1.907 8.159 3.530 3.638 3.002 6.820 2.161 268.
171 88.699 113.753 121.316 -0.156 89.305 109.923 94.275 96.808 98.190 122.772 97.837 114.873 119.685 102.902 101.847 100.530 0.059 97.360 107.953 103.d annual mean 99.183 116.112 581.700 108.196 92.758 0.826 123.050 483.128 Oct 156.061 166.833 84.555 75.520 89.302 151.190 11 165 91 116.789 106.359 95.682 113.347 120.92 116.763 85.111 88.190 116.020 110.289 105.106 114.317 113.212 92.921 100.384 0.484 123.941 11 119 83 102.517 121.237 175.87 138.609 118.056 111.758 113.059 111.961 113.845 82.231 332.361 100.66 16.353 154.992 93.635 99.860 128.922 155.152 114.123 96.94 24.152 116.805 112.293 123.190 10 152 103 115.350 134.190 127.422 118.735 88.148 -0.784 218.364 164.26 14.167 116.335 118.793 106.10 14.049 94.569 102.384 111.824 113.125 -0.885 100.26 114.268 112.66 127.53 134.654 116.973 185.767 79.132 86.783 112.409 105.791 117.072 113.440 140.85 22.626 137.d GSI -1s.796 107.154 110.013 173.481 115.190 11 125 76 100.39 142.222 113.218 -0.665 97.211 113.586 112.303 106.Appendix 2: Grand Seasonal Index for Potato in Kampala Calculated from Real Retail prices Jan 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 N Maximum Minimum Mean S.456 122.096 97.956 97.229 113.930 120.563 0.549 1263.190 11 155 98 122.554 0.190 123.502 232.435 270.339 108.238 118.07 19.D Variance t value GSI GSI +1s.344 Nov 138.892 100.093 94.508 104.584 205.014 119.553 122.980 102.641 97.067 128.589 113.899 97.693 111.732 102.981 11 136 89 110.764 98.400 0.215 100.757 11 122 71 99.179 326.846 278.173 125.681 112.669 32 .10 129.338 11 159 93 116.546 113.190 117.190 11 156 97 120.798 136.10 14.849 Dec 103.977 124.629 158.307 110.986 110.319 98.85 134.689 115.62 159.296 112.481 11 185 97 118.823 113.750 107.741 118.524 91.696 83.887 523.979 99.076 106.827 123.776 102.522 10 205 89 123.328 108.827 106.076 109.145 126.143 109.793 70.94 143.470 Feb Mar Apr May Jun Jul Aug Sep 154.817 -0.476 115.92 13.07 139.87 22.53 18.745 82.010 106.417 126.398 207.235 132.319 90.401 99.409 117.496 84.086 94.39 20.998 88.10 113.826 90.190 99.301 113.171 104.190 10 167 82 111.129 115.002 115.62 35.882 0.056 108.203 103.
they were reviewed and included in the analysis. Bigirimana E. S. excluding members who made losses (Table 2) because profits are made on individual level and are not shared. Kakuhenzire and S.84Mt. made losses and were unable to recover their capital (Table 2). Gareeba B. Individual net returns were all below 100% compared to the previous seasons.6% of the invested capital. Beinamaryo J... Some costs were either unrealistically low or high compared to the seed procured. K. 9. 62. The average multiplication rate was 3. This was partly due to the fall in the price of seed Potato and the low productivity per bag planted. however.56 Mt) did not return the production report for unexplained reasons. In a period of six moths. The farmers as a group made a gross profit of Sh. This could be attributed to failure either to keep proper farm records or use or quantify family labour where one uses it.Annex 1: PRODUCTION REPORTS FOR UGANDA NATIONAL SEED POTATO PRODUCERS’ ASSOCIATION (UNSPPA) FOR 2000A SEASON R. Kikafunda. Hanyurwa F.. Four farmers are from Kisoro while the rest come from Kabale.024.4Mt) of seed in this season. the group earned Sh. Kihumuro A. 10 members submitted production reports equivalent to 110. Two production reports were unsatisfactory because they did not reflect real facts on the ground. 12.024. One of the members (Hanyurwa F. The seed potato that is not accounted for is therefore 0.5 bags or 8. Mrs Kihumuro a good report while the remaining farmers gave just satisfactory reports. Tibaijuka and G.4 Mt) of seed (Table 1).6 per bag planted. Sentaro P. Rowe.84 Mt) (Table 1) while one member.. These reports were from Mr. To offset the low seed potato prices. These members are. Kisiizi.!The Formula Not In Table/= which was 41. Seed potato Production analysis for UNSPPA in 2000A season Ten out of the 11 farmers who collected seed submitted production returns accounting for 110. and Hanyurwa F. This was low compared to the previous seasons.5 bags (8. Mrs R.506/=. Bifakubaho Y. Fokushaba V. Two of these farmers happen to come from Kisoro district.04% of the 117. Barisigara who collected 7 bags (0. The rate of produce utilization as seed was 92.. 94. Seed Potato procurement and production reports Among the 19 members in UNSPPA..5016/= per month..900/= while the production cost per bag produced was Sh.) who made a loss was a result of late planting despite early seed delivery. Cost-benefit analysis for seed Potato producers in 2000A The total production capita input covering seed. only 11 farmers together collected 117. Karibushe. Two farmers. There is need therefore to deliberately increase the number of farmers in UNSPPA from Kisoro district. B. home or pickup truck. 9. During this season. 33 . seven women and 12 men. Gareeba and Mrs..775. The ten members produced 401 bags of which 24 were damaged in the harvesting process (Table 1). Tindimubona submitting the most comprehensive production report. Bitarabeho F.900/= (Table 2). The production analysis will therefore be for ten farmers who submitted reports. Kanyima J.. agro-chemicals labour and services was Sh.. Rubereti E. This can be achieved by increasing input in agrochemicals and improving the management practices. Tindimubona A growing potato crop cannot be properly managed from a desk. These farmers are: B.56 Mt or 7 bags. The total capital input for the whole group was Sh. average yields per unit planted should be improved. the association had a membership of 19 farmers. An effective manager is in the field often throughout the season (Randal C. For the 11 members who collected seed.5 percent (Table 1).5 bags (9. Eight farmers did not get seed because either they did not request for seed or they had unsettled debts with the association. Introduction The Uganda National Seed potato Producers’ Association (UNSPPA) is a group of farmers based in Kabale and Kisoro districts with the sole aim of producing and distributing seed potato to other potato farmers in the country.. 1993).5 bags (9. Mwongyera A. The rest of the farmers’ reports were adequate with Mr. 22. and S. Byarugaba F. Kisiizi K. Tindimubona on whom analyses will be based. Bigirimana E.000/= and a net profit of Sh.
9 3.3 45 52 174.7 32. on individual level. there was more spread distributions done by the district extension services which information cannot be accessed by UNSPPA.0 95. Mubende and Kapchorwa districts.2 146.7 79.3 3. Bitarabeho F. Kanyima J Kihumuro A. Tindimubona Total Table 3: Itemised production input for seed producers (UNSPPA) in 2000A season.3 96.6 88.3 5.4 21.2 4.3 82.5 Bags harvested 40 15 50 18 20 77 30 42 45 64 401 Bags damaged 2 0 1 4 1 3 4 2 5 2 24 Bags kept as seed 37 11 49 14 19 74 26 39 40 62 371 Multiplica tion rate 2.5 41. Bigirimana E.2 52.04 54.67 6. Gareeba B. Tindimubona Total The single most expensive input in the production process was seed comprising 54.5 110. and transport each took less than 7% of the capital investment (Table 3). Gareeba B.0 2.6 Capital input 95. Sentaro P.1 86.7 82.9 40.3 107.3 -0. Thus. Hanyurwa F. Sentaro P.9 942 Production cost per bag 23675 29440 20508 20555 18500 15820 22767 13905 29178 27573 22506 Percent utilization as seed 92.36 16. Kanyima J Kihumuro A. The cost of seed is unproportionately high and should be reviewed in the present circumstances.1 3. Hanyurwa F.9 92.4 -27. Kisiizi K.0 3.84 34 .9 96.5 110.4 3.04% while the pesticides.6 Beinamaryo J Bigirimana E.9 34 118. Table 2: Cost-benefit analysis for seed potato producers in the first of 2000 (2000A) Name Bags planted 14 5 15 6 10 15 9 8 14 14. Kisiizi K. Mbarara.Table 1: Production analysis for seed potato producers in the first season of 2000 A Name Bags planted 14 5 15 6 10 15 9 8 14 14. 5 Net Profit (Shs) 533000 -1600 444600 120000 -188000 1001800 357000 481000 287000 715300 3750100 Profit per month over 6 months (Shs) 88833 0 74100 20000 0 166966 59500 80166 47833 119216 625016 Percent net profit (%) 56.5 12775110.5 Beinamaryo J.0 96.24 6.5 Gross return (Shs) 1480000 440000 1470000 490000 490000 2220000 1040000 1065000 1600000 2480000 12775000 Capital input (Shs) 1480014 440005 1470015 490006 490010 2220015 1040009 1065008 1600014 2480014. Seed potato distribution by seed producers in 2000A The members who produced seed in 2000A season supplied seed to 43 entities covering 30 locations.24% of the invested capital (Table 3). Labour took 26.3 3.5 73.0 77. fertilizers. These appear low figures but there were bulk supplies to local governments in Kabale.1 72.0 5. Item Labour Seed Pesticides Fertilizers Total cost (Shs) 2349800 4895000 602000 617000 Percent (%) 26.3 98. Bitarabeho F.
there was heavy rain and the farmers had not taken measures to effectively control late blight. Farmers who were affected by drought delayed to plant in comparison to when seed was delivered. The low return on investment was also caused by the high cost of seed. Sentaro P. there is need to increase productivity and have the price the seed potato reviewed. This was attributed to the low seed Potato prices and the low productivity per unit planted.Transport Empty bags Total 394700 166400 9024900 4. Gareeba B. Members who fail to submit production reports negatively affected the performance of the association. Tindimubona Total Number of beneficiaries 5 3 0 1 0 7 9 9 2 7 43 Number of villages 4 2 0 1 0 3 6 5 2 7 30 Conclusion and recommendations The average net return (41. To improve average returns. 35 . Hanyurwa F. Bigirimana E.0 Table 4: Seed potato distribution by UNSPPA in 2000A season Seed producer Beinamaryo J.37 1. Low productivity was caused by drought in few cases as sited by some farmers while in some cases. Kisiizi K. It is important that the chairman of the group should ensure that all members hand-in reports as agreed in the by-laws otherwise this practice spoils the production level and the image of the group. Bitarabeho F.84 100. Kanyima J Kihumuro A. which comprised more than 50% of the production input.6%) was low compared to the previous season. There was more national coverage than previously because of publicity and bulk purchases by district local governments and non-governmental organisations.
Self Buchana (Mrs) Mr. 0 1 0 7 Kihumuro A. Bamanya Amos Rukashanga (Rev) Kihumuro (Mr) Tindimubona Muyebe man Kasimbazi J. Village/subcounty Various Rukungiri Kabale M. Kwesiga Kashaija Mrs. Tindimubona S. 2 7 36 .TTP LCV Kabale Kanzikwera Mateeka B. Kanyima J. Hanyurwa F.C Kibaya 0 Buhara 0 Kakumiro Kashambya Ndorwa Ndorwa Kamuganguzi Kamuganguzi Rwamucucu Bukinda Rwamucucu Rwamucucu Kaharo Kabale M. Bigirimana Self 0 LC3 Buhara 0 Byabagambi W.Appendix 1: Ware potato growers who benefited from the informal seed system run by UNSPPA members. Kabahima Mrs Tibikumbya Mrs. Betonde NARO . Kazahura (Mrs) John Maheru Cell Mbabazi P.C.G. Tindimubona S. Kaharo Kaharo Kisoro Town Karumena T. Kissizi K. Kweyamba H. Mbarara LC V Ntungamo LCV Bandaganire G. Gareeba B. Rwamucucu Rwamucucu Rwamucucu Kashambya Muyebe Kabale MC Bukinda Bukinda Bukinda Kamwezi Bukinda Mbarara Ntungamo Kashambya Kashambya Bubale Kabale Mpigi Muko Kashambya Number of villages Various Makanga Kaharo Kaharo KTC Nyakabande Nyakabande 0 Buhara 0 Mubende Kitunga Ndorwa Ndorwa Ndorwa Ndorwa Ibumba Wacebe Nozi Maheru Kaharo Central Rwamucucu Rwamucucu Maheru Kitunga Muyebe Central Bukinda Bukinda Bukinda Kamwezi Bukinda Mbarara Ntungamo Kitunga Kashambya Nyamiyaga Kabale Namulonge Kalengyere Kitunga Bigirimana (Mrs) 3 Bitarabeho F. Seed producer Beinamaryo J Number of beneficiaries 5 Names of beneficiaries LCV Kabale H. 9 Sentaro P.Land Hotel Kaguta D.C. Tindimubona Mugisha S Kataryeba Byaba (Mrs) Tindimwebwa Ibumba W. 9 Kisiizi K.
5 Cost of seed 700000 250000 750000 300000 500000 750000 450000 400000 700000 725000 5525000 Land prep 40000 79000 67000 30000 50000 65000 75000 45000 165000 179000 795000 Plantin g 12000 22600 14000 5000 9000 20000 20000 15000 66000 54000 237600 Weeding Spraying Dehaua lming 0 0 3000 1000 1000 10000 5000 3000 5000 10000 38000 Fertiliser Pesticides Guarding Harvest ing 60000 20000 10000 3000 12000 8000 20000 20000 56000 16000 225000 Empty bags 20000 5000 21400 0 0 37000 15000 18000 25000 25000 166400 Transp ort 0 0 16000 5000 31500 22200 15000 0 24000 281000 394700 Beinamaryo Bigirimana Bitarabeho Gareeba B. Tindimubona Sub-total 12000 25000 12000 10000 3000 10000 8000 1300 0 40000 25000 66300 27000 5000 10000 3000 2500 24000 5000 10000 20000 56700 163200 40000 0 60000 0 35000 120000 32000 40000 110000 180000 617000 36000 20000 57000 13000 34000 122000 18000 20000 72000 210000 602000 0 15000 5000 0 0 30000 20000 0 30000 3000 103000 37 .Appendix 2: Seed potato production costs by members of Uganda National Seed Potato Producers Association (UNSPPA) in 2000A Name Bags plted 14 5 15 6 10 15 9 8 14 14. Sentaro P.5 110. Kanyima J Kihumuro A. Kisiizi K. Hanyurwa F.
travelling traders get a net margin of 16. But variable climatic conditions. high yielding and adaptable variety (Victoria) and rapidly expanding demand in Kampala has attracted a number of districts formerly not cultivating potatoes to undertake potato farming as a cash crop hence an increase in supply. A combination of a new. The traders sell Rwandan potatoes disguised as a local variety from Kabale. wholesalers get 8% and retailers get about 12. If Rwanda is interested to get a niche of the Uganda potato market. small plots of land and high costs of inputs have limited potato yields. The demand for chips and fries is increasing in Uganda.Conclusions and Recommendations There is growing commercial orientation of potato production in highland areas (Kabale. Traders from Uganda only buy potatoes from Rwanda when there is scarcity of supply locally. Mbale and Kapchorwa) that were predominantly growing the crop for home consumption. Farmers receive 26. Therefore for Rwanda to efficiently break in Uganda’s potato market. thereby limiting the profits of small-scale producers. .7% as farm-gate price of the final retail price. Increasing demand matched by increasing supply from new areas of production has led to a near constant real price of potatoes in Uganda.7%. Since these varieties perform well in Kabale and Kisoro. Kisoro. it is important for Rwanda to identify and produce quality varieties that are highly demanded in Uganda such as Uganda Rutuku 11 and Victoria. Efficient production of quality chips and fries require use specific potato varieties as evidenced by Nandos and Steers fast food outlets that are importing potatoes from South Africa. it is imperative that an agent be established in Uganda who will import and sell potatoes exclusively from Rwanda.3% of the final price. Eliminating brokers reduces transaction costs by more than 6% and improves earnings of the main market participants. Therefore there is need for local companies that require specific varieties of potatoes to encourage local farmers by giving them the basic seed to cultivate such varieties under contractual farming arrangement. Brokers charge high commissions for their services while the travelling traders appear to earn high margins from trading to compensate for the risks in the potato business. Over 36% of the price goes into the marketing transaction costs. it is certain they do well in the Rwanda.
The Potato production and marketing in Kenya and the marketing Potential for Rwanda
Okoboi Geofrey International Institute of Tropical Agriculture
Table of contents
REPORT SUMMARY ..................................................................................................................... 3 POTATO PRODUCTION IN KENYA............................................................................................ 4 FIGURE 1: TREND OF PRODUCTION (‘000 MT), 1961-2000 .................................................... 4 FIGURE 2: TREND OF POTATO YIELDS IN KENYA: 1961-2000............................................. 5 POTATO VARIETIES .................................................................................................................... 5 TABLE 1: MAJOR POTATO VARIETIES GROWN IN KENYA ................................................ 5 TABLE 2: OTHER IMPORTANT VARIETIES BY LOCATION................................................. 6 POTATO MARKETING IN KENYA ............................................................................................. 1 FIGURE 2: KENYA IRISH POTATO SUB SECTOR MARKET CHAIN.................................... 1 POTATO WHOLESALE MARKET IN NAIROBI ........................................................................ 3 POTATO PRICES AND TRANSACTION COSTS. ....................................................................... 3 TABLE 3: PRICE AND ASSOCIATED MARKETING COSTS FOR POTATOES IN NAIROBI MARKETS ....................................................................................................................................... 4 IMPORTS AND EXPORTS............................................................................................................. 4
Report summary • • • • • • • Potato production in Kenya that deteriorated due to drought is now increasing but has not attained the pre-drought production levels Potato production yields have also continuously decreased over time from 7.6Mt/Ha in 1975 to 4Mt/Ha in 2000. Potato marketing in Kenya is dominated by well organised travelling traders. Potato market in Nairobi is competitive where prices are determined by demand and supply, and quality difference while in the production areas, travelling traders fix prices. Chips and crisps are the principal products from potatoes that are highly consumed in Kenya’s urban areas. A number of small-scale industries process potatoes into snacks Kenya imports potatoes from Tanzania to supplement local production
FAO statistics indicate that from 1961. eastern and rift valley districts in the Mau Range. Kiisi.N. Figure 1. however.Potato production in Kenya Most of the potato production in Kenya occurs in the highlands of central.3082x + 200 300 200 100 0 61 64 67 70 73 76 79 82 85 88 91 94 97 19 19 19 19 19 19 19 19 19 19 19 19 19 20 00 Years Source: FAO 1990-1998 It should be noted that FAO statistics are estimates that may differ from other statistical sources such as country governments’ publications. 1961-2000 600 500 prodn (mt) 400 output (Mt) Linear (prodn (mt)) y = 3. Figure 1: Trend of production (‘000 Mt). Other highlands such as Mt. Kiambu. Therefore the main districts growing potatoes include. Elgon in the western province and Taita Tabeta in the southern border region with Tanzania have also started growing potatoes on commercial basis.100m and above. output has again steadily increased since 1995. Meru. 4 .5 million Mt). After various years of unstable production. Aberdare Range and the slopes of Mt.100m that Research stations and NGOs have also encouraged growing of potatoes for seed. it is yet reach the volume attained in 1996 (499. Maps 1a & b. Over 70% of potato output is said to come from highlands in Map 1a of altitude of 2. The output rose again sharply reaching 500. Kabira.000 Mt). the director of National Potato Research Centre-Tigoni (Kenya) whom we interviewed contended that the dramatic drop in output in 1980 and 984 and was caused by drought that greatly devastated the output of potatoes in Kenya and since then production has never recovered to the level of 1986 (~0. production had steadily increased till 1980 when it fell back to levels of 1961. Nyandarua. Laikipia and Uasin Gishu. It is in areas above 2.000 Mt in 1984.000 metric tonnes before plunging back to 200. Kenya. J. Transi-Nzoia. Nakuru.
6 Mt/Ha) of potato production in 1979 when it produced 0.Figure 2: Trend of Potato Yields in Kenya: 1961-2000 10 8 6 yield 4 2 0 19 61 19 64 19 67 19 70 19 73 19 76 19 79 19 82 19 85 19 88 19 91 19 94 19 97 20 00 y = -0. and since then till year 2000 yields have averaged to 4 Mt/Ha.1026 Mt/Ha Linear (yield) years Source: FAO 1990-1998 Despite the increased area (hectares) of cultivation under potatoes. Apart from the adverse weather conditions that have affected yields. potato production yields in Kenya continuously deteriorated since 1980 when the country experienced prolonged drought. BW suscep Late maturity Trend of prodn Down Down Down Up Up Up Up 5 .1121x + 8. table 2.N Kabira blamed the poor yields on low soil fertility due bad soil management practices hence the urgent need for farmers to use fertilizers and clean potato seed to improve their yields again Potato varieties Potato varieties of major economic importance in Kenya are listed in the table 1. This trend indicates that potato yields in Kenya have been falling at rate of 11% per year. J. There are also many other varieties that are location specific because of the qualities that the natives in such localities identify in the variety.36 million Mt under 48. virus Low demand Late maturity No seed Greening. LB. in 1984. However. LB. Table 1: Major potato varieties grown in Kenya Name Nyayo Kerr’s Pink Desiree Mukori Ngure Tigoni Tana Kimande Strength Early maturity excellent for chips Excellent for crisps Premium price Good taste LB tolerant LB tolerant LB tolerant High yield Weakness Suscep. the yields were below 3 Mt/Ha.000 Ha of cultivation. BW Suscep. Kenya attained the highest yields (7.
Table 2: Other important varieties by Location Name Roslyn Tana Kihoro New Desiree Asante Furaha Anett Tiga-niwe Munyaka Comesha Dutch Robyjn Romano Major prod zone S Kinangop S Kinangop S Kinangop Laikipia Laikipia Laikipia Mau Narok Mau Narok Oll Kalou Molo Central Strength Chips. LB Resist LB Resist Home use LB Resist LB Resist Early mature LB Resist High yield High yield Market. crisps Storability Weakness Declining yield Late maturity LB Suscep No seed Poor cook quality Poor cook quality Virus suscep Hollow heart Poor storage LB Suscep Low demand Trend Down Flat Down Up Up Down Up Up Up Flat Flat Source: NPRC-Tigoni. Kerr’s pink and Dutch Robyjn varieties are a highly recognised for making of crisps and as such farmers of these varieties receive a premium price from processors for the rapidly growing crisps market. Kabira. However J.N. early maturing especially Nyayo. 6 . Asante is a variety similar to Victoria in Uganda good for making chips but Nyayo and Roslin Tana are considered excellent for chips because of their oblong tubers. the director of NPRC-Tigoni revealed that these varieties popular because the are high yielding (100-130 bags/Ha). near Tigoni National potato Research Centre (NPRC) were of the view that Nyayo and Asante are currently the most popular high yielding varieties grown by farmers in their province. somewhat tolerant to late blight (LB) and the market potential is good. 2001 Farmers we interviewed in Tigoni.
supermarkets Consumers Key Fresh potatoes Chips . Potato marketing in Kenya is also follows the seasonal supply pattern brought about by varied weather patterns in the provinces. load) Framers (producers) (Producers) Village traders (Assemblers) Rural retailers Urban Brokers Rural consumers Wholesalers Processors (hotels. Schools) Urban retailers Retail shops. Rest. men mainly handle the marketing beyond the farm-gate. The principle player in Kenya potato trade is the travelling trader who moves supplies from the production area to the market in Nairobi. sew. Figure 2: Kenya Irish potato sub sector market chain Rural brokers (Pack. The chain of potato trade is illustrated in figure 2.Potato marketing in Kenya Although women dominate potato cultivation in Kenya.
they agree on the price they are to pay the farmers for a given variety of potatoes and allocate the Location or Sub-location1 member will go to buy from. Machakos) and Rift valley (Nakuru. a member of Nairobi Irish potato traders and transporters. The reason relates to the perishability and storability of potatoes compared to grains. Embu. However. intra-regional/travelling traders sell potatoes to well established permanent wholesalers through brokers. Joseph Muranga. Travelling traders bringing supplies from any given district within Kenya to Nairobi are conveniently referred to as intra-regional traders in this study because there is another category of travelling traders whom we have called inter-regional traders who supply potatoes from Tanzania to Nairobi market. an informal but highly organised group in Wakulima market informed this study group that their group meets every day after close of the day’s business to review the day’s activities and to plan their course of action for the next day. There are resident market wholesalers who get stock directly from travelling traders and sell it in the same form (no sorting. Since they contact the farmers to get them buyers. Farmers mainly sell their potatoes directly to travelling traders through village brokers. 1 A Location is equivalent to a County and a Sub-location to Sub-county. among other issues. Brokers are common market participants in the potato marketing chain unlike in cereal trade. Narok.) provinces that are near Nairobi have gone commercial as over 60% of their potato output is sold. potatoes from Meru are distinct and sell fast. a few farmers do sell to rural assemblers or directly supply institutions such as hotels. In Nairobi wholesale markets. repacking) to secondary wholesalers who may come from other markets. Farmers in the eastern (Meru.Producers: Farmers from the highlands (Map 1) are the major producers of potatoes both for food and sell. the brokers also sometimes get a commission from the farmers or from the transaction difference betweens the farmers and traders offer prices. In their meetings. Kajiado etc. During the fieldwork for this study. Travelling traders bring potatoes from farmers in any size of bags ranging from 100-150kgs. The traders normally hire trucks from the drivers returning after delivering merchandise from Nairobi to Tanzania. processing plants that require potatoes of a specific quality. Laikipia. 2 . By Midday all the tonnes of potatoes are sold out. Secondary wholesalers add value to the product by sorting. grading and repacking into appropriate units of 50 kg bags. farmers interviewed said that traders from Nairobi are so influential to the extent that they impose the buying price with little bargain from the farmers. In Nairobi potato markets. Travelling traders/transporters: Travelling traders are highly organised in Kenya especially those from Nairobi. schools and of recent. Wholesalers: Wholesalers in Kenya operate at two levels. Rural brokers: rural brokers are commission agents who mostly work for travelling traders to identify sources of supply. Wholesalers generally sell retailers and processors but secondary wholesalers can also sell to consumers. interregional traders use 40 feet trailer truck to bring potatoes from Arusha to Nairobi.
This market also serves as a distribution centre to other wholesale markets and distant towns in the coastal province such as Mombasa and Malindi. the researcher also found chips and fries as the most convenient kind of food available for average income tourists and urban dwellers. All potato imports from Tanzania are sold in this market. Most of these varieties (Nyayo. In Wakulima and Aga-khan markets. an entrepreneur had set up a factory to process potatoes into frozen French fries to supply the increasing demand in Nairobi and for export. Small-scale food processing industries have sprung up from all corners of Nairobi to process potatoes into crisps. Wakulima market is a specialised food market opening as early 5AM and closes midday. The reason is that chips are the cheapest and most convenient food in Nairobi. Our survey of potato marketing in Kenya was not exhaustive due to the time factor. Processors of crisps sell their products through supermarkets that are now common in all towns of Kenya. a suburb of Nairobi declared that the market for French fries (chips) and crisps is there. An interview with Jerry a small-scale food processor in East Lands. repacking) and variety. Potato crisps also popular in Kenya and attract a sizeable demand from the young population. These are Wakulima market. In the market. crisps processors have to be steady on quality. Agakhan market and Karenget market. Nakuru and Eldoret. To compete favourably in saturated market. Consumers: our informal survey in Nairobi found out that young working people ranked chips over all other types of food. During the fieldwork. South African based fast food giants were found in Nairobi. Wakulima (Farmers) market that lies within the business centre is the busiest of all. Of the three.Processors: Kenya’s fast expanding cities have greatly increased the demand for chips and crisps. Surveys on the shelves of various supermarkets revealed more than ten different companies processing crisps. It attracts suppliers from almost potato production provinces in the country. This further attests to increased demand for chips by the urban population in Kenya. This study group was informed that in the rift valley province in Narok district. During lunchtime consumers practically queue in most restaurants to get services. Potato prices in Kenya also vary significantly according to season (supply and demand). All streets in Nairobi are lined with all kinds of fast food restaurants serving chips as a principal product. Good quality chips and crisps require specific potato varieties. Potato wholesale market in Nairobi There are three major wholesale markets in Nairobi. the raw materials are abundant and industry is booming. A visitor of Nairobi. Therefore it was not possible to gather all the prices and transaction costs along the trading chain. potato prices also varied according to the quality (sorting. 3 . Nandos and Steers. Kerr’s pink and Dutch Robyjin) are susceptible to Late Blight (LB) hence their output is low and sell at premium price. grading. Potato prices and transaction costs.
All these statistics positively illustrate that local potato production in Kenya cannot adequately support its increasing demand. we did not get any information indicating potato exports from Kenya to other countries in the region. we got a trailer offloading potatoes from Tanzania.Tigoni). buy potatoes through their contacts then hire trailers returning to Nairobi after delivering merchandise to transport potatoes at subsidized fares.400/= when plenty 1. Traders from Nairobi travel to Arusha by bus.000 Mt produced by Uganda. Asante.Tigon 250/= 200/= 15-17kg packs 15-17kg packs Marketing costs K shs 300-400/= per bag Transport costs Market fees Off-loading and carry 600/= per bag 100/= 40-50/= Molo/meru-Nairobi markets Nairobi-Mombasa 1 bag ~ 130-150kg 1 bag ~ 130-150kg Imports and Exports Through out our study.Tigon Wholesale price Kshs. FAO 2000 estimates indicate that Kenya produced only 360. This indicates that either there is a potato deficit in Nairobi market from local supply due to high demand and can only be supplemented for imports or the cost of production and transportation of potatoes from Tanzania is low and the quality is good to allow for favourable competition in the market. Asante. Further it is a recognised fact that Kenya has a higher per capita consumption of potato products in urban areas than Uganda.600/= when scarce 1. Table 3: Price and associated marketing costs for potatoes in Nairobi markets Variety Dutch Robyjin and Kerr’s pink Nyayo. The traders in the market estimated that about 10 trucks offload 40 feet trailer loads of potatoes weekly from Tanzania.300/= when scarce Unit 1 bag ~ 130-150kg 1 bag ~ 130-150kg Retail price Kshs Dutch Robyjin and Kerr’s pink Nyayo. 4 .varieties known for making quality crisps (Dutch Robyjin and Kerr’s pink) sold at a higher (premium) price than those for chips (Nyayo. Kenya’s population is estimated at 30 million people with 30% residing in urban areas compared to Uganda with a population estimated at 22 million with less than 20% residing in urban areas.000 Mt in year 2000 compared to 478. Asante. 1. During fieldwork in Wakulima market.200/= when plenty 1.
Other forms are marginal. Maize grain. Mwanza. Comparative analysis of Rwanda’s potato competitiveness on Tanzanian market indicates that it may not be competitive. sorghum and millet are the major staple foods for much of the population. Dar es Salaam city gets most of its potatoes from southern Tanzania. Tanzania produces a lower tonnage of potatoes compared to its E. the commercial city of northern Tanzania gets most of its potato requirements from Kenya. Potato market both in Mwanza and Dar es Salaam is growing rapidly. cassava. 5 . The Potato production and marketing in Tanzania and the market opportunities for Rwanda Report highlights • • • • • • • • • Agro-ecological conditions do not permit potato cultivation in most parts of Northern Tanzania. Main form of potato consumption is as chips. transport costs and potato quality are the reasons given by traders in Mwanza for not sourcing potato supplies from Rwanda. Uganda and Kenya.Therefore there is need for further investigation to quantify the market potential for other countries (Uganda and Rwanda) within the region to supply the lucrative potato market of Kenya in general and Nairobi in particular. African neighbours. Social insecurity along the main road to Rwanda. Potatoes are mainly consumed in urban areas in the form of chips. Bad road network does not permit the traders to get supplies locally.
5% and 4% of the farmers’ land resource respectively. Another important food staple particularly in lake regions (Mwanza. table. Rice is also another important food crop in the diet of Tanzanians. Kagera and Mara) of northern Tanzania is cassava. millet and sorghum. Map of Tanzania showing political regions of the country 6 . Table 2. Together. 5%. taking 10%. followed by sweet potatoes. the three lake regions accounted for over 43% hectares under cassava cultivation in 1995/96.POTATO PRODUCTION AND MARKETING IN TANZANIA General overview The principal food crop of Tanzania is maize. Households in all regions of the country (Map 1) generally cultivate maize. figure 1. covering 58% of the farmers’ land cultivation of major food crops in 1998/99.
87 1.48 39.00 55.85 25. Tanzania 5% 16% 1% 5% 4% 10% 1% Maize Rice Sorghum Millet 58% Wheat Cassava S/ Potatoes Irish Potatoes Table 2 indicates that in 1995/96 over 73% of potato cultivation was done in southern Tanzania (Iringa and Mbeya regions).88 43.57 54.36 0.82 Irish potatoes % of total 1.74 34.18 0.71 639.126 S/ Potatoes 266. 1995/96 Crop Region Cassava Area (Ha) Dodoma Arusha Kilimanjaro Tanga Morogoro Pwani/D'Salaam Lindi Mtwara Ruvuma Iringa Mbeya Singida Tabora 783.279.94 2.34 1.529.87 496.97 110.22 0. Figure 1: Planted area for major Food crops in Tanzania.27 0.884 Irish Potatoes 28. 1998/99 Crop Planted area (Ha) Maize 3.665.571.103.00 0.29 967. Kilimanjaro and Tanga) belt and less than 8% in the lake regions.55 0.05 0.421 Total 5.69 0.207. Table 2: Planted area for Roots and Tubers by region in Tanzania.21 1.03 36.459.00 10.05 18.60 2.216.533 Sorghum 207.72 969.785.631 Rice 503.98 2.00 0.27 9.12 3.25 9.73 17.92 0.96 82.96 1.157.21 6.18 0.03 0.38 4. 14% in Meru .86 11.32 33.07 1.35 % of total Area (Ha) 0.11 0.010.857.77 4.812 Cassava 848.60 5.56 86.43 7.94 1.Table.71 0.00 0.84 6.61 3.85 S/potatoes % of total Area (Ha) 0.05 45.06 1.63 0.198. Dar es Salaam.527.514.800 Wheat 35.671 Millet 256.15 0.89 262.66 0.00 0.30 49.00 0.10 0.878 Data source: National Bureau of statistics.36 73.55 883.27 1.165.Kilimanjaro (Arusha.206.87 7 .71 0.
84 0.02 6.00 Tanga 8.273.74 1.57 74. sorghum.12 7.88 402.535.00 0.989. millet) and cassava.223.83 29.45 7. 1998/99 Region Area (Ha) Yield (Mt/Ha) Production (Mt) %age of Total prod Dodoma 284.204.00 2.00 0.783.00 2.36 2.00 Singida 22.420.05 Mara 728.88 12.78 0.41 0.8 million tonnes of potatoes (Irish and sweet potatoes).0 Although planted area have increased 4-fold between 1995 and 1999 with production estimated at 0.00 58.38 Shinyanga 37.98 1. there appear to be structural changes in potato cultivation. Tanzania Although potatoes do not feature as an important food staple in the diet rural dwellers they are prominent on the menu in hotels and restaurants in most urban areas in Tanzania.46 45.59 0.16 103.00 100 Data source: National Bureau of statistics & Min.54 9.42 Mbeya 2.00 4.31 2.25 29.136.Kilimanjaro (Arusha.65 0.27 Morogoro 106. Dar es Salaam.14 7.81 100.49 7.31 22.00 Arusha 605.67 9. The food balance sheet for Tanzania.85 65.689.00 Ruvuma 2.02 353.72 0.95 7.237.00 1.76 51.15 39.378.45 0.33 7.00 742.918.143.25 18.00 0.29 9.00 Mtwara 7.Rukwa Kigoma Shinyanga Kagera Mwanza Mara Total 12.65 6. On the row of imports the table shows that Tanzania is a net importer of grains but not roots and tubers.14 7.00 265.69 7.08 Tabora 43.431.53 Kigoma 108. the country required only 619.945.2 million metric tonnes as indicated in Table 3.70 100 14.13 Kilimanjaro 1.43 1.968.00 1.44 3.099.00 Lindi 7.15 Rukwa 149.06 0.045.02 7.558.56 Total 28.13 Kagera 403.42 Mwanza 15.71 43.18 7.74 198.00 0.37 Pwani/D'Salaam 7. The table further indicates that though Tanzania produced less than 0.00 78.45 7.00 107.00 7.839.953.96 7.93 0.00 17.00 762.98 0. estimated production and percentage of production by Region.892.317. of Agric.58 7.37 7.991. Kilimanjaro and Tanga) belt has increased to over 35% and other areas such as the lake regions have shown modest interest in potato cultivation.000 Mt.522.15 9.00 0.07 12.909.85 22.48 7.50 Iringa 11.12 29.698. & Co-op.28 7.96 4.76 3.431.44 34.284. 8 .35 7.85 13.00 158. Table 4 indicates that the food requirements of the country greatly depend on grains (maize. Southern Tanzania (Iringa and Mbeya regions) that dominated potato cultivation has reduced acreage to 58% while Meru .00 301.00 5.96 7.65 100 1.319.821.72 9.00 18.23 1. Table 3: Area planted.
2 Aid F.781 703 798 674 3. the yield has nearly remained constant implying that output increased mainly due to increased acreage under cultivation.2 Expected F.089 866 -302 -866 0 -302 486 464 439 26 22 22 10 3 H.240 817 595 118 3.1 Received F.Table 4: Tanzania Food Balance Sheet.72x + 0. Commodity Cross Substitution E.955 8. Domestic food Balance (A-B) D.033 1. 9 20 00 .2 Aid G. Total Domestic food availability B. June 2000-May 2001 (‘000 tonnes) Maize A.771 1. While the linear production trend illustrates a remarkable increase in output.1. Import gap Source: Tanzania food security Bulletin No.725 3. 1.2001 Figure 2 shows production and yield trends of potatoes in Tanzania.2000 28 24 20 prod yield Linear (prod) Linear (yield) Prod ( '0000 Mt ) y = 0.05 19 70 19 73 19 76 19 79 19 82 19 85 19 88 19 91 19 94 19 97 years Data source: FAO country statistics Country comparison of production trend illustrated in Figure 3 indicates that Tanzania has perpetually lagged behind Uganda and Kenya in potato production in East Africa.Total Food cereal 7.1 Commercial F.1 Commercial F.10 16 12 8 4 0 19 61 19 64 19 67 y = 0. Figure 2: Potato production and yield in Tanzania. 1961 .938 1. 6.027 3. Shortfall [-] /Surplus[+] (C+D) F. Exports Sorghum Rice Wheat Total Pulses Cassava Banana Potatoes Millets Cereals 2.199 542 164 4.2.Total Annual food requirements C.452 581 619 437 -793 -382 54 -46 -1167 237 329 121 179 491 -302 48 48 39 9 139 126 109 17 14 14 1 299 291 291 8 8 3 382 -54 46 866 -302 486 464 439 26 22 22 8 2 2 -237 -329 -121 -179 Non. Imports F.2.12x + 3.
10 . Very high demand for maize meal by natives both in rural and urban areas proportionately affects per capita income allocation to other foodstuffs including potatoes. Kenya and Tanzania: 19612000 55 50 45 40 35 30 25 20 15 10 5 0 19 61 19 64 19 67 19 70 19 73 19 76 19 79 19 82 19 85 19 88 19 91 19 94 19 97 20 00 uganda Kenya Tanzania Prod ( '0000 Mt ) years Data source: FAO country statistics In summary.Figure 3: Trend of potato production in Uganda. limited agro-ecological conditions favourable for potato cultivation in Tanzania have greatly hampered production in many regions thereby influencing the food diet of the population.
food staple consumption pattern closely follows the production trend. The city’s population is estimated to be more than 0.Potato marketing in Mwanza Introduction Mwanza is the regional political and commercial city of the Lake/Mwanza region in Northern Tanzania. Cassava and sweet potatoes are also highly consumed in the rural areas of northern Tanzania. The major food crops cultivated in this region are maize. i. Mara and Shinyanga lie between 1000-1500 metres of altitude. the eastern section of Kagera region bordering Rwanda and the Bukoba area next to lake Victoria. Kagera and Mara. processing fish for export. There are five factories in the town. Mbeya and occasionally from Rwanda. The major economic activity of the local population in Mwanza is fishing and farming. Tarime district is also known to produce limited quantities for home consumption. It also serves a commercial centre for surrounding regions such as Shinyanga. Traders from Mwanza now buy potatoes directly from Kenyan farmers in Nakuru district through a broker. located along the shores of lake Victoria. In the rural areas. climatic conditions of northern Tanzania in general and Mwanza in particular are unfavourable for Irish potato production. Most of these regions have one season (unimodal) of rain falling between November and May. Mwanza region is clearly unfavourable for potato production. Potato supply to Mwanza and neighbouring towns. closely followed by rice and then Irish potatoes. and also assigned to handle potato activities in Maruku agricultural research institute in Bukoba revealed that scanty production for home consumption occurs in some areas of Kagera region particularly in Karagwe and Bukoba districts with bi-modal rainfall patterns and higher altitudes of over1500m. In Mara region. Potato production There is very little potato cultivation in Mwanza region. Magdalena William. traders board another vehicle that takes them to Molo location in Nakuru district. The major reasons cited by Mwanza traders for not buying potatoes from Arusha and Mbeya are high transport costs and quality of potatoes. maize meal is number one food staple. Tables 2 &3. Before discovering alternative good quality and cheaper potatoes from Kenya. particularly Mwanza. Low rainfall. three days from Mwanza to Mbeya and two-three days from Mwanza to Arusha-Moshi depending on the route 11 . Much of Mwanza and the surrounding lake regions of Kagera. maize meal ranks first on the food list. The traders travel by bus from Mwanza to the Sirali. However. poor sandy soils and relatively low altitude. have two rainfall seasons. a border township between Tanzania and Kenya. Cooking bananas brought from Bukoba district are also eaten but as a snack. It takes only one day to travel from Mwanza to Molo location in Kenya. Similar reasons are given for not buying from Rwanda.e. In the urban areas. Molo and Meru areas are well known for growing high quality red potatoes in Kenya just like Kabale and Kisoro is for Uganda. the government of Tanzania does not fund potato research activities in the agricultural research institutes of Northern Tanzania.2 million people. After immigration clearance in Kenya. Magdalena further said that due to its commercial insignificancy. Therefore. The mean annual rainfall in Mwanza is below 800 mm while the mean annual temperature is above 24oC. an agronomist heading the legumes crop section. high temperatures. cassava and sweet potatoes. traders from Mwanza were sourcing their supplies from Arusha.
Kenya. Some of the centres that buy potatoes from Mwanza market include Shinyanga. The reverse is also true. Apparently the traders’ revelation suggests that there is a relation between the level of fertilizer use and dry matter content of potatoes. The traders in Mwanza further lleged that potatoes from Rwanda of poor quality (rot and wither easily) due to heavy use of fertilizers by farmers. The traders said that potatoes from Sanya Juu. Internal 12 . Potato wholesale market Mwanza town has one central market called Soko Kuu (Main Market) in the midst of the town. To cross that road section. Kenya or Arusha while others are sedentary traders who buy from travelling traders. Burundi and Democratic Republic of Congo move in a convoy escorted by the armed forces. increased thuggery along the Isaka . It is Isaka trading centre. they take less time – two days. The level of potato out put in Nakuru. Nzega. Sengerema. Ukerewe.Isaka route. Mwanza town is the distribution point to other urban centres in Mwanza and Shinyanga regions. when output is low and price is high (~ T shs. Apparently. I. but if they use an internal route passing through ShinyangaNzega-Singida-Babati-Arusha.12. supply is low and the retail price is high (~ T shs. Geita. Kenya in order to source potato supplies in Arusha. Kilimanjaro in Moshi district is the only variety they have come across that is similar to that in Molo. potato traders and consumers in northern Tanzania have little/no option other than getting potatoes from Kenya. Potato retailers are found mainly in Soko Kuu market and out lying retail market outlets. Traders in Mwanza are particular about quality (dry matter content of potatoes) because it directly affects the storage period and quality of chips. not only is the potato quality from Rwanda unappealing to traders from Mwanza. the quality of potatoes from Mbeya and Arusha is not comparable to those from Molo.000/ 280kg) in Nakuru. etc. directly affects supply in Mwnaza region.e. This highlights the pathetic the roads and the general road transport system in Tanzania. Prominent travelling traders bring between 100-200 bags of potatoes from Kenya to distribute to sedentary wholesalers and a multitude of retailers in urban centres both in Mwanza and Shinyanga regions. An average potato bag from Kenya weighs 280kg. they take three days.100/kg. Not only is the road transport system awful. Traders in Mwanza find it cheaper both in financial outlay and time to travel through a neighbouring country. Kenya. that known to get its supply of potatoes from Rwanda brought by truck drivers plying Kigali . Mwanza is the commercial hub of northern Tanzania and as far as potatoes are concerned. Increasing insecurity on the road section between Nyakanazi in Kigoma region and Nyakahura in Kagera region caused by the Hutu refugees in camps has adversely retarded trade between northern Tanzania and Rwanda. If traders use a Kenya route that goes through Nairobi then Moshi before entering Arusha.000/ 280kg) in Nakuru between November and June then the supply is also high in Mwanza and the retail price is T shs. 99% of potato wholesalers have stalls and sell potatoes through this market. Therefore. when production is high and the price is low (~ T shs. Some of the wholesalers are travelling traders who source potatoes from Nakuru.Rusumo road has diminished any major prospect in potato trading between Tanzania and Rwanda. Food retail shops and supermarkets do not sell potatoes. An innovative attempt by a supermarket to retail potatoes in Mwanza town only led to a financial loss to the proprietor as buyers preferred open air markets.22. all vehicles to and from Rwanda.250/kg) in Mwanza. a location on the slopes of Mt. Kenya. An area that needs further research.used.
000 4.400 = T. Tax Transport (Lorry) Sirali Off-load – Mwanza (Soko Kuu) 1.shs./280kg bag Farmer (Molo-Kenya) FarmWholesale travelling trader Purchase price -Kenya) -Mz. a wholesaler selling 50 bags a week X 4 weeks X 2. very few people know and However. ~US $ 545 net return per month. Marketing costs and margins Travelling and sedentary wholesalers of potatoes are few in Mwanza but it is rather surprising that these traders do not make excessive profits from their relatively monopolistic situation. The market structure ha monopolistically competitive market (few sellers.500 2. 480.2 1.6 13 .000 300 1. table hs. Potato consumption Potato consumption in Mwanza and other urban centres in northern Tanzania is rapidly picking with roast meat are a popular snack for travellers. The potato market of northern Tanzania is rapidly growing with a major concentration in urban areas. 2. Since potatoes are not a native staple food. Table 5: Potato marketing costs and margins for Mwanza T Shs.t.000 56 6 Costs -Mwanza Sirali Border Transport Sirali to Molo (Kenya) Accomodation & meals 2 days Commission (Rural Packing bags Transport (Lorry) Molo Sirali TZ Gov.6 2 5.400 per 280kg bag may seem low but given that the turn over is high. many buyers. requiring high quality potatoes for chips.600 800 2 0.possible supply from Rwanda has also been disrupted by insecurity along the Isaka Rusumo road. a few people do consume potatoes in beef stew while others specially Indians make major buyers of potatoes in Mwanza are hotel.000 22.) Gross margin 22. limited information) and can best be explained as that. le marketing costs particularly on transport. restaurant and takeparticularly for household consumption are marginal. of northern Tanzania.000.
2.400 1. The port has attracted a number of local and international freight clearing and forwarding companies such as Transmi SDV and Walford Meadows. he said that the terminal receives coffee exports from Rwanda and imports of petrol. withering) from potatoes brought from Molo compared to those brought from Arusha or Rwanda. Kenya are considered to be of best quality by traders both in Kenya and Tanzania. wheat flour. about 360 km east of Rusumo. The terminal has a recently built and modern inland dry port operated by Tanzania Railways Corporation. Rashid Juma. maize etc. 200-250/= • Current exchange rate: K. others) Total costs 600 100 25. Burundi and eastern Congo provinces to the Tanzanian seaport of Dar es salam.Market fee Over heads (stall rent. Thus. Rashid Juma is the terminal manager. Isaka rail terminal is well serviced with the necessary infrastructure for a modern inland port. shs.2 51.4 0. • Potatoes from Molo.7 0. A broker plays a major role in assembling required supply • Traders may take 1-2 days to get lorry for Sirali-Mwanza journey. Two mobile companies (Mobitel and Vodacom) and Tanzania Telecommunications Corporation Ltd connect Isaka to the rest of the world and also the road out of Isaka to the Tanzania-Rwanda and Tanzania-Burundi borders is bituminised.3 10.2 0.800 89.600 2. Isaka rail terminal is located in Shinyanga region. other) Total costs Net Margin Basic facts • 1 bag of potatoes weighs 280kgs • Retail price of potatoes in Mwanza is Tshs.4 Costs Miscellaneous costs (stall rent. • Traders reportedly incur negligible post harvest loss (rotting. Although the retailers seem to get high net margin per 280kg bag sold.000 56. their turnover is low (10 bags a month) hence limiting their net turnover. However.875 • Traders may take 1-5 days to get required tonnage of potatoes in Molo location of Nakuru district in Kenya. TanzaniaRwanda border point and 230 km south of Mwanza town.8 Net Margin Retailer (Soko Kuu-Mz) Purchase price Selling price Gross margin 50. grains (rice.1 = T.000 200 200 5.2 4.) and other manufactured goods.000 6.4 10. shs. shs. 14 . Isaka rail terminal manager claimed that no imports/exports of potatoes from Rwanda have ever passed through the terminal. Isaka rail terminal Isaka rail terminal is the gateway for the land locked countries of Rwanda. US $1 = T.
Table 6: Approximate equivalent units in one wagon Item Equivalent Equivalent 1 wagon One 40 feet container Two 20 feet container 38-40 Metric tonnes 1-20ft equals 18-20 metric tonnes. One wagon is equivalent to 1-40 feet or 2-20 feet container(s) and 1-40 feet container can hold between 38-40 metric tonnes of cargo. Freight and handling costs are charged per wagon for any destination in Tanzania. the commercial city of Tanzania with a population estimated at over 2 million is the major market of potatoes in the country. In Kariako market (major food market in Dar es Salaam). James Mgeni. The terminal manager said that Isaka terminal does not charge customers for storage of containers in the inland port because it is the corporation’s responsibility to transport the customers cargo soon after all due freight and handling charges have been settled.520 70 1. Mt T. Freight Handling Total Isaka-Dar 1. (T. Potatoes are also increasingly used in preparation of soups. 70 shillings charged for handling is a token fee for using a crane to transfer the containers from a truck to the rail engine. All the traders interviewed in Kariako market said the have never brought (imported) out Tanzania to sell in the market. Consumption of potato products particularly chips competes favourably with grain staples such as rice and maize meal in city hotels and restaurants. Shs. the market receives more than 130 Mt (1. Therefore the demand for potatoes in Dar es Salaam is high and increasing.535.590 40. Iringa and Mbeya are the major supply regions. 15 .Shs. From .). Rail transport charges per wagon by Total per tonne US $ per TRC. Most of the traders were of view that what they get from Iringa and Mbeya was sufficient. a prominent wholesaler estimated that daily.620 US $ 24 Charges for Kigali-Isaka below is by private transport companies and is in US dollars Kigali-Isaka US $ 3040 Exchange rate: US $ 1 = T Shs. 1wagon ~ 38 Mt.550 20.000 bags of 130kg) of potatoes. equivalence table below. Table 7: Freight and handling costs of potatoes per metric tonne.480 70 783. Dar es Salaam Potato market Dar es Salaam.410 US $ 46 Isaka-Mwanza 783.Freight and handling costs The freight and handling charges sheet of Tanzania Railways Corporation classify potatoes as general goods. 875.535.To The freight charges include government taxes such as Value Added Tax that are charged on services provided.
18. The average weight potato bags bought off-lorry is 130kg. Dar es Salaam and Mwanza to illustrate the situation for a non-production but consumption centre while Arusha illustrates price movements in production and consumption region.000 ARUSHA 30.000 5. 20. Wholesale Price trend of Potatoes in Tanzania Figure 4 illustrates the pattern of potato wholesale price movement for the selected regions in Tanzania.000 Ja n98 Ap r-9 8 8 9 0 9 0 -9 -9 -0 1 r-9 r-0 ct ct ct r-0 Ap Ap Ap ct O -0 1 O O Years 16 O .000 10. shs. Figure 4: Trend of Wholesale price of potatoes in select Regions in Tanzania: 1998-2001.000 MBEYA D. and road connection is good hence reducing the transport costs.000 while between July and October when there is low output the average price is T.M MWANZA IRINGA 25.000 15. Dar es Salaam prices are relatively lower because it gets supplies from the cheap from areas of Mbeya and Iringa. These traders sell their potato stocks in the same form they received from the lorry.15. therefore very limited value is added (sorting. Between December and June when production is high in southern Tanzania. grading and repacking).15. Shs.000 Tz.000. Retailers and processors (Hotels and restaurants) are the main buyers. 35. Important to note is that potato prices in Mbeya and Iringa the lowest followed by Dar es Salaam. Mbeya and Iringa are selected to show the price trend in the major production areas.000 from travelling traders and organised farmers. The figure shows that Mwanza prices are the highest because of high transaction cost that are involved get potatoes from the production areas (Kenya) to the market.Most wholesalers in Kariako market are sedentary traders who buy their potato stock off-lorry at T.shs.S. The wholesale price is for 100kg bags. shs. the average wholesale price for 130kg bag is T.
Shs) 158.000 70.200 – 250/kg.000 B Taxes at border 9. KGL-DAR 56. there is low potato output in Kenya especially in Nakuru and as a result. The framers from southern Tanzania have a high comparative advantage producing good quality potatoes for Dar es Salaam market than any other region in Tanzania.Kigali 70.Analysis of the competitiveness of Rwanda potatoes on Tanzania market.150 – 170/kg while the retail price range is T.shs 2. Between July to October.050 178.285 9.140/kg. Table 8 illustrates that.000/Mt. Table 8 show estimates of the expected off-lorry price (column F) of potatoes from Rwanda on Mwanza and Dar es Salaam markets compared to the current prices (column G) in those markets. Table 8: Competition of Rwanda potatoes on Mwanza and Dar-esSalaam markets. 280kg = T shs. KGL-MZ. cost (mkt fees etc) 22. table 8.145/mt) and transport cost from Mwanza rail terminal 1Mt = T. potato wholesale prices in Soko Kuu range from T.2. shs.285 C Transp. Dar (Tz.e. setting other factors (e.600 (T. RFr. wholesale prices rise directly affecting the supply and price trend in Mwanza wholesale market. Shs). During this period. 30/kg • Exchange rate: RFr. This is the prospective period in which Rwanda potatoes can sell in this market if the variety/quality problem is fixed and the off-lorry price of Rwanda potatoes on Mwanza market does not exceed T.050 Assumptions • Wholesale/assembly price of potatoes in Kigali = RFr.3. 17 .145 22. 1 = T. Rwanda potatoes may not be very competitive on Mwanza market compared to those from Kenya particularly between November and June when it is harvest season in Kenya. shs.000 The prospect of selling Rwanda potatoes in Dar es Salaam is very minimal given the high transaction costs involved in moving a consignment from Kigali to Dar es Salaam. • Commodity taxes at all borders similar i.g.2. shs. quality) constant. shs.620 76.145 E Total A+B+C+D F Off-lorry Price per kg Mz market 158 178 G Current W/S Price per kg 158 150 Mwanza (Tz. 30.20. A Purchase price per Mt. shs.600 at Sirali Tz-Kenya border • Transport costs in table 3 used • Miscellaneous costs include Soko Kuu market fee of 280kg = T shs.410 D Misc.
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