FARMERS OF THE WORLD UNITE, you have better prices to gain..
There is need to promote business models that require horizontal integration of producers into collectives to improve their bargaining power for better terms of trade and lower transaction costs relating to transportation due to economies of scale.
A sow and piglets at a farm in Masaka, Uganda (photo credit: ILRI/Apollo Habtamu).
Piggery is an important sector in Uganda and a source of livelihood to over 1.1 million households. With an estimated pig population of 3.2 million (that is projected to grow to 8 million by 2020), the pig value chain is dominated by smallholder producers and small and medium enterprises (SMEs) operating under informal business relationships and unstructured markets which limit integration, coordination and overall performance.
A recent study by scientists from the International Livestock Research Institute (ILRI) analyses the governance structures in Uganda’s smallholder pig value chain to identify inclusive models that could enhance integration and competitiveness of these SMEs. Using the New Institutional Economics framework, the study utilized cross-sectional and survey data from randomly selected value chain actors in four districts.
The findings of the study, published in the International Food and Agribusiness Review journal show that…
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