THE IMPACT OF SOCIO-POLITICAL FACTORS ON PINEAPPLE TRADE IN
UGANDA.
A CASE STUDY OF LUWERO DISTRICT.
ABSTRACT
With the presence of East African Common Market, pineapple trading has become one of
the most lucrative businesses. A study has been done to ascertain the impact of sociopolitical factors on pineapple trade in Uganda with specific objectives that included;
socio-political interventions, relationship between socio-political factors and pineapple
trade, challenges and solutions .
Primary data was collected among 150 pineapple farmers and traders using purposive
sampling technique in the sub-counties of Kikyusa, Zirobwe, Kamira and Bamunanika of
Luwero district. Data was entered and analyzed in SPSS. Pearson Chi-Square test was
done for the relationship between socio-political interventions and growth in pineapple
trade in Uganda.
The major findings indicated that socio-political intervention was paramount in boosting
pineapple trade. Interventions of market construction, road networks, security and
reduction in taxes were statistically significant.
Luwero district had a comparative
advantage in pineapple trade because of fertile soils and her proximity to major market of
Southern Sudan.
In conclusion, the study noted that pineapple trade is very instrumental in improving
the incomes of farmers in Luwero district hence it is recommended that pineapple farmer
groups
be established to strengthen
their marketing opportunities and government
subsidies especially with the East African Community protocol in place.
INTRODUCTION
1.1 Introduction
Pineapple is one of the crops in the fruit range that is being grown in Uganda today. There are a
number of districts that have seriously engaged in pineapple that is Luwero district, Kayunga,
Masaka, Masaka and Kangulumira. The fruit has been grown for the last decade but at
subsistence level. Families engaged in the production of pineapple for consumption in their
homes and the surplus taken to the markets for sell. It is of recent that many farmers in the
different parts of the country have started engaging in commercial pineapple farming for trade.
With a high demand for pineapple worldwide, many people are engaged in pineapple farming for
export. For example in Luwero district so many farmers in different sub counties like Kikyusa,
Kamira, Zirobwe are engaged in large scale pineapple farming. They have been able to do this
due to high demand for pineapples in Kenya, Rwanda and southern Sudan amongst other
countries. Through pineapple production, many families have been able to acquire basic needs
and educated their children.
Luwero among other districts that engage in pineapple has been identified as one of the most
vibrant pineapple producers with a high potential to generate income, reduce poverty and
improve on the standards of living. It is against this that the study aims to establish the impact of
socio-political factors and pineapple farming on pineapple trade in Uganda with Luwero as a
case study.
1.2 Background to the study
Uganda has set ambitious goals for development embodied in its National development plan. By
setting up objectives, priorities and major policies for the National development plan. In 2006,
the first Development Strategy and Investment Plan (DSIP) were developed as a medium-term
plan of the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF). The DSIP was to
translate the national goals and priorities contained in the Plan for Modernisation of Agriculture
(PMA) into a plan for Public Sector activities in the agricultural sector. The DSIP was designed
to clarify the objectives and outputs for the sector and to bring out priority areas for spending
between 2005/06 and 2007/08. It expired in 2008 and a revised version by the ministry. This is
the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF)’s Development Strategy
and Investment Plan (DSIP) for the agriculture sector, covering the period 2010/11 to 2014/15
(MoFPED,2010).
The performance of the Ugandan economy depends mainly on the production of the primary
sector, where agricultural production plays a vital role. The Ugandan economy is based
predominantly on agriculture, as the sector contributes 20 % to GDP and accounts for 48 % of
the country’s export revenues (UBOS, 2008). Hence agriculture sector was identified among the
pillars of National Development Plan (2010) and the development strategy and investment plan’s
priority. The National Agricultural Policy provides guidance to all actors in the agricultural
sector to make investments that will increase agricultural incomes, reduce poverty, improved
household food and nutrition security, create employment and stimulate overall economic
growth. The range of investments cut across the entire commodity value chain, from production,
through processing to marketing, with the aim of easing constraints faced by the private sector.
Such investments to support the private sector aim to improve access to improved agricultural
technologies, improved farming practices, appropriate value addition technologies, improved
financial products, and linkage to markets by providing better infrastructure, especially in rural
areas. The objective of the agricultural sector was to ensure that the rural household incomes and
livelihoods are increased and also that household food and nutrition security is improved.
In this national development planning process, a development Strategy and investment plan was
defined and its mission being to transform subsistence farming to commercialized agriculture
sector. DSIP comprises four interrelated principal programs (and 22 sub programs), including
among others Production and Productivity, markets and value Addition, Enabling Environment
and Institutional Strengthening. Different sub programs and the different interventions were
defined.
A combination of high soil fertility and ample rainfall make Uganda extremely suitable for
horticultural crop production. Indeed, a wide range of horticultural crops are produced in nearly
all parts of the country throughout the year with practically no irrigation or fertilizer. These
include citrus, paw paws, mangoes, pineapples, tomatoes, okra, carrots, pepper, cabbages,
bananas, and a variety of other indigenous vegetables.
The horticultural industry more than ever before, provides one of the most promising areas for
increasing incomes in the rural areas, improving nutrition of the people, diversification of
exports, and provision of raw materials for agro-based industries and creation of employment
especially for the youth. Currently, there has been tremendous interest and increase in
horticultural crop production in Uganda. This is as a result of high export potential for many
horticultural products and awareness of Government of Uganda and private sector, that
horticulture is being considered as a key opportunity sector for supporting rural development,
poverty reduction and increasing the nation’s foreign exchange earnings. The sector is rapidly
growing and possesses great potential that needs to be fully exploited for increased output and
quality of horticultural produce. Indeed, Uganda is blessed with high potential necessary to
develop a vibrant horticulture sector: climatic conditions (temperature, rainfall and sunshine);
fertile soils as well as abundant and hardworking labor.
The theory of comparative advantage states that a party, firm or a nation has ability to produce a
particular good or service at a lower marginal and opportunity cost over another. Even if one
country is more efficient in the production of all goods than the other, both countries will still
gain by trading with each other, as long as they have different relative efficiencies For example,
if, using machinery, a worker in one country can produce both shoes and shirts at 6 per hour, and
a worker in a country with less machinery can produce either 2 shoes or 4 shirts in an hour, each
country can gain from trade because their internal trade-offs between shoes and shirts are
different. The less efficient country has a comparative advantage in shirts, so it finds it more
efficient to produce shirts and trade them to the more efficient country for shoes. Without trade,
its opportunity cost per shoe was 2 shirts; by trading, its cost per shoe can reduce to as low as 1
shirt depending on how much trade occurs. The more efficient country has a comparative
advantage in shoes, so it can gain in efficiency by moving some workers from shirt-production to
shoe-production and trading some shoes for shirts (Findlay, 1987).
1.3 Problem statement
Pineapple (Ananas comosus) counts among important horticultural crop in Uganda grown in
central, eastern and southern parts of the country. Pineapples are by far the most developed and
widely grown commodity in the fruit crop range and value chain in Uganda.
The pineapple crop has become the main income generating enterprise for many farmers in
Luwero district. The crop is highly adaptable and grown in many parts of Luwero which are
under forest/indigenous tree cover due to high organic matter content. Due to the existing soil
fertility, farmers produce pineapples organically. There is an existing access to markets both
locally, internationally and regional markets such as Southern Sudan (Juba) and East Africa
especially Kenya. Unfortunately, farmers have not organized themselves for effective marketing
and developing value chains yet pineapples have to face high perishability, volume and price
uncertainty, and seasonal variability of supply chain.
Therefore, the study will aim at finding out the impact of socio-political factors and pineapple
farming on pineapple trade in Uganda.
1.4 Purpose of study
The study aims at finding out the impact of socio-political factors on pineapple trade in Uganda.
1.4.1 Specific Objectives
i.
To determine the socio-political interventions
ii.
To determine the relationship between socio-political factors and pineapple trade
iii.
To find out challenges of pineapple trade
iv.
To find out the Solutions/recommendations to pineapple trade
1.5 Research hypothesis
Socio-political factors have a significant relationship with the growth and trade of pineapple
Uganda
RESEARCH METHODOLOGY
2.0 Introduction
This chapter highlights the overall methodology that this research adopted. In particular it
highlights the following; the research design, area of research, site selection, sampling procedure
used, methods of primary and secondary data collection and how the collected data was
analyzed.
2.1 Research design
The research involved both quantitative and qualitative approach using a case study strategy on
respondents. A case study is the collection and presentation of detailed information about a
particular participant or small group, frequently including the accounts of subjects themselves.
The qualitative approach was adopted because it was the best way to bring out respondents’
opinions and perceptions on the impacts of socio-political factors and pineapple farming on
pineapple trade in Uganda. Further, the approach was preferred because it was suitable for
answering “what, why and how” social as well as institutional phenomena occur.
The quantitative approach was adopted to measure the magnitude of the various constructs and
variables that were conceptualized in the study. Most importantly, quantitative studies would
lead to the impacts of socio-political factors and pineapple farming on pineapple trade in Uganda
through testing the hypotheses. Also, quantitative studies would lead to the understanding of the
strength of each construct in their contribution to the main independent variable and its
relationship with the dependent variable. A combination of both qualitative and quantitative
approaches thus served as a strong basis for drawing compelling conclusions and
recommendations during the study (Sekaran, 2000).
2.2 Area of study
The study was carried out among pineapple farmers and individuals in Luwero district in the
sub-counties of Kikyusa, Zirobwe, Kamira and Bamunanika. These are places where pineapple is
grown by almost all households in the area.
2.3 Study Population
Pineapple trading firms and farmers are so many in Uganda and the case study was selected
depending on the location and distance. This study focussed on respondents that were involved
in production and trading of pineapples in Uganda as well as neighbouring countries that include
Southern Sudan, Kenya and Tanzania. Farmers that had pineapple farms were interviewed from
their households.
2.4 Sampling Procedures
Sampling procedure that was used in undertaking a study on the impact of socio-political factors
on pineapple trade in Uganda is presented below.
2.4.1 Sample Size
A sample of 150 pineapple farmers and individuals involved in pineapple production and trading
were interviewed in the sub-counties of Kikyusa, Zirobwe, Kamira and Bamunanika of Luwero
district and their number was determined using the statistical inference formula;
n =
Z α2
pq
2
e
2
………………………………………............................... (1)
Where,
n
Is the total sample size that was selected
Z is the area under the normal curve corresponding to the desired confidence level
α
2 is the level of significance
p
is the expected frequency value or true proportion of factor in the population( p =0.5).
q =(1- p )
is the probability of failure( q =0.5).
e is the maximum difference between the sample mean and the population mean( e =0.08).
2.4.2 Sampling techniques
The study adopted purposive sampling technique where 150 respondents were selected for the
study. Purposive sampling is a technique used where the researcher chooses the sample based on
who they think would be appropriate for the study. The technique was very useful in reaching a
targeted sample quickly and where sampling for proportionality was not the main concern
(Babbie, E. (2001).
2.5 Data collection methods and Instruments
Data collection methods are an integral part of research design which involves selection of both
qualitative and quantitative data in form of primary and secondary data. Primary data was
collected by the researcher from pineapple farmers and traders while secondary information was
obtained through desk research and internet search. Study materials accessed included reading
books, reports, journals and articles. Generally, the researcher collected primary data using
quantitative methods and secondary data using qualitative methods (Forshaw, M., 2000).
2.5.1 Questionnaire
The questionnaire was used on the basis that the variables under study could not be observed for
instance the views, opinions, perceptions and feelings of the respondents. It was also used
because the information was collected from a large sample in a short period of time yet the
respondents could easily read and write (Sekaran, 2003). In this research, questionnaires with
both structured questions and closed ended questions were administered to a group of 150
pineapple farmers and traders.
2.5.2 Secondary Data
Secondary data was collected by reviewing existing published and unpublished information
relating to the impact of socio-political factors on pineapple
trade in Uganda.
Relevant
documents such as reports, government documents, newspapers, journals and magazines were
also reviewed and vital information recorded. This information supplemented the methods of
data collection in understanding the core areas and variables of the study.
2.6 Data Analysis
The field questionnaires were first cleaned to remove errors, and then entered into Statistical
Package for Social Scientists (SPSS) for analysis. Most errors were detected using descriptive
statistics, scatter plots and histograms. These errors were checked by revisiting the
questionnaires and coding missing data as “999”. The blank and not applicable data was coded
“0” and there was also rectifying of the typing errors.
SPSS programme version 17 was used for univariate and bivariate and analysis. This version is
an improved one unlike the lower versions. It is user-friendly and can accommodate a big
number of variables as well as simultaneous tabulation of variables.
2.6.1 Univariate analysis
This type of analysis involved the description of a single variable and its attributes. The basic
way univariate data was presented included creation of frequency distribution of the individual
cases. This was done in a frequency distribution tables, bar graphs and pie charts.
2.6.2 Bivariate analysis
Bivariate analysis was performed by running cross tabulations and Pearson chi square ( χ 2 ) to
test the hypothesis that stated that “Socio-political factors have a significant relationship with the
growth and trade of pineapple Uganda”. The Pearson Chi Square ( χ 2 ) test was derived as
follows.
2


(
)
O
−
E
2

.......................................................3.2
χ = ∑

E


With (n-1) degrees of freedom; O is the observed frequency and E is the expected frequency.
RESEARCH FINDINGS
3.0 Introduction
This section consists of the data presentation, analysis and the interpretation of all the findings in
line with study objectives. Primary data was collected among 150 persons who were randomly
selected. The findings are presented in line with the study objectives.
3.1 Demographic information
This subsection presents the demographic characteristics of the respondents who participated in
the study.
3.1.1 Distribution of the respondents according to Sex
The research presented below is about the gender of the persons who participated in the study.
Figure 2: Distribution of the respondents according to Sex
Findings about the sex of the respondents indicated that majority of the respondents were male
comprising of (78%) while the female respondents comprised of (22%). This was due to the fact
that men owned the pineapples gardens though their wives provided labour required in farming;
it is on record that most pineapple traders were males for instance those in export trade and
hawkers who sold pineapples by roadsides. Pineapple farming is more labour intensive and for
that matter men are in a better position to carry on with the activity.
3.1.2 Distribution of the respondents according to their Occupation
The findings of the study on the occupation of the persons who participated in the study are
presented in the table 2.
Table 2: Distribution of the respondents according to their Occupation
Occupation
Frequency
Percentage (%)
Pineapple farmer
57
38
NAADS extension workers
13
8.7
Trader
38
25.3
Pineapple hawker
23
15.3
Casual laborer
18
12
Others
1
0.7
Total
150
100
The study results indicated that the majority of the respondents (38%) were pineapple farmers
followed by pineapple traders (25.3%) while pineapple hawkers were 15.3%. Those in causal
labor were 12% and the least number of respondents (8.7%) were NAADS extension workers.
The majority of respondents were pineapple farmers because they have not acquired the
knowledge on how to go about trade in pineapples plus land is available for hiring at a cheap
price to engage in pineapple farming. Also still for most it is cheaper for them to engage in
farming since trading requires more capital like buying trucks that would be used to transport
their produce to the markets.
3.1.3 Distribution of the respondents according to their age
The results about the age distribution of the persons who participated in the study are presented
in the figure 3.
Figure 3: Distribution of the respondents according to their age
The majority of the respondents (39.3%) were aged between 31-40 years. These were closely
followed (36.7%) by those in the 20-30 years age bracket, those above 40 years age bracket were
17.3% while the least number of respondents (6.7%) were aged below 20 years. The 39.3% were
more energetic and had been engaged in pineapple trade for some time. These since their 20’s
had tried different business that failed and resorted to pineapple trade after identifying the
benefits accruing to pineapple farming and trade some dropped out of school and resorted to
helping their parents in the farming and trade of pineapple which they eventually took up and
started managing their own pineapple gardens. This also meant that majority people who were in
the active age were engage in pineapple farming and pineapple trade, results showed that the
number was small among those in below 20 yrs and those above 40 year because people in the
two mentioned age categories were either still in school, had just dropped up of school and were
engaged in pineapple hawking while those above forty were not energetic enough to engage in
pineapple farming and trade since it is labour intensive.
3.1.4 Distribution of the respondents according to their marital status
The research presented below indicates the marital status of the persons who participated in the
study as shown in the table 3.
Table 3: Distribution of the respondents according to their marital status
Marital status
Frequency
Percentage (%)
Married
91
60.7
Single
44
29.3
Divorce/separated
2
1.3
Widowed
13
8.7
Total
150
100
Majority of the respondents (60.7%) were married, followed by (29.3%) who were single and
8.7% were widowed. Only 1.3% had separated or divorced their partners. This implies those in
pineapple industry had established household whose members provided farm labour and labour
required for pineapple processing and trade. For instance a family which is composed of the
father, mother and children ensured that there is enough labour to carry out pineapple farming
and trade all the time. The mothers and children provided labour during clearing of the land for
planting and post harvesting where they needed to sort the good pineapple from the bad one.
3.1.5 Distribution of the respondents according to their education
The research presented below is about the education level attained by the persons who
participated in the study as shown in the figure 4.
Figure 4: Distribution of the respondents according to their education level.
The majority of the respondents (36%) had completed primary education, followed by those with
secondary education (31.3%). Those with tertiary or university education were (20%) and results
further indicate that illiteracy levels were still high and respondents since those with no
education were (12.7%). This means that education system in Luwero is still low since close to
half of the respondents did not reach secondary level and those who reported to be having
tertiary education had attained qualifications like primary and secondary. Education systems in
Luwero was found to very low since 48.7% did not reach secondary education, to some extent
such a population resorts to agriculture since they don’t have any qualifications to seek for
formal jobs. There is plenty of land in Luwero that could be put into use for agriculture
especially pineapple. Most pineapple farmers and traders did not go past the primary level
education due to failure to have the finances to see them through secondary and university. So
they follow their father’s trends and resort to pineapple farming or trade from which they can
earn a living and later use the earnings to finish another stage of education.
3.1.6 Time period engaged in pineapple production
The respondents were asked about period they have spent in the pineapple industry, the results
are presented in the table 4.
Table 4:Time period engaged in pineapple production or pineapple trade.
Time period
Frequency
Percentage (%)
<1 Year>
15
10
1-2 Years
35
23.3
3-5 Years
58
38.7
Above 5 Years
42
28
Total
150
100
The majority of the respondents (38.7%) had been growing pineapples for 3-5 years and 28% for
5 years and above while (23.3%) had spent only 1-2 years and minority of the respondents (10%)
had been growing pineapples for less than a year.
These findings indicated that people had spent more years in the pineapple farming industry
something that helped them go into extensive pineapple farming. While in the field, it was
observed that some people owned very big pineapple farms like a farmer owning 20 acres of
pineapple. Most farmers who have dropped out of schools or could not find jobs given today’s
unemployment rates realized the good in self employment and benefits that accrued to pineapple
farming and trade. That is why according to the research, majority of the farmers and traders
have done it for 3 to 5 years.
3.2 Social Political Intervention in Pineapple Trade
Social political intervention in pineapple trade in Uganda and Luwero in particular is presented
below.
3.2.1 Government support for pineapple farming in Luwero
The research presented in the figure 5 shows to what extent government has supported pineapple
growing in Luwero.
Figure 5: Government support for pineapple farming in Luwero district
The findings results indicated that a vast majority of the respondents (86%) claimed that there
was no support from government for pineapple growing. Only 14% said government was
supporting pineapple growing. The findings indicate that very few pineapple growers had got
support from the government that is in form of suckers and pesticides. However this was very
ineffective as it reached just a few people. Most farmers buy suckers and pesticides for
themselves. Majority said that the government is not giving the help that these farmers really
need like sensitization on markets for their produce, quality standards for their produce at the
international level.
3.2.2 Government interventions put in place to promote pineapple growing and trade
The research presented below in table 5 shows the government interventions put in place to
promote pineapple growing and trade in Luwero.
Table 5: Government interventions put in place to promote pineapple growing and trade
Government interventions
Frequency
Percentage (%)
Free pineapple suckers
8
33.3
Fertilizers
4
16.7
Provided a tractor
2
8.3
Group loans
8
33.3
Provided a drier
1
4.2
Free extension services
1
4.2
Total
24
100
The findings results indicated that group loans and free pineapple suckers hand outs were the
main interventions towards supporting pineapple growers and traders, each at 33.3%, those who
were provided with fertilizers were (16.7%) while those who received tractors, driers and free
extension services were 8.3%, 4.2% and 4.2% respectively. The statistics shown in the above
table indicates that the pertinent needs of the pineapple farmers were provided by the
government though on the other hand it catered for a very small proportion of the pineapple
farmers. A number of village SACCOs were opened under the government scheme to see to it
that finance was readily available these farmers. A number of village banks are operation from
which farmers acquire group loans to facilitate their farming and trade. However the challenge is
that in most case the money in these village SACCOs in not enough. Under the district and
NAADS programs pineapple farmers are provided with pineapple suckers and tractors to help in
clearing their land but still all this comes at a fee.
3.2.3 Ways suggested on how the government can promote pineapple farming
The research presented below in the figure 6 shows ways suggested on how the government can
promote pineapple farming in Luwero.
Figure 6: Ways suggested on how the government can promote pineapple farming
Majority of the respondents (40%) advocated for market construction as one way government
can promote pineapple farming, followed by (30%) who wanted government to construct roads
for them.
Removal of all taxes and keep of peace and security were other interventions
suggested by respondents comprising of 16% and 9.3% respectively.
This meant that the most pressing needs were; lack of market, poor roads because routes in the
villages were impassable, as well as heavy tariffs imposed on those involved in local and
international trade. Most pineapple traders advocated for the government to find more market for
their produce as a lot of their pineapple would rot or sell them cheaply due to inadequate market
for their produce. The roads in the most pineapple producing sub-counties like Kikyusa are
impassable during the rainy seasons. So farmers during these seasons are not able to transport
their produce to the markets they instead resort to selling their pineapple cheaply to Kenyan,
Tanzanians and Sudanese traders with heavy trucks that can stand the heavy rains as middle men
who later sell expensively in their markets.
3.2.4 Ways through which the government should channel support to pineapple farmers
The research findings below in figure 7 presented ways through which the government should
channel support to farmers.
Figure 7: Ways through which the government should channel support to farmers
The findings indicate that when farmers are asked about ways through which the government
should channel support to farmers, a slight majority (51.3%) of the farmers preferred direct funds
handed to them from government. 22% preferred government channeling the support through
NAADS and 16.7% through district council. This implied that farmers did not trust institutions in
place other than getting direct support from the government. This also showed the corruption
levels at the district and other government institutions that were put in place to extend credit to
farmers. The percentage for NAADS is low due to their bad reputation in mishandling
government funds meant for farmers which later compelled government to intervene and review
the whole program.
3.3 Level of relationship between socio-political factors and pineapple trade
The research presented below in table 6 was what level respondents thought socio-political
factors related with pineapple trade.
Table 6: Level of relationship between socio-political factors and pineapple trade
Level of relationship between socio-political
factors and pineapple trade
Frequency
Percentage (%)
Low political support
15
13.9
Construction of new markets
24
22.2
Low interest loans
23
21.3
Remove middle men
13
12
Construction of roads
14
13
Reduce tax on pineapple exports
7
6.5
Improved relations with countries
12
11.1
Total
108
100
Majority (22.2%) of the respondents thought social political factors were important in pineapple
trade in terms of construction of new markets and
reducing interests on loans(21.3%).
construction of roads(13%), removing of middlemen(12%) and reducing taxes on pineapple
exports(6.5%) were other linkages mentioned by the respondents.
The need for the creation of the new markets still prevailed when respondents were asked about
how they would want government to intervene to solve their problems, farmers during the peak
season they have a lot of pineapple produce which needs market and of which some ends up
rotting yet a lot is invested in this activity, also one pertinent issue raised was advocating for
reduced interest loans or availing agriculture loans. This was because farmers lacked finances to
improve on their gardens through enlarging and increase on their production.
3.4 Challenges in pineapple trade
The results on the main challenges faced in pineapple trade are presented in the table 7.
Table 7: Main challenges faced in pineapple trade
Main challenges in pineapple trade
Frequency
Percentage (%)
High export duties
46
30.7
Political conflicts in other countries
11
7.3
Unstable prices
23
15.3
Language barrier
23
15.3
Lacking a common currency
12
8
Crop perishability
24
16
Delays at border clearance
7
4.7
Others
4
2.7
Total
150
100
The survey findings indicated that in pineapple trade, high export duties were mentioned as the
major (30.7%) challenge faced. Other challenges mentioned included crop perishability (16%),
unstable prices (15.3), and Language barriers (15.3%). Lacking a common currency (8%) and
Delays at border clearance (4.7%) were also mentioned.
Traders expressed concerns about relating to low government intervention to address their tariffs
and non tariffs barriers like high export duties, wasting a lot of time on weigh bridges and so
many road blocks by traffic police, crop perishability since most traders transporting fresh
pineapples did not have coolers, lack of common currency as well as language barriers all these
challenges were a hindrance to business prosperity.
3.5 Solutions to challenges faced in pineapple trade
Respondents were asked to suggest solutions on how challenges can be overcome in the table 8.
Table 8: Solutions to challenges faced in pineapple trade
Solutions
Frequency
Percentage (%)
Conflict resolution
9
6
Bilateral talks between nations
13
8.7
Improve railway transport
26
17.3
Use a common currency
25
16.7
Reduce taxes on exports
35
23.3
Have a common language
11
7.3
Improve clearance systems
31
20.7
Total
150
100
Findings indicated that respondents suggested a number of solutions to the prevailing challenges
traders were facing while carrying out pineapple trade and these solutions included the
following; reducing taxes on exports (23.3%), improving clearance systems (20.7%), improving
railway transport (17.3%) and use of common currency (16.7%) were the key solutions
suggested by the respondents. Other solutions mentioned included bilateral talks between nations
(8.7%), having a common language (7.3%) and Conflict resolution (6%). Pineapple traders face
high taxes on exporting of their produce in that with some I interviewed said they had to lie
about the numbers of kilograms carried since a lot of tax was charged depending on the
kilograms. Clearance at the boarders takes a lot of time and given that pineapples are perishable
spending a long time at the border can lead to some of their produce getting spoilt thus fetching
low prices for their produce. Clearing at the border can even go up to a week before some one’s
produce is cleared it is against this background that traders suggested improvement on the
clearance system at the borders as away to improve on pineapple trade. Traders also suggested
improvement on the railway as a fast a way to transport their produce given the fact that
pineapples are perishable.
3.5.1 Areas in need of improvement in local market for pineapple within district
Respondents were asked to state areas that the needed improvement in local market for pineapple
within Luwero district results in the table 9.
Table 9: Areas in need of improvement in local market for pineapple within district
Areas in need of improvement
Frequency
Percentage (%)
Opening new markets
54
41.2
Rehabilitation of roads
22
16.8
Support traders financially
23
17.6
Value addition or processed pine
19
14.5
Allow pineapple hawkers along roads
13
9.9
Total
131
100
The survey results indicated that majority (41.2%) of respondents suggested opening of new
markets as the main area in need of improvement. Other notable areas included Support of
traders financially (17.6%), Rehabilitation of roads (16.8%), value addition or processed
pineapple (14.5%) and allowing of pineapple hawkers along roads (9.9%). If these suggestions
were put in place pineapple farming and trade would be improved, for instance improving access
roads in village transportation of pineapples would be eased.
3.6 Relationship between socio-political factors and pineapple trade
The hypothesis on the relationship between socio-political factors and pineapple trade were
tested using Pearson Chi-Square test as presented in table 10.
Table 10: Relationship between socio-political factors and pineapple trade
Factors for pineapple
trade
Construction
Social Political Intervention
Construction
Keep
peace Construct
Reduction
more markets
and security
roads
in taxes
Total
21(52.5)
1(2.5)
15(37.5)
3(7.5)
40
12(52.2)
4(17.4)
4(17.4)
3(13.0)
23
10(38.5)
1(3.8)
12(46.2)
3(11.5)
26
8(38.1)
4(19.0)
6(28.6)
3(14.3)
21
7(25.9)
3(11.1)
9(33.3)
8(29.6)
27
2(15.4)
1(7.7)
3(23.1)
7(53.8)
13
60(40.0)
14(9.3)
49(32.7)
27(18.0)
150
of
Kampala-Juba road
Commercial pineapple
farming
Easy
trans-border
movements
Effecient clearance at
Malaba border
Reduced
taxes
pineapple export
on
Others
Total
χ 2 -Value=31.139
df=15
Pr=0.008**
Results indicate that there was a significant relationship between socio-political intervention and
pineapple (p=0.008) since the level of significance was less than 0.05 at 95% confidence
interval. The relationship between socio-political intervention and pineapple trade indicate there
is need for government to do more in supporting pineapple trade in Luwero district. Further still
this will help government to curb down the unemployment problem in Luwero district since
many youths are involved in this activity. Indeed socio-political interventions in Luwero district
have been in construction of more markets, keeping peace and security, construction of roads as
well as reduction in taxes have favoured pineapple trade in Uganda and Luwero district in
particular.
3.7 Applicability of the theory of comparative in Uganda’s pineapple trade
The theory of comparative advantage states that given two countries producing similar products,
a country has comparative advantage if it produces that commodity at a least opportunity cost
than the other country.
The study also assessed the comparative advantage of Luweero district in Uganda’s pineapple
trade as presented in table 4.11.
Table 4.11: Comparative advantage of Luwero district in Uganda’s pineapple trade
Comparative advantage of Luwero district
in pineapple trade
Frequency
Percentage (%)
Weak
20
13.3
Strong
41
27.3
Very strong
89
59.3
Total
150
100
Findings in table 4.11 show that Luwero district has a very strong comparative advantage
(59.3%) in pineapple trade than other areas in Uganda. The results show that very few
respondents indicated that Luweero district has a weak comparative advantage in pineapple trade
(13.3%). This means that government has to come up with more and improved policies that will
guide the production and trade of pineapple in the district.
DISCUSSIONS, CONCLUSION AND RECOMMENDATIONS
4.1 Discussions
The respondents seemed to suggest neglect by government towards pineapple growing and trade.
86% percentage said they had not realized any benefits accruing from the government
intervention. Lack of markets, road infrastructure, high taxes and duties were the major
complaints. All these threw more light on many government failed interventions in agriculture
sector in form of programs, like NAADS, PMA, PEAP and others. This was an expected result
as it concurs with very many researches done in the past too suggest that government’s support
to the agriculture sector is inadequate. For example, Ggoobi (2011) in his book “paying the price
for neglecting agriculture”, he asserts that a failed agriculture sectors is attributed to governments
poorly executed programs. He for, example points out that 77% of Ugandans are employed in
agriculture but only produce 15% of total national out and government allocates only 5% of its
national budget unlike the over 20% for, example for defense whose output is much lower than
that of agriculture. The cries by farmers in this study area on poor government interventions are
no different from those of other parts of the country or those dealing in other agricultural
products for example; tea farmers in Bushenyi District have asked government to help them
increase the production capacity, especially of crops. Igara Growers’ Tea Factory farmers in
Kyamuhunga Sub-county on many occasions have accused the government of neglecting the
sector which is the backbone of the country (Bategeka, 2013).
The respondents agreed there was a relationship between socio-political factors and pineapple
trade. Of course there is a relationship between the two as it is for every country in the world. A
stable social and political environment enables a conducive environment for any activity in a
given country to thrive. Good government policies like infrastructure development, taxation, and
fiscal policies all are important for any sector in a given country and pine industry could not have
been an exception. For example, Thailand is one of the world’s leading producers and an
exporter of processed food products including canned pineapple, and is home to more than 7,000
pineapple processors. This success is attributed to socio-political factors like government’s
policy of export oriented pineapple production and helping the small and medium producers
release this by supporting them through agricultural inputs like agro-chemicals (FAO, 2001).
Like in many other parts of the country and the world, pineapple trade in Luwero had numerous
challenges. These challenges were not specific to Luwero but were challenges that are similar to
other places and for other pineapple traders. These main challenges included high export duties,
lack of adequate local markets, poor road infrastructure, poor clearing systems at borders and
many others. These were mainly related to government’s failure to have these structures and
programs in place. This resonates with research in others places of the country and abroad. For
example, Fawole (2008), in Nigeria, failure by government to expand pineapple markets, build
roads, enable farmers’ access information and use it, contributed to 80% of the total challenges
faced by pineapple traders. Thus the challenges faced by Luwero pineapple traders are reflection
of challenges faced in other places of the country and the world.
These solutions suggested by respondent suggested farther government interventions in form of
more roads constructed, reducing taxes, building more markets, provision of financial support in
form of loans. This clearly showed that farmers believed the government had a big role is the
pineapple trade was to thrive in the area. This kind of result resonates with thoughts of other
farmers in the country. Farmers always count on the government for larger percentage of their
trade activities (Bategeka, 2013).
4.2 Conclusion
Much of the challenges, solutions to these challenges, leaned towards government interventions.
Farmers felt government had a big role to play. This is in line with farmers else in country and
other researches in the past have indicated. It’s thus important that government takes a good look
at its current interventions it has in place because majority of the farmers in country seem not
have realized any significant benefits from these interventions. These interventions specifically
relate to government financing, taxation, infrastructure development, price stability and
accessibility and use of information for pineapple farming and trade.
4.3 Recommendations
Improve the infrastructure especially constructing more roads and markets and improving on the
conditions of existing ones. There is a need for the local government to repair roads so that to facilitate
easy transportation of pineapples Farmers have stressed the need to improve on the roads and this
has also been cited as one of the challenges to pineapple trade. So government through the
different agencies needs work on the roads since it is vital for farmers during trade. This will
improve on the production of pineapple since farmers will have good roads to transport their
produce to the markers.
Promotion of rural micro credit banks to facilitate farmers in accessing small loans for pineapple
production. This will encourage farmers to improve on their farming practices since they will be
able to access finances to acquire better farming inputs. Also this can encourage farmers to shift
their production from subsistence to commercial farming with better technologies. Further still
this will help improve on the quality of produce for export.
Improve extension services so that farmers and traders’ access to and use of farming and trading
information is more. This will guide the farmers and traders on the required standards on the
local, regional and international level.
Farmers should form farmer groups or cooperatives in order to pool their produce and have
organized marketing system that enables them negotiating sales contracts and also seeking
market opportunities that offer higher level of income. Also to have plan of production mainly
based on the market requirements and grow the variety of pineapple that has high market
demand.
Revise taxation policy for the agriculture sector so that taxes are reduced on pineapple trading
since this business is mostly done by the local people so that it can boost their household
incomes.
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