Influence of credit on profitability of onion production in Bulambuli district, a case study of Buginyanya sub-county.

Abstract

The study was on influence of credit on profitability of onion production in Bulambuli district. The study objectives were; i) To find out role of credit access in enhancing profitability of onion farmers in Bulambuli district, ii) To establish the role of working capital on the profitability on onion farmers in Bulambuli district and iii) To find out how cash flow promotes the profitability of onion farmers in Bulambuli district. The study a cross-sectional survey research design was adopted and also applied both qualitative and quantitative methods/approaches. Qualitative methods such as descriptive, abstracts were used to describe the observed phenomenon, Qualitative data was processed in a descriptive and narrative manner. Quantitative approach included tallying of data, generation of frequency tables, calculation of percentages for analysis and presentation, analysis and discussion of the study findings. The sample size was 60 of the respondents. Purposive sampling was used to extension workers and simple random sampling was applied to onion farmers. Data analysis involved frequencies, percentages and Inferential statistics such as correlations, and coefficient of determinations, Findings revealed a significant and positive relationship (0.831*) between credit access and profitability, weak relationship between cash flow and profitability (0.110*) and negative relationship between working capital and profitability. The study concludes that credit access has a bearing on the profitability if onion farmers that the working capital The study therefore recommends that emphasis should be placed upon credit access for purposes of enhancing profitability among onion farmers in Bulambuli district.