Abstract:
The study was about the Effects of liberalization on Arabica coffee marketing in Budadiri toum council, Sironko District, Study objectives included to find out the effects of liberalization on coffee prices in Budadiri town council- and to establish the benefits and challenges faced by coffee farmers due to liberalization of the coffee market. The study employed a cross section design where both qualitative and quantitative approaches were used in data collection process. The study sampled 61 respondents who were Arabica. coffee: farmers in Budadiri town council. Study findings showed that majority of the fanners sold coffee to a cooperative where they received uniform and high prices but when the coffee market was liberalized, most farmers resorted to sell their coffee to international coffee trading companies for several reasons though these trading companies pay low and non-uniform prices as compared to the coffee cooperative. Basing on the study finding some recommendations were made Such as; that farmers Should put much emphasis on rebuilding back the coffee cooperative such that they can receive high and uniform prices like it before liberalization„ The cooperative should also its capital/financial base to be able to pay farmers immediately they deliver their Coffee since most of these small scale farmers want money to meet daily requirements and The government through several arms -most likely through the ministry of finance should come with maximum and minimum price legislation tool so as to avoid the exaggerations of fall in prices caused by the private trading companies.
