The effects of different marketing channels on incomes of smallholder coffee farmers in Busulani sub-county Sironko district.

Abstract

The study aimed at investigating the effects of different marketing channel choices on incomes of small holder coffee farmers of Sironko District, Busulani sub county. A cross-sectional survey involving 68 respondents was used to collect data. The study adopted descriptive methodology to gather both qualitative and quantitative data whereby semi-structured questionnaires were used and interview guides. The study was guided by three objectives including; identifying the different coffee marketing channels, to quantify costs and benefits involved in the different coffee marketing channels and to identify the challenges faced in the different marketing channels. The study sample was selected using random sampling technique. The study findings revealed that most of the farmers were of age 36-45 with a low formal educational background cultivating on an average of between 1-3acres of land. The respondents’ average years of experience of in coffee farming was 8-15 years implying that coffee farming was their major source of livelihood alongside livestock production. Three major marketing channels were identified in the study, which include; farmer to processor, farmer to cooperative and farmer to village buyers (middlemen). In terms of price offered per kilogram of coffee, farmer to processor channel offered the highest price of 13,000 Uganda shillings/kilogram of dry coffee and 2,500 Uganda shillings per kilogram of wet coffee beans. The study also revealed that the highest costs are incurred while using the farmer to processor marketing channel however, the analysis of variance for costs showed that there is no statistically significant variation on the costs incurred across the marketing channels. 43.3% of the coffee farmers opted to use the farmer-processor marketing channel to supply their coffee. The major challenges of the farmers identified were; late payment and low prices from middlemen.