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 socio-

political 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;

………………………………………............................... (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

2α

is the level of significance

2

2

2

e

pqZ

n α =

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 (2χ ) 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 (2χ ) test was derived as

follows.

( )2.3.......................................................

22 ∑

−=E

EOχ

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

Social Political Intervention

Construction

more markets

Keep peace

and security

Construct

roads

Reduction

in taxes Total

Construction of

Kampala-Juba road 21(52.5) 1(2.5) 15(37.5) 3(7.5) 40

Commercial pineapple

farming 12(52.2) 4(17.4) 4(17.4) 3(13.0) 23

Easy trans-border

movements 10(38.5) 1(3.8) 12(46.2) 3(11.5) 26

Effecient clearance at

Malaba border 8(38.1) 4(19.0) 6(28.6) 3(14.3) 21

Reduced taxes on

pineapple export 7(25.9) 3(11.1) 9(33.3) 8(29.6) 27

Others

2(15.4) 1(7.7) 3(23.1) 7(53.8) 13

Total

60(40.0) 14(9.3) 49(32.7) 27(18.0) 150

2χ -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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