IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/335089.html
   My bibliography  Save this article

Strategic business decisions of retailers in the edible insect value chain in Uganda

Author

Listed:
  • Donkor, Emmanuel
  • Mbeche, Robert
  • Mithöfer, Dagmar

Abstract

Edible insect value chains are expected to contribute to sustainable food and nutrition security, poverty alleviation and job creation in Sub-Saharan Africa. However, there is little empirical evidence on the strategic business decisions of midstream-actors in edible insect value chain. This study fills this knowledge gap by analysing the factors that influence retailers’ strategic business decisions, that is, choices of supplier, product to purchase, procurement strategy and the quantity of product purchased in the grasshopper value chain in central Uganda. Using a primary dataset collected from 500 randomly selected retailers from two districts in central Uganda, Cragg’s tobit alternative and binary probit models are applied in the empirical analysis. Retailers mainly procure grasshopper products from wholesalers and collectors. The study shows that demographic, economic, transactional and processing-related factors significantly influence retailers’ strategic business decisions in the grasshopper markets. Developing retailers’ human capital in business management practices and collective action is important to enable them to make informed strategic business decisions in the agrifood chain.

Suggested Citation

  • Donkor, Emmanuel & Mbeche, Robert & Mithöfer, Dagmar, 2023. "Strategic business decisions of retailers in the edible insect value chain in Uganda," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(2), January.
    • Handle: RePEc:ags:ifaamr:335089
    DOI: 10.22004/ag.econ.335089
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/335089/files/ifamr2021.0125.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.335089?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kamrath, Carolin & Rajendran, Srinivasulu & Nenguwo, Ngoni & Afari-Sefa, Victor & Broring, Stefanie, 2018. "Adoption behavior of market traders: an analysis based on Technology Acceptance Model and Theory of Planned Behavior," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    2. Martin Brown & Armin Falk & Ernst Fehr, 2004. "Relational Contracts and the Nature of Market Interactions," Econometrica, Econometric Society, vol. 72(3), pages 747-780, May.
    3. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    4. Yami, Mesay & Meyer, Ferdi & Hassan, Rashid, 2020. "Should traders be blamed for soaring food prices in Ethiopia? Evidence from wholesale maize markets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(1).
    5. Dillon, Brian & Barrett, Christopher B., 2017. "Agricultural factor markets in Sub-Saharan Africa: An updated view with formal tests for market failure," Food Policy, Elsevier, vol. 67(C), pages 64-77.
    6. Samuel Dawa & Rebecca Namatovu, 2015. "Social Networks And Growth Of Female-Owned Ventures: A Sub-Saharan Africa Perspective," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-19.
    7. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    8. Mather, David & Boughton, Duncan & Jayne, T.S., 2013. "Explaining smallholder maize marketing in southern and eastern Africa: The roles of market access, technology and household resource endowments," Food Policy, Elsevier, vol. 43(C), pages 248-266.
    9. Wanglin Ma & Awudu Abdulai, 2016. "Linking apple farmers to markets," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 8(1), pages 2-21, February.
    10. Montalbano, P. & Pietrelli, R. & Salvatici, L., 2018. "Participation in the market chain and food security: The case of the Ugandan maize farmers," Food Policy, Elsevier, vol. 76(C), pages 81-98.
    11. Reardon, Thomas & Echeverria, Ruben & Berdegué, Julio & Minten, Bart & Liverpool-Tasie, Saweda & Tschirley, David & Zilberman, David, 2019. "Rapid transformation of food systems in developing regions: Highlighting the role of agricultural research & innovations," Agricultural Systems, Elsevier, vol. 172(C), pages 47-59.
    12. Jones, Kraig M. & Raper, Kellie Curry & Whipple, Judith M. & Mollenkopf, Diane A. & Peterson, H. Christopher, 2007. "Commodity-Procurement Strategies of Food Companies: A Case Study," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(3), pages 1-17.
    13. Jeffrey D. Michler & Steven Y. Wu, 2020. "Relational Contracts in Agriculture: Theory and Evidence," Annual Review of Resource Economics, Annual Reviews, vol. 12(1), pages 111-127, October.
    14. Awudu Abdulai & Eliud A. Birachi, 2009. "Choice of Coordination Mechanism in the Kenyan Fresh Milk Supply Chain," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(1), pages 103-121.
    15. Getaw Tadesse & Gerald Shively, 2013. "Repeated Transaction in Rural Grain Markets of Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 49(9), pages 1172-1187, September.
    16. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    17. Insch, Andrea & Prentice, Rebecca S. & Knight, John G., 2011. "Retail buyers’ decision-making and buy national campaigns," Australasian marketing journal, Elsevier, vol. 19(4), pages 257-266.
    18. George Baker & Robert Gibbons & Kevin J. Murphy, 2002. "Relational Contracts and the Theory of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 39-84.
    19. Thomas Reardon, 2015. "The hidden middle: the quiet revolution in the midstream of agrifood value chains in developing countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 31(1), pages 45-63.
    20. Kaganzi, Elly & Ferris, Shaun & Barham, James & Abenakyo, Annet & Sanginga, Pascal & Njuki, Jemimah, 2009. "Sustaining linkages to high value markets through collective action in Uganda," Food Policy, Elsevier, vol. 34(1), pages 23-30, February.
    21. Kihiu, Evelyne Nyathira & Amuakwa-Mensah, Franklin, 2021. "Agricultural market access and dietary diversity in Kenya: Gender considerations towards improved household nutritional outcomes," Food Policy, Elsevier, vol. 100(C).
    22. Douglas Horton & Beatrice Akello & Lucy Aliguma & Thomas Bernet & Andre Devaux & Berga Lemaga & Damalie Magala & Sarah Mayanja & Immaculate Sekitto & Graham Thiele & Claudio Velasco, 2010. "Developing capacity for agricultural market chain innovation: Experience with the 'PMCA' in Uganda," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(3), pages 367-389.
    23. Kelly, Valerie & Adesina, Akinwumi A. & Gordon, Ann, 2003. "Expanding access to agricultural inputs in Africa: a review of recent market development experience," Food Policy, Elsevier, vol. 28(4), pages 379-404, August.
    24. Jeffrey M. Wooldridge, 2015. "Control Function Methods in Applied Econometrics," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 420-445.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Donkor, Emmanuel & Mbeche, Robert & Mithöfer, Dagmar, 2021. "Purchasing Behaviour and Relational Contract Decisions of Retailers in Grasshopper Value Chains in Uganda," 2021 Conference, August 17-31, 2021, Virtual 315105, International Association of Agricultural Economists.
    2. Donkor, Emmanuel & Mbeche, Robert & Mithofer, Dagmar, 2021. "Relational contract decision of retailers in the grasshopper value chain in Uganda," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317078, German Association of Agricultural Economists (GEWISOLA).
    3. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    4. Oliver Schulte & Trung Thanh Nguyen & Ulrike Grote, 2022. "The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2878-2898, December.
    5. Simphiwe Innocentia Hlatshwayo & Mjabuliseni Ngidi & Temitope Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow, 2021. "A Typology of the Level of Market Participation among Smallholder Farmers in South Africa: Limpopo and Mpumalanga Provinces," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
    6. Gelaw, Fekadu & Speelman, Stijn & Van Huylenbroeck, Guido, 2016. "Farmers’ marketing preferences in local coffee markets: Evidence from a choice experiment in Ethiopia," Food Policy, Elsevier, vol. 61(C), pages 92-102.
    7. Bagchi, Niladri Sekhar & Mishra, Pulak & Behera, Bhagirath, 2021. "Value chain development for linking land-constrained farmers to markets: Experience from two selected villages of West Bengal, India," Land Use Policy, Elsevier, vol. 104(C).
    8. Fujimoto, Takefumi & Suzuki, Aya, 2021. "Do Fertilizer and Seed Subsidies Strengthen Farmers' Market Participation? the Impact of Tanzania NAIVS on Farmers' Purchase of Agricultural Inputs and Their Maize-Selling Activities," 2021 Conference, August 17-31, 2021, Virtual 315044, International Association of Agricultural Economists.
    9. Eunice Adu Donkor & Elena Garnevska & Muhammad Imran Siddique & Emmanuel Donkor, 2021. "Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    10. Ogutu, Sylvester Ochieng & Qaim, Matin, 2019. "Commercialization of the small farm sector and multidimensional poverty," World Development, Elsevier, vol. 114(C), pages 281-293.
    11. Aniseh S. Bro & Daniel C. Clay & David L. Ortega & Maria C. Lopez, 2019. "Determinants of adoption of sustainable production practices among smallholder coffee producers in Nicaragua," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(2), pages 895-915, April.
    12. Clifton Makate & Marshall Makate, 2022. "Do Rainfall Shocks Prompt Commercial Input Purchases Amongst Smallholder Farmers in Diverse Regions and Environments in Malawi?," Sustainability, MDPI, vol. 14(22), pages 1-31, November.
    13. Melkani, Aakanksha & Mason, Nicole & Mather, David & Chisanga, Brian & Jayne, Thom, 2021. "Smallholder Market Participation and Choice of Marketing Channel in the Presence of Liquidity Constraints: Evidence from Zambian Maize Markets," 2021 Conference, August 17-31, 2021, Virtual 315273, International Association of Agricultural Economists.
    14. Nazziwa-Nviiri, Lydia & Van Campenhout, Bjorn & Amwonya, David, 2017. "Stimulating agricultural technology adoption: Lessons from fertilizer use among Ugandan potato farmers," IFPRI discussion papers 1608, International Food Policy Research Institute (IFPRI).
    15. Sara D. Elder, 2019. "The impact of supermarket supply chain governance on smallholder farmer cooperatives: the case of Walmart in Nicaragua," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(2), pages 213-224, June.
    16. Raoul Herrmann & Ephraim Nkonya & Anja Faße, 2018. "Food value chain linkages and household food security in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 827-839, August.
    17. Rie Muraoka & Hsiaoping Chien & Minjuan Zhao, 2023. "Production and Market Participation of Buckwheat Farmers: Micro-Evidence from Shaanxi Province, China," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    18. Sonia Akter & Namrata Chindarkar & William Erskine & Luc Spyckerelle & Julie Imron & Lucia Viana Branco, 2021. "Increasing smallholder farmers’ market participation through technology adoption in rural Timor‐Leste," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 8(2), pages 280-298, May.
    19. Van Campenhout, Bjorn, 2015. "The dynamics of smallholder marketing behavior: Explorations using Ugandan and Mozambican panel data:," IFPRI discussion papers 1478, International Food Policy Research Institute (IFPRI).
    20. Mwema, C. & Crewett, W. & Lagat, J. & Bokelmann, W., 2018. "Social Networks and Extent of African Leafy Vegetables Commercialization among Kenyan Smallholders: A Double Hurdle Approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277049, International Association of Agricultural Economists.

    More about this item

    Keywords

    Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:335089. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.