Determinants of non-technological upgrading strategies for rice market improvements in Uganda

Abstract

A strategic shift incorporating global business perspective sets a new standpoint on how firms can gain entry into or upgrade networks that form value chains. Contemporary interventions and initiatives in value chain development are being geared towards non-technological innovations and upgrading. This study was conducted to ascertain the determinants of non-technological upgrading strategies for rice market improvements. A cross sectional survey was carried out in northern Uganda on a sample of 442 rice farmers selected using multi-stage and random sampling techniques. Data were collected on rice actors using structured questionnaires while a binary logistic regression model was employed for analysis. The results indicated that factors such as location, household size, farm income, access to hired labor and market information, marketing on formal and informal contracts, individual marketing and marketing as a farmer group positively influenced horizontal, vertical and inter-chain upgrading strategies. However, experience and marital status of the actors affected all the three forms of upgrading negatively. Non-technological upgrading strategies were therefore, found to be key for competitiveness and emergence of other upgrading strategies (functional, product and process) in the rice value chain. Our results further, pointed to horizontal upgrading as a precursor for other strategies to emerge. Consequently, development agents working with geographically isolated smallholder farmers should start by promoting horizontal upgrading through training of farmers, organizing them into groups and later exploring other forms of upgrading strategies with the determinants under consideration.

Keywords

• Non-technological upgrading
• Horizontal
• Vertical
• Inter-chain upgrading
• Value chains
• Marketing models