Agricultural Value Chain Factors Determining Coffee Prices at the Farm Level in East Africa. A Comparative Study Between Kenya and Uganda

Abstract

This study sought to make a comparative analysis on the Agricultural value chain factors determining coffee prices at the farm level in East Africa between Kenya and Uganda. The study set out the following objectives. To establish the local agricultural value chain factors affecting coffee prices at the farm level in Kenya and Uganda. To establish the international value chain factors affecting coffee prices at the far level in Kenya and Uganda. The study sought to subject the following hypothesis into test; there are local and international value chain factors affecting coffee prices at the farm level in Kenya and in Uganda. The existing policies in Kenya and in Uganda are not sufficient in protecting the prices of coffee at the farm level. The study employed the descriptive survey design as its research desisgn.it relied on both the primary and secondary sources of data collection in which the questionnaire and the interview guide were the main primary methods of collecting data. The sample size of this study was 36 respondents and it was well representative of the target population as explained in chapter three. The study adopted the cluster sampling technique in arriving at the sample size. The study relied on tables, pie charts and bar graphs in the presentation and analysis of the collected data from the field. Among the ethical considerations of this stsudy is that it relied so much on the objectivity of the researcher since he also comes from the coffee growing counties, confidentiality of the respondents as well as explaining everything to the respondents and getting their consent before interviewing them. The stsudy found out that land tenure system, high costs of farm inputs, high levels of illiteracy among the farmers, government policy towards coffee framing and the absence of storage facilities continue to be the main value chain factors affecting coffee prices at the farm level. The study identified the unfair exchange rates system, the unfair coffee trade regime and the issue of import quotas to be the main international value chain factors that affected coffee prices at the farm level. The study recommended that the government becomes more proactive in strengthening the coffee cooperatives societies so that they can better coffee framing, changing their state of land tenure system through land reforms, massive education and sensitization of coffee farmers on the best coffee framing methods, reorganizing the meteorological departments, lowering the cost of farm inputs by abolishing all the unnecessary taxation among others.