Structure,. conduct and perfomance of the milk marketing system in Uganda: A case study of Kyadondo county, Kampala District

Abstract

Knowledge of the extent and nature of imperfections 1n a marketing system is essential for any rational economic policy designed for agricultural development. The present study attempts to analyze the structure, conduct and performance of the milk marketing system ln Ugands since the establishment of UDIC in 1967 to the beginning of 1979. In this study an attempt has been made to identify an optimal pricing system with the aid of theoretical analysis. The resultant model has been used to examine the: Ca) Current Government regulations and policies on milk marketing with regard to pricing and operational or technical inefficiencies. Cb) Degree of competitiveness of private trading or informal milk marketing system and to identify possible causes of inefficiencies, if any, in the system. The study also tests some of the widespread allegations that a private marketing system in a developing country has too many competing middlemen and that 1n some cases there are too few intermediaries with monopolistic and oligopolistic powers. Both of these allegations are expected to lead to exploitation of the farmers and consumers. The overall objective is to analyse the impact of different milk marketing sub-systems on income distribution, resource allocation and welfare of society as a whole. The above are tested with empirical analysis based on information obtained from a sample study conducted In Kyadondo County of Kampala District. The maln findings of the study are that there exist a dual milk marketing system in which the role of the official or formal milk marketing system is becoming marginalized while that of the informal or private milk marketing system is increasingly becoming more significant. A set of policy recommendations are given in the last Chapter.