Drivers of commercialization: A case of indigenous chicken production in northern Uganda

Irene Penninah Aryemo, Irine Akite, Enos Katya Kule, Donald Rugira Kugonza, Marion Wilfred Okot and Basil Mugonola

African Journal of Science, Technology, Innovation and Development, 2019, vol. 11, issue 6, 739-748

Abstract: This study was conducted to assess the drivers of commercialization and profitability among the smallholder farmers of indigenous chickens (IC) in northern Uganda. A market index was constructed to measure the proportion of IC marketed as a proxy for commercialization. A Tobit regression model was fitted using maximum likelihood estimation to determine the drivers of commercialization level of IC. Gross margin analysis was conducted to measure annual profits from IC production and a multiple linear regression was estimated using ordinary least squares to ascertain the determinants of profitability. Overall, the level of commercialization of IC was found to be as low as 31.2%. This level was affected by: IC flock size, number of cattle owned, group membership and access to poultry specific extension services. Commercial IC production was found to be profitable with average gross margins of UGX 118,704 (equivalent to US$34 per annum). Our results revealed that profitability in IC production and marketing was affected by bicycle access, number of extension visits, family ownership of chickens, sex, and age of household head. Our findings point to the need for implementation of strategies to increase flock size like disease management, provision of targeted extension services and increased group marketing of chickens.

Date: 2019
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DOI: 10.1080/20421338.2019.1573957

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