Open AccessGovernance structures in smallholder pig value chains in Uganda: constraints and opportunities for upgrading
Author(s) -
Emily A. Ouma,
J. Ochieng,
Michel M. Dione,
Danilo A. Pezo
Publication year - 2017
Publication title -
the international food and agribusiness management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.474
H-Index - 35
eISSN - 1559-2448
pISSN - 1096-7508
DOI - 10.22434/ifamr2014.0176
Subject(s) - corporate governance , vertical integration , business , value (mathematics) , industrial organization , production (economics) , value chain , asset (computer security) , multinomial logistic regression , survey data collection , asset specificity , economics , marketing , microeconomics , supply chain , finance , statistics , computer security , mathematics , machine learning , computer science
This paper analyses governance structures in Uganda’s smallholder pig value chains by applying the New Institutional Economics framework. It utilises cross sectional and qualitative survey data from randomly selected pig value chain actors in 4 districts. A multinomial logit model is applied to assess the determinants of vertical integration among pig traders. The findings indicate that most relationships at the pig production node of the value chain are based on spot market governance structures supported by personal relationships and trust. Live pig traders are mostly vertically integrated. High integration levels of the pig traders are positively influenced by access to market information, value of investments in the value chain, and dedicated asset specificity in terms of backyard slaughter premises. Upgrading opportunities in the value chain in the form of value addition strategies, policy implementation and promotion of business models that link producer organisations to quality inputs and service suppliers through contractual arrangements are identified.