Consumer Segments in Urban and Suburban Farmers Markets

cluster analysis, consumer segments, farmers markets, Community/Rural/Urban Development, Consumer/Household Economics, Crop Production/Industries,

Farmer demand and willingness-to-pay for sweet potato silage-based diet as pig feed In Uganda

This study was undertaken to assess farmer demand and willingness-to-pay for sweet potato silage-based diet as pig feed by smallholder farmers in Uganda. Information for the study was collected through secondary data review and semi-structured questionnaire interviews to assess farmer WTP. Semi-structured interviews were conducted with 256 respondents randomly drawn from 16 purposive clusters formed at a radius of 3 km around 16 farmers piloting sweet potato silage based diets for pig feed. The results show that pig farming is mainly the responsibility of women, with farmers’ mean willingness to pay price ranging from 679 to 697 Ugandan shillings, for a kilogram of sweet potato silage based diet. At the mean prices, annual demand for silage is 17,679 tons with a market potential estimated between 12.0 to 12.3 billion Uganda shillings. The study concludes that at the mean willingness to pay prices, there is a huge market potential that can be exploited by SMEs venturing in the livestock feed industry

Farmer demand and willingness-to-pay for sweetpotato silage-based diet as pig feed in Uganda

Smallholder livestock farmers across Sub-Saharan Africa are racing against time to find cheaper, nutritious, and sustainable feed alternatives to the more pronounced and expensive commercial concentrates amidst the increasing global demand for livestock products. Lately, many prominent feed conservation technologies have been developed, with a notable example being the sweetpotato silage technology that turns wasted sweetpotato components into a palatable and nutritious livestock feed. However, despite the potential benefits associated with these technologies, the level of demand and acceptance among smallholder farmers remains largely unknown. Thus, this paper assesses the farmer demand and willingness-to-pay (WTP) for sweetpotato silage-based diet as pig feed by smallholder farmers in Uganda. The information for the study was collected through secondary data review and semi-structured interviews to assess farmer WTP. The 256 semi-structured interviews were randomly drawn from 16 purposive clusters formed at a radius of 3 km around 16 farmers piloting sweetpotato silage-based diets for pig feed. The results show that pig farming is mainly the responsibility of women, with farmers’ mean willingness-to-pay price amounting to 0.20 USD per kilogram of sweetpotato silage-based diet. At the mean price, the annual demand for silage was estimated at 17,679 tons, with a market potential of approximately 3.59 million USD. The study concludes that, at the mean willingness-to-pay price, there is a substantial market potential that can be exploited by small and medium-sized enterprises (SMEs) venturing in the livestock feed industry

Case Study #6-11 of the Program: ''Food Policy For Developing Countries: The Role Of Government In The Global Food System''

9 pp.©Cornell University, Ithaca, New York. All rights reserved. This case study may be reproduced for educational purposes without express permission but must include acknowledgment to Cornell University. No commercial use is permitted without permission.The growth of supermarkets is a phenomenon that characterizes many developing countries. The growth of supermarkets in Uganda can be attributed to the country's favorable investment climate coupled with the increase in supermarket demand factors such as the rise in urbanization, the growth of the middle class, and the increase in the number of employed women. As in other developing countries, supermarkets in Uganda are patronized mostly by younger and better-educated consumers with smaller families. Changes in food preferences and eating habits among urban consumers can partially explain the increasing patronage of supermarkets in Uganda. Moreover, supermarket customers regard these stores as offering higher food quality, safety, variety, and customer service than open or roadside markets. Most supermarket shoppers, however, also continue to patronize traditional food retail outlets, such as open markets, which still dominate agri-food retailing in Uganda. At this initial stage of supermarket growth, early participation by local farmers in the new agri-food marketing system could promote commercialization of agriculture in Uganda. There has been a public outcry, however, that supermarkets are marginalizing local farmers by importing food products that could be procured locally. In response to this supermarket procurement behavior, Ugandan policy makers have twice proposed the formulation of supermarket trade policies to regulate the importation of specific food products. Although it is true that Ugandan supermarkets import most of their food products, some foods are locally sourced depending on their availability, quality, and safety. A few Ugandan smallholder farmers supply supermarkets with fruits, vegetables, and staple foodstuffs. These farmers have found supermarkets to be more reliable and preferred markets than traditional food buyers. Yet these farmers face a number of constraints in supplying supermarkets because of the latter's stringent supply terms. Your assignment is to advise the government of Uganda on appropriate policies to help ensure that local smallholder farmers benefit from supermarket development in Uganda.Cornell University Division of Nutritional Science

Urban and Suburban Farmers Markets in Illinois: A Comparative Analysis of Consumer Segmentation Using Demographics, Preferences, and Behaviors

167 p.Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2005.Targeted marketing has become a common strategy in retail businesses. Previous consumer surveys conducted in farmers markets have revealed that consumers behave differently depending on their preferences and demographic characteristics. This study hypothesizes that consumer segments with homogenous preferences exist in farmers markets and consumers within each segment have similar demographic and behavioral characteristics. The motivation of this study is to provide insights into consumer segments existing in farmers markets for the benefit of market organizers and farmer vendors. Four specific objectives were formulated: (1) to compare demographics, preferences, behaviors, and needs of consumers across different farmers markets; (2) to identify preference-based consumer segments existing in farmers markets; (3) to determine differences in demographic and behavioral characteristics across consumer segments; and (4) to interpret consumer segment characteristics for the benefit of market managers and farmer vendors. Six markets were selected for the study. The survey was conducted in October, 2004. A standardized questionnaire was used to collect data from shoppers intercepted at the study markets. In total, 508 questionnaires were completed, of which 444 were usable. This study employed the multi-step cluster analysis method. Five segments of consumers emerged based on their preferences for market attributes. They include: Market Enthusiasts, Recreational Shoppers, Serious Shoppers, Low-involved Shoppers, and Basic Shoppers. Although proportions of consumer segments were not significantly different between urban and suburban markets, they varied by market. This was attributed to differences in location, day of operation, occasion, and organization of the market. Generally, Serious Shoppers and Market Enthusiasts were more frequent shoppers than other segments. Serious Shoppers spent less time per trip at the market than other segments. In contrast, Recreational Shoppers were less frequent but spent more time per trip at the market than other consumer segments. Except for Recreational Shoppers, other consumer segments tended to be older, more educated, and had higher incomes. All consumer segments were predominantly female except Low-involved Shoppers. Therefore, managers need to examine the demographics of their nearby communities before designing any targeted strategies. Lastly, further research should investigate consumer segments existing in rural and small city farmers markets.U of I OnlyRestricted to the U of I community idenfinitely during batch ingest of legacy ETD

Contract Farming in Uganda: Its Role in the Commercialization of Smallholder Agriculture and Sustainable Development of the Sorghum, Sunflower and Rice Value Chains

The use of contract farming has greatly expanded in Uganda mainly due to the promotional efforts of agribusinesses. The motivation of this study was to examine the role of contract farming in the commercialization of smallholder agriculture and sustainable development of agro-chains in Uganda by using sunflower, sorghum, and rice contract schemes as case studies. Three separate surveys of randomly selected 246 sorghum, 197 sunflower, and 242 rice contract participant and non-participant farmers were conducted. Primary data was collected using standardized questionnaires on respective farmer socio-economics, crop partial budgets, and contract participation. Data was then analyzed using a Heckman two-step method to control for selection bias in farmer contract participation. Using the probit regression model in the first step, it was generally found that farmer contract participation was positively associated with group membership in all studied schemes. In the second stage, General Least Squares estimates showed that the inverse mills ratio significantly and positively affected the profits obtained by sorghum and sunflower farmers. Profits were significantly higher for contracted than non-contracted farmers by 16% (sorghum) and 12% (sunflower). Farm size, access to extension, and age of farmer were other factors that influenced farmer profits. Effectiveness of contract farming in boosting participation and profitability of smallholders could be enhanced through promotion of farmer groups to enhance their bargaining power and delivery of critical inputs

Urban and Suburban Farmers Markets in Illinois: A Comparative Analysis of Consumer Segmentation Using Demographics, Preferences, and Behaviors

167 p.Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2005.Targeted marketing has become a common strategy in retail businesses. Previous consumer surveys conducted in farmers markets have revealed that consumers behave differently depending on their preferences and demographic characteristics. This study hypothesizes that consumer segments with homogenous preferences exist in farmers markets and consumers within each segment have similar demographic and behavioral characteristics. The motivation of this study is to provide insights into consumer segments existing in farmers markets for the benefit of market organizers and farmer vendors. Four specific objectives were formulated: (1) to compare demographics, preferences, behaviors, and needs of consumers across different farmers markets; (2) to identify preference-based consumer segments existing in farmers markets; (3) to determine differences in demographic and behavioral characteristics across consumer segments; and (4) to interpret consumer segment characteristics for the benefit of market managers and farmer vendors. Six markets were selected for the study. The survey was conducted in October, 2004. A standardized questionnaire was used to collect data from shoppers intercepted at the study markets. In total, 508 questionnaires were completed, of which 444 were usable. This study employed the multi-step cluster analysis method. Five segments of consumers emerged based on their preferences for market attributes. They include: Market Enthusiasts, Recreational Shoppers, Serious Shoppers, Low-involved Shoppers, and Basic Shoppers. Although proportions of consumer segments were not significantly different between urban and suburban markets, they varied by market. This was attributed to differences in location, day of operation, occasion, and organization of the market. Generally, Serious Shoppers and Market Enthusiasts were more frequent shoppers than other segments. Serious Shoppers spent less time per trip at the market than other segments. In contrast, Recreational Shoppers were less frequent but spent more time per trip at the market than other consumer segments. Except for Recreational Shoppers, other consumer segments tended to be older, more educated, and had higher incomes. All consumer segments were predominantly female except Low-involved Shoppers. Therefore, managers need to examine the demographics of their nearby communities before designing any targeted strategies. Lastly, further research should investigate consumer segments existing in rural and small city farmers markets.U of I OnlyRestricted to the U of I community idenfinitely during batch ingest of legacy ETD

Competitiveness of Cotton in Organic and Conventional Production Systems in Uganda

Organic cotton production in Uganda is rising mainly due to the promotional efforts of private multinational cotton exporting companies. Nonetheless, the sustainability of organic cotton projects and their ultimate impact on poverty reduction will depend on the relative profitability of organic cotton production system. This paper therefore attempts to examine the competitiveness of cotton in conventional and organic production systems in Uganda. A survey of 160 cotton farmers was done in Northern Uganda where organic cotton has been introduced. Using whole farm crop budgets and the linear programming method, it was found that cotton was competitive with other ‘cash’ crops only under organic production system mainly because of the existence of price premium. Gross returns to organic cotton were approximately 7%. In the absence of price premium, organic cotton was an unattractive enterprise since farmers made losses of over 13%. Policy recommendations were thus forwarded to promote organic cotton production in Uganda

Contract Farming, Smallholders and Commercialization of Agriculture in Uganda: The Case of Sorghum, Sunflower, and Rice Contract Farming Schemes.

Contract farming has expanded in Uganda due to the promotional efforts of various actors: private, public, and/or international aid agencies. While motives for promoting contract farming may vary by actor, it is argued in this study that contract farming is crucial in the commercialization of smallholder agriculture and hence, poverty reduction in Uganda. However, smallholder farmers in Uganda have reportedly experienced some contractual problems when dealing with large agribusiness firms, resulting in them giving up contract farming. Similarly, agribusinesses have also reportedly encountered some contractual problems when dealing with some smallholder farmers that could have led to the exclusion of the latter from contract farming. Therefore, the main objective of this study was to examine the role of contract farming in the commercialization of smallholder agriculture in Uganda by using sunflower, sorghum, and rice contract schemes as case studies. Specifically, the study sought to characterize the sorghum, sunflower, and rice contract schemes as well as identify benefits and problems associated with them. Primary data were collected by a combined use of survey and informal interview methods. A survey of both contracted and non contracted farmers was conducted in Soroti District (Sorghum), Apac District (Sunflower), and Bugiri District (Rice). Informal interviews were held with agribusiness firms (Nile Breweries Limited, Mukwano Industries, and Tilda (U) Limited), their agents, and support organizations. Data were then analyzed using descriptive statistics and non parametric tests (Chi-square and F-tests). While most of the findings from this study are general in nature, some of them are idiosyncratic to the case studies investigated. It was generally found contract farming contributed a great deal to the commercialization of smallholder agriculture in Uganda, especially in the sorghum (Epuripur) and sunflower sub-sectors. While agribusinesses obtained assured supply of raw materials for their processing needs, smallholder farmers on the other hand had access to critical inputs such as improved seeds and extension services, in addition to access to a guaranteed market for their produce. However, there were still some challenges in the organization and operation of the contract farming schemes. Thus, both agribusinesses and policy makers have separate roles to play in making sure contract farming is properly nurtured for the benefit of smallholder farmers in Uganda

Consumer Segments in Urban and Suburban Farmers Markets

Using cluster analysis, this study used a consumer intercept survey to measure consumers’ attitudes and behaviors at a sample of urban and suburban farmers markets. Five consumer segments were identified using cluster analysis, namely: Market Enthusiasts, Recreational Shoppers, Serious Shoppers, Low-involved Shoppers, and Basic Shoppers. Each of these segments represents a group of consumers with different attendance and purchasing behavior. Furthermore, different segments look upon the farmers market shopping experience differently, ranging from an opportunity to quickly purchase fresh vegetables to a regular outing of on-site consumption and entertainment. Managerial and marketing implications of identified consumer segments were hence drawn