Variations in maize prices across markets case study of eastern Uganda.

Abstract

The maize crop, (zea mays ssp) belongs to the tribe maydae, family poaceae and was originated in Mexico and Central America around 1000 years ago. This crop was introduced in Uganda in 1861 and has since become a major part of the farming system, ranking third in importance among the main cereal crops (finger millet, sorghum and maize) grown in the country. The increasing variations in prices of maize can lead to inefficient agricultural production and definitely have detrimental effects on the economic, social, and political growth of any country. Most studies on maize in Uganda are focused on the increasing maize yields or production, very few addresses the determinants of maize price change as a panacea for the increase of productivity. Filling this gap requires a study on the various factors that contribute to the variations in the price of maize. In this study, primary data were used and this was gathered from the districts of Busia, Namayingo, Bugiri, Mayuge and Iganga in eastern Uganda from 253 maize traders. Primary data was collected through a structured questionnaire. Data analysis was done in SPSS version 20. The study used descriptive statistics tools to analyze the causes of price variations in Uganda. In addition, various factors affecting price variation of maize were examined. The results were presented in tables. The correlation tests showed that maize quality and maize brokers had a positive and significant correlation with maize prices. The mean price of maize for the year 2023 was 1161.5198, which was a minimal variation on prices across markets. It was recommended that the positive and significant relationship of brokers to maize price change should serve as an impulse to encourage traders across the country to stop using maize brokers as they have a fluctuating influence on the maize pricing. In addition, the maize traders should also improve on the quality of the maize they sale as this can help in increasing on the prices to foster the competitiveness of their crop both locally and internationally.