EFFECTS OF STRUCTURAL ADJUSTMENT

PROGRAMME ON AGRICULTURE

IN UGANDA: A CASE STUDY OF

MUKONO DISTRICT

BY

KATEREGGA DENNIS

00/U/7552/PS

A RESEACH PAPER SUBMITTED IN PARTIAL

FULFILMENT OF THE REQUIREMENTS FOR THE

AWARD OF THE BACHELOR OF ARTS DEGREE

IN ECONOMICS

MAKERERE UNIVERSITY

SEPTEMBER 2003

i

DEDICATION

To my parents Mr. Kateregga Wilberforce and Mrs. Kateregga Prossy.

ii

ACKNOWLEDGEMENT

I am greatly indebted to my Supervisor Dr. James Muwanga who repeatedly

guided me during the production process of this thesis.

Thanks to my respondents in Mukono who were very co-operative despite seeing

the process for their first time i.e., the interview of the key informants and

application of questionnaires to other respondents. Special thanks to the L.C

Chairman Mr. Tadeo Mukasa who guided me through the whole process.

I equally extend special thanks to my family Dad, Mum, Ronnie, Maria, Elias,

Josephine, Robert and Cedric who tirelessly contributed materially and morally

towards my success.

iii

TABLE OF CONTENTS

PAGE

Declaration ………………………………………………………………….. I

Dedication …………………………………………………………………… ii

Acknowledgement ………………………………………………………….. iii

Table of Contents …………………………………………………………… iv

List of Table and Figures …………………………………………………... vi

List of Appendices ………………………………………………………….. vii

Acronyms ……………………………………………………………………. viii

Abstract ……………………………………………………………………… ix

Chapter 1 Background to the study

1.1 Background ………………………………………………. … 1

1.2 Agriculture …………………………………………………… 1

1.3 Structural Adjustment Programmes in Uganda ………….. 3

1.4 Statement of the problem …………………………………... 5

1.5 Objective of the study ………………………………………. 5

1.6 Significance of the study …………………………………… 6

1.7 Scope of the study …………………………………………. 6

Chapter 2 Literature Review

2.1 Literature Review …………………………………………... 7

Chapter 3 Methodology

3.1 Introduction …………………………………………………. 15

3.2 Research design ……………………………………………. 15

3.3 Study area and its selection rationale ……………………. 15

3.4 Sample selection and size ………………………………… 15

3.5 Data collection and type of data ………………………….. 16

3.6 Data analysis ……………………………………………….. 16

3.6.1 Quantitative data analysis ………………………………… 16

3.6.1.1 Editing… …………………………………………………… 16

3.6.1.2 Coding……………………………………………………… 16

iv

3.6.1.3 Tabulation………………………………………………….. 16

3.7 Qualitative data analysis.………………………………… 17

3.8 Procedure.………………………………………………… 17

3.9 Hypothesis………….……………………………………… 17

3.10 Limitations to study………………………………………… 18

Chapter 4 Presentation of the findings

4.1 Household structure ……………………………………….. 19

4.2 Education level ……………………………………………... 20

4.3 Land Holding and Land use ………………………………. 22

4.3.1 Crop Enterprises …………………………………………… 23

4.4 Livestock farming ………………………………………….. 24

4.5 Level of agricultural modernization ……………………… 25

4.6 Farmers’ perception towards SAP ……………………….. 28

4.6.1 Agricultural markets before and after SAP ……………... 28

4.6.2 Changes in farm production during the SAP period …… 30

Chapter 5 Conclusion and Recommendations

5.1 Conclusions ………………………………………………. 32

5.2 Policy recommendations …………………………………. 34

5.3 Recommendations for further research ………………… 35

5.4 References ………………………………………………… 36

Appendix …………………………………………………… 38

v

LIST OF TABLES AND FIGURES

PAGE

Table 1.2 Performance of agriculture between 1986-1995 (in terms of

GDP)………………………………………………………… 2

Table 4.1 Household size and composition by age ………………… 19

Table 4.2 Average land size under major cash and food crops …... 23

Table 4.3 Average number of livestock kept per respondent in

Mukono ………………………………………………………. 24

Table 4.4 Percentage of farmers responses on marketing before

and after SAP periods ……………………………………… 30

Table 4.5 Reasons for farm production increase during SAP

period ………………………………………………………... 31

Table 4.6 Reasons for farm production decrease during SAP

period ………………………………………………………… 32

Figure 4.1 Age structure of respondents ……………………………… 20

Figure 4.2 Education level of respondents ……………………………. 21

Figure 4.3 Categories of farmers according to land size

possessed …………………………………………………… 22

Figure 4.4 Land size in Mukono District ………………………………. 23

Figure 4.5 Effect of a change in price of industrial output on

supply of intermediate goods by the industrial sector ….. 27

Figure 4.6 Industrial output on industrial demand for inputs of

agricultural origin …………………………………………… 27

vi

LIST OF APPENDICES

1. Questionnaire

2. Introduction letter

vii

ACRONYMS

ERP - Economic Reform Programme

CMB - Coffee Marketing Board

CMBL - Coffee Marketing Board Limited

LMB - Lint Marketing Board

LMBL - Lint Marketing Board Limited

SAP - Structural Adjustment Programme

COMESA - Common Market for Eastern and Southern Africa

NRM - National Resistance Movement

NPC - Nominal Protection Coefficients

WB - World Bank

IMF - International Monetary Fund

MFEP - Ministry of Finance and Economic Planning

COBE - Census of Business Establishment

RFS - Rural farmers Scheme

CCS - Co-operative Credit Scheme

IFAP - International Federation of Agricultural Producers

DAO - District Agricultural Officer

viii

ABSTRACT

Since 1987, the government of Uganda has been implementing economic policy

reforms under the commonly called Structural Adjustment Programme. Among

other policy measures, price controls and the monopoly of marketing boards

were dismantled and export duties were virtually eliminated.

This study examines Ugandan farmers’ socio-economic backgrounds farm

resource availability and farmers’ perception towards SAP, It also analyses the

effects of SAP on output, household income. Most specifically, the study

determines how and to which extent trade liberalization policies should be

implemented, the capability of the liberalized economy to withstand unfavourable

world market price changes.

Results from a field survey in Mukono district where questionnaires were

administered on a sample size of 45 farmers, indicate that there was a decline in

farm production and changes in farm production.

This study also analysed the vulnerability of the liberalized economy in case of

unfavourable changes in external market conditions. Given the fact that farmers

respond to changes in market conditions, appropriate policy measures should be

undertaken to increase the flow of benefits that accrue from adjustment policies

to the farming community. If such measures are not in place, efforts of carrying

out structural adjustment will be rendered fruitless.

ix

CHAPTER 1

INTRODUCTION

1.1 Background

Uganda occupies an area of 241,038 sq. km. of which 18.23% (43,942 sq.

km) is open water and swamps and 81.77% (197,097 sq. km.) is land

area. According to the 2002 housing and population census, the country

had a population of 24.7 million people (69 persons/sq. km) compared to

9.5 million (40 persons / sq. km) and 12.6 million people (52 persons / sq.

km) in 1969 and 1980 census respectively, giving an average annual

growth rate of 2.7% and 2.5% for the periods 1969 – 1980 and 1980 –

1991 respectively.

Total population projection based on 1991 census gave an estimate of 20

million people in 1997, 22 million in 2000 and 35.5 million in 2015.

Although the fertility rate declined from 7.1 to 6.8 children per woman, the

population continued to grow at a rate of about 2.83% p.a. in 1999.

Uganda had a GNP per capita of US$280 in 2001.

Agriculture is the most important sector of the economy. In 1999/2000 it

accounted for about 42% of GDP and for the bulk of exports. The sector

employs around 80% of the labour force.

1.2 Agriculture in Uganda before SAP

The crisis of the Ugandan agriculture is dated as far as the colonial era,

when farmers were given instructions to grow certain types of cash crops,

but with no emphasis on food crops.

Furthermore, the processing and marketing of the cash crops was

monopolized by foreigners mainly the Asians and some European Import

and Export companies, with trade proceeds not re-invested in agriculture,

but invested in import substitution industries which were not foreign

exchange earners.

Besides, farmers had been dependent on rudimentary technology with

heavy capital constraints, and strong reliance on cheap, and in most

cases, unskilled family labour.

In attempts to solve these problems, both the colonial and post-

independence governments administered agricultural output prices and

supplied farmers with subsidized inputs as an incentive to increase

production. However, the subsidies were discriminatively given to the

large-scale farmers, and the marketing policies discouraged most small-

scale farmers from producing for the market. Those who persisted with

cash crop growing were paid late for their produce and lacked extension

services and other infrastructural support.

These, coupled with the inefficiency of the state-controlled marketing

boards and other natural calamities such as drought, accelerated the rate

at which agriculture was declining.

It was against this background that Uganda adopted structural adjustment

policies (SAP) which, among other goals, were meant to reverse the

decline in agriculture and hence induce positive economic growth. These

policies which were under the ERP were initiated during the period 1987-

1992, aimed at improving producer incentives as well as increasing the

processing and marketing of agricultural products.

Table1.2:Performance of agriculture between 1986-1995 (in terms of GDP)

Sub-Sector 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Food crops 38.1 37.4 37.1 37.4 36.5 35.1 34.6 34.4 33.5 32.2

Cash crops 3.55 3.36 3.25 3.22 3.28 3.38 3.27 3.09 3.29 3.24

Livestock 9.54 9.33 9.39 9.13 8.99 8.89 8.67 8.48 7.89 7.43

Forestry 2.12 2.16 2.17 2.05 2.07 2.05 2.06 2.02 1.92 1.85

Fishing 2.74 2.68 2.56 2.40 2.61 2.58 2.57 2.51 2.21 2.08

Total Agric 56.1 54.9 54.5 54.2 53.4 52.0 51.2 50.5 48.8 46.8

Growth in

Agric

- 4.4 6.3 5.8 4.1 2.4 2.8 4.4 6.4 4.4

Source: Background to the Budget 1996/1997

The 4.5 percent average growth rate in agricultural output achieved for the

period 1987-1992 was due to high growth in food crop production. Growth

in food production on the average was 3.2 percent per annum, whereas

export crops and livestock production grew more slowly at a rate of 1-2

percent.

As a result, an agricultural sector policy agenda was formed to implement

the agricultural sector reform package. The package constituted

agricultural pricing policy, trade liberalization and promotion restructuring

of marketing boards, rationalization of crop processing capacity, financial

rehabilitation of co-operative unions, and strengthening agricultural

research and extension institutions.

Africa is not likely to take off unless its agricultural sector takes off

because of the strong linkage that exists between agricultural growth,

domestic purchasing power expansion, and the demand for industrial

goods.

1.3 Structural Adjustment Programmes in Uganda .

The war brought the NRM into power in January 1986 with an agenda of

rehabilitating the shattered economy. Its approaches to rebuild the

economy were different from those of the previous regime and it was anti-

IMF advice of currency devaluation. The flexible foreign exchange regime

thus replaced by a fixed one at a rate of Ush14.00 to the US dollar,

increased salaries by 50% re-introduced price controls and extended

government monopoly control over internal and external trading.

However, economic conditions continued to deteriorate with a fall in coffee

revenue, a decline in marketed food output and an increase in prices,

crucial balance of payment and increased inflation.

This called for an adoption of ERP in May 1987 accepting the advice,

guidance and assistance of the IMF and the WB. Among other measures

undertaken included the de-regulation of trade by abolishing export and

import monopolies.

Before SAPS, the marketing of Uganda’s export crops and some food

crops was under the control of parastatals namely; CMB for coffee, LMB

for cotton and PMB for beans, groundnuts, maize and other cereals.

Although these boards were meant to ensure marketing efficiency, they

did not perform according to expectations. Farm prices were low with

delayed payments which led to parallel markets including smuggling of

products, mainly coffee and beans.

In 1987, the government implemented a market liberalization policy which

included removing state controls and privatizing and restructuring most of

the parastatals. In order to improve producer prices, and boost production

for both home consumption (self-sufficient in food) and surplus for export,

price controls were dismantled and producer prices of traditional export

crops were increased by a factor of 3-5 times.

Furthermore, the face value of the Uganda shilling was reduced by a actor

of 100 and a conversion tax of 30% was applied on all cash holding,

deposits and treasury bills. This was followed by devaluation of the

shilling by 76.7% and re-adoption of a flexible foreign exchange regime.

Other adjustments included restructuring of the tax system and improving

the tax administration.

In order to reduce government expenditure, the size of the civil service

and the army was reduced and public expenditure was restructured

towards critical economic and social services. Properties which had been

expropriated by the Amin regime were also returned to the owners

(Asians).

1.4 Statement of the problem

Regardless of the government’s efforts to create a conducive economic

environment for increased commercial production, subsistence farming

has persisted over years. Although this may imply that the majority of the

farmers have maintained their traditional farming practices, it poses other

questions as to why this has been so. Could it be a result of socio-

economic characteristics of the farmers? Or should the economic factors

including those related to SAPS be put to blame, hence justifying the

structural adjustment programme critique that the removal of input

subsidies reduces farm profits such that farmers produce only what is

enough for home consumption? What about the removal of price controls

leaving farmers, especially those in remote areas in this case Mukono, in

uncertainty with regards to the marketing of their produce at a profit.

1.5 Objective of the study

One of the general objectives of the study is to analyse the farming status

in Uganda including the understanding of farmers socio-economic

characteristics, farm resource availability and farmers’ perception towards

SAP.

Secondly, the study aims at analyzing the impact of SAP on the Ugandan

agricultural sector in particular and on other economic sectors in general.

The specific objectives are:

i) To examine the Ugandan farming status in terms of farmers’ socio-

economic characteristics, resource availability and farmers’

perception towards SAP.

ii) To determine the effects of trade liberalization policies on

agricultural production.

iii) To examine the stability of the liberalized economy to changes in

the external market conditions.

iv) To quantify the impact of trade liberalization policies on household

income.

1.6 Significance of the study

The study aims at helping policy makers in formulating policies at both

macro and micro-economic levels. It is relevant to the current situation in

Uganda and other members of the COMESA, who are in the process of

dominating across border tariffs to create a free trade zone for produce

that comes from their rural farmers like those of Mukono. Besides that,

the study, could serve as a stepping stone for other research work that

aims at solving similar problems.

1.7 Scope of the study

The study is more interested in the likely outcomes of SAP it will further

concentrate on trade liberalization policies with regard to how these

policies could be implemented and what the consequences would be.

Mukono is the case study because it is near Kampala and this proximity to

urban centres is an incentive to agricultural production and farmers tend to

be market oriented.

CHAPTER 2

LITERATURE REVIEW

Todaro (1985), he said if development is to take place and become self-

sustaining, it will have to start in the rural areas (Mukono) and the

agricultural sector in particular. The core problems of widespread poultry,

growing income inequality, rapid population growth and rising employment

all originate from the stagnation of the agricultural sector policies must

favour the agricultural sector so that it can play a pivotal role in the

development of a country. As a matter of fact, most development

economists have strongly agreed for an agricultural led growth strategy

that suits developing countries.

Agriculture cannot be the only prime mover of the economy at least there

are some linkages with other sectors like industrial sector, Todaro over

looked the possibility of linkages i.e., agriculture provides market for

industrial output.

Krueger (1989), policies affect the agricultural sector in the following

forms directly through the sector-specific policies and indirectly through

economy wide policies. The effects are all summed up in the two main

government policies characteristic of developing countries.

First, government imposed marketing mechanisms through monoplolistic

marketing boards and unions coupled with export taxes and quotas often

supposed producer prices for agricultural crops. In Uganda the LMBL and

CMBL were responsible for marketing of all the coffee and cotton growth

until recently 1991 when their monopoly was dismantled by government

as one of the ways of liberalization.

Second, is the attempting to off-set the dis-incentive created by the fore-

most loned policies these governments have chosen to provide some

incentives in form of providing free seeds, interesting into research for

high yielding seeds and pest-weed control methods, irrigation, provision of

machinery on loan and many other capital investments. In Uganda these

investments have involved also the rehabilitation/construction of roads to

facilitate the transportation of agricultural crops from the farmers to the

boards and consumers.

Krueger left out how these policies (SAP) affected agriculture and what

crops in particular what he had to do was to select some major crops.

According to Okwi, Matovu and Mpuga (2000), the normal process of

structural transformation from agriculture to other sectors has not been

smooth in Uganda due to political instability in some part. The

transformation requires that an expanding economy must have a growing

agricultural sector and secondly, the share of agriculture in a country’s

GDP decline with a country’s development.

They only looked at the growth of agricultural sector as the only way

structural transformation can be attained, other sectors are also needed to

achieve this transformation. The share of agriculture to the country’s GDP

is also important in this study, the next study must identify the

contributions of SAP to the increase in the share of GDP because they did

not specify how the share is to be increased.

Rural life and Agriculture tour, Zambia (2002), key issue in understanding

the contribution of the agricultural sector to the economy of Zambia is the

low level of productivity from the small scale farms. In the 1970s and

1980s this put pressure on small-scale farmers to break with traditional

slash and burn methods and adopt more modern techniques that raised

the productivity of the land since Independence the government

subsidized small-scale farmers by ways of providing cheaper low cost

imported fertilizers. However, with the agricultural reforms in the 1990s by

President Chiluba’s government in response to Structural Adjustment

Programmes of the IMF, these subsidies have been reduced or at back

forcing up the price of fertiliser. Many small-scale farmers have been

unable to afford the new prices or the cost of transporting it from the

warehouses and have had little option to return to “chitemene”.

Chitemene is a slash and burn method of cultivation.

There are very many methods that are used in Zambia this study left out

which are important, so the next study should look at those other methods

and how subsidies are cut under the influence of SAP.

According to Tsikata (2002), the longer term structural adjustment

programme is aimed at the promotion of production and resource

mobilization through the promotion of commodity exports, public sector

reform, market liberalization and institutional reform. The programme

seeks to limit the role government in the economy, promote private sector

operations and remove restrictions in the economy and ensure market

determined prices.

The problems of gender relations in Africa have been exacerbated by SAP

in a number of ways like in Tanzania and Nigeria, poor and middle class

women are giving up formal employment for informal sector work because

it pays better. Export cropping has often not benefited women. Studies in

Kenya and Zaire have found that although there is no next dichotomy

between men’s cash crops and women food crops, women farmers are

disadvantaged in relation to men because they focus on food consumption

production and have less access to farm support services and crucial

inputs.

He critizes SAP, that they have disabled African economies from

fundamentally changing their character as primary commodity products, a

situation which is the source of the crisis of Africa’s economies. This is

particularly important because many of the SAP policies are designed on

the basis of a questionable ‘comparative advantage’ in that they aim to

strengthen the ability of African economies to produce what they were

already producing, primary commodities.

The total trade liberalization, high interest rates and the full removal of

subsidies have threatened both agriculture and domestic industries.

Agriculture, especially food production, has also been adversely affected

by interest rates and the high prices of inputs. There is consensus that

low commodity prices have not brought the economic returns expected

from the promotion of export agriculture. He left out the narrowness and

the little relevancy to long term development goals, so this study will point

out that.

Green, February (2003), he points out that the economic reform was

overdue in many third world countries. He looked at how some policies

worked for rich countries and would not work for the poor countries.

IMF gave the same advice it got to this non-developed countries that of

export crops which has led to over production of some commodities and a

drop in their prices on world markets.

Instead of rising, export earnings often declined country by country,

structural adjustment became the problem not the solution. There should

have been variations in policies that were applied to poor countries i.e., as

shown by the following study.

According to Dong, Kastner, Young (1991), adjustment programmes that

succeed in one country may prove difficult to implement in other partly

because of domestic political constraints.

Mutiibwa, (1990) as in several other developing countries, Uganda

depends on its agricultural produce both for subsistence and export crops

while tea, tobacco and sugarcane are important for the East African and

international markets, this has been proved right by the introduction of

SAP where its 85% of the population have depended on it and 10% of the

population earns their living from agro-oriented industries. All this

contribution is attributed to the participation of the women who are like

their counterparts in the world developing countries, are involved in small-

scale agricultural and agro-oriented activities for both subsistence and

business levels. A further insight to women and agriculture is given by the

study below.

Workers’ World News (1996), women in developing countries have

suffered the worst effects of the IMF and WB policies of neo-liberalism.

The structural adjustment programmes that go along with IMF/WB loans

have only resulted in political and economic disaster for the countries that

borrow money from them. SAP are based on export-oriented

industrialization, they do not develop industry to meet local demand for

basic goods, this kind of industrialization has also resulted in people

moving from rural areas to the towns and cities.

The participation of women in the economy tends to be higher when the

economy is organized around family based production in agriculture. So,

an industrialization policy that is not linked to a sustainable land

development programme has a negative impact on the participation of

women in the labour market.

The next study is going to look at how the women have participated in

commercial agriculture because there has been a transition from

traditional agriculture and then contribution to export-oriented

industrialization. How an industrialization policy can be linked to a

sustainable land development programme that can enhance women

contribution to agriculture? That is the question that should be answered

in the coming study.

Reed (1992), one of the most important economic contributions of

structural adjustment programmes is the removal of distortions that

prejudiced the agricultural sector for many years. Commercial agricultural

production expanded and diversified in many countries as trade and

exchange rate reforms opened new market opportunities for commercial

producers. Distortionary subsidies have been removed and more efficient

marketing arrangements are evolving as government – controlled

marketing boards although still in place in some countries are being

dismantled. Reed only acknowledged the removal of distortions as the

only contribution of SAP, this study will look for other contributions.

According to Jaeger (1991), the impact of government policy on

agriculture. He argues that since government policies have discriminated

against agriculture, measuring the dispersion of the farmers’ price from the

world price would be a measure of the direct government intervention.

Jaeger reviews government policies which affect farmers as being

basically three.

a) The fixing of agricultural prices,

b) Export taxes

c) Monopolistic marketing arrangements by the government.

Jaeger realizes the effect of macro-economic policy on agriculture using

the NPC to get the effects of policies on agriculture.

What Jaeger left out was the limitations the of NPC and their effect on the

monopolistic marketing arrangements by the government ,so this study is

going to look at that.

Kabuga, October (2001), in his assessment of the impact of SAP on

agriculture and rural livelihoods in Sub-Saharan Africa, there cannot be

better evidence than that given by the very affected people themselves.

Around 1995, and in the face of persistent criticisms of SAP, the WB and a

number of governments sought to improve their understanding of the long-

term economic and social impacts of SAP.

They undertook to do this through an exercise known as SAPRI, in

countries with a history of SAP supported by WB and IMF. Involved in this

initiative were civil society organizations, governments and the Bank.

During the launch, both the Bank and government presented evidence

regarding the positive impacts SAP had had on agriculture and on the

livelihoods of people. On account of its success of financial stabilization

and strong structural reforms, Uganda reported that it had maintained a

growth rate averaging six percent of GDP for the last decade with inflation

below 5%.

A steady increase in agricultural growth of 4.0-4.5% p.a in the last ten

years had been registered and a fall in the incidence of poverty by 18%

over a period of three years (1992 to 1995) was reported. It was also

reported that before CMB was liberalized, the farmers earned less than

20% of the world market prices. After liberalization, over 70% is earned.

While liberalization might have exposed the farmers to the volatility in

commodity prices, the removal of controls on effort margins improved

income received by the farmers.

While the views of civil society organizations in the countries that

participated in the initiative may not be representative of all countries, the

impact of SAP on agriculture in Sub-Saharan Africa have generally been

the same.

Civil society organizations hailed SAPRI for the opportunity it provided all

stakeholders to assess the impact of SAP on the livelihoods of ordinary

people as perceived by those people themselves. All in all, it was

generally agreed that the agricultural sector had made significant

contributions to “economic growth” as a result of the SAP. “Growth” was

also accepted as critical, but not the only pillar, in poverty reduction.

It was evident that farmers involved in the traditional export crops like

coffee, cocoa, cotton, etc., had benefited more from the liberalization of

agricultural marketing than the majority of farmers of non-traditional export

crops like maize, beans, soya beans, simsim, groundnuts, etc. Farmers of

non-export food crops like millet, field peas, sweet or irish potatoes

benefited least.

It must be noted that those involved in producing non-export food crops in

Africa are women. They neither benefit from what they grow nor from the

profits from export crops like coffee and cocoa, except for gifts of cloth

etc., from their husbands for the labour they provide. Not much was said

about the impact of SAP on animal industry and fisheries.

Despite the generally positive assessments of SAP on agriculture as

indicated above, the very civil society organizations questioned the

sustainability of the “growth” brought about by SAP in agriculture and

invariably raised other SAP – related concerns summarized below:

Liberalisation has negative effects on food security because at the harvest

time, the farmers sell all and at the time of need they cannot attract it back

from surplus areas due to high transport costs.

The traditional export crops have continued to dominate agricultural

exports although non-traditional crops were promoted by government

since the late 1980s. They still remain a small proportion of exports.

With liberalization, prices are determined by the demand and supply of the

specific commodity. In the absence of market information, farmers’

ignorance of commodity prices is used by traders to cheat them. Farmers

are thus wholly exposed to price and market shocks without fallback

positions.

The competition from imports of subsidized agricultural products as a

result of liberalization seriously threatens peasant agriculture.

The next study must look at the impact of SAP on animal industry and

fisheries which Kabuga did not look at which is important for this study.

CHAPTER 3

METHODS AND PROCEDURES

3.1 Introduction

This chapter presents the research design, study area and its selection

rationale sample selection and size, data collection and type, data

analysis, procedure and limitations.

3.2 Research design

The study focused on Mukono in a view to find the effects of SAPS in that

district. It looked at both the women and men. This research employed

both qualitative and quantitative methods in order to make triangulation

possible.

3.3 Study area and its selection rationale

A field survey was carried out in Mukono District in central Uganda. The

rationale for selecting this area was the existence of at least one of the

traditional export cash crop in the cropping system. Mukono was to

represent a coffee – based farming area since it is the main foreign

exchange earner of Uganda. Another factor considered was the location

of this area, since this has a bearing on production and marketing.

Mukono is a peri-urban district neighboring Kampala on the western side.

This proximity to urban centers is an incentive to agricultural production

and farmers tend to be market oriented.

3.4 Sample selection and size

Mukono district has got a population of 966,000 people who live in 6

counties. Two sub-counties were randomly selected and from each two

parishes were also randomly selected. With the help of a list of farmers

provided by the local administration authorities, ten farmers were selected

from each of the selected parishes.

The selection of farmers was random in the sense that the selected

farmer, randomly picked from the list, had to be growing coffee as one of

the farm enterprises, 5 key informants were chosen. This made a sample

size of 45 respondents.

3.5 Data collection and type of data

Farm level primary data were collected using pre-tested questionnaire.

Secondary data was also used to give the relevancy and true picture of

the study.

3.6 Data analysis

3.6.1 Quantitative analysis

The master sheet was used to analyze information from key informants.

Data from the questionnaire was processed manually, .errors were

eliminated at this stage through cross checking in view of ensuring reliable

valid analysis.

3.6.1.1 Editing Completeness, legibility, consistence, accuracy, comprehensibility and

uniformity were sighted. Editing was done after colleting the

questionnaires to detect any omissions of questions and irrelevant

answers.

Interviews, editng, were done immediately after the interviews. This aimed

at colleting the consistencies within some questions and eliminating them

with assistance from the respondents.

3.6.1.2 Coding

All responses were coded and classified to bring out their essential

proportion of the edited questionnaires which where chosen randomly

from the sub-samples of the sample.

The responses were listed question-by-question, shortening the answers

and tallying them in order to calculate their percentage.

3.6.1.3 Tabulation

Some of the data collected was summarized into tables using variables

like totals and percentages. These were calculated and it is from these

tables that major conclusions were made.

3.7 Qualitative data analysis

Data analysis was done manually; analysis was done during and after

collection of the data. And before collection of data, tentative themes and

code categories were confirmed and even some new ones were

formulated.

3.8 Procedure

Letter of Introduction from the University to be presented to local

authorities.

Study area to be sampled.

Respondents to be asked verbal permission on what to be interviewed.

Interview of individual respondents with the help of local authorities.

3.9 Hypothesis of the study

The study is guided by the following hypothesis:

1. Uganda could achieve a better economic position by making more trade

policy adjustments; and the negative effects in case of an external

economic shock are expected to be less pronounced with trade

liberalization than without.

2. Exports are expected to increase at a higher rate than imports leading to

the narrowing of the balance of trade deficit. This is due to the

expectations that liberalization widens external market outlets in terms of

quantities and better prices resulting into increased production of exports

and imports substitutes.

3. Mukono’s output is expected to increase following liberalization policies.

These policies expectedly increase producer prices and hence provide

incentives to producers. If, on the other hand, trade barriers exist,

favorable market prices are not fully transmitted to farmers. This is

expected to lead to comparatively low levels of resource use ,which in turn

leads to low output levels.

3.10 Limitations to the study

The major limitation of the study was the scattered nature of some of the

relevant data. Besides, there was a problem of inconsistency in some

data served from different sources, let alone being in certain formats that

made their use in the model of this study very difficult.

Respondents’ absenteeism and constant postponing of appointments by

key informants was another problem. This was however, overcome by the

researcher’s patience.

The funds, time constraint, the study concentrated only on one district

(Mukono) and the confidence of the researcher determined the data that

was collected.

Language barrier was another problem since some people had not

attained the necessary education levels. This necessitated the researcher

to translate the questionnaire and re-structured interviews to the

understandable language of the respondents

CHAPTER 4

PRESENTATION OF THE FINDINGS

4.1 Household structure

Farmers’ household structures were studied since they have an

implication on farm production given the fact that most of the labour used

is family labour. The results indicate that Mukono district is composed of

about 8 members in a household (Table 4.1).

Table 4.1: Household size and composition by age.

Age group of household members

Number Percentage

Below 12 years 3 37.5

12-18 years 2 25.0

Above 18 years 3 37.5

Total household size

8 100.0

Source: survey data

The number of household members who could not contribute to farm

labour by virtue of their age that is below 12 years old was very high at

37.5%. Other members who rarely participated in farm activities are those

in the range of 12-18 years old as this is a school-going age.

Consequently, this leaves 37.5% (3 members) as the major source of farm

labour to produce for such big families. This was reflected by 11.5% of

the interviewed farmers who reported that inadequate labour was one of

the major problems they were facing. Of the total reported cases of the

problems faced, labour shortage scored 28.3%.

Considering the farmers’ age, the majority were, as expected, in the 30-59

age brackets. There were no respondents below 30 years old, this could

be partly explained by the fact that, most people below the age of 30 years

have no land and are still dependent on their parents.

However, this does not rule out the fact that younger people have a

tendency of disliking farming.

Most farmers were between 30 and 49 years old and the number

decreased with age. Very few farmers were above 60 years old not only

because the majority in this age group are already too weak to farm, but

also the life expectancy in Uganda is very low (about 43 years).

Figure 4.1: Age structure of respondents.

4.8

3531.7

25

6.7

1.7

0

5

10

15

20

25

30

35

40

<30 30-39 40-49 50-59 60-69 >69

Age group in years

Perc

enta

ge

Source: survey data

Other characteristics observed were farmers’ sex and marital status.

Although 93.3% were men, the majority was married and their spouses

participated equally in farm work.

4.2 Education Level

The majority of the respondents around 40% had attained primary

education and 38.3% had secondary education (Figure 4.2). The more

educated farmers are expected to perform better since they are able to

easily adopt improved technologies than those with no formal education.

Figure 4.2: Education level of respondents

3.3

4038.3

11.7

6.7

0

5

10

15

20

25

30

35

40

45

None Primary Secondary Tertiary University

Level of formal education

Perc

enta

ge

Source: survey data

However, only 11.7% of the farmers had tertiary education bearing in mind

that primary education, which the majority had, may not be very different

from no formal education in terms of its applicability to modern farming,

6.7% were University graduates.

This could be partly attributed to the fact that those who attain a high level

of education get employed in non-farm activities instead of applying their

knowledge in agriculture hence a draw-back to this sector.

The short-term remedy is for the farmers to use skilled labour either hired

by the farmers themselves or in form of extension services offered by the

government. Nevertheless, 54% of the total respondents never used

skilled labour.

Even those who did were not using it on a permanent basis but on a

consultation basis. About 60% were using skilled labour, besides, the

average visits skilled personnel made to the farmers per year were ten

times although the average pay per visit for the privately hired skilled

labour was about 1980 (about US$1).

This was attributed to the more developed infrastructure, mainly roads

making farmers’ accessibility to extension services in the latter more

difficult. In addition, the general level of economic development in

Mukono was relatively higher enabling the farmers to pay for skilled

labour. Therefore, not only should extension services in the country be

promoted but also transport and communication should be improved to

make these services easily accessible.

4.3 Land holding and land use

The size of land possessed in the study area varied from farmer to farmer.

The minimum acreage owned was 0.8 Ha and the maximum was 10.4 Ha.

However, as (Figure 4.3) depicts, most of the respondents had less than 5

Ha which is too small to use modern agricultural technology cost

effectively. Respondents with less than 2 Ha were about 22% and those

with 2.0-4.9 Ha were about 63%. It was this small sized land that was

portioned for growing various crops (and pasture in some cases). Land

constraint was more pronounced where farmers had an average of about

3.2 Ha.

Figure 4.3: Categories of farmers according to land size possessed.

0

5

10

15

20

25

<2.0 2.0-4.9 5.0-9.9 10.0-19.9 >19.9

Land size in ha

% o

f re

spon

dent

s

Source: survey data

About 60% of land was under crops, 31% fallow and 9% pastures. No

one reported having pasture land although some kept livestock; this was

because free-range grazing was practiced on fallow land.

Figure 4.4: Land use in Mukono District

Fallow

31%

Pasture

9%

Crops

60%

Source: survey data

4.3.1 Crop Enterprises

Coffee was the major cash crop occupying about 48% of the land under

crops during 2001/2002 season (Table 4.2). There was no cotton growing

in Mukono. However, some farmers were growing the recently

reintroduced vanilla as a cash crop, but were still on a very small scale.

Also a large sugar-case plantation known as Lugazi and a tea estate

(Kasaku) as well as sugar-cane and tea growers exist in Mukono.

Table 4.2: Average land size under major cash and food crops

Crops 2000-2001 2001-2002

Area(ah) % of crop land

% total land

Area(ha) % of crop land

% of total land

Coffee 0.84 44.22 26.26 0.93 48.42 28.75

Banana 2.55 28.96 17.20 0.44 23.17 13.75

Beans 0.12 5.79 3.54 0.0021 0.11 0.07

S. potatoes 0.01 0.37 0.22 0.005 0.22 0.13

Maize 0.0022 0.11 0.07 - 0.00 0.00

Total 1.5222 79.45 47.29 1.3771 71.92 42.70

Source: survey data

The major food crops grown were bananas which, during 2001/2002

season covered about 23% of the cropland having reduced from the

2000/2001 level of 29%. Beans, sweet potatoes and maize were also

grown but on small fields as shown in (Table 4.2). Other crops grown

were cassava, vegetables, soya beans and fruit trees.

4.4 Livestock farming

Mukono is not a livestock zone in Uganda. Large herds of cattle are kept

in Mbarara and Karamoja districts located in South-Western and North-

Eastern Uganda, respectively. Nevertheless, some farmers in the study

areas kept some cattle, goats, pigs and poultry as shown in (Table 4.3).

However, most of the cattle were improved (cross) breeds, in addition,

milk was also sold at about Ushs.400/= per litre for 20 litres sold per day

by the farmers. The wide range of litres of milk produced in Mukono

(about 24 litres per day).

Table 4.3: Average number of livestock kept per respondent in Mukono

Types of livestock

Number kept Number sold Unit price (Ush)

Cattle 3 1 230,000

Goats 2 1 50,000

Pigs/piglets 2 21 10,000

Poultry 15 5 3000

Source: survey data

Only one per farmer reared a goat, however, farmers kept more pigs

(about 2 per farmer). On average 21 piglets per year were sold at about

10,000/= each (Table 4.3).

Poultry was also kept with about 16 birds per household, in addition to the

revenue farmers earned from sales of live poultry, about 50 eggs were

produced per week per farmer and of these 21 eggs were sold at about

Ushs.80/= each. Livestock is, therefore, a potential income earner which

needs to be exploited through increased use of modern agricultural

techniques.

4.5 Level of agricultural modernization

The level at which sophisticated farm implements as well as modern

variable inputs were used by farmers was used as a proxy for the level of

agricultural modernization in the study once. All the respondents were

dependent on traditional farm tools notably, hand hoes and knives.

On average, each farmer had about 5 hand hoes and about 2 knives. No

one reportedly used a tractor, this could be partly explained by the small

farm sizes making it cost ineffective to use tractors and partly by the high

tractor hire charges especially after the government removed input

subsides.

Manyire(1994) reported that the removal of government subsides

especially on tractor hire services tremendously sky-rocketed the hire

charges in Kasese district leading to persistent decreases in farm

profitability and total output.

In addition, about 35% had sprayers (one sprayer per farmer), basically

used in spraying herbicides and pesticides in cotton and coffee

production. Nevertheless, the level at which these modern inputs were

used was also very low, only about 7% reportedly used herbicides in

cotton and coffee farms. Apart from organic manure in form of coffee

husks which was used by 37% of Mukono farmers in banana farms, there

was no reported case of fertilizer use. This low level of using modern

inputs implies that agriculture was still dependent on natural resources,

hence a limitation to increased output and yield. Since these inputs are

produced by the industrial sector, it also indicates that there is a weak

linkage between agriculture and the industry.,

This observation is supported by some data collected by MFEP.

According to the report on COBE in Uganda, only 1% of the total gross

fixed capital formation went to the agricultural sector. The 2000 input-

output table shows no gross fixed capital formation or changes in stock in

this sector. The table further indicates that, of the total intermediate inputs

used by the industrial sector, 68% comes from non-agricultural sector and

only 32% is supplied by the agricultural sector. Similarly, a small fraction

(11.9%) of the total intermediate inputs produced by the industrial sector

gets to the agricultural sector.

The policy implication of this weak agriculture-industry linkage is that,

when there is an economic change in the industrial sector, it may not have

a significant impact on the agricultural sector, and vice versa.

Consider a situation where the price of industrial intermediate goods

increases from P0 to P1 as shown in (Figure 4.5). The industry will

increase production of these goods from Q0 to Q1 with S1 as the supply

curve. This will, however, mean increased demand for intermediate inputs

from agricultural sector whose supply curve is shown by so in (Figure 4.6).

This is in accordance with the economic theory that an increase in output

price causes an increase in input demand curve of these intermediates will

shift from Da to Db.

However, the price change in (Figure 4.6) causes a small change in the

production and supply of agricultural intermediate goods since their share

in total industrial demand for intermediate inputs is very small.

In other words, the industrial sector has a limited derived demand for

agricultural intermediate goods. This is presented in (Figure 4.6) by

inelastic demand curves.

Therefore, it follows that the agricultural supply curve S0 is also inelastic

since it is derived from the shift of the industrial inelastic demand curve at

the same price change P0 – P1. As such, the increase in the agricultural

goods supplied (Qa-Qb) is much smaller than the increase in industrial

output (Q0-Q1) for a given change in price.

Figure 4.5: Effect of a change in price industrial output on supply of

intermediate goods by the industrial sector.

Price

S1

P1

P0

Qa Qb Quantity

Source: survey data

Figure 4.6: Effect of a change in price industrial output on industrial

demand for inputs of agricultural origin. S0

Price

P1

P0

Db

Da

Qa Qb Quantity

Source: survey data

In a similar way, any policy adopted by the agricultural sector. This study

attempts to prove this hypothesis under various policy options. Regarding

the use of subsidized inputs, no one has access to these inputs.

These were hand hoes produced from co-operative societies at 75% of

the market price.

This implied that one had to be a co-operative member to get the subsidy.

Some chemicals were also obtained from D.A.O and co-operatives at a

subsidy of about 50%. The reason for not using subsidized inputs was

that they were actually not available following the implementation of SAP.

This was reported by the farmers.

The results of this study also indicated that since the implementation of

SAP, the majority (48.7%) of the respondent’s realized farm production

increase although they had no access to input subsidies.

This low response to input subsidies is also attributed to the weak linkages

between agricultural and the industrial sectors explained above.

4.6 Farmers’ perception towards SAP

With an assumption that farmers respond to price signals, they react

according to changes in market conditions. According to economic theory,

they supply more (less) when market conditions become more(less)

favourable.

This means that changes in market conditions also affect the level of farm

production, should the prices rise, more of a given commodity is produced

and vice versa, ceteris paribus.

4.6.1 Agricultural markets before and after SAP

Before SAP implementation, most of the farmers’ cash crop products were

handled by co-operatives as marketing agents of the marketing boards. In

Mukono, 88.9% of the respondents used to sell coffee to co-operatives

and 11.1% to individual traders both of whom would deliver the coffee to

CMB. Beans, bananas potatoes and maize were not traded and were

sold at farm-gate or local markets.

Since the liberalization of markets (breaking the monopoly of marketing

boards and removing price controls), private traders entered the market

and farmers gained a wider range of market outlets for their products.

(Table 4.4) shows that the percentage of respondents who sold coffee to

co-operatives had reduced to 58%. The majority sold to private traders at

farm-gate 48.1% and in local markets 46.2%. Beans, bananas, maize and

potatoes were still sold at the farm-gate and or in local markets to private

traders and final consumers.

Considering the overall sample, the largest amount of the farmers produce

was sold to private buyers others at farm-gate as reported by 44.7% of the

respondents, or in local markets by 40.4%. Only 14.9% of the

respondents reportedly sold the largest amount to co-operatives.

The fact that the number of farmers who were selling their produce at

farm-gate had greatly increased during the SAP period is a reflection that

the policies had created a favourable farm market environment such that

farmers had more access to markets than it was before SAP.

This is not only convenient for the farmers in marketing their goods but

also saves them the burden and costs of transporting the goods to the

markets which in some cases are far away from the farms.

The major reasons why farmers had shifted from the old marketing

channel were given.

First, 64% reported that after market liberalization, private buyers

competed favourably by paying them promptly unlike the co-operatives

which used to delay payments.

Second, the private buyers were offering higher prices as reported by

36%.

The third reason forwarded was that the co-operatives had collapsed and

they no longer bought farmers’ produce.

Table 4.4: Percentage of farmers’ responses on marketing before and

after SAP periods.

T

h

i

s

i

s

a

n

I

Source: survey data

Indication that the co-operatives were insufficient and when the

government stopped protecting them, they had to exit the market. It also

shows that farmers respond to price signals by selling their produce where

prices are highest. This response could also be rejected by the

adjustments farmers make in production.

4.6.2 Changes in farm production during the SAP period

Farmers gave mixed responses on how farm output had changed during

the SAP period. Considering the whole sample, the majority 65% and

22% reported that output had increased and decreased, respectively, 13%

say that production had remained constant.

Those whose output increased attributed it to availability of good markets

offering good prices. This was about 64.1% and 60.6% for the whole

sample (Table 4.5). This also supports the hypothesis that farmers

respond to price signals, and it could be a reflection of the positive side of

SAP.

Other reasons were increased acreage, increased use of labour and

capital inputs, and improved management. The latter scored higher

(35.9% of the cases). This was attributed to the higher accessibility and

use of extension services in Mukono. Since land gets more scarce as the

Product sold

Selling place Before SAP After Sap

Coffee Co-operatives Local markets Farm-gate

88.9 11.1 0.0

5.8 46.1 48.1

Beans Co-operatives Local markets Farm-gate

0.0 100.0 0.0

0.0 100.0 0.0

Maize Co-operatives Local markets Farm-gate

0.0 0.0 100.0

0.0 0.0 100.0

Banana Co-operatives Local markets Farm-gate

0.0 33.3 66.7

0.0 25.0 75.0

Potatoes Co-operatives Local markets Farm-gate

0.0 44.4 55.6

0.0 27.3 72.7

population grows, farmers should be advised on increasing production per

unit area rather than through increased acreage. This includes, among

other measure, availing more extension services, and introducing and

encouraging the use of improved varieties as has been demonstrated by

the recently introduced clonal coffee.

Table 4.5.: Reasons for farm production increase during the SAP period.

Reason Mukono Overall sample

Percentage of responses

Percentage of cases

Percentage of responses

Percentage cases

Good market 43.9 64.1 41.5 60.6

Increased average

21.2 30.8 22.5 32.8

Better management

24.6 35.9 19.1 27.9

Increased labour use

3.6 5.1 8.0 11.5

Increased capital inputs

7.1 10.3 5.6 8.3

Source: survey data

The major reason given by the respondents who realized declines in farm

production was lack of capital to purchase farm inputs. This was 72% of

the reported cases, this is in line with anti-SAP argument that not only do

these policies increase output prices did not rise in the same ratio.

This resulted into continuous erosion of farmers’ incentives and profits.

Lack of capital was 15.4% in Mukono (Table 4.6). Instead, production

decrease in Mukono district was mainly attributed to adverse weather

conditions.

Table (4.6) further shows other reported causes of farm production

decrease as inadequate labour, rampant pests and diseases, decreased

acreage, and poor marketing infrastructure.

The marketing system was reportedly characterized by low and fluctuating

prices and many middlemen. This calls for more government investment

in infrastructure to enable farmers in remote areas to have increased

access to markets and more direct contact with final consumers. The

argument is that, marketing margin and market inefficiency are usually

high when there are many agents in a given marketing system.

Table 4.6: Reasons for farm production decrease during the SAP period.

Reason Mukono Overall sample

Percentage of responses

Percentage of cases

Percentage of responses

Percentage cases

Lack of capital

9.5 15.4 36.8 72.0

Bad weather

43.0 69.3 22.4 44.0

Inadequate labour

9.6 15.4 15.3 30.0

Poor markets

10.0 0.0 12.3 24.0

Pests and diseases

19.0 30.9 12.3 12.0

Decreased average

9.5 15.4 3.16.1 6.0

Source: survey data

To break the farmers’ capital constraint, the relevant private and public

financial institutions should avail credits to farmers. If there are credit

arrangements then agriculture will be transformed, statistics in Uganda

show that agricultural sector contribute about 50% to GDP, employs about

80% of the population and earns over 90% of foreign exchange, it

receives only about 5% of the total bank credits resources for production

while trade and marketing sector which contribute only 15% GDP receives

about 64% of the total bank credit.

During 1984-2001 the share of agriculture production credit as a

percentage of total bank credit increased to 15% as a result of the UCB

Rural Farmers’ Scheme (RFS) and Co-operative Credit Scheme (CCS)

financed by donor funds the agriculture production increased.

This study revealed that farmers themselves were planning to get credit to

boost their production. This was reported by 44.1% of the respondents,

furthermore 42.4% of the respondents in Mukono were ready to adopt

improved farm production technologies. It is reported that large scale

improvement in production at micro-economic level will lead to increased

growth at the macro-economic level.

CHAPTER 5

CONCLUSION AND RECOMENDATIONS

5.1 Conclusions

To rehabilitate the shattered economy as a result of poor internal policies,

political instability and external markets and shocks of the 1970s and early

1980s, the Uganda government programme in 1987 under which the price

controls and the monopoly of marketing boards were removed to stimulate

production and exports. The government reduced its control on external

trade and trade liberalization policies were partially implemented by

eliminating export duties. The aim was to bring domestic prices closer to

international prices.

The agricultural sector is the backbone of the Ugandan economy so that

the current and future development of the country will have to arise from

the sector. Owing to its size and importance in economic development,

this study attempted to study the impact of SAP on agriculture.

Furthermore, the study attempted to assess the efforts that have been

under way since the adoption of structural adjustment programmes in

addressing the problems arising from the liberalization policy on

agriculture.

It should be noted here also that since Uganda is an agrarian-economy in

the sense that agriculture alone contributes to over 42% percent of the

national income, employees over 80% percent of the active labour force,

contributes to more than 80% percent of the foreign exchange earnings

and form a backbone for much of manufacturing sector, it becomes very

difficult to draw a boundary for the liberalization policies and macro-

economic policies. It is therefore the objective of this study to determine

the effects of SAP on output, household income and government budget.

A time frame is considered to determine the pace at which liberalization

policies should be implemented. The study also analysed the vulnerability

of the liberalized economy in case of unfavourable changes in external

market conditions. Besides, farmers’ socio-economic characteristics and

their perception towards SAP examined under the hypothesis that farmers

respond to price changes by adjusting their output. It is also hypothesized

that trade liberalization leads to increased output, exports, household

income and consumption and makes the economy less prone to external

economic shocks.

5.2 Policy recommendations

Given the fact that farmers respond to changes in market conditions,

appropriate policy measures should be undertaken to increase the flow of

benefits that accrue from adjustment policies to the farming community. If

such measures are not in place, efforts of carrying out structural

adjustment will be rendered fruitless.

As evident from the results, some of the programmes in the SAP have

generally had a positive impact on the economy. In the case of agriculture

liberalization policies have greatly improved exchange rate over valuation.

This has completely reversed the implicit tax on agricultural exports.

There are still problems with the marketing especially because of

problems of poor infrastructure which requires some time to completely

change. For example, it will require some time before all roads could be

upgraded to ease the transportation of agricultural products. In addition,

this too would require complete rehabilitation of the transport sector which

could not be done over-night.

There is a need to look into measures of controlling the minimum prices

for the products, otherwise, produce buyers would exploit the farmers.

Whereas a free market system is the best, it takes sometime to develop

it. Before then, government should some how direct activities to protect

the farmers who would be vulnerable to unscrupulous businessmen.

The effort at diversifying the agricultural export sector should be supported

not to leave coffee and cotton as the major crops. In fact, cotton is no

longer an important export crop. Fortunately, this policy has already been

started on. It is envisaged that with a wider range of tax from, it could be

balanced thereby lessening the burden on coffee and cotton growers.

5.3 Recommendations for further research

Due to some limitations, this study could not address all the important

issues pertaining to agriculture in Uganda especially Mukono. Such a

study should not consider a favourable technical change, it should also

look at the adverse part of it such as unfavourable weather drought, since

Ugandan agriculture is nature-dependent.

Another area of economic interest is extending the study to address

environmental issues, such a study should focus on the impact of SAP on

key environmental variables and the resultant impact on agriculture in

particular.

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Development, Series No.2, Foundation for African Development.

Bibangambah, J. R. (1994), The Impact of Structural Adjustment on

Agricultural producers in Uganda. In: MUNENE J. C. (Ed),

Empowerment, Poverty and Structural Adjustment in Uganda,

Friedrich Ebert Foundation, PP. 5-19.

Dong Lual, Kastner Markus, Young Crawford (1991), Democratisation

and Structural Adjustment in Africa in the 1990s, African Studies

Program, University of Wisconsin – Madison.

Green Duncan (2003), Structural Adjustment Programmes, Cafod

www.cafod.org/saps.htm

Husain, I. (1994), Adjustment in Africa; Lessons from country case

studies. In: KAPOOR, K. (Ed), Africa’s Experience with Structural

Adjustment Proceedings of the Harare Seminar, World Bank, PP. 28-40.

Ilrig, January / February (1996), Structural Adjustment and its Effects

on Women, Workers’ World News.

Jaeger, William. (1981), The Impact of Policy in African Agriculture: An

Empirical Investigation, World Bank Working Paper.

Kabuga, Charles. October (2001), The Impact of Structural Adjustment

Programmes on the Agricultural Sector and Rural Livelihoods in Africa,

IFAP.

Krueger, Anne. (1989); Agricultural Incentives in Developing

Countries; Measuring the Effect of Sectoral and Economy-Wide Policies,

World Bank Economic Review,VOL 2,No; PP. 255-271

Manyire, H. (1994), The Impact of Structural Adjustment on

agricultural producers in Uganda. In: MUNENE, J. C. (Ed),

Empowerment, Poverty and Structural Adjustment in Uganda,

Friedrich Ebert Foundation, PP.41-61.

Okwi O. Paul, Matovu Fred, Mpuga (2000), A hand-book of

Development Economics.

Reed, David. (1992), Structural Adjustment, The Environment and

Sustainable Development, Earth Scan.

Rural Life and Agriculture Tour, Zambia (2002), Just Business,

www.justbusiness.org/saps.htm

Todaro, P. Michael. (1985), Economic Development in the Third World,

Third Edition, New York, Longman.

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_______, December (1992), The journal of the Uganda Society, Vol. 42,

New Vision Printing & Publishing Corporation

Appendix QUESTIONNAIRE

Introduction This questionnaire is designed to establish the effects of SAP on Agriculture in

Uganda in Mukono. This information is for educational purposes and not for any

other use. Your responses will be strictly confidential and will be analyzed along

with information from other respondents.

Section 1: Socio-Demographic information

1. Sex a) Male

b) Female

2. I) Age a) Below 18 years

b) Between 18 – 30 years

c) Above 30 years

ii) Age of household members a) Below 12 years

and size b) Between 12 – 18 years

c) Above 18 years

3. Marital Status a) Married

b) Separated

c) Single

d) Widowed

e) None of the above

4. Educational background a) Primary

b) Secondary

c) Tertiary

Section 2: Farmer’s assets possession information

5. Size of land (Hectares) a) Below 2

b) Between 2 – 5

c) Between 5 – 10

d) Above 10

Type Prices

6. I) Type of livestock and prices a) Cattle - - - - - -

b) Goats - - - - - -

c) Pigs - - - - - -

d) Poultry - - - - - -

ii) Number of livestock kept a) 1

b) Between 1 – 5

c) Above 5

iii) Number of livestock sold a) 1

b) Between 1 – 5

c) Above 5

7. (i) Type of tools a) Tractors

b) Hoes

c) Sprayers

(ii) Number in 7(i) above a) 1

b) Above 1

Section 3: General information

8. (i) Major cash crops and food crops a) Coffee

b) Bananas

c) Beans

d) Sweet potatoes

e) Maize

(ii) Crop land in use in a) Below 0.5

8 (i) above (hectares) b) Above 0.5

(iii) Crop output and prices Output Prices

a) Coffee - - - - - - - - - - - -

b) Bananas - - - - - - - - - - - -

c) Beans - - - - - - - - - - - -

d) Sweet potatoes - - - - - - - - - - - -

e) Maize - - - - - - - - - - - -

9. Farmer’s access and use of skilled labour ……………………………………

………………………………………………………………………………………

10. Farmer’s access and use of subsidized inputs. ………………………………

……………………………………………………………………………………..

Section 4: Key informant information

14. Farmer’s access and market places of the produce compared to the one

before SAP implementation and reasons for differences in these selling

places.

15. Changes in farm output during the SAP period and reasons for the

changes.

16. Farmer’s problems and their strategies and wishes to solve them.