Profitability of apple enterprise among small-holder farmers in South Western Highland Agro-Ecological Zone (SWHAEZ) of Uganda
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Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Development and Agricultural Economics
Abstract
The study evaluated the socio-economic viability and factors influencing profitability of apple
enterprise under smallholder farming system in Uganda. A sample of 52 apple farming households was
randomly selected in the districts of Uganda: Kabale, Kisoro, Kanungu and Rukungiri. Data were
collected with the use of structured questionnaires, and analyzed using descriptive statistics, gross
margin analysis and multiple regression model. The results showed that apples were planted on small
scale with only 6% of land allocated to total apple enterprise in 2011. However, land allocation to apple
enterprise is increasing and the enterprise currently covers 20% of farm lands. The dominant varieties
among apple farmers are Golden Dorset, 56.1% and Anna, 40.9%. Men constituted 74.5% of the apple
farmers, while the mean age of apple farmers was 57 years, with an average experience of over 10
years. Gross margin of apple enterprise in Kabale and Kanungu district had a positive ratio of return
on investment of 1.5 and 1.7, respectively. Kisoro and Rukungiri districts had a negative ratio of
return on investment of (0.9 and 0.3, respectively). Ordinary least squares (OLS) results indicated that
the gender of the respondent, family size, access to credit, influence of birds, type of apple variety,
number of apple trees planted, amount of labor used and quantity of inorganic fertilizers applied were
significant determinants of net income in apple production. There is need to reduce the labor costs in
apple establishment and management, promote strategies that encourage the youth to participate in
apple farming. Research has to come up with an effective but affordable remedy against the negative
influence of birds in apple production. Farmers need to be linked to financial providers for credit access
at low interest rate in order to facilitate routine apple management practices.
Description
Keywords
Apple enterprise, Smallholder farmers, Gross margin, Return on investment
Citation
Aheisibwe, A. R., Etiang, J., Ashaba, D., Kwikiriza, G., Mwesige, R., Muhereze, R., & Barekye, A. (2017). Profitability of apple enterprise among small-holder farmers in South Western Highland Agro-Ecological Zone (SWHAEZ) of Uganda. Journal of Development and Agricultural Economics, 9(7), 190-199. DOI: 10.5897/JDAE2016.0805