Uptake and economic efficiency of high-quality cassava flour production and processing in eastern Uganda

Abstract

and the potential to overcome the challenges of limited markets and poor prices of dry cassava chips has been promoted in Eastern Uganda. Farmers in the region are already knowledgeable and experienced in the production of cassava chips – the key input product or ingredient. Farmer uptake of this beneficial technology has however remained low. The current study analysed the empirical reasons for the low uptake and the profitability of this technology. The study used quantitative data collected from 170 sampled cassava farmers in Eastern Uganda. The study analysed the profitability and drivers of farm level uptake of high-quality cassava flour processing in Eastern Uganda. The study employed an unrelated bivariate probit model to estimate uptake while the economic efficiency of processing of high-quality cassava flour was estimated and compared across the Cobb-Douglas and a Translog fits of the stochastic cost function. Empirical results show that high quality cassava flour processing is profitable. Processing farmers earning a net profit of UGX 230 (margin of 21.9%) per unit. The returns from the processing were higher than the net margins earned by farmers selling dry cassava chips who earned a net profit of UGX 41 or a net margin of 5.7% per unit. The key enablers of the uptake of high-quality flour processing are farmer group membership, the use of hired labour, the adoption of improved cassava varieties, and the number of cassava plots cultivated. Farmer distance away from the markets was found to have a negative effect on uptake. High-quality cassava processing farmers operate at a mean economic efficiency level of 73.8%. Output and wages are the significant drivers of processing costs. The study recommends the continued support and promotion of highquality cassava flour processing, strengthening of farmer group membership, improvement of access to markets, and the introduction and use of more labour-efficient and appropriate technologies like the introduction of small-scale mobile processing equipment.