Compliance with Maize Grain Standards in a Regional Market among farmers in Mubende District.

Abstract

This study examines compliance with grain post-harvest standards and their economic implications among smallholder maize farmers in Uganda. Smallholder maize farmers in Uganda are trapped in a low-quality equilibrium (where farmers lack quality incentives and buyers avoid local markets due to inconsistent produce quality). Using a cross-sectional survey of 381 maize farmers, the study characterized, analyzed the determinants of compliance, and assessed the associated gross profit. Data analysis involved descriptive statistics, the Probit regression model, and two-stage least squares. Findings revealed that education levels, land size, farming experience, literacy, labor type, and access to premium price varied between compliant and non-compliant maize farmers. The findings revealed that compliance with grain standards is driven by the literacy rate, land size under maize production, farmer experience in maize production, the type of labor used by the farmer, and market information. Further findings reveal that compliance with the grain standards negatively affects maize farmers' gross profit; however, the result is not statistically significant. Other factors that had a significant effect on maize farmers' gross profit were noted to include education, household size, access to credit, and maize acreage. The study recommends that the government, through the Ministry of Trade, Industries, and Cooperatives, strengthen market systems by supporting farmer cooperatives and warehouse receipt systems to aggregate compliant maize for premium buyers (processors, exporters). Subsidizing quality-enhancing technologies, and providing value chain-focused agricultural loans would improve compliance incentives, market access, and smallholder profitability.