African Journal of Tropical Agriculture

African Journal of Tropical Agriculture ISSN 2375-091X Vol. 2 (12), pp. 116-122, December, 2014. © International Scholars Journals

Full Length Research Paper

Hindering factors to the effectiveness to second-tier rural producer organizations (RPOs) in linking their members to output markets in Uganda

Rukiya Nakadama Odipo

Department of Agriculture Economics, Extension and Rural Development, Kyambogo University, Kampala, Buganda.

E-mail: pdiponakadama@kyu.ac.ug

Accepted 9 November, 2014

Abstract 

The study investigates the factors influencing the effectiveness of second-tier rural producer organizations (RPOs) in linking their members to output markets in Uganda. The percentage of farmers who sold some of their produce through the RPO was used as a proxy for effectiveness. Ordinary least squares (OLS) regression analysis indicated that RPO effectiveness was positively related to the size of a RPO and democratic leadership. On the other hand, the proportion of RPO leaders with leadership training, enforcement of internal control practices, bulking distance and size of executive committee had a significant negative effect on the effectiveness of such organizations. It was concluded that improving the effectiveness of RPOs required the (i) use of numerous sub-committee instead of many all-member meetings and smaller executive committees; (ii) dedication, respect and commitment by leaders of RPOs when imparting skills learnt in order to boost members’ morale; (iii) devising reward systems for leaders or putting in place stringent rules, such as leadership codes, to guide leader behaviour so as to prevent conflict of interest and possible elite capture; and (iv) policies guiding Savings and Credit Cooperatives (SACCOs) lending conditions be reviewed to match rural producers’ economic status and seasonality of enterprises.

Key words: Marketing rural producer organizations (RPOs), RPO effectiveness, smallholder farmers, market participation, Uganda.