Coffee Production in Uganda: the role of Non-Price Factors; 1970/71-1994/95
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Date
1996
Authors
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Publisher
University of Dar es Salaam
Abstract
Uganda’s traditional export crops are coffee, cotton, tea, tobacco and cocoa. On these only coffee survived as a major export crop. The production of the rest declined due to the socio-economic and political break down over the years. The study presents the responsiveness of coffee output to price and non-price factors over 1970/71-1994/95 period. The nerlovian partial adjustment model was used to investigate the response of coffee output to price and non-price factors. This was due to its successful use by earlier studies and the fact that it forms the foundation of studies on supply response. Real producer price, time trend as a proxy for other non-price variables, lagged output and weather conditions were independent variables. The cobb-douglas production function was estimated to investigate the role of non- price factors. The (log of) coffee output was regressed on the (log of): area harvested, weather research investment and time trend. Regressions for the entire sample period and for periods within the study period are presented. Contrasting results were obtained over the different periods for the two models. Results for the nerlovian model showed that for much of the study period, real producer price impacted negatively on coffee output which may due to, among others, late payment to farmers. Weather, lagged output and other non-price factors generally impacted positively on coffee output. Results of thee cobb-douglas production function showed that area harvested, research investment and weather positively influenced coffee production. Time trend negatively affected coffee output, which points to the need for improved infrastructural facilities. These may include among others, rural feed road network and others that do not directly affect coffee production but are crucial to the functioning of the rural economy. It thence suggests that policy makes would do well to devote as much attention and effort to the provision of non-price factors like technology, infrastructure and human capital as to price movements for stimulating coffee output in Uganda.
Description
Available in print form, East Africana Collection, Dr.Wirbert Chagula Library, Class mark (THS EAF HD9195.Y3)
Keywords
Coffee trade
Citation
Yawe, B. L (1996) Coffee Production in Uganda: the role of Non-Price Factors; 1970/71-1994/95, Masters dissertation,University of Dar es Salaam, Dar es Salaam.