Domestic versus Export-Led Agricultural Transformation: Evidence from Uganda’s Dairy Value Chain

IFPRI Discussion Paper 1883

48 Pages Posted: 26 Dec 2019

See all articles by Bjorn Van Campenhout

Bjorn Van Campenhout

International Food Policy Research Institute (IFPRI)

Bart Minten

International Food Policy Research Institute (IFPRI) - CGIAR Consortium

Johan Swinnen

University of Leuven

Date Written: November 21, 2019

Abstract

Driven by increased demand from both local and export markets and facilitated by far-reaching liberalization and privatization policies, the dairy sub-sector in Uganda has undergone significant changes in the last decade. With a comparative advantage in milk production, the southwest of Uganda has started to attract considerable Foreign Direct Investment (FDI) in processing capacity, mainly targeting the export market. As a result, processing capacity increased five-fold and dairy became Uganda’s third most important export product, coming from negligible amounts a decade earlier. In this study, we use observational data collected at different nodes within the value chain to compare the structure of the chain and the roles and economic activities of different actors between export-led value chains and value chains that cater for the local market. Doing so allows us to identify the technological and institutional innovations that both result from the emergence of export-led dairy value chains and at the same time drive further upgrading. Our analysis underscores the importance of milk collection centers, which often take the form of farmer cooperatives, in providing many of the support services that enable other actors in the value chain to produce sufficient milk, and maintain milk sanitation levels necessary for an export sector to emerge.

Keywords: agriculture, supply chain, milk production, privatization, export promotion, exports, technological changes, innovation, technology, trade

Suggested Citation

Van Campenhout, Bjorn and Minten, Bart and Swinnen, Johan, Domestic versus Export-Led Agricultural Transformation: Evidence from Uganda’s Dairy Value Chain (November 21, 2019). IFPRI Discussion Paper 1883, Available at SSRN: https://ssrn.com/abstract=3499216

Bjorn Van Campenhout (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Bart Minten

International Food Policy Research Institute (IFPRI) - CGIAR Consortium ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Johan Swinnen

University of Leuven ( email )

Celestijnenlaan 200F
B-3001
Leuven
Belgium

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
30
Abstract Views
180
PlumX Metrics