MARKET STRUCTURE AND PRODUCT UPGRADING IN THE SHEA NUT VALUE CHAIN IN NORTHERN UGANDA

dc.contributor.authorAkatwetaba Deborah
dc.date.accessioned2026-09-30T08:37:49Z
dc.date.available2026-09-30T08:37:49Z
dc.date.issued2025
dc.description.abstractABSTRACT Shea nut is an economically important parkland tree species found in parts of northern Uganda. Whereas the collectors form the bulk of the actors in the chain, it is not clear whether their scale of operations of actors above the chain makes them less competitive. To better understand the Shea value chain for purposes of proposing better ways of improving its competitiveness, this study assessed competitiveness of Shea actors along the chain. The study also assessed the factors associated with value addition and product upgrading as well as factors influencing Shea nut actors‘ choices of Shea nut marketing arrangements in northern Uganda. This study Crosssectional primary data was collected using respondent driven sampling approach. A total of 252 collectors, 51 traders, and 22 processors were included in the study. Additionally, qualitative data was collected using focus group discussions and key informant interviews. Results showed that the average market share of the collectors, traders, and collectors are 0.4%, 1.9%, and 4.5%, respectively. The concentration ratio (CR4), of collectors and traders, were both less than 40%, while, for processors was 65%. Further, results showed that 84% of Shea nut collectors practice some level of value addition with 11.5% adding value to all of the Shea nut collected. Over 50% of the Shea nut collectors had at least one value-added product, the most common products being roasted kernel and crude butter (37.3%). Regression analysis revealed that level of value addition and number of value-added products per collector were influenced by several factors including age, gender, household size, extension access, information access, association membership, and market arrangement. About 73% and 43% of Shea collectors and traders, respectively, sold their Shea nuts and/or products through spot markets, while, 45% of the processors sold their Shea nut and/or products through informal contracts. Formal contract was the least common marketing arrangement among all the actors. The probability of choosing each the marketing arrangement were influenced by several factors including experience, education, income level, access to extension, training, access to credit, awareness of innovations in the Shea value chain, awareness of value addition supporting institutions, main occupation, distance to the market, access to information and means of transport used. The findings of this study suggest an oligopolistic tendency among Shea processors, and the need for regulations to protect both the traders and the collectors from potentially unfair competition that may come from the few processors. Further, the findings imply increasing Shea value addition in terms of both proportions allocated to value addition and number of value-added products require adopting a group approach to provision of value addition and Shea processing information. Therefore, there is need to encourage Shea actors to form associations focused on value addition. Efforts to increase formal contract participation should focus on providing extension services and creating awareness about institutions that support value addition. There is need for a location and actor specific approach in promoting the different market arrangements in Shea products marketing.
dc.description.sponsorshipSef Sponsorship
dc.identifier.urihttp://hdl.handle.net/20.500.14270/957
dc.language.isoen
dc.publisherGulu University
dc.subjectConcentration Ratio
dc.subjectformal contracts
dc.subjectinformal contract
dc.subjectproduct upgrading
dc.subjectShea Nut
dc.subjectShea Nut Actors
dc.titleMARKET STRUCTURE AND PRODUCT UPGRADING IN THE SHEA NUT VALUE CHAIN IN NORTHERN UGANDA
dc.typeThesis

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