Gross margin analysis on dry cassava marketing channels in Soroti city east divison.
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Date
2026
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Busitema University
Abstract
Cassava remains a vital food and cash crop in Eastern Uganda, yet smallholder farmers in Soroti City East Division continue to struggle with identifying the most profitable channel for marketing dry cassava. This study assessed the profitability of dry cassava marketing channels, examined the factors shaping farmers' channel choices, and compared the returns of each channel. A cross-sectional survey was conducted among 129 smallholder cassava farmers selected through multistage sampling. Data were analyzed using descriptive statistics, multinomial logistic regression, and gross margin analysis complemented by net profit, benefit-cost ratio (BCR), and return on investment (ROI) computations.
Four marketing channels were identified: direct sales to consumers, retailers, wholesalers, and processors. Although used by relatively few farmers, the wholesaler channel handled the largest sales volume and generated the highest average net profit per farmer (UGX 2,138,865). The processor channel, meanwhile, delivered the highest ROI (1,614.3%) and BCR (17.1), making it the most cost-efficient option. Channel choice was significantly influenced by land size, education, marketing experience, and distance to market, while women remained underrepresented in the more lucrative wholesale channel. Most farmers had limited control over pricing, reflecting weak bargaining power, although high mobile phone use and strong willingness to join farmer groups point to real potential for more organized and profitable marketing.
The study concludes that dry cassava marketing is profitable across all channels in Soroti City East Division, but profitability varies depending on the channel accessed. It recommends strengthening farmer organization, market information access, and credit support to enable broader access to higher-return channels, and calls for similar studies across other cassava-producing areas in the Teso sub-region.
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Undergraduate research report
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Ekolu, I. (2026). Gross margin analysis on dry cassava marketing channels in Soroti city east divison. [Unpublished undergraduate research report]. Busitema University.