Social Capital, Access to Microfinance and Quality Post-Harvest Handling in Coffee Growing in Buikwe Districti
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Date
2021-12-02
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Makerere University Business School
Abstract
Uganda is one of the biggest coffee growers in Africa. However due to poor post-harvest handling practices, Uganda is slowly losing its international market share. The quality of the coffee produced is below the world standards. The study explored how access to microfinance mediates the relationship between social capital and quality post-harvest handling in coffee growing.
The study used a mixed methods approach. The exploratory sequential mixed methods design was characterized by an initial qualitative phase of data collection and analysis obtained from seven (7) respondents, followed by a phase of quantitative data collection and analysis obtained from 200 respondents. A sample of 242 respondents was selected from the study population of 647 coffee farmers from Buikwe Riis Coffee Farmers’ SACCO Limited (BRCFS); however, the actual respondents were 200, giving a response rate of 83%. Data were collected using in-depth interview guide and a self-administered questionnaire and, the results were analyzed using thematic analysis for the qualitative results and SPSS for the quantitative results.
The study has three major findings. First, social capital improved farmers’ access to capital. Second, the functionality of farmer networks is accentuated by reciprocity of networks, trust and knowledge sharing. Third, through networks, farmers are able to share knowledge and carry out collective initiatives that helped them improve their post-harvest handling practices. The results also indicated that farmers improve quality post -harvest through access to adequate loan sizes at low interest rates and with favorable terms and conditions. Most farmers also indicated that the ease of access to microfinance by farmers enabled them to invest in the inputs that proved vital in improving their coffee post-harvest management activities. The qualitative findings further, established that being in a social group enhances access to microfinance, which improves quality post-harvest handling. The quantitative results also revealed that social capital among coffee farmers through social networking, information sharing and trust positively and significantly influences quality post-harvest handling in terms of processing, storage, value addition and transportation, while access to microfinance indicated a positive and statistically insignificant effect on quality post-harvest handling. The partial mediation effect of access to microfinance on the relationship between social capital and quality post-harvest handling was confirmed.
The study recommends BRCFS to encourage the coffee farmers to join farmer groups in order to increase their social network that will enable them to improve on trust and improved knowledge sharing which will improve on the quality of the post-harvest handling practices. The study recommends that network leaders should encourage and nurture trust among members so that they can actively participate in productive goals such as post-harvest handling. Access to microfinance can also be improved through offering favorable financing mechanisms such as through grants and other support schemes that are customized to coffee farming credit-based service that do not constrain farmers.
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This is a master's thesis
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Citation
Nabaloga, C. (2021). Social Capital, Access to Microfinance and Quality Post-Harvest Handling in Coffee Growing in Buikwe Districti. Makerere University Business School.