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Articles

Vol. 7 No. 2 (2012)

Financial performance of cattle and crop production enterprises in selected pastoral and agro-pastoral production systems Uganda

Submitted
12 October 2021
Published
06-01-2012

Abstract

A study was done to determine the financial performance of cattle and crop production enterprises in four districts in Uganda to represent the agro-pastoral in Teso region of Uganda (Katakwi, Kumi and Bukedea) and pastoral areas in Kiruhura district in Western Uganda. Cross-sectional and longitudinal studies were done. The farmers in eastern region were agro-pastoral each owning 5 to 20 acres of land of which 85% to 90% was used for crops, while Kiruhura farmer had about 140 acres of land of which 90.9% was for livestock with only 9.1% being used for crop production. The cattle stocking rate were 1.29 cattle per acre in Katakwi, 0.53 cattle per acre in Kiruhura, 2.17 cattle per acre in Kumi and 0.6 cattle per acre in Bukedea. Cattle contributed to highest proportion of the total household (h/h) incomes in all the districts. In Kiruhura, cattle contributed 90% of the h/h income, 82% in Kumi, 62% in Katakwi and 59% in Bukedea. In Kiruhura, crops had a negligible contribution of 0.1% to the h/h income. The average h/h income was highest in Kiruhura Ug. Shs. 28,329,025 (equivalent to USD 15,738 at exchange rate of I USD =Ug. Shs. 1,800), Katakwi, at Ug. Shs. 4,338,805 (equivalent to USD2410), Bukedea Ug. Shs. 3,354,703 (equivalent to USD1,864) and Kumi Ug. Shs. 2,399,078 (equivalent to USD1333). This gave an average per capita income in Kiruhura to be USD3,148, Katakwi USD 603, Kumi USD444.3 and Bukedea USD373. The annual Gross Margin (GM) for the cattle enterprise per h/h was highest in Kiruhura amounting to USD 15,999.9. This GM was 6.5 times higher than for Katakwi (USD2,454), 9.2 times higher than for Kumi (USD 1,733.7) and 10.7 times higher than for Bukedea (USD 1,501). Milk output and cattle live sales were the major sources of output from cattle enterprises. The value of cattle sales in Kiruhura was 8 times higher than in Katakwi; and 19 times higher than in Kumi and 28 times in Bukedea. The milk and milk product output in Kiruhura was 12 times higher than in Katakwi and 11 times higher than in Kumi and 16 times higher than in Bukedea. In Kiruhura the crop enterprises were not profitable with farmers incurring losses (GM = USD-521). The GM of the crop enterprise in the agropastoral area was positive but lower than the profitability of the cattle enterprise. Annual h/h GM for crop enterprises was 0.36 times of cattle in Katakwi, 0.28 times in Kumi and 0.05 times in Bukedea. The annual GM of crop enterprise per h/h was USD762 for Katakwi, USD304.5 for Kumi and USD59.5 for Bukedea.

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