Value Chain Development in Uganda: Lessons Learned from the Application of the Participatory Market Chain Approach

Abstract

The participatory market chain approach (PMCA) aims to stimulate innovations that improve the participation of small-scale farmers and processors in high-value market chains. From 2005 to 2007, the PMCA was introduced and applied on Uganda’s potato, sweet potato, and vegetable market chains. Market observations and stakeholder interviews indicate that the PMCA has contributed to the knowledge and skills of market chain actors and service providers, as well as strengthened the social capital needed for effective innovation processes. Commercial, technological, and institutional innovations have emerged, including development of products like sweet potato crisps and flour and a hot pepper appetizer, better packaging for potato crisps and sweet potato flour, and contract farming arrangements. While some of the first innovations were only used for a short time, others are still being used today. Additionally, the PMCA produced innovation processes that triggered further innovations. Strengthened social networks have facilitated information sharing and business development. Farmers, including women, have improved their market earnings and family welfare. After their initial work with the PMCA, several facilitators have delivered PMCA training or used this approach in other market chain development projects. The Ugandan experience highlights the importance of providing business development services after the PMCA, capacity development for farmers to improve their responsiveness to changing market demands, and sustainable arrangements for innovation brokerage services.