Factors Affecting Mushroom Value Chain and Income Generation among Smallholder Farmers in Mbarara District

Abstract

he study was about the factors affecting mushroom value chain and income generation among smallholder farmers in Mbarara district. The specific objectives included to; analyze the mushroom value chain actors in Mbarara; find out the actors perceptions on local and oyster mushroom production and value addition, assess the effect of mushroom value added products on the income of smallholder farmers in the area, and identify the socio-economic and institutional factors limiting farmers participation in mushroom production and value chain. The study wasdescriptive cross-sectional surveyin nature using quantitative and qualitative approaches for data collection and analysis. Information was captured from a sample of 206 respondents using questionnaire and interviews. SPSS was used for analysis and generationof descriptive and inferential statistics.The study identifiedthe mushroom value chain actors as; input suppliers, producers, traders, processors and consumers. Actors had varying perceptions on local and oyster mushroom production and value addition in Mbarara District. Theyalleged Mushroom production was laborious, required less small space, associated with many technical problems, needed relative input investment and had limited cultivation information.Mushroom valued added products had a significantcontribution towards smallholder farmer’s income.Income status of the households, lack of knowledge on value addition technologies, lack of storage facilities, lack of dryers, lack of credit services/financing, and electricity shortages were the significant socio-economic and institutional factors limiting farmer’s participation in mushroom production and value addition. The study concluded that there were factors affecting mushroom value chain and income generation among smallholder farmers in Mbarara District and recommended that value chain actors be encouraged to form groups rather than operating as individuals. This could simplify the process of accessing inputs, services like credit as well negotiate prices for both un-processed and processed mushroom products. More education and awareness are needed to change the mindset and perceptions of actor’s farmers towards mushroom production and value addition. This can be achieved through periodical workshops and seminars with farmers.