SMALLHOLDER FARMERS’ TRUST AND COMMITMENT INFLUENCE COLLECTIVE MARKETING OUTCOMES FOR THE RICE PRODUCER ORGANIZATIONS IN MID- WESTERN UGANDA

Abstract

The ability of a collective marketing arrangement to market smallholder produce comes from the unity and attributes of its members. This study determined the influence of trust and commitment of smallholder rice farmers on the collective marketing outcomes of collective marketing organizations of mid-western Uganda. A cross-section design, involving two surveys was used to obtain data from 361 smallholder rice farmers, who subscribed to farmer groups and associations that promoted collective bulking, storage and marketing of rice. The first survey captured farmers’ perceptions of trust (integrity, benevolence and propensity) and commitment (affective, continuance and normative) while the second estimated farmers’ participation in collective marketing and the intensity with which those who participated marketed their rice collectively. Using Double-Hurdle regression, this study showed the main drivers of participation in collective marketing to be integrity (β= 0.11; P<0.05) and benevolence (β= -0.13; P<0.05) in the domain of trust. Farmers who subscribed to farmer associations were also more likely to participate in collective marketing than counterparts subscribing to farmer groups (β= 0.64; P<0.001). Trust and commitment influenced the intensity of collective marketing. Particularly, farmers with higher integrity trust (β= 0.16; P<0.001) and propensity trust (β= 0.15; P<0.001), and affective commitment (β= 0.13; P<0.05) and continuance commitment (β= 0.12; P<0.05) collectively marketed more rice volumes. The revelation that members’ trust, commitment and being subscribed to farmer associations attract more participation higher volumes of rice marketed collectively means that higher-level forms of organizations enhance trust and commitment towards collective marketing. Extension agents and policymakers should promote higher forms of farmer organizations that enhance the trust and commitment of members to their collective marketing arrangements.