Leading the way: Foreign direct investment and dairy value chain upgrading in Uganda

Driven by increased demand from both local and export markets and facilitated by far-reaching liberalization and privatization policies, the dairy sub-sector in Uganda has undergone significant changes in the last decade. With a comparative advantage in milk production, the southwest of Uganda has s...

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Autores principales: Van Campenhout, Bjorn, Minten, Bart, Swinnen, Johan
Formato: Journal Article
Lenguaje:Inglés
Publicado: John Wiley & Sons 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/142279
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author Van Campenhout, Bjorn
Minten, Bart
Swinnen, Johan
author_browse Minten, Bart
Swinnen, Johan
Van Campenhout, Bjorn
author_facet Van Campenhout, Bjorn
Minten, Bart
Swinnen, Johan
author_sort Van Campenhout, Bjorn
collection Repository of Agricultural Research Outputs (CGSpace)
description Driven by increased demand from both local and export markets and facilitated by far-reaching liberalization and privatization policies, the dairy sub-sector in Uganda has undergone significant changes in the last decade. With a comparative advantage in milk production, the southwest of Uganda has started to attract considerable Foreign Direct Investment (FDI) in processing capacity, mainly targeting the export market. As a result, processing capacity increased five-fold and dairy became Uganda's third most important export product, coming from negligible amounts a decade earlier. In this study, we use data collected at different nodes within the value chain to identify some of the key innovations in these value chains. This is done by comparing the area that received the bulk of FDI to a similar area that did not. Furthermore, we also provide an econometric analysis that focuses on the integration of value chain actors into modern value chains more broadly defined. We find that dairy value chains are transforming rapidly, but innovations are more pronounced in areas that received the bulk of FDI. Our analysis further underscores the importance of milk collection centers, which often take the form of farmer cooperatives, in providing many of the support services that enable other actors in the value chain to produce sufficient milk, and maintain milk sanitation levels necessary for a modern export sector to emerg
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spelling CGSpace1422792025-12-08T10:06:44Z Leading the way: Foreign direct investment and dairy value chain upgrading in Uganda Van Campenhout, Bjorn Minten, Bart Swinnen, Johan value chains exports investment agricultural transformation dairy industry foreign investment Driven by increased demand from both local and export markets and facilitated by far-reaching liberalization and privatization policies, the dairy sub-sector in Uganda has undergone significant changes in the last decade. With a comparative advantage in milk production, the southwest of Uganda has started to attract considerable Foreign Direct Investment (FDI) in processing capacity, mainly targeting the export market. As a result, processing capacity increased five-fold and dairy became Uganda's third most important export product, coming from negligible amounts a decade earlier. In this study, we use data collected at different nodes within the value chain to identify some of the key innovations in these value chains. This is done by comparing the area that received the bulk of FDI to a similar area that did not. Furthermore, we also provide an econometric analysis that focuses on the integration of value chain actors into modern value chains more broadly defined. We find that dairy value chains are transforming rapidly, but innovations are more pronounced in areas that received the bulk of FDI. Our analysis further underscores the importance of milk collection centers, which often take the form of farmer cooperatives, in providing many of the support services that enable other actors in the value chain to produce sufficient milk, and maintain milk sanitation levels necessary for a modern export sector to emerg 2021-07-09 2024-05-22T12:10:15Z 2024-05-22T12:10:15Z Journal Article https://hdl.handle.net/10568/142279 en https://doi.org/10.1371/journal.pone.0237456 https://feb.kuleuven.be/drc/licos/publications/dp/dp422 https://doi.org/10.22004/ag.econ.313806 Open Access John Wiley & Sons Van Campenhout, Bjorn; Minten, Bart; and Swinnen, Johan. 2021. Leading the way: Foreign direct investment and dairy value chain upgrading in Uganda. Agricultural Economics 52(4): 607-631. https://doi.org/10.1111/agec.12638
spellingShingle value chains
exports
investment
agricultural transformation
dairy industry
foreign investment
Van Campenhout, Bjorn
Minten, Bart
Swinnen, Johan
Leading the way: Foreign direct investment and dairy value chain upgrading in Uganda
title Leading the way: Foreign direct investment and dairy value chain upgrading in Uganda
title_full Leading the way: Foreign direct investment and dairy value chain upgrading in Uganda
title_fullStr Leading the way: Foreign direct investment and dairy value chain upgrading in Uganda
title_full_unstemmed Leading the way: Foreign direct investment and dairy value chain upgrading in Uganda
title_short Leading the way: Foreign direct investment and dairy value chain upgrading in Uganda
title_sort leading the way foreign direct investment and dairy value chain upgrading in uganda
topic value chains
exports
investment
agricultural transformation
dairy industry
foreign investment
url https://hdl.handle.net/10568/142279
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