Market intelligence, entrepreneurial behavior, and profitability in agriculture: Evidence from a randomized controlled trial in northern Uganda
Takeshima, Hiroyuki · Maruyama, Eduardo · Yamauchi, Futoshi
Aug 2026 · IFPRI Discussion Paper Book 2435 · International Food Policy Research Institute
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40
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About this ebook
Smallholder farmers often make production decisions with limited information about market conditions, leading to suboptimal farm profits. This challenge is particularly important in the production of fruits and vegetables, which are often rich in micronutrients and can serve as high-value cash crops but are also highly perishable. We evaluate a bundled, market-oriented horticulture intervention in northern Uganda designed to shift farmers’ mindset from “grow and sell” to “grow to sell”, by promoting their engagement in active market intelligence activities, in addition to support for production. Using a cluster-randomized design combined with panel data methods, we find that treated farmers increased production revenues by 20–25%, profit margins by about 11 percentage points, and prices received by roughly 20%, without increasing family labor use. These gains are accompanied by noticeable behavioral changes, including more frequent and more diverse collection of price information and expanded buyer networks. Mediation analysis indicates that improvements in market intelligence explain a meaningful share of these effects. The results suggest that interventions that strengthen farmers’ ability to align production decisions with market demand can generate substantial income gains. These findings highlight the importance of integrating market intelligence into agricultural extension systems.
Smallholder farmers often make production decisions with limited information about market conditions, leading to suboptimal farm profits. This challenge is particularly important in the production of fruits and vegetables, which are often rich in micronutrients and can serve as high-value cash cr...
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