Determinants of choice of fresh tilapia marketing channel by fish cross border traders, Uganda-Kenya
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The study investigated factors influencing the choice of fish traders’ marketing channels and determinants of fish trader’s gross margin at Busia border. A multistage sampling technique was used to select a sample of 115 fish traders. Four key informant interviews and two focus groups were conducted. A probit model and OLS regression were used to determine factors that influence the choice of fish trader’s marketing channel and trader’s gross margin. The probit model revealed that volumes of fish traded per month, distance to market, membership to a fish marketing organization, payment mode, selling price and household size were statistically significant in determining trader’s choice of marketing channel. In addition, it was found that a trader on average sold 6.882 and 2.095 tons of fish per month through the formal and informal channel respectively. Nonetheless, the study indicated that informal traders made 4 percent profit higher than formal traders. Further analysis using OLS showed that Age of fish trader, belonging to a fish marketing organisation, fish stock, category of fish trader, years in school and contract marketing affected fish trader’s gross margins significantly. The study therefore recommends promotion of cage farming,resting natural water bodies during off-peak and encourage supply of farmed fish in off peak period, all with intentions of increasing fish stock. Informal traders be mobilised into a marketing organisations, to ease different types of training which can help curb informal trade such as collective marketing, saving culture, among others.In addition, Investment in infrastructure such as roads and establishment of more ice plants will increase traders’ gross margin.Curbing informal fish trade is still a challenge given that fish is now the leading agricultural commodity traded informally.