Farming household food storage, consumption and sales decision making under price risk in northern Uganda

Abstract

Mamo Girma Benti, Kato Awori, Wasswa Muwenda

This study extended the agricultural household model to explain food storage , consumption and sales behaviors of farming households in northern Uganda using two major staple grains: finger millet and beans. Using secondary data collected by the Uganda Bureau of Statistics from 782 millet and beans producing households (388 households below poverty level and 394 households above poverty level), seemingly unrelated regressions were performed and risk neutrality tests were carried out. It was found that all finger millet and beans producing households in northern Uganda were risk neutral regarding storage and sales decisions with only millet producing households below poverty line being risk averse in their consumption decisions. However, households above poverty line produced and stored more millet and beans implying that they were more food secure than households below poverty level. Therefore, strategies to boost incomes, production and prudent management of millet and beans stocks at the household level are critical for food security alleviation in northern Uganda.