Value Chain governance and standards compliance in fresh fruit and vegetable (FFV) export sector in Uganda

Abstract

This study analyzed the relationship between value chain governance and standards compliance among Fresh Fruits and Vegetables (FFV) exporters in Uganda. The main objective of the study was to determine the relationship between value chain governance and standards compliance at the export stage of FFV value chain and the roles played by Institutional actors. While Uganda has experienced growth in FFV exports to the European Union (EU) market, strict requirements for compliance with private and public standards still pose a challenge to sustainable growth of the sector as heavy investments in infrastructure and processes associated with bulking cleaning, grading, packaging, labeling and eventual transportation of FFV to the point of dispatch is a prerequisite. In order to ensure food quality and safety compliance in EU, public standards due diligence clause places the burden of responsibility on the importing firms. Accordingly importers equally control and monitor FFV supplying exporters through value chain governance.However despite the value chain governance, Uganda continues to record cases of intercepted FFV exports that fail to meet EU standards. It’s not clear whether value chain governance exercised by importing lead firms is sufficient to make Uganda’s exports comply with standards that guarantee quality and food safety. The Cross sectional survey design involved the use of questionnaires and guided interviews as data collection techniques on a sample drawn from FFV exporters registered with Uganda Export Promotions Board (UEPB). Findings indicate that value chain governance coupled with policies from government institutions and the private sector associations are positively linked to standards compliance at the export stage of the value chain. Overall, the study results indicate that value chain governance has positive impact on standards compliance and calls for appropriate Government policy and legislative interventions that enhances it.