Abstract:
The study investigates the factors influencing the effectiveness of second-tier rural producer
organizations (RPOs) in linking their members to output markets in Uganda. The percentage of farmers
who sold some of their produce through the RPO was used as a proxy for effectiveness. Ordinary least
squares (OLS) regression analysis indicated that RPO effectiveness was positively related to the size of
a RPO and democratic leadership. On the other hand, the proportion of RPO leaders with leadership
training, enforcement of internal control practices, bulking distance and size of executive committee
had a significant negative effect on the effectiveness of such organizations. It was concluded that
improving the effectiveness of RPOs required the (i) use of numerous sub-committee instead of many
all-member meetings and smaller executive committees; (ii) dedication, respect and commitment by
leaders of RPOs when imparting skills learnt in order to boost members’ morale; (iii) devising reward
systems for leaders or putting in place stringent rules, such as leadership codes, to guide leader
behaviour so as to prevent conflict of interest and possible elite capture; and (iv) policies guiding
Savings and Credit Cooperatives (SACCOs) lending conditions be reviewed to match rural producers’
economic status and seasonality of enterprises.
