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Data Analysis Chapter Four and Five

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CHAPTER FOUR

PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS


4.1 Introduction
This chapter presents the findings that the researcher obtained from the study conducted. This
chapter gives the presentation, analysis, and interpretation of the results of the study. The trend
of discussion is focused on providing a critical analysis of the effect of non-tariff barriers (NTBs)
on Uganda’s milk exports to Kenya, a case of Malaba. It is comprised of three sections, namely:
the background information of respondents; the presentation of the findings of the study
objectives using item mean results and correlation results; and the combined relationship
between the independent variable and the dependent variable using descriptive statistics and
correlation analysis.

4.2 Response Rate


The researcher used a mixed-methods research design by specifically applying an explanatory
sequential design. The response rate was frequently used to compare the quality of the survey.
The study targeted a sample of 52 respondents (46 milk exporters, 10 transporters, and 6 clearing
agents). Out of the 46 questionnaires used in the field, 45 were recovered and 1 was
unrecoverable, giving a percentage response of 97.8%. Out of the recovered or used instruments,
all were valid and used for data analysis, thus giving a valid instrument percentage of 100%. The
response rate was high because many respondents had a clear explanation of the purpose of the
study. Even though they were worried about revealing their secrets, they had a belief that the
results would help them gain a competitive edge, drive innovation, and achieve long-term
success. This is in line with Frederick and Wiseman (2003), who asserted that a response rate has
to be presented in research findings as they represent the validity of the study, and failure to do
so put the validity of the study findings into question. The response was also supported by
Mugenda and Mugenda (2003), who classified responses variously: a response rate of 50% is
adequate, any response not exceeding 60% or greater than 50% is good, and a response rate
above 69% is very high. The response of 100% was therefore very good and would produce
useful data; further, all the areas of data collection were represented.
4.3 Descriptive Statistics
Descriptive statistics are concerned with explaining the sample of data that the researcher is
concerned with. They are used to describe the main features of a collection of data quantitatively.
Below are the findings:

4.3.1 Respondents by gender


This section shows the background of the respondents, according to gender, educational level,
age, categorical group responses as per Section A of the questionnaire.

Respondents were asked to indicate their gender either male or female and the responses are as
follows;
Table 4.1 showing gender of respondents

Category F CumF % Cum %


Male 24 24 53 53
Female 21 45 47 100
Total 45 100
F=frequency, CumF=Cumulative Frequency, Cum %=Cumulative Percentage, % = Percentage
Source: Primary data (2024)

Figure 4.1: the distribution of respondents according to gender

Respodents by gender

Female
Male 47%
53%

Source: Primary data (2024)

Respondents were asked to show by ticking in the box, their gender and the response is indicated
in the table 4.1 and figure 4.1 above. In response, both table 4.1 and the figure 4.1 illustrate that
out of the total of 45 respondents, the male respondents had the highest representation of 53%
(24) and the female respondents had less of 47% (21), although the difference is not so big. This
was because male were not only more cooperative but they were available at the time when the
study was being carried out. In addition, most of the milk exporters were male compared to their
female counterparts. The study on the impact of Non-Tariff Barriers (NTBs) on Uganda's Milk
Exports to Kenya, specifically in Malaba, found a higher number of male respondents compared
to females. Factors contributing to this include the traditionally male-dominated dairy industry,
cultural norms and access barriers, decision-making roles in agricultural and trade-related
activities, disparities in awareness and availability of participation opportunities, social norms
and expectations regarding gender roles, language barriers, and sampling bias. This is in line
with Karujia et al. (2019) that these factors may lead to stereotypes about gender expertise and
inadvertently limit female participation in research studies.

4.3.2 Age demographics of respondents


The study obtained details about the age groups of the respondents for purposes of understanding
their age and possibly the experience they possess in their respective positions. The research
wanted to ascertain the age of respondents which is categorized as; 20 years and below, 21-50
years, 51 years and above. The respondents were requested to indicate their age bracket and the
findings were analyzed using descriptive statistics and are presented below.

Table 4.2 Age of respondents

Category F CumF % Cum %


<20 years 2 2 4.7 4.7
21-50years 35 37 79.2 83.9
>51 years 8 45 16.1 100.0
Total 45 100.0
F=frequency, CumF=Cumulative Frequency, Cum %=Cumulative Percentage, % = Percentage
Source: Primary data (2024)
Figure 4.2 Age of respondents

Age of respondents
120
100
Frequency
80
Cumulative frequency
60 Percentage
Cumulative Percentage
40
20
0
<20 years 21-50 years >51 years
Source: Primary data (2024)

Respondents were asked to indicate their age category, and the results are indicated in both table
4.2 and figure 4.2 above. Both the table and figure above illustrate that the highest (42.0%)
number of respondents (35) are aged between 21 and 50 years, followed by 8 (16.1%)
respondents aged 51 and above, and lastly 2 (4.7%) respondents aged 20 years and below. This
implies that respondents from exporting companies were mature enough to provide the sound
judgment that is necessary for this study. Therefore, all respondents for this current study were
suitable for the study. In the study on the effect of non-tariff barriers (NTBs) on Uganda’s milk
exports to Kenya, a case of Malaba, it was observed that the largest number of respondents fall
within the age groups of 21 and 50 years. The working-age population, aged 21–50, is more
likely to engage in economic activities, including trade and business interactions. They may have
more experience and expertise in milk exports and trade relations between Uganda and Kenya,
making them more likely to participate in studies related to NTBs impacting these exports. On
the other hand, the study shows a smaller number of respondents aged 51 and above due to
factors like retirement or reduced participation in economic activities and limited availability due
to other commitments or responsibilities. Lastly, the smallest number of respondents falls within
the age group of 20 years and below. Possible reasons for this include that younger individuals
may have limited involvement in trade affairs and legal restrictions, potentially affecting their
representation in research studies. As earlier stated by Anyal (2017), the distribution of
respondents across different age groups in the study on non-tariff barriers (NTBs) impact on
Uganda’s milk exports to Kenya reflects varying levels of engagement, experience, accessibility,
and awareness among different age cohorts.

4.3.3 Respondents by the highest level of qualification obtained


Respondents were asked to tick against their highest level of education attainment in order to
determine the effect of electronic payment systems on revenue collection. Responses are
presented below:
Table 4.3 Highest level of education attained by respondents
Category F CumF % Cum%
Primary 2 2 4.2 4.2
Secondary 6 8 14.2 18.4
University 30 38 66.6 86.3
Any other 7 45 15.0 100.0
Total 45 100.0
F=frequency, CumF=Cumulative Frequency, Cum %=Cumulative Percentage, % = Percentage
Source: Primary data (2024)

Figure 4.3 Highest level of education attained by respondents

Highest level of education attained by respondents


120

100

80 Frequency
Cumulative frequency
60 Percentage
Cumulative Percentage
40

20

0
Primary Secondary University Any Other
Source: Primary data (2024)

Respondents were asked to indicate to show their highest level of education attained by
respondents; and the responses are indicated in both table 4.3 and figure 4.3 above. The results
show that majority (67.9%) of respondents (60) attained University level, 6 (14.2%) secondary
level, 2(4.2%) primary level and 7(15%) any other training. By virtue qualification, the majority
(38) of respondents constituting 96.3 percent were literate. These were followed by remaining
group (7) constituting 15 percent who preferred to remain reserved about their education status.
This implies that the majority of respondents were capable of participating in this study.
However, some of those who had attained any other were also capable of participating in the
study.
For example, R1 (29/5/2024 at Malaba border) says,
“I had joined one of the primary schools in Mbarara District the name I have
reserved. I even have books I can show them to you. But our dad abandoned us
and did not have a chance of proceeding with academics. But I was bright enough
to hustle until now. I can speak English very well.”

Though they never revealed their education level, they had sufficient knowledge regarding the
current study. This still implies that all respondents were capable of participating in this study.
Basing on the academic levels of the respondents, the opinion expressed in the questionnaire
could well reflect their attitudes and perception of younger and middle-age and literate group.
This again indicates that the sample somehow reflects the composition and engagement of both
literate and illiterate groups who are stakeholders of milk exporting companies in Malaba
boarder. This helped the researcher to get clear data needed for analysis about the problem
statement from competent people. This is in line with Reid and Ashelby (2012) respondents who
are adequately qualified persons academically are literate with sound judgment which the study
can be relied on.

4.3.4 The period spent in exporting milk


Table 4.4: The period spent in exporting milk
Category F CumF % Cum%
Less than 1 year 9 9 20.0 20.0
1–5 24 23 53.3 73.3
More than 5 years 12 45 26.7 100
Total 45 100.0
F=frequency, CumF=Cumulative Frequency, Cum%=Cumulative Percentage, % = Percentage
Source: Primary data (2024)
Figure 4.4: The period spent in exporting milk

The period spent in exporting milk


120

100

80

60

40

20

0
Less than 1 year 1 - 5 years More than 5 years

Frequency Cumulative Frequency


Percentage Cumulative Percentage
Source: Primary data (2024)

As far as the duration of the business operation is concerned, it is very encouraging that a good
number of respondents business met the requirement of this research. Table 4.4 and figure 4.4
indicate that 24 (53.3%) of the respondents’ business enterprises had exported milk for 1 and 5
years, 12(26.7%) more than 5 years, and 9(20.0%) for less than 1 year. This means that all milk
exporters met the researcher’s selection criteria and this was one of the requirements for the
respondent to be involved in this research. Thus, the most of the respondents had enough
information that was required to solve the problem statement. One respondent in an interview
(R2, 25/7/2023 at Malaba Boarder) says,
“Uganda's exporting companies face challenges due to a combination of internal
and external factors. The country's lack of a cohesive industrial policy framework,
coupled with limited access to information and resources, has hindered the
efficiency and competitiveness of these businesses.”
4.3.5 The mode of transport you use to export milk
Table 4.5: The mode of transport you use to export milk
Category F CumF % Cum%
Vehicle 25 14 31.0 31.0
Carts 4 19 11.0 42.0
Bicycle 7 27 19.0 61.0
Ship 6 36 20.0 81.0
Train 1 40 9.0 90.0
Other 3 45 10.0 100.0
Total 45 100.0
F=frequency, CumF=Cumulative Frequency, Cum%=Cumulative Percentage, % = Percentage
Source: Primary data (2024)

Figure 4.5: The mode of transport you use to export milk


100
90
80
70
60 Frequency
50 Cumulative Frequency
40 Percentage
Cumulative Percentage
30
20
10
0
Vehicle Carts Bicycle Ship Train Other

Source: Primary data (2024)

When asked about the goods being exported, respondents indicated that 14 (31%) vehicle,
5(11%) carts, 8(19%) bicycle, 9(20%) ship, 4(9%) train and 5(10%) other means. This implies
that milk is more exported to Kenya by use of vehicle than any other means of transport.
Therefore, the main means of exporting milk is by use of vehicle, ship, bicycle, carts, train as
well as other means. One respondent (R3, 25/7/2023 at Malaba Boarder) says,

This is in line with Karugia et al. (2019) and Kunio (2021) who said that the most common mode
of transport used by milk exporters from Uganda to Kenya is vehicles. For these, vehicles like
trucks, box body, van, trailers, and pick-ups were the main means of transportation adopted by
most of the milk exporters. For Kunio, common modes of transporting milk include road
transport, rail transport, and air transport, whereby road networks facilitate efficient movement
of milk, while rail transport allows for larger volumes over longer distances; air transport is used
for speedy or smaller quantities. The other means of transport such as bicycles, carts, and ships
were infrequently used. However, another common mode of transport used by milk exporters
was trekking to the market place (Kimberly, 2021). Despite the existence of a railway line
linking Uganda and Kenya, one of the respondents interviewed reported using this mode of
transport for milk. This is particularly worrying, especially since rail cargo transport is, on
average, 15 percent cheaper than road transport.

4.3.6 Indicate distances covered


Table 4.6 Distance covered by milk exporters in kilometers
Areas of coverage Distance covered in kilometers
Upcountry – Kampala
Southwestern region – Kampala 200-300 km (124-186 miles)
Central Region – Kampala 100-200 km (62-124 miles)
Northeastern region – Kampala 200-300 km (124-186 miles)
Western region – Kampala 250-350 km (155-217miles)
Kampala - Malaba 218km (135.5 miles)
Malaba – Nairobi 436.6 km (271.3 miles)
Source: Primary data (2024)

Respondents were required to indicate distances covered by milk exporters; table 4.6 above
indicates approximate distances from respondents’ dairy producing regional areas (upcountry) to
Kampala. Southwestern regional respondents cover 200-300 km (124-186 miles), Central Region
cover 100-200 km (62-124 miles), Northeastern region cover 200-300 km (124-186 miles), and
western region cover 250-350 km (155-217miles).

One of the respondents says,


“The average distance covered by milk exporters from upcountry to Kampala varies
depending on the location of the dairy farms and processing plants.”
This is in line with Byaruhanga (2023) that assuming an average distance of 250 km (155 miles),
milk exporters may cover around 500-600 km (310-373 miles) for round trip, factoring in return
journeys for vehicle maintenance, fuel efficiency, and other logistical considerations.

The table 4.6 also indicates that the distance covered by milk exporters from Kampala to Malaba
boarder is 218 km (135.5 miles), while from Malaba boarder to Nairobi is 436.6 km (271.3
miles). The distance covered by milk exporters from Malaba border to Nairobi is approximately
436.6 kilometers by road. The findings are in line with Disdier and Fontagné (2008) that the
distance covered by milk exporters from Kampala to Malaba boarder is approximately 217 to
218 kilometers by road. In addition, Eleftherios and Minas (2022) may further explain that the
journey takes around 6 hours and 14 minutes by car. There are also alternative ways to travel,
such as by bus which may take longer but may be more convenient. According to Kabona
(2022), the central and western regions of Uganda account for about 50% of national milk
production, which is predictable and available all year round. However, during the dry season,
the northern, north eastern, and eastern parts of the country experience a drastic reduction in milk
output. In response to this, Kenya has increased its import permits for milk powder from Uganda
to ensure a stable supply and compensate for the expected production deficit.

4.3.7 Milk cross Malaba border unrecorded/informally in small quantities


Respondents were asked to indicate whether milk cross Malaba border unrecorded/informally in
small quantities and the responses are as follows;
Table 4.7 showing milk cross Malaba border unrecorded/informally in small quantities
5
Category F CumF % Cum %
Yes 42 42 93.3 93.3
No 3 45 6.7 100
Total 45 100
F=frequency, CumF=Cumulative Frequency, Cum %=Cumulative Percentage, % = Percentage
Source: Primary data (2024)
Figure 4.6: Milk cross Malaba border unrecorded/informally in small quantities

Unrecorded/informal milk exporting


No
53%

Yes
47%

Source: Primary data (2024)

Respondents were asked to show by ticking in the box, their gender and the response is indicated
in the table 4.7 and figure 4.6 above. In response, out of the total of 45 respondents, 42(93.3%)
respondents agreed while and 3 (6.7%) respondents disagreed. This implies that majority of
respondents support the view that milk cross Malaba border unrecorded/informally in small
quantities. In conformity with findings in other regional trading blocs in East Africa, milk
exporters experience a lot of disturbances yet the goods are perishable leading to illegal
transportation (Ackello-Ogutu, 2017; Karugia et al. 2008). However, these findings should be
interpreted with caution since the region also experiences high informal trade in milk crossing
Malaba border informally in small quantities that are transported mainly by bicycle. Informal
markets account for around 80% of all milk sold in Kenya (Blackmore et al., 2023). Most milk is
sold raw (unpasteurized) and unpackaged, though some milk in informal markets may be sold
after having been boiled and, increasingly, even pasteurized through small‐scale pasteurization
units that are also informal.
4.3.8 Respondents face obstacles while exporting milk
4.3.9 Table 4.8 showing whether respondents face obstacles while exporting milk
Category Frequency Cumulative frequency Percentage Cumulative Percentage
Yes 43 43 95.6 95.6
No 2 45 4.4 100.0
Total 45 100.0
Source: Primary data (2024)

Figure 4.7: whether respondents face obstacles while exporting milk


Whether respondents face obstacles while exporting milk

4%

Yes
No

96%

Source: Primary data (2024)

The study sought to determine whether respondents had experienced any obstacles
in their business and the response in table 4.8 and figure 4.7 show that: 43 (95.6%) had
encountered obstacles in exporting milk, while 2 (4.4%) had not. These results show that
majority of milk exporters in Uganda experience obstacles while exporting milk to Kenya. In
specific, some of the obstacles mentioned include both tariffs and non-tariff barriers to trade,
whose removal reduces the cost of doing business within a region and ultimately increases trade
welfare. Similar observation had earlier been made by Ahmed (2012) that exporting milk from
Uganda to Kenya faces several obstacles, hindering the smooth flow of dairy products between
the two countries. Anyal (2017) and Karugia et al. (2020) later supplemented that most milk
exporters experience various obstacles which in turn increase the cost of doing business within a
region and ultimately hamper welfare.
4.4 The effect of Administration Requirements on Milk Exports
4.4.1 The administration requirements needed Ugandan companies to export milk.

Figure 4.9: The administration requirements needed Ugandan companies to export milk.

45.5
45 45 45
45

44.5
44
44

43.5
43
43

42.5

42
Registration and Compliance with Documentation Quality control and Transportation and
licensing standards inspection logistics

Administration Requirements

Source: Primary data (2024)

Respondents were asked to indicate types of the administration requirements needed Ugandan
companies to export milk; figure 4.9 shows (45) registration and licensing, (44) compliance
with standards, (43) documentation, (45) quality control and inspection, and (45) transportation
and logistics. This implies that to export milk from Uganda to Kenya, companies need to
comply with various administration requirements set by both countries. These requirements are
in place to ensure the safety and quality of the products being exported. Uganda's National
Bureau of Standards (UNBS) (2014) stresses that, Ugandan companies exporting milk to Kenya
must comply with various administration requirements to ensure safety and quality. These
include registration and licensing with Uganda's National Bureau of Standards (UNBS) and
Kenya's Kenya Dairy Board (KDB). Companies must also ensure their products meet food
safety, hygiene, and quality standards set by both countries. The East African Community
(EAC) (2018) has harmonized standards for dairy products within its member states, including
Uganda and Kenya. Proper documentation, such as certificates of origin, sanitary certificates,
packing lists, and invoices, is crucial for customs clearance (East African Community Report,
2017; Abegaz, 2018). Quality control and inspections are also necessary to verify compliance
with regulatory standards. Transportation and logistics arrangements must be made to maintain
product quality during transit. Thus, by following these administration requirements diligently,
Ugandan companies can successfully export milk to Kenya while meeting all regulatory
obligations.

4.4.2 The effect of Administration requirements on milk exports


The study sought to examine the effect of Administration requirements on milk exports using
the scale Strongly Agree, Agree, Not sure, Disagree, and Strongly Disagree. The response
received was as indicated in Table 4.9.
Table 4.9 Rating of the effect of Administration Requirements on Milk Exports
Strongly

Disagree
Not sure
Respondents

Disagree
Strongly

Std Dev
Number of

Agree

Agree

Mean
Statement

Administration requirements increase 45


the price for your milk 50% 31.2% 14.6% 4.2% 0% 1.73 .868

Administrative requirements contribute 45


to the delay of your milk exports at the
borders 39.6% 35.4% 14.6%10.6% 0% 1.95 .988

Administrative requirements restrict 45


market access for your milk in Kenya 44.7% 29.8% 10.6%10.6% 4.3% 2.00 1.179

Your milk can expire due to delays at 45


Malaba weighbridges 43.7% 43.8% 0.0% 8.3% 4.2% 2.31 1.035

There too many agencies involved in 45


overall milk export inspection and
certification in the region 41.7% 29.2% 22.9% 6.2% 0% 1.94 .954

Verification of transit cargo lack of 45


harmonization in working hours at the
border posts 39.6% 31.2% 10.4%10.4% 8.3% 2.17 1.293

Truck entrance fees and grace period 45 33.3% 39.6% 14.6% 6.2% 6.2% 2.13 1.141
discourages exportation of milk

Lack of harmonization in working hours 45


to check transit lisences at the border
posts lowers quantity of milk exports 52.1% 29.2% 8.3% 6.2% 4.2% 1.81 1.104

Kenya’s administration requirements for 45


milk is not favorable for your company 35.4% 35.4% 18.8% 8.3% 2.1% 2.06 1.039

Administrative requirements contribute 45


to the delay of your milk exports at the
borders 47.9% 45.8% 0% 6.2% 0% 1.85 .967

Source: Primary data (2024)

Table 4.9 shows that administration requirements increase the price of exported milk, as 23
(51%) strongly agree, 14 (31.2%) agree, 6 (14.6%) are not sure, and 2 (4.2%) disagree. The
majority (82.2%) of respondents agreed with the view that administration requirements increase
the price of Uganda’s exported milk to Kenya. The results have a mean of 1.73 and a standard
deviation of 0.868. The statistics provided in Table 4.9 offer valuable insights into the
respondents' perspectives, with a significant majority agreeing that administration requirements
contribute to the price increase. The reference to previous studies, such as those by the East
African Business Council (2005) and Disdier and Fontagné (2008), further strengthens the
argument and aligns with existing research findings. The acknowledgment of the multifaceted
nature of this issue, involving trade regulations, quality standards, tariffs, and administrative
procedures, demonstrates a comprehensive understanding of the complexities surrounding the
rise in milk export prices. The mention of Eleftherios and Minas (2022)' work reinforces the idea
that addressing these challenges requires a holistic approach, encompassing various factors that
influence the trade relationship between the two countries. The current researcher concurs with
the proposed solution of fostering collaboration among stakeholders to streamline trade
processes, reduce regulatory burdens, and enhance the efficiency of cross-border trade. By
promoting a more conducive trade environment, both Uganda and Kenya can work towards
mitigating the adverse effects of administration requirements on milk exports. This insightful
discussion underscores the importance of addressing regulatory complexities to facilitate
smoother trade relations and economic growth in the region.
Table 4.9 above indicates that administrative requirements contribute to the delay of milk exports
at the borders, as 18 (39.6%) strongly agree, 16 (35.4%) agree, 7 (14.6%) are not sure, and 5
(10.6%) disagree. Based on the data presented in Table 4.9, it is evident that the majority of
respondents (75%) agree that administration requirements increase the price of Uganda's
exported milk to Kenya. The mean of 1.95 and a standard deviation of 0.988 further support this
conclusion. This is further supported by UNBS (2014) and Byaruhanga (2023). The various
administrative requirements, such as regulatory compliance, documentation requirements, border
inspections, tariffs and duties, and administrative processes, are highlighted as key factors
contributing to delays in milk exports at borders. It is crucial for stakeholders to address these
challenges to streamline the export process and ensure efficiency in the dairy industry.

Table 4.9 above reveals that administrative requirements restrict market access for Uganda’s
milk in Kenya, as 20 (44.7%) strongly agree, 13 (28.9%) agree, 5 (10.6%) are not sure, 5
(10.6%) disagree, and 2 (4.3%) strongly disagree. The results have a mean of 2.00 and a standard
deviation of 1.179. The data presented in Table 4.9 sheds light on the impact of administrative
requirements on Uganda's milk market access in Kenya. The majority consensus among
respondents (73.6%) indicates a strong agreement that administrative barriers pose significant
challenges for milk exports. This aligns with existing literature by Shadbolt and Apparao (2016),
which highlights how administrative requirements can impede international trade opportunities
for dairy products. The findings underscore the need for collaborative efforts to address these
barriers, such as streamlining regulations and enhancing dialogue between countries. By
mitigating these obstacles, we can pave the way for smoother trade relations and foster greater
market access for dairy exporters on a global scale.

Respondents were asked to show their stand on whether their milk could expire due to delays at
Malaba weighbridges. Responses in table 4.9 above indicate 19 (43.7%) strongly agree, 20
(43.8%) agree, none was not sure, 4 (8.3%) disagree, and 2 (4.2%) strongly disagree. The data
presented in Table 4.9 clearly indicates a concerning trend regarding the potential expiration of
Uganda's exported milk due to delays at the Malaba weighbridges. The majority of respondents,
totaling 87.5%, either strongly agrees or agrees that this is a valid concern. The mean of 2.31 and
a standard deviation of 1.035 further support this notion, indicating a noteworthy level of
agreement among participants. The cited sources, including FloodMap.net (2018) and Onyango-
Obbo (2022), underscore the gravity of the situation, highlighting the challenges faced by the
dairy industry as a result of delays in permit issuance and product clearance at the borders. It is
evident that the current circumstances, exacerbated by restrictions and trade disruptions, pose a
significant risk to both product quality and financial viability for Ugandan dairy businesses.
Efforts to diversify markets are commendable, but the importance of addressing the systemic
issues at the Malaba weighbridges cannot be overstated in ensuring the sustainability and growth
of the milk industry in Uganda.

Table 4.9 above indicates that there are too many agencies involved in overall milk export
inspection and certification in the region, as 19 (41.7%) strongly agree, 13 (29.2%) agree, 10
(22.9%) are not sure, and 3 (6.2%) disagree. The results have a mean of 1.94 and a standard
deviation of 0.954. Based on the data presented in Table 4.9, it is evident that there is a
consensus among respondents regarding the excessive number of agencies involved in the milk
export inspection and certification process in the East African region. The majority of
participants agreed that the current setup is characterized by a significant level of redundancy,
with 70.9% expressing concerns about the multiplicity of agencies involved. This issue is further
compounded by the potential inefficiencies and complexities that may arise due to the
involvement of multiple entities in the inspection and certification process. The importance of
streamlining and harmonizing these activities cannot be overstated, particularly in ensuring the
safety and quality of dairy products for international markets. While the involvement of various
stakeholders such as the EAC Secretariat, national regulatory bodies, private sector laboratories,
and other organizations plays a critical role in upholding standards (East African Community
(EAC), 2021; Tanzania Bureau of Standards (TBS), 2022; Kenya Dairy Board (KDB), 2023), it
is essential to strike a balance between collaboration and operational efficiency to enhance the
competitiveness of milk exports from the region. Addressing the challenges associated with the
current system will be key to optimizing the inspection and certification process and ultimately
maximizing the region's potential in the global dairy market.

Table 4.9 above reveals that verification of transit cargo lacks harmonization in working hours at
the Malaba border, as 18 (39.6%) strongly agree, 14 (31.2%) agree, 5 (10.4%) are not sure, 5
(10.4%) disagree, and 4 (8.3%) strongly disagree. The results also have a mean of 2.17 and a
standard deviation of 1.293. This means that verification of transit cargo lacks harmonization in
working hours at the borders. The harmonization of working hours at the Malaba border is
crucial for facilitating efficient transit cargo transportation. As the study indicates, a majority of
respondents (70.8%) acknowledge the negative impact of uncoordinated working hours on the
movement of goods. These inconsistencies lead to delays, increased costs, and the deterioration
of perishable commodities. The findings align with previous research, including the African
Development Bank Group Report (2019) and the East African Community (EAC) report (2021),
which highlights the detrimental effects of this issue on the Malaba border trade route. The EAC
report emphasizes the need for synchronization to reduce delays and costs for traders.
Addressing this challenge requires collaboration between the relevant authorities in Kenya and
Uganda. Establishing consistent working hours, aligning border operations, and implementing
efficient cargo clearance processes can significantly improve the flow of transit cargo and reduce
associated losses. By prioritizing harmonization, both countries can enhance trade efficiency,
promote economic growth, and foster regional integration.

Table 4.9 reveals that truck entrance fees and grace periods discourage the exportation of milk,
as 15 (33.3%) strongly agree, 18 (39.6%) agree, 7 (14.6%) are not sure, 3 (6.2%) disagree, and 3
(6.2%) strongly disagree. The results have a mean of 2.83 and a standard deviation of 1.260.
Based on the data presented in Table 4.9, it is evident that truck entrance fees and grace periods
play a significant role in discouraging the exportation of milk. The majority of respondents,
totaling 72.9%, agreed that these fees and regulations have a detrimental impact on the
exportation of milk. The mean of 2.83 and standard deviation of 1.260 further support this
assertion, indicating a consistent trend among the participants. The requirement for export
certificates to be dated before the actual export date, as mandated by the European Union,
presents a logistical challenge for exporters. Additionally, the competitive advantage enjoyed by
neighboring countries such as Kenya and Rwanda in terms of lower production costs and more
advanced dairy industries poses a further obstacle for Ugandan exporters (The New Times
Rwanda, 2019; World Bank Group, 2021). The imposition of truck entrance fees and grace
periods compounds these challenges, adding unnecessary costs and complexities to the export
process. Ultimately, these policies serve as economic barriers that hinder the ability of Ugandan
milk exporters to compete in regional markets (Dairy Industries Magazine, 2020; International
Dairy Federation (IDF), 2021). By raising transportation costs and reducing product shelf life,
these regulations diminish the appeal of exporting milk beyond domestic borders. It is imperative
for policymakers to address these issues in order to create a more conducive environment for
Ugandan milk exporters to thrive in the global marketplace.

Table 4.9 shows that a lack of harmonization in working hours to check transit licenses at the
border lowers the quantity of milk exports as 23 (52.1%) strongly agree, 13 (29.2%) agree, 4
(8.3%) are not sure, 3 (6.2%) disagree, and 2 (4.2%) strongly disagree. The results have a mean
of 2.33 and a standard deviation of 1.136. The findings presented in Table 4.9 highlight a
significant issue regarding the lack of harmonization in working hours for checking transit
licenses at international borders and its impact on milk exports. The majority (81.3%) of
respondents agreed that this lack of harmonization leads to lower quantities of milk exports, as
indicated by the strong agreement and agreement percentages. The mean and standard deviation
further reinforce this notion, suggesting a consistent trend among participants. The alignment of
these results with existing research, such as the European Commission's insights, underscores the
potential consequences of inefficiencies in border inspections on export processes and overall
trade competitiveness (International Dairy Federation, 2019; World Trade Organization, 2021;
European Commission, 2021). Addressing this issue through initiatives aimed at promoting
harmonization of working hours is crucial to enhancing efficiency and reducing obstacles in the
international dairy trade landscape. By streamlining border procedures and minimizing delays,
the industry can strive towards maximizing export volumes and ensuring product quality and
market competitiveness.

Table 4.9 above indicates that Kenya’s administration requirements for milk are not favorable for
Ugandan exporting companies, as 16 (35.4%) strongly agree, 16 (35.4%) agree, 8 (18.6%) are
not sure, 4 (8.3%) disagree, and 1 (2.1%) strongly disagree. The majority of respondents (70.8%)
agree that these requirements are not favorable for their companies, as indicated by the mean of
2.13 and a standard deviation of 1.141. Based on the findings presented in Table 4.9, it is evident
that Kenya's milk administration requirements pose significant challenges for Ugandan dairy
exporting companies, with 70% of respondents expressing dissatisfaction. The rigorous testing
procedures at Kephis laboratories, high tariffs, and strict sanitary standards make Ugandan
products less competitive and hinder market penetration (Ministry of Agriculture, Animal
Industry, and Fisheries (2020) and East African Community (EAC), 2021). Compliance with
Kenya's standards is also challenging, leading to shipment rejection or fines (European
Commission, 2021). Smuggling through informal channels further exacerbates operational
complexities. To address these issues, stakeholders should engage in dialogue and collaborative
efforts to promote sustainable growth in the dairy industry and enhance bilateral trade relations.

Table 4.9 above shows that administrative requirements contribute to the delay of your milk
exports at the borders, as 22 (47.9%) strongly agree, 19 (45.8%) agree, none are sure, 3 (6.2%)
disagree, and none strongly disagree. The results presented in Table 4.9 highlight the significant
impact of administrative requirements on the delay of milk exports at the borders, with a
majority (72.9%) of respondents agreeing that these requirements contribute to inefficiencies in
the export process. The mean of 1.81 and standard deviation of 1.104 further affirm this finding,
underscoring the challenges faced by Ugandan dairy exporters in navigating complex regulatory
frameworks and border inspections. The supporting evidence from the Ministry of Agriculture,
Animal Industry, and Fisheries (2020) and the East African Community (EAC) (2021)
underscores the importance of harmonization in working hours for transit licenses to mitigate
delays and enhance the efficiency of milk exports. As milk is a perishable commodity, timely
transportation is crucial to maintaining its quality and value, making it imperative to address the
obstacles hindering the smooth flow of exports. By recognizing and addressing the barriers posed
by stringent administrative requirements, stakeholders can facilitate a more conducive
environment for Ugandan dairy exporters to thrive in the competitive East African market and
meet the growing demand for dairy products.
4.3.3 Correlations of administration requirements and milk exports
A correlation test was carried out to determine the correlation and significance of
administration requirements and milk exports. A p value of less or equal to 0.01 and/or 0.05
indicated that the administration requirements were significant as a barrier to milk exports. The
results are summarized in Table 4.10.

Table 4.10 correlation between administration requirements and milk exports


Administration
Requirements Milk Exporters
Pearson Correlation 1 .859**
Administration
Requirements Sig. (2-tailed) .000
N 45 45
Pearson Correlation .859** 1
Milk Exporters Sig. (2-tailed) .000
N 45 45
** Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level (2-tailed)

Source: Primary data (2024)

According to table 4.10, the correlation between using administration requirements and milk
exports is 0.859. Considering the significance level (sig = 0.000), the study can conclude that
there is a significant relationship between using administration requirements and milk exports.
This implies that administration requirements are significantly (85.9%) related to milk exports.
The significance level of 0.000 indicates a strong relationship between the two variables, with
administration requirements being significantly related to milk exports by 85.9%. This finding
aligns with previous studies (Brenton, Fanelli, and Wintersberger, 2017; Nkuingoua et al., 2022;
Segal, 2023) and highlights the crucial role that administration requirements play in shaping milk
export dynamics within the dairy industry. The discussion on compliance costs and transit times
sheds light on the challenges faced by dairy producers, particularly small-scale and developing
countries, in navigating international trade regulations. The emphasis on the impact of
administration requirements on export competitiveness and product quality underscores the
importance of addressing regulatory burdens in fostering a more conducive environment for milk
exports (Ladu, 2018). This study contributes valuable insights to the ongoing discourse on the
intersection of administration requirements and milk exports, emphasizing the need for holistic
approaches to enhance market access and sustainability in the dairy sector. This relationship is
driven by the additional costs and time required to comply with these regulations, which can
make exporting less attractive for milk due to increased expenses and potential quality issues
arising from longer transit times.

4.3.4 Regression Analysis for administration requirements in milk exports

A regression analysis for administration requirements was computed and the results provided a
model summary for administration requirements to milk exports. The results are summarized in
Table 4.11.

Table 4.11 Regression Model Summary for administration requirement to milk exports

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .859 .469 .329 .99042

a. Predictors (Constant): Administration Requirements to milk exporters

The regression model summary in Table 4.11 indicates that 32.9% of the variance in trade
barriers can be explained by administration requirements of milk exports. These indicate that
administration requirements impact milk exports by 32.9%, and the rest could be explained
by other factors.
4.3.5 Regression Coefficients for administration requirements to milk exports
A regression analysis for administration requirements was computed and the results provided
regression coefficients. The results are summarized in Table 4.14.

Table 4.12 Regression Coefficients for administration requirements to milk exports

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .558 .612 .913 .369


Administration requirements .774 .182 .479 2.597 .014
a. Dependent Variable: Administration Requirements to Milk Exporters

The coefficients in Table 4.12 show that administration requirements had a positive and
significant influence on milk exports since its precision level was <0.05 which was the
study’s threshold. Basing on the results from correlation analysis, regression analysis and
regression coefficients, the study can conclude that there is a positive significant relationship
between administration requirements and milk exports.

4.3.6 Administration requirements affect Ugandan company’s milk export to Kenya


Respondents were told to elaborate how administration requirements affect company’s milk
export. Administration requirements significantly impact Ugandan companies’ milk export to
Kenya in several ways, as claimed by respondents in the following ways:

One respondent says,

“Compliance with sanitary and phytosanitary standards set by the Kenya Plant
Health Inspectorate Service (KEPHIS) and the Kenya Bureau of Standards
(KEBS) is essential for milk exports from Uganda to Kenya. These requirements
include regulations related to milk production, processing, packaging, and
labeling. Failure to meet these standards can result in rejection of shipments at
the border or fines for non-compliance.”

Another respondent says,


“Administration requirements also involve obtaining necessary permits and
certifications from both Ugandan and Kenyan regulatory bodies. For instance,
exporters must obtain an Export Permit from the Uganda Revenue Authority
(URA), a Phytosanitary Certificate from KEPHIS, and a Sanitary Certificate from
KEBS before shipping milk to Kenya.”

These processes can be time-consuming and costly, adding to the overall expense of exporting
milk.

“Administration requirements may also affect the logistics of milk transportation


between Uganda and Kenya. For example, trucks transporting milk must adhere
to specific customs procedures at border crossings. Delays at borders due to non-
compliance with administrative requirements can lead to spoilage of perishable
milk products,” says another respondent.

Lastly,

“Changes in administration requirements can create uncertainty for exporters.


For instance, new regulations or modifications to existing ones can increase costs
or require additional investments in infrastructure or technology. This volatility
can make it challenging for companies to plan their export activities effectively,”
says a respondent.

This is further explained by previous research (World Bank Group, 2019; KEPHIS, 2021;
URA, 2021) that companies' milk export to another country is significantly influenced by
administration requirements. For example, compliance with sanitary and phytosanitary
standards set by the Kenya Plant Health Inspectorate Service (KEPHIS) and the Kenya Bureau
of Standards (KEBS) is crucial for milk production, processing, packaging, and labeling
(KEPHIS, 2021). Failure to meet these standards can lead to rejection of shipments or fines.
Exporters must also obtain permits and certifications from both Ugandan and Kenyan regulatory
bodies, such as an Export Permit from the Uganda Revenue Authority (URA), a Phytosanitary
Certificate from KEPHIS, and a Sanitary Certificate from KEBS. These processes can be time-
consuming and costly, increasing the overall cost of exporting milk. Administration
requirements also affect the logistics of milk transportation between Uganda and Kenya, as
trucks must adhere to specific customs procedures at border crossings. Changes in
administration requirements can create uncertainty for exporters, increasing costs or requiring
additional investments in infrastructure or technology.
4.4 The effect of roadblock checks on milk exports

4.4.1 The number of road blocks Ugandan milk exporters find while exporting milk to
Nairobi.

Table 4.14: the number of road blocks Ugandan milk exporters find while exporting milk
to Nairobi.

Areas of coverage Number of road blocks


Upcountry – Kampala
Southwestern region – Kampala 10 – 15
Central Region – Kampala 12 – 19
Northeastern region – Kampala 16 – 18
Western region – Kampala 15 – 21
Kampala - Malaba 15 – 20
Malaba – Nairobi 25
Source: Primary data (2024)

Respondents were asked to indicate the number of roadblocks they found while exporting milk to
Nairobi. Results are indicated in Table 4.14 that the number of road blocks Ugandan milk
exporters find while exporting milk to Kenya is as follows: Southwestern region: Kampala (10–
15), Central region: Kampala (12–19), Northeastern region: Kampala (16–18), Western region:
Kampala (15–21), Kampala–Malaba (15–20), and Malaba–Nairobi (25). The data presented
regarding the number of roadblocks encountered by Ugandan milk exporters on the route to
Nairobi provides valuable insights into the challenges faced within the transportation process.
The statistics indicate a significant number of roadblocks, ranging from 10 to 25, depending on
the specific regions along the journey. These roadblocks, primarily managed by security
personnel and government agencies, serve various functions such as tax collection, regulatory
inspections, and border control. The findings align with previous reports from the Uganda Milk
Producers’ Association (2021) and the Uganda Milk Producers’ Cooperative Union (2023),
highlighting the operational hurdles that exporters encounter, including time delays and
increased transportation costs. The presence of multiple roadblocks, as indicated by the Uganda
Roads Authority report, underscores the complexity of the transportation network and the need
for strategic planning to navigate these challenges effectively. As stakeholders in the dairy
industry, it is crucial for us to delve deeper into the root causes of these roadblocks and explore
potential solutions to streamline the export process. By addressing the factors contributing to the
high number of checkpoints and collaborating with relevant authorities, we can work towards
enhancing the efficiency and competitiveness of the supply chain. This data serves as a call to
action for industry players to engage in dialogue and proactive measures aimed at mitigating the
impacts of roadblocks on milk exports to Nairobi.

4.4.2 Rating of effect of roadblock checks on milk exports


The study sought to determine the rating for effect of roadblock checks on milk exports using
the scale Strongly Agree, Agree, Not sure, Disagree, and Strongly Disagree. The response
received was as indicated in Table 4.13.

Table 4.13 Rating of the effect of roadblock checks on milk exports


of

Strongly

Not sure

Disagree

Std Dev
Disagree
Strongly
Respondents

Agree

Agree

Mean
Number

Statement
Multiple road blocks obstruct free 45
trading of milk to Kenya 35.5% 40.4% 6.0% 9.0% 9.0% 2.23 1.004
Frequent road blocks discourage the 45
exportation process of your milk exports 28.3% 37% 21.7% 10.9% 2.2% 2.21 1.052
Too many road blocks lower net income 45
from your company’s milk exports 14.9% 40.4% 25.5% 12.8% 4.3% 3.62 7.727
Multiple brocks can increase truck exit 45
fees and grace period 40.4% 38.3% 12.8% 8.5% 0% 1.89 .937
Frequent police check point disrupt 45
volumes of milk export 40.4% 41.3% 9.8% 6.4% 2.1% 2.08 1.080
Insecurity/ highway crimes/loss of 45
goods at the container freight stations
reduce your business growth 32.6% 42.6% 8.7% 9.6% 6.5% 2.35 1.303
Frequent police point increase costs of 45
exporting your milk 27.7% 36.2% 25.5% 8.5% 2.1% 2.21 1.020
Multiple road blocks increase delivery 45
hours at the border posts 27% 38.3% 5.5%12.8% 6.4% 2.53 1.120
Multiple road blocks and mobile control 45
discourage milk exports 41.3% 30.4% 17.4% 8.7% 2.2% 2.00 1.075
Too many agencies involved on the way 45 31.9% 27.7% 23.4%12.8% 4.3% 2.29 1.177
affect the overall transportation of milk
Informal road blocks along the way 45
threaten the successes of your milk
export 14.9% 40.4% 25.5% 12.8% 4.3% 3.62 7.727
Source: Primary data (2024)

Table 4.13 shows that multiple roadblocks obstruct free trading of milk to Kenya, as 16 (35.5%)
strongly agree, 18 (40.4%) agree, 3 (6.0%) are not sure, and 4 (9.0%) disagree. The findings
presented in Table 4.13 shed light on the significant hurdles impeding the free trading of milk in
Kenya, with a majority (75.9%) of respondents concurring that multiple roadblocks pose a
substantial obstruction. The reported mean of 2.23 and standard deviation of 1.004 further
underscore the consensus that these obstacles are hindering the flow of milk to other countries.
The correlation between the current challenges faced by Ugandan dairy exporters and the
inability to access the Kenyan market, as highlighted in the referenced studies by Ayyagari et al.
(2014) and Shadbolt and Apparao (2016), aligns with the concerning situation faced by
Brookside Dairy Uganda. The inability to export milk since March 2023, coupled with a drastic
75% production reduction, paints a bleak picture for Ugandan milk farmers and processors. The
contrasting scenario where competitors like Pearl Dairy continue to export to Kenya has
exacerbated the economic plight of Ugandan stakeholders, prompting them to seek alternative
markets beyond the region.

Table 4.13 indicates frequent road blocks discourage the exportation process of your milk
exports, as 13 (28.3%) strongly agree, 17 (37.0%) agree, 10 (21.7%) are not sure, 5 (10.9%)
disagree, and only 1 (2.2%) strongly disagree. The majority (57.7%) of respondents agreed that
the frequent road blocks discourage the exportation process of your milk exports to Kenya. The
results had a mean of 2.21 and a standard deviation of 1.052. This implies that frequent
roadblocks raise the process of milk exports. The data presented in Table 4.13 regarding the
impact of frequent roadblocks on the exportation process of milk exports to Kenya is quite
concerning. The majority of respondents agreeing that roadblocks hinder the transportation of
milk from production areas to processing plants and ports for export highlight a significant issue
that needs to be addressed. The mean and standard deviation provided further emphasize the
adverse effects of these roadblocks on the efficiency and consistency of Uganda's milk exports. It
is evident that the delays caused by roadblocks not only affect the timely delivery of milk but
also pose risks of spoilage and increased costs for exporters (Africa Center for Strategic Studies,
2018). However, as mentioned in previous research (Daily Monitor, 2018; New Vision, 2019;
International Trade Centre, 2020), more comprehensive strategies are needed to ensure that milk
exports can effectively compete in international markets and seize opportunities for better prices
and market share. Moving forward, it is imperative for all parties involved, including the
government, private sector, and development partners, to continue working together towards
sustainable solutions that address the root causes of these roadblocks and streamline the
exportation process. By fostering a conducive environment for the dairy sector and implementing
strategic measures to mitigate the impact of roadblocks, Uganda can enhance its competitiveness
in the global market and maximize the potential of its milk exports.

Table 4.13 indicates that too many road blocks lower net income from respondents’ company’s
milk exports, as 11 (24.9%) strongly agree, 18 (40.4%) agree, 2 (5.5%) are not sure, 6 (12.8%)
disagree, and 2 (4.3%) strongly disagree. The majority (65.3%) of respondents agreed that too
many road blocks lower net income from Uganda’s milk exports. The findings presented in
Table 4.13 shed light on the detrimental impact of roadblocks on the net income derived from
the milk exports of Ugandan companies. The substantial agreement among respondents
regarding the adverse effects of roadblocks on net income is a cause for concern, with a majority
expressing agreement with this notion. The mean value of 3.62 and the standard deviation of
7.727 provide statistical evidence to support the conclusion that roadblocks are indeed a
hindrance to the profitability of milk exports. These results align with the perspectives of
reputable scholars such as the International Food Policy Research Institute (IFPRI) (2016) and
the World Bank Group (2029), who have highlighted the various ways in which roadblocks
impede the smooth functioning of supply chains and escalate operational costs. It is evident that
addressing the issue of roadblocks is imperative for enhancing the efficiency and profitability of
milk exports in Uganda.

Table 4.13 indicates multiple brocks can increase truck exit fees and grace periods, as 18
(40.4%) strongly agree, 17 (38.3%) agree, 6 (12.8%) are not sure, and 4 (8.5%) disagree. The
majority (78.7%) of respondents agreed that multiple brocks can increase truck exit fees and
grace periods. Based on the data presented in Table 4.13, it is evident that a significant majority
of respondents agree that multiple brokers can indeed increase truck exit fees and grace periods.
The statistical analysis further supports this notion, with a mean of 1.89 and a standard deviation
of 0.937 indicating a consensus among the participants. The reference to the East African
Community report (2019) reinforces the impact of multiple brokers at border checkpoints,
particularly in the context of milk exports from Uganda to Kenya. The role of brokers in
facilitating cross-border trade, as highlighted by UNCTAD (2017) and the World Bank (2018)
sheds light on the complexities of the process and the challenges posed by duplication of fees
and documentation requirements. The conclusion drawn regarding the need for harmonization of
tariffs and streamlining of processes by regional organizations like the EAC emphasizes the
importance of addressing these issues to enhance efficiency and reduce costs in cross-border
trade.

Table 4.13 reveals that frequent police checkpoints disrupt volumes of milk export, as 18
(40.4%) strongly agree, 19 (41.3%) agree, 4 (9.8%) are not sure, 3 (6.4%) disagree, and 1 (2.1%)
strongly disagree. The findings presented in Table 4.13 above shed light on the impact of
frequent police checkpoints on the export of milk, with a significant majority (81.7%) agreeing
that such checkpoints disrupt milk export volumes. The statistics reveal a clear consensus among
respondents regarding this issue, with a mean score of 2.08 and a standard deviation of 1.080,
further supporting the notion that police checkpoints have a disruptive effect on the milk export
industry. The subsequent discussion by previous scholars (National Agricultural Research
Organization, 2019; Andae, 2020; East African Community (EAC), 2021; Kabona, 2024) on
Kenya's restrictions on imported milk from Uganda provides additional context to the challenges
faced by Ugandan milk exporters, including the surplus of milk and the decline in farm gate
prices. The efforts by Ugandan processors to explore alternative export markets demonstrate
resilience in the face of trade disputes, with a notable rebound in dairy exports in the recent
financial year. The trade dispute's impact on local traders and production capacities underscores
the far-reaching consequences of such conflicts. However, the potential progress in resolving the
trade dispute, as indicated by President Museveni's state visit to Kenya, offers a glimmer of hope
for improved trade relations between the two countries.

Table 4.13 shows that insecurity, highway crimes, and loss of goods at the container freight
stations reduce milk export business growth, as 15 (32.6%) strongly agree, 19 (42.6%) agree, 4
(8.7%) are not sure, 4 (9.6%) disagree, and 3 (6.5%) strongly disagree. Based on the data
presented in Table 4.13, it is evident that insecurity, highway crimes, and loss of goods at
container freight stations have a significant impact on the growth of the milk export business.
The majority of respondents agreed that these factors have a detrimental effect on business
growth, with 75.2% of participants indicating their agreement. The mean of 2.35 and the
standard deviation of 1.303 further support the notion that these issues can impede business
progress. As highlighted by the Federal Bureau of Investigation (2020), the loss of goods at
container freight stations, insecurity, and highway crimes pose real threats to the milk export
industry. To address these challenges, milk export businesses must prioritize security measures
to safeguard their goods, customers, and overall reputation. By proactively implementing
security protocols, businesses can mitigate risks and foster sustainable growth in the competitive
export market.

Table 4.13 shows that frequent police checkpoints increase the costs of exporting Uganda’s milk
to Kenya, as 12 (27.7%) strongly agree, 16 (36.2%) agree, 11 (25.5%) are not sure, 4 (8.5%)
disagree, and 1 (2.1%) strongly disagree. The results in the table have a mean of 2.21 and a
standard deviation of 1.020. Based on the findings presented in Table 4.13, it is evident that the
majority (63.9%) of respondents agree that frequent police checkpoints increase the costs of
exporting Ugandan milk to Kenya. The mean and standard deviation values further support this
notion, indicating a significant impact on export costs. The insights shared by previous scholars,
Mauro (2015) and Karugia et al. (2019), align with this perspective, highlighting the potential
negative consequences for Uganda's competitiveness in Kenya's dairy market. The implications
of higher operational costs leading to increased consumer prices or reduced profit margins for
exporters are concerning and could lead to market withdrawal by some exporters (Hasa, 2018;
Globefeed.com, 2018), thus limiting supply options for Kenyan consumers. It is essential for
policymakers and stakeholders to address the issue of frequent police checkpoints to maintain
Uganda's market position and competitiveness in the dairy-exporting sector.

Table 4.13 indicates multiple road blocks increase delivery hours of milk at the border points, as
12 (27%) strongly agree, 17 (38.3%) agree, 2 (5.5%) are not sure, 6 (12.8%) disagree, and 3
(6.4%) strongly disagree. Most (65.3%) of respondents agreed that multiple road blocks increase
delivery hours of milk at the border points. The results had a mean of 2.53 and a standard
deviation of 1.120. The statistics presented in Table 4.13 clearly indicate a significant consensus
among respondents regarding the challenges posed by these road blocks. It is evident from the
data that addressing issues such as inefficient customs procedures, inadequate transportation
infrastructure, and political instability is crucial to improving the efficiency of milk delivery in
Uganda. The mean value of 2.53 and standard deviation of 1.120 further reinforce the need for
targeted interventions to mitigate the impact of road blocks on delivery hours. By heeding the
recommendations of the East African Community (2021) and the World Trade Organization
(2023), focusing on technology adoption, infrastructure enhancements, and fostering regional
collaboration, it is indeed feasible to enhance the effectiveness of milk delivery processes at
border points. This comprehensive approach, encompassing both policy reforms and strategic
investments, holds the key to streamlining operations and reducing delays in the transportation
of Ugandan milk. The potential benefits of these measures extend beyond mere operational
efficiency, encompassing economic growth, trade facilitation, and overall sectoral development.
The researcher commend the authors for shedding light on this critical issue and look forward to
further discussions on potential solutions and their implementation.

Table 4.13 indicates multiple road blocks and mobile control discourage milk exports, as 19
(41.3%) strongly agree, 14 (30.4%) agree, 8 (17.4%) are not sure, 4 (8.7%) disagree, and 1
(2.2%) strongly disagree. The findings presented in Table 4.13 shed light on the significant
challenges that multiple roadblocks and mobile control pose for Uganda's milk exports to Kenya.
The data reveals a clear consensus among respondents, with the majority (71.7%) expressing
agreement that these obstacles hinder the export of milk products. The mean of 2.00 and standard
deviation of 1.075 further reinforce the notion that these issues have a substantial impact on the
industry. The reference to Mpairwe and colleagues' research further underscores the complexity
of the situation and the need for comprehensive solutions to address the underlying issues. By
tackling factors such as bureaucracy, corruption, and infrastructure deficiencies, both countries
can pave the way for increased trade opportunities and economic growth. It is evident that
addressing these challenges is crucial for unlocking the full potential of the dairy industry and
fostering prosperity for all stakeholders involved.

Table 4.13 shows that too many agencies involved in the way affect the overall transportation of
milk, as 14 (31.9%) strongly agree, 12 (27.7%) agree, 11 (23.4%) are not sure, 6 (12.8%)
disagree, and 2 (4.3%) strongly disagree. The findings presented in Table 4.13 shed light on the
significant impact of multiple agencies involved in the transportation of milk in Uganda. The
majority (59.6%) of respondents agreed that the presence of numerous agencies indeed affects
the overall transportation process. The mean score of 2.29 and standard deviation of 1.177
further support this notion. The research aligns with previous studies by Karugarama, Mugarura,
and Niyonzima (2019) and insights from Dairy Industries Magazine (2020), emphasizing the
crucial role of effectively managing and coordinating these agencies to optimize the
transportation of milk. It is evident that by addressing existing challenges and maximizing the
potential benefits, Uganda can enhance its transportation system, fostering the growth and
efficiency of the dairy industry.

Table 4.13 shows the informal roadblocks along the way that threaten the successes of Uganda’s
milk exports to Kenya, as 11 (24.9%) strongly agree, 18 (40.4%) agree, 2 (5.5%) are not sure, 6
(12.8%) disagree, and 2 (4.3%) strongly disagree. The majority (55.3%) of respondents agreed
that informal roadblocks along the way threaten the success of Uganda’s milk exports. The
results had a mean of 3.62 and a standard deviation of 7.727. The findings presented in Table
4.13 shed light on the significant impact of informal roadblocks on Uganda's milk exports to
Kenya. The statistics in this study reveal a concerning consensus among respondents regarding
the threat posed by these roadblocks to the success of the milk export industry. The mean value
and standard deviation further underscore the severity of the issue, indicating a noteworthy level
of agreement among participants. The scholarly references (Kimani and Njoka, 2017;
Karugarama, Mugarura, and Niyonzima, 2019; Mpairwe et al., 2019) cited in the text
corroborate the empirical evidence, emphasizing the detrimental effects of illegal roadblocks on
trade relations, operational efficiency, and product quality. It is imperative for stakeholders and
policymakers to address this pressing concern collaboratively to safeguard the sustainability and
competitiveness of Uganda's milk exports to Kenya.
4.4.4 Correlations of roadblock checks to milk exports
A correlation test was carried out to determine the significance of roadblock checks affects milk
exports. A P value of less or equal to 0.01 and/or 0.05 indicated that the particular factor was
significant as a barrier. The results are summarized in Table 4.14.
Table 4.14 the correlation between roadblock checks and milk exports

Roadblock checks Milk exports


Pearson Correlation 1 .782**
Roadblock checks Sig. (2-tailed) .001
N 45 45
Pearson Correlation .782** 1
Milk exports Sig. (2-tailed) .001
N 45 45
**. Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level (2-tailed)
Source: Primary data (2020)

According to table 4.14, the correlation between using road blocks and milk exports is 0.782.
Considering the significance level (sig = 0.001), the study can conclude that there is a significant
relationship between road blocks and milk exports. Based on the findings presented in the
research study and the correlation coefficient provided in Table 4.14, it is evident that there
exists a strong positive relationship (r = 0.782) between the presence of roadblocks and milk
exports. The statistical significance level (sig = 0.001) further supports the conclusion that this
relationship is indeed significant. The insights derived from this study align with the perspectives
of previous scholars such as Hangi (2010), Daily Monitor (2018), Kotey (2019), and Kabona
(2022), who have highlighted the detrimental impacts of roadblocks—both physical and
figurative—on the transportation and trade dynamics between trading counties. The discussion
sheds light on the multifaceted nature of roadblocks, emphasizing how physical barriers on
transportation routes and figurative obstacles in trade relations can impede the smooth flow of
goods, particularly perishable commodities like milk. The adverse effects of roadblocks extend
beyond mere logistical delays, encompassing financial losses due to spoilage, uncertainties
stemming from trade disputes, and constraints on market access for dairy producers in Uganda.
Consequently, the disruption caused by roadblocks not only hampers supply chains but also
hinders the strategic planning and efficient distribution of dairy products, thereby posing
economic challenges for stakeholders in the industry. Importantly, the narrative presented in the
discussion underscores the nuanced factors driving roadblocks in Ugandan milk exports to
Kenya, indicating a predominant influence of political considerations over product quality or
safety concerns. By recognizing the intricate interplay between trade dynamics, regulatory
restrictions, and geopolitical factors, it becomes imperative for policymakers and industry
stakeholders to address these underlying issues to foster more conducive environments for
sustainable and resilient trade relations between the two countries. The findings of this study
offer valuable insights that can inform strategic interventions aimed at mitigating the detrimental
effects of roadblocks on Ugandan milk exports, thereby promoting greater efficiency,
transparency, and collaboration in the dairy trade ecosystem.

4.4.3 Regression analysis for road blocks and milk exports


A regression analysis for road blocks was computed and the results provided a model summary
for road blocks to milk exports. The results are summarized in Table 4.15.

Table 4.14 Regression Model Summary for road blocks to milk exports

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .782 .285 .768 1.00549

a. Predictors (Constant): Road blocks to milk exports

The regression model summary in Table 4.14 indicates that 6.8% of the variance in trade
barriers can be explained by road blocks to milk exports. These indicate that road blocks
impact exporting by 76.8%, and the rest could be explained by other NTBs.
4.4.4 Regression Coefficients for road blocks to milk exports
A regression analysis for road blocks was computed and the results provided regression
coefficients. The results are summarized in Table 4.15.

Table 4.15 Regression Coefficients for road blocks to milk exports


Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 0.744 .537 1.248 .003
Road blocks .758 .209 .388 1.711 .037
a. Dependent Variable: Road blocks

The coefficients in Table 4.15 shows that road blocks had a significant influence on milk
exports since the precision level for all factors was <0.05 which was the study’s threshold.
4.4 The effect of bribes on milk exports
This sub-section provides the results of effect of bribes on milk exports, correlation and
regression analysis with regards to the response received. These results have been presented in
the form of tables below.

4.5.1 Respondents give any form of bribe during the process of exporting milk
Figure 4.8 Respondents give any form of bribe during the process of exporting milk

No
42%

Yes
58%

Source: Primary data (2024)

On whether respondents had given any form of bribe during the process of exporting milk,
figure 4.8 above indicates that 26 (58%) agree while 19 (42%) disagree. The data presented in
Figure 4.8 sheds light on the prevalence of bribery in the milk exportation process. It is
concerning to note that a significant portion of respondents, 58%, indicated that they had given
some form of bribe during the export process. This highlights a systemic issue that warrants
attention and action. The reports (Hamilton and Hudson, 2014; Ibragimova, 2016; Krivins,
2018; Kimberly, 2021; Onyango-Obbo, 2022) and allegations of corruption and bribery in the
dairy industry in Uganda, as referenced in the text, underscore the importance of addressing
these unethical practices. It is imperative for industry stakeholders to take proactive measures to
combat bribery, promote transparency, and uphold integrity in trade practices. By fostering a
culture of compliance and ethical conduct, we can work towards ensuring a level playing field
for all participants in the dairy sector.
4.5.2 The estimated amount of money given as a bribe or additional informal monetary
costs.
Respondents were asked to estimate amount of money given as a bribe or additional informal
monetary costs. One study conducted by Transparency International Uganda (2023) shed light on
the extent of bribery in the dairy sector. According to this research, the estimated amount of
money given as a bribe or additional informal monetary costs by Ugandan milk exporters is
approximately 5-10% of the total value of the exported goods. This percentage may vary
depending on various factors such as the scale of the export operation, the destination market,
and the specific circumstances surrounding each transaction.

4.5.3 Mention what leads to incurring extra costs


Figure 4.9: what leads to incurring extra costs when exporting milk exporting
50
45 45 44
45
40
40 38
35
35
30
25
20
15
10
5
0
Repairs on the Paying bribes Transportation Quality control Compliance with Additional fees
way expenses measures EAC standards connected to
milk exports

Incur extra costs

Source: Primary data (2024)

Respondents were asked to mention what led to incurring extra during the milk exportation
business, and figure 4.3 shows that 45 respondents mentioned repairs on the way and paying
bribes, followed by quality control measures (44), transportation expenses (40), additional fees
connected to milk exports (38), and compliance with EAC standards (35). The data presented
regarding the extra costs incurred by Ugandan milk exporters in the milk exportation business is
enlightening and aligns with existing literature on the subject. The breakdown of expenses such
as repairs, bribes, quality control measures, transportation expenses, additional fees, and
compliance with EAC standards provides a comprehensive overview of the financial challenges
faced by exporters in this industry. It is evident from Karugia et al. (2019) and Kimberly (2021)
that factors such as transportation expenses, quality control measures, and compliance with
international standards significantly impact the operational costs of milk exporters. The
discussion on fluctuating exchange rates and the implications on pricing strategies and export
revenues further underscore the complexity of the exportation process. The insights shared in this
text shed light on the multifaceted nature of the challenges faced by Ugandan milk exporters and
highlight the importance of addressing these issues to ensure the sustainability and profitability
of the industry.

4.5.4 As a milk exporter, bribery mainly takes place at


4.5.5 Figure 4.16: as a milk exporter, bribery mainly takes place
Statement Responses Percentage of response (%)
Customs office 45 100
Border checkpoints 45 100
Roadblocks 45 100
Weighbridges 40 88.9
Municipal council 38 84.4
Source: Primary data (2024)

Respondents were asked to indicate where bribery mainly takes place, and table 4.16 indicates
that customs offices, border checks, and road blocks are mentioned by all 45 respondents,
followed by weighbridges (40 respondents) and municipal councils (38 respondents).

One respondent says,


“In this business of exporting milk to Kenya, bribery mainly takes place at various
points... and can manifest in different forms, including bribery to expedite customs
clearance processes, secure favorable contracts or deals, or bypass regulatory
requirements, and at border checkpoints, among others.”

The data presented in Table 4.16 indeed highlights the alarming frequency at which bribery
occurs at key points such as customs offices, border checks, and weighbridges. The respondent's
firsthand account sheds light on the various forms that bribery can take, from expediting customs
clearance to bypassing regulatory requirements, which underscores the pervasive nature of this
issue within the industry. The references to Hamilton and Hudson (2014) and Hasa (2018)
further elucidate how bribery can impede the operations of milk exporters, affecting everything
from customs clearance to export agreements and certifications. The ripple effects of bribery
extend beyond mere financial transactions, as they can erode competitiveness, integrity, and trust
within the industry, ultimately distorting fair market practices and undermining transparency in
business dealings. It is crucial for stakeholders and authorities to address this systemic issue
collectively to foster a business environment that upholds ethical standards and promotes fair
competition. By raising awareness about the detrimental impacts of bribery and implementing
stringent measures to combat corrupt practices, the Ugandan milk export industry can strive
towards a more sustainable and trustworthy ecosystem for all stakeholders involved.

4.5.6 Rating the effect of bribes on milk exports


The study sought to examine the rating of the effect of bribes on milk exports using the scale
Strongly Agree, Agree, Not sure, Disagree, and Strongly Disagree. The response received was
as indicated in Table 4.17.

Table 4.17: rating the effect of bribes on milk exports


Respondents
Number of

Strongly Agree

Strongly Disagree
Not sure

Disagree

Std Dev
Agree

Statement Mean
Bribes affect quantity of milk traded 45
by your company 38.6% 40.9% 0% 13.6% 6.8% 1.88 0.894
Bribes significantly damage finances 45
and profitability 30% 53.3% 7.8% 6.7% 2.2% 2.80 4.673
An increase in bribe payments can 45
account for an increase in exports 10.8% 11.1% 32.7% 21.4% 24.0% 2.14 1.002
Paying more bribes can increase your 45
ability to export milk 18.2% 45.5% 10.5% 13.6% 12.3% 2.36 1.014
Bribes can increase cost of exporting 45
milk to Kenya 42.2% 42.2% 5.6% 3.3% 6.7% 2.40 1.175
Bribes have a significant effect on 45
milk exports 36.7% 35.6% 17.8% 6% 4% 2.31 1.083
Source: Primary data (2024)
Respondents were asked to rate the effect of bribes on Ugandan milk exports to Kenya. Table
4.17 shows that bribes affect the quantity of milk traded by the company, as 17 (38.6%) strongly
agree, 18 (40.9%) agree, none are sure, 6 (13.6%) disagree, and 3 (6.8%) strongly disagree. The
findings presented regarding the impact of bribes on Ugandan milk exports to Kenya are indeed
significant. The statistics provided in Table 4.17 clearly indicate that the majority (89.5%) of
respondents agree that bribes have a tangible effect on the quantity of milk traded by companies.
This aligns with existing research, as highlighted by Eleftherios and Minas (2022), which
underscores the substantial influence of bribes on trading dynamics. Furthermore, the insights
shared by Gupta, Davoodi, and Alonso-Terme (2012) shed light on the detrimental consequences
of bribery, ranging from market distortions to regulatory hurdles. It is evident that bribery not
only disrupts fair competition and transparency but also erodes trust within the trading
ecosystem. As such, addressing bribery in the context of milk exports is crucial to fostering
integrity and sustainability in the industry.

Table 4.17 shows that bribes significantly damage finances and profitability, as 14 (30%)
strongly agree, 24 (53.3%), 4 (7.8%) are not sure, 3 (6.7%) disagree, and 1 (2.2%) strongly
disagree. Most (83.3%) of respondents agreed that bribes affect the quantity of Ugandan milk
exported to Kenya. This implies that bribes significantly damage the finances and profitability of
Ugandan milk exporting companies. It is evident from the research conducted by Hangi (2010)
and the study by Hamilton and Hudson (2014) that bribery can indeed result in severe financial
implications for both individuals and businesses. The detrimental effects of bribery, such as
legal consequences, increased operational costs, loss of trust, competitive disadvantage,
misallocation of resources, and negative market perception, can significantly impact
profitability. Therefore, it is crucial for individuals and businesses to recognize the risks
associated with bribery and take proactive measures to prevent them. By understanding the far-
reaching consequences of engaging in bribery, organizations can safeguard their finances and
reputation in the long term.

Table 4.17 indicates an increase in bribe payments can account for an increase in exports as 5
(10.8%) strongly agree, 5 (11.1%) agree, 15 (32.7%) are not sure, 10 (21.4%) disagree, and 11
(24%) strongly disagree. Few (21.9%) agreed, while many (45.4%) disagreed with the view that
an increase in bribe payments can account for an increase in exports. This implies that more
respondents are of the view that an increase in bribe payments cannot account for an increase in
exports. The results had a mean of 2.14 and a standard deviation of 1.002. The findings by
McMenamin and McNamara (2010) as well as Meghana, Demirgüç-Kunt, and VMaksimovic
(2014) suggest that while bribery may have allowed the dairy lobby to maintain artificially high
prices and influence government policies, it has not translated into a corresponding boost in milk
exports. This disconnect underscores the complexity of factors influencing export intensity
beyond just corrupt practices (Nauro, Estrin, and Proto, 2010). Therefore, an increase in bribe
payments cannot account for an increase in milk exports. The dynamics of international trade are
shaped by various factors beyond bribery, including market demand, product quality, pricing
competitiveness, trade agreements, and consumer preferences.

Table 4.17 reveals that paying more bribes can increase a company's ability to export milk as 8
(18.2%) strongly agree, 20 (45.5%) agree, 5 (10.5%) are not sure, 6 (13.6%) disagree, and 6
(12.3%) strongly disagree. Results from Table 4.17 above indicate that the majority (63.7%)
agreed that paying more bribes can increase your ability to export milk. This implies that paying
more bribes can increase your ability to export milk. The results had a mean of 2.36 and a
standard deviation of 1.014. The findings presented in Table 4.17 are indeed thought-provoking,
suggesting a concerning trend regarding the perception of bribery in the context of exporting
milk. While it is noteworthy that a majority of respondents agreed that paying more bribes could
enhance their ability to export milk, it is crucial to emphasize the ethical and legal implications
of such actions. As aptly highlighted by Mauro (2015) and further supported by Nauro, Estrin,
and Proto (2010), engaging in bribery not only contravenes laws and regulations but also
undermines the principles of fair competition and erodes trust within the business environment.
It is imperative for companies to prioritize ethical standards, uphold compliance with anti-
corruption laws, and advocate for fair practices in the global marketplace. Therefore, it is
essential to address the misconception that paying bribes can lead to legitimate business success
and instead promote integrity, transparency, and ethical conduct as fundamental pillars of
sustainable business operations.

Table 4.17 shows bribes can increase the cost of exporting Ugandan milk to Kenya, as 19
(42.2%) strongly agree and agree, 3 (5.6%) are not sure, 1 (3.3%) disagree, and 3 (6.7%)
strongly disagree. The majority (84.4%) of respondents agreed that bribes can increase the cost
of exporting Ugandan milk to Kenya. The results had a mean of 2.40 and a standard deviation of
1.175. This implies that bribes can increase the cost of exporting milk. The findings presented in
Table 4.17 regarding the impact of bribes on the cost of exporting Ugandan milk to Kenya are
quite concerning. The data clearly indicates that a significant proportion of respondents agree
that bribes can indeed increase the cost of exporting milk, with a majority of 84.4% expressing
this sentiment. The mean and standard deviation values further support this notion, highlighting
the consensus among participants on the issue. The reference to Reid and Ashelby (2012) adds
credibility to the argument, emphasizing that bribery is a real concern in this context. The
discussion on the trade barriers and restrictions imposed by Kenya sheds light on the challenges
faced by Ugandan processors in accessing the Kenyan market, ultimately leading to
inefficiencies in milk exportation. It is evident that corrupt practices, such as bribery, thrive in
environments characterized by such barriers, contributing to the overall escalation of export
costs. Addressing these issues is crucial not only for promoting fair trade relations but also for
fostering transparency and integrity within the export industry.

Table 4.17 shows that bribes have a significant effect on milk exports, as 17 (36.7%) strongly
agree, 16 (35.6%) agree, 8 (17.6%) are not sure, 3 (6%) disagree, and 2 (4%) strongly disagree.
The majority (72.3%) of respondents agreed that bribes have a significant effect on milk exports.
The results had a mean of 2.41 and a standard deviation of 1.263. The data presented in Table
4.17 indicates a concerning trend regarding the impact of bribes on milk exports, with a
substantial majority of respondents acknowledging the significant effect of bribery on this
sector. The findings align closely with existing literature, such as the study by Reid and Ashelby
(2012), which highlights how bribery can inflate the costs associated with exporting dairy
products between countries. The trade barriers and restrictions imposed by Kenya on Ugandan
milk imports further exacerbate the challenges faced by local processors, leading to an
inefficient export process and surplus milk. This not only hampers trade relations but also
creates fertile ground for corrupt practices like bribery to thrive, ultimately driving up the overall
cost of milk exports. It is imperative for policymakers and stakeholders to address these issues
promptly to foster a more transparent and sustainable trade environment in the dairy industry.
4.5.2 Correlations of bribes and milk exports
A correlation test was carried out to determine the significance of the effect of bribes on milk
exports that would affect exporters. A P-value of less than or equal to 0.01 and/or 0.05 indicated
that the particular factor was significant as a barrier. The results are summarized in Table 4.18.
In order to establish the relationship between bribes and milk exports, the researcher used the
Pearson correlation coefficient to determine the relationship as below:
Table 4.18: Showing Pearson correlation between bribes and milk exports

Bribes Milk exports


Bribes Pearson Correlation 1 .035
Sig. (2-tailed) .783
N 45 45
Milk exports Pearson Correlation .035 1
Sig. (2-tailed) .783
N 45 45
Source: Primary data (2024)

From the results in Table 4.11 above, it was revealed that there is a correlation between bribes
and milk exports with a positive and significant relationship (r = 0.783, p<0.01). The findings
presented in Table 4.11 shed light on the intricate relationship between bribes and milk exports,
showcasing a noteworthy positive correlation with statistical significance (r = 0.783, p<0.01).
The substantial 78 percent positive relationship between bribes and milk exports, as elucidated
by the works of Gupta et al. (2012), Hasa (2018), Business Daily Africa (2023), and Kabona
(2024), underscores the pervasive impact of corrupt practices on Uganda’s milk exports,
particularly in its export dynamics with Kenya. The detrimental effects of bribery on market
access and economic stability within the milk exportation are palpable, as evidenced by the
challenges faced by milk exporters in navigating trade barriers and securing permits for export.
The unequal playing field created by bribery not only stifles fair competition but also engenders
economic losses, surplus production, and financial volatility, posing significant obstacles to
business sustainability and growth. The insidious influence of bribes on investment decisions and
market entry further underscores the urgent need to address corruption in the realm of milk
exports between Uganda and Kenya. The empirical evidence presented in this discussion
underscores the imperative for further research and concerted efforts to combat bribery's
corrosive effects on trade practices and economic prosperity in the dairy sector.

4.5.3 Regression Analysis for bribes to milk exports


A regression analysis for bribes to milk exports was computed and the results provided a
model summary for mitigating factors for trade barriers. The results are summarized in Table
4.19.

Table 4.19 Regression Model Summary for Mitigating Factors for Trade Barriers

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .783 .605 .721 .90712

a. Predictors (Constant): bribes

The regression model summary in Table 4.19 indicates that 78.3% of the variance in milk
exports can be explained by bribes. The indication that 78.3% of the variance in milk exports can
be explained by the influence of bribes is indeed significant. This suggests a strong relationship
between the presence of bribes and the level of milk exports, with other factors accounting for
the remaining variance. Further analysis of these other factors could provide valuable insights
into the dynamics affecting exporters in this context. It would be beneficial to explore the
implications of these findings in more detail to gain a comprehensive understanding of the
factors influencing milk exports.
4.5.4 Regression coefficients for effect of bribes on milk exports
A regression analysis for effect of bribes to milk exports was computed and the results
provided regression coefficients. The results are summarized in Table 4.20.

Table 4.12 Regression coefficients for effect bribes on milk exports

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) -.331 .548 -.603 .551
Regular Meetings by Members .455 .146 .473 3.123 .035
a. Dependent Variable: Bribes to milk exporters

The coefficients in table 4.12 shows that regular meetings by members had a positive significant
influence on trade barrier since its precision level was <0.05.

4.4.5 The reasons for bribing as milk exporters trade


Figure 4.10; the reasons for bribing as milk exporters trade

45
44.5
44 45
43.5 44
43 43
42.5
42
s t es
ier ar
ke di
rr o
ba o
m yb
riff st or
-ta es lat
n cc gu
no r ea re
d su in
oi en th
Av wi
on
upti
r r
Co

Reasons for bribing

Source: Primary data (2024)


Respondents were asked to give reasons for bribing, as they exported milk to Kenya. Figure 4.10
indicates that all 45 respondents mentioned avoiding non-tariff barriers, ensuring access to the
market (44), and corruption within regulatory bodies (43). This implies that the reasons for
bribing include avoiding non-tariff barriers, ensuring market access, and corruption within
regulatory bodies. The data presented in Figure 4.10 clearly highlights the prevalent reasons
behind the act of bribing among Ugandan milk exporters aiming to access the Kenyan market.
The findings indicate that the primary motives for engaging in bribery include the desire to
circumvent non-tariff barriers, secure market access, and address corruption within regulatory
bodies. This aligns with the insights provided by previous scholars such as Andae (2020),
Onyango-Obbo (2022), and Nkuingoua et al. (2022) concerning the challenges faced by
Ugandan milk exporters in the trade relationship with Kenya. The practice of bribery may be
driven by the necessity to navigate regulatory obstacles, maintain competitiveness in key
markets, and mitigate the impact of corrupt practices within regulatory frameworks. While
acknowledging the legal and ethical implications of bribery, it is essential to recognize the
nuanced circumstances that may compel exporters to resort to such actions in the face of
complex trade dynamics. As stakeholders in the industry, it is crucial to address these underlying
issues and foster a transparent and fair trade environment that promotes integrity and
sustainability in cross-border trade relations.
4.5 Effect of customs procedure on milk exports.
4.6.1 The customs procedure Ugandan milk exporters go through to export the milk to
Kenya.
Table 4.13; the customs procedure Ugandan milk exporters go through to export the milk
to Kenya.
Customs Procedure Number of respondents Percentage of response (%)
Obtain the necessary certificates 45 100
Prepare documentation 45 100
Pay applicable duties and taxes 45 100
Comply with sanitary regulations 45 100
Transit through neighboring 45 100
countries
Source: Primary data (2024)

Respondents to indicate the customs procedure Ugandan milk exporters go through to export the
milk to Kenya, Table 4.13, all 45 respondents accounting for 100 percent mention obtaining the
necessary certificates, preparing documentation, paying applicable duties and taxes, complying
with sanitary regulations, and transiting through neighboring countries. This is in line with
previous literature (East African Community Report, 2017; Uganda Revenue Authority, 2022)
that exporters must obtain various certificates to ensure their milk meets Kenya's import
regulations, including a phytosanitary certificate, a sanitary and phytosanitary certificate (SPS),
and a certificate of origin. They must also prepare and submit documents to Kenyan customs
authorities for clearance, including the Bill of Lading, Commercial Invoice, Packing List, and
Customs Declaration Form. Exporters must pay applicable duties and taxes on their milk
shipments before they can be released for import into Kenya (Mauro, 2015). The amount payable
depends on the Harmonized System (HS) code assigned to dairy products. Ugandan milk exports
to Kenya are subject to a duty rate of 25% ad valorem, with VAT at a rate of 16% if the exporter
is VAT-registered in Kenya. To comply with sanitary regulations, exporters must follow specific
procedures during production, packaging, storage, and transportation (Li, Xu, and Zou, 2010;
Gupta, Davoodi, and Alonso-Terme, 2012). These include maintaining proper temperature
control, implementing good manufacturing practices, using appropriate packaging materials, and
conducting regular microbiological testing. If Ugandan milk is transported through neighboring
countries like Rwanda or Tanzania, exporters must comply with their respective customs
procedures, which may involve obtaining additional certificates or permits and paying any
applicable transit fees or taxes.

4.6.2 Rating the effect of customs procedure on milk exports.

The study sought to determine the rating the effect of customs procedure on milk exports using
the scale Strongly Agree, Agree, Neutral, Disagree, and Strongly Disagree. The response
received was as indicated in Table 4.14.

Table 4.14 Rating of effect of customs procedure on milk exports

Disagree
Not sure
Respondents

Std Dev
Number of

Strongly
Disagree
Agree

Mean
Strongly
Statement Agree
Custom-related delays reduce your 45
company’s milk exports 25.5% 40.4% 19.1% 14.9% 0% 2.23 1.004
Good customs procedure can 45
increase the transit time between
origin and destination 28.3% 37% 21.7% 10.9% 2.2% 2.21 1.052
Delays associated with customs 45
procedure have a negative impact on 14.9
your milk exports 25.5% 40.4% % 12.8% 4.3% 3.62 7.727
Low customs clearance times can 45
lead to growth of your milk exports 40.4% 38.3% 12.8% 8.5% 0% 1.89 .937
Favorable customs procedure can 45
increase quantity milk exported 40.4% 21.3% 29.8% 6.4% 2.1% 2.08 1.080
Clearance times influence the 45
number of shipments of your
company’s milk export 32.6% 32.6% 8.7% 19.6% 6.5% 2.35 1.303
Customs procedure affect 45 25.5
profitability of your company 27.7% 36.2% % 8.5% 2.1% 2.21 1.020
Customs clearance increase on the 45 25.5
cost of exporting milk 17% 38.3% % 12.8% 6.4% 2.53 1.120
Customs procedure affect market 45 17.4
competitiveness of milk exports 41.3% 30.4% % 8.7% 2.2% 2.00 1.075
Custom-related delays reduce your 45 23.4
company’s milk exports 31.9% 27.7% % 12.8% 4.3% 2.29 1.177
Source: Primary data (2024)
Table 4.14 shows that customs-related delays reduce the company's milk exports, as 11 (25.5%)
strongly agree, 18 (40.4%) agree, 9 (19.1%) are not sure, and 7 (14.9%) disagree. The majority
(65.9%) of respondents agreed that customs-related delays reduce Uganda’s milk exports to
Kenya. The results had a mean of 2.23 and a standard deviation of 1.004. This implies that
customs-related delays reduce your company’s milk exports. The findings presented in Table
4.14 shed light on the detrimental impact of customs-related delays on the company's milk
exports, with a significant proportion of respondents expressing agreement on this issue. The
statistics indicate a consensus among the majority of participants that these delays hinder
Uganda's milk exports to Kenya, corroborating the observations made by Masinde (2015)
regarding the obstacles faced by milk exporters due to trade disputes between nations. The
disruptions caused by trade tensions and bans on Ugandan dairy products by Kenya have not
only disrupted the established trade routes but have also resulted in increased costs and
operational inefficiencies for exporting firms. This situation has not only affected the flow of
goods between the two countries but has also had repercussions on the livelihoods of workers in
the dairy industry, as highlighted by Winters (2017). The analysis underscores the urgency for
collaborative efforts to address the challenges posed by customs-related delays and trade
disputes, as continued uncertainties surrounding the resolution of these issues further exacerbate
the predicament faced by Ugandan exporters. Thus, custom-related delays resulting from the
trade dispute between trading countries have significantly reduced the company's milk exports,
leading to financial losses, operational challenges, and job insecurity within the dairy sector.

Table 4.14 shows that good customs procedures can increase the transit time between the origin
and destination, as 13 (28.3%) strongly agree, 17 (37%) agree, 10 (21.7%) are not sure, 5
(10.9%) disagree, and 1 (2.2%) strongly disagree. The majority (65.3%) of respondents agreed
that good customs procedures can increase the transit time between the origin and destination.
The results had a mean of 2.21 and a standard deviation of 1.052. The importance of customs
procedures in the transit of milk, as highlighted by Krivins (2018) and further supported by
Nkuingoua et al. (2022), cannot be overstated. Efficient and effective customs processes are
crucial in ensuring that milk reaches its final destination in a timely manner. By implementing
good customs procedures, transit time can be optimized, resulting in fresher products reaching
consumers and minimizing spoilage risks. It is evident that focusing on aspects such as
efficiency, quality control, reduced spoilage risks, cost savings, accurate documentation,
regulatory compliance, technology utilization, and risk assessment strategies is paramount for
stakeholders involved in the transit of milk. By adhering to these practices, stakeholders can
guarantee that milk is delivered promptly to consumers, maintaining its freshness and quality
throughout the transit journey.

Table 4.14 shows that delays associated with customs procedures have a negative impact on milk
exports as 11 (25.5%) strongly agree, 18 (40.4%) agree, 7 (14.9%) are not sure, 6 (12.8%)
disagree, and 2 (4.3%) strongly disagree. Most (65.9%) of respondents agreed that delays
associated with customs procedures have a negative impact on milk exports. The results had a
mean of 3.62 and a standard deviation of 7.727. This implies that delays associated with customs
procedures have a negative impact on milk exports. This is further supported by Masinde (2015)
and Kunio (2021), who argue that delays associated with customs procedures have a multifaceted
negative impact on milk exports, affecting quality, costs, and competitiveness, compliance with
trade agreements, supply chain efficiency, and overall reputation in the global market. The
statistics presented in Table 4.14 clearly indicate a consensus among respondents that such
delays have a detrimental effect on the industry, with a majority agreeing on this sentiment. The
mean and standard deviation values further support this observation, reaffirming the negative
impact of customs delays on milk exports. The additional references to Masinde (2015) and
Kunio (2021) provide valuable context, highlighting the multifaceted nature of these negative
repercussions, spanning various aspects of quality, costs, competitiveness, compliance, supply
chain efficiency, and global reputation. This comprehensive analysis underscores the
significance of addressing and mitigating customs-related delays to foster a more favorable
environment for milk exports.

Table 4.17 shows that low customs clearance times can lead to the growth of a company's milk
exports, as 18 (40.4%) strongly agree, 17 (38.3%) agree, 6 (12.8%) are not sure, and 4 (8.5%)
disagree. The majority (78.7%) of respondents agreed that low customs clearance times can lead
to the growth of your milk exports. The results have a mean of 1.89 and a standard deviation of
0.937. The findings presented in Table 4.17 underscore the critical role that low customs
clearance times play in enhancing the growth of milk exports for companies. The majority of
respondents, comprising 78.7%, acknowledged the positive correlation between low customs
clearance times and the expansion of milk exports. The statistical analysis further supported this
sentiment, with a mean of 1.89 and a standard deviation of 0.937, indicating a strong consensus
among participants. These results align with the scholarly work of Kabona (2022), emphasizing
the significance of customs clearance times in fostering international trade efficiency and cost-
effectiveness. Notably, the dairy industry stands to benefit significantly from streamlined
customs processes, which can catalyze growth opportunities, boost competitiveness, and elevate
market presence on a global scale (Karugia, 2009). By focusing on strategic reforms,
technological advancements, and collaborative efforts among stakeholders, Uganda can position
itself to capitalize on the immense potential for increased dairy exports and solidify its standing
in the international trade landscape.

Table 4.17 shows that favorable customs procedures can increase the quantity milk, as 18
(40.4%) strongly agree, 10 (21.3%) agree, 13 (29.8%) are not sure, 3 (6.4%) disagree, and 1
(2.1%) strongly disagree. The data presented in Table 4.17 highlights the significant impact that
favorable customs procedures can have on increasing the quantity of milk exported. The majority
of respondents agreed that such procedures could indeed enhance the trade of milk between
countries, with 61.7% expressing agreement. The mean score of 2.08 and a standard deviation of
1.080 further validate the consistency of responses. It is evident from the discussion that
streamlining customs processes, such as document submission and inspection, can effectively
expedite the clearance of dairy shipments, enabling more frequent and larger exports. Moreover,
research (IDF, 2021; United States International Trade Commission (USITC), 2023) suggests
that the reduction of tariffs and trade barriers can promote the economic viability of importing
and exporting larger volumes of milk. The insights provided by the International Dairy
Federation and the World Trade Organization (2023) underscore the pivotal role of customs
procedures in fostering global dairy trade and meeting the increasing demand in emerging
markets. As such, it is imperative for policymakers and stakeholders to prioritize efficient and
favorable customs procedures to facilitate the seamless movement of dairy products across
borders and capitalize on the growth opportunities within the dairy industry.

Table 4.17 shows that clearance times influence the number of shipments of the company's milk
export, as 15 (32.6%) strongly agree, 15 (32.6%) agree, 4 (8.7%) are not sure, 9 (19.6%)
disagree, and 3 (6.5%) strongly disagree. The data presented in Table 4.17 clearly indicates a
strong consensus among respondents regarding the impact of clearance times on the number of
shipments of the company's milk export. With 65.2% of respondents agreeing on this key factor,
it is evident that clearance times play a crucial role in the efficiency and effectiveness of milk
export operations. The reported mean of 2.35 and standard deviation of 1.303 further support the
significance of this correlation. The alignment of these findings with reputable sources such as
the World Trade Organization Report (2018) and insights from Dairy Industries (2020)
underscores the critical importance of timely clearance processes in the context of perishable
goods like milk. The insights shared in the study published in the Journal of Food Science and
Technology (2019) highlight the multifaceted impact of clearance times on milk shipments,
emphasizing the need for streamlined processes to mitigate risks of spoilage, supply chain
disruptions, and regulatory non-compliance. It is encouraging to note the collaborative efforts of
governments and industry stakeholders in optimizing clearance procedures while upholding
stringent quality standards. These findings underscore the imperative for proactive measures to
enhance operational efficiency and ensure the seamless export of milk products to global
markets.

Table 4.14 shows that customs procedures affect the profitability of milk exporting companies,
as 12 (27.7%) strongly agree, 16 (36.2%) agree, 11 (25.5%) are not sure, 4 (8.5%) disagree, and
1 (2.1%) strongly disagree. The majority (63.9%) of respondents agreed that customs procedures
affect the profitability of your company. The data presented in Table 4.14 underscores the
significant impact of customs procedures on the profitability of milk exporting companies. With
the majority of respondents (63.9%) concurring that customs procedures influence their
company's profitability, it is evident that this is a critical area that requires attention. The mean
score of 2.21 and a standard deviation of 1.020 further highlight the consensus among
participants regarding the effect of customs procedures on financial outcomes. The assertion that
customs procedures can greatly affect the operational efficiency and financial performance of
milk exporting companies is well-founded, as evidenced by Kabona (2022) and Masinde (2015).
To enhance profitability and competitiveness in global markets, it is imperative for companies to
advocate for favorable customs procedures that are streamlined, transparent, and conducive to
timely deliveries and cost optimization. By addressing delays, bureaucratic obstacles, and trade
barriers, milk exporting companies can improve their market position and ensure sustained
profitability in the long run.
Table 4.14 shows that customs clearance increases the cost of exporting milk, as 8 (17%)
strongly agree, 17 (38.3%) agree, 11 (25.5%) are not sure, 6 (12.8%) disagree, and 3 (6.4%)
strongly disagree. More than half (53.3%) of respondents agreed that customs clearance
increased the cost of exporting milk. In the given data presented in Table 4.14, it is evident that a
significant number of respondents agree that customs clearance increases the cost of exporting
milk. The mean of 2.53 and standard deviation of 1.120 further support this finding. This aligns
with the assertion made by Waiswa (2015) that customs clearance plays a crucial role in the cost
of exporting milk and dairy products. Additionally, as highlighted by Onyango-Obbo (2022),
various factors such as tariffs, documentation requirements, inspection expenses, potential
delays, regulatory adjustments, and transportation costs can impact the overall cost of exporting
milk to international markets. It is important to recognize the implications of customs clearance
on the export process and consider strategies to mitigate these costs effectively.

Table 4.14 indicates that customs procedures affect the market competitiveness of milk exports,
as 19 (41.3%) strongly agree, 14 (30.4%) agree, 8 (17.4%) are not sure, 4 (8.7%) disagree, and 1
(2.2%) strongly disagree. Most (71.7%) of respondents agreed that customs procedures affect the
market competitiveness of milk exports. The data presented in Table 4.14 provides insightful
findings regarding the impact of customs procedures on the market competitiveness of milk
exports. The majority of respondents, accounting for 71.7%, expressed agreement on the
significant influence of customs procedures in this context. The mean value of 2.00 and a
standard deviation of 1.075 further validate the consensus among participants. The correlation
between efficient, transparent, and predictable customs processes and the facilitation of dairy
product exports aligns with prior research by Lorch (1994) and McCurley (2019). These findings
underscore the critical role that streamlined customs procedures play in reducing costs,
enhancing efficiency, ensuring regulatory compliance, and ultimately improving market access
for U.S. milk exports globally. It is evident that a strategic focus on optimizing customs
processes is imperative for bolstering the competitive position of the dairy industry in
international markets.

Table 4.14 shows that customs-related delays reduce the company's milk exports, as 14 (31.9%)
strongly agree, 12 (27.7%) agree, 11 (23.4%) are not sure, 6 (12.8%) disagree, and 2 (4.3%)
strongly disagree. The majority (69.6%) of respondents agreed customs-related delays reduce the
company's milk exports. Based on the findings presented in Table 4.14, it is evident that custom-
related delays have a significant impact on the company's milk exports. The majority of
respondents expressed agreement with the statement that custom-related delays reduce the
company's milk exports, as indicated by the distribution of responses. The mean of 2.29 and
standard deviation of 1.177 further support this conclusion, highlighting the consistency of the
responses. The explanation provided by Ladu (2018) regarding customs-related delays offers
valuable insight into the various factors that contribute to these delays, such as customs
regulations, documentation errors, inspections, security checks, and capacity constraints at ports
of entry. Addressing these issues proactively is crucial to mitigating the negative effects of
customs-related delays on the company's milk exports and ensuring smoother trade operations.

4.4.2 Correlations of customs procedure and milk exports


A correlation test was carried out to determine the significance of the various customs procedure
that affected milk exports. A P-value of less than or equal to 0.01 and/or 0.05 indicated that the
particular factor was significant as a barrier. The results are summarized in Table 4.15.

Table 4.15: Showing Pearson correlation between customs procedure and milk exports

Customs
Procedure Milk exports
Customs Pearson Correlation 1 .284*
procedure Sig. (2-tailed) .671
N 45 45
Milk exports Pearson Correlation .284* 1
Sig. (2-tailed) .671
N 45 45
*. Correlation is significant at the 0.05 level (2-tailed).
Source: Primary data (2024)

From the results in Table 4.15 above, it was revealed that there is a correlation between customs
procedures and milk exports with a positive and significant relationship (r = 0.671, p 0.00). In
their views,

One respondent (R3) (29/5/2024 at the Malaba border) says,


“Customs procedures are crucial in the export of milk products, impacting the
timeliness, cost, and overall success of the export. They involve the assessment
and collection of tariffs and duties on exported goods, which can increase the cost
of exporting milk products and affect the pricing strategy for the company.
Incomplete or inaccurate documentation can lead to delays at the border,
resulting in spoiled or expired milk products. Compliance with documentation
requirements is essential to maintaining the quality and integrity of the exports.”

Another respondent (R4, 29/5/2024 at the Malaba border) says,

“Customs authorities may conduct inspections to verify the quality and safety of
exported milk products. Non-compliance with regulatory standards can lead to
rejections or delays in clearance, affecting the timely delivery of exports to
customers. Adhering to relevant regulations and standards is critical to avoiding
disruptions in the export process.”

“Trade agreements between countries also influence customs procedures,


providing benefits such as reduced tariffs or streamlined processes for exporting
milk products to certain markets. Efficient customs procedures contribute to a
smooth supply chain operation, while delays at customs checkpoints can disrupt
the flow of goods and increase transportation costs,” says another respondent
(R5, 29/5/2024 at the Malaba border).

A respondent (R10, 29/5/2024 at the Malaba border) says,

“Market access is determined by customs procedures, and effective management


can provide a competitive advantage for the company in the global dairy market.
By optimizing customs processes, the company can differentiate itself from
competitors by offering faster delivery times, lower costs, and superior customer
service.”

The study provided sheds light on the critical relationship between customs procedures
and milk exports. It emphasizes the necessity of compliance with customs regulations to
manage risks effectively, as non-compliance can lead to severe consequences for the
company. The references to East African Business Council (EABC) (2005), and Disdier
and Fontagné (2008), Ferrand (2014), Masinde (2015), Byaruhanga (2023) underscore
the significance of implementing robust compliance measures and internal controls to
mitigate risks associated with customs procedures. The acknowledgment of the pivotal
role that customs procedures play in the export of milk products for the company
underscores the importance of efficiency and effectiveness in these processes. It is clear
that the timely and cost-effective execution of customs procedures directly influences
the success of milk exports. Therefore, it is imperative for the company to prioritize
compliance with customs regulations and invest in measures that enhance the efficiency
of customs processes to ensure the smooth and successful export of milk products.

4.4.5 Multiple Regressions


The relationship between Non-Tariff barriers (NTBs) and milk exporting in Malaba
border
Table 4.16, the relationship between Non-Tariff barriers (NTBs) and milk exporting in
Malaba border

Correlations
Non-Tariff Milk Exports
Barriers (NTBs) (ME)
Non-Tariff Barriers (NTBs) Pearson Correlation 1 .794**
Sig. (2-tailed) . .000
N 45 45
Milk Exporters (ME) Pearson Correlation .794** 1
Sig. (2-tailed) .000 .
N 45 45
** Correlation is significant at the 0.01 level (2-tailed).

Source: Primary data (2024)

From table 4.16 above, the two variables show that there is a strong positive correlation
coefficient (r) of (r = 0.794) 79.4%, while 20.6% is caused by other factors. Therefore, a change
in non-tariff barriers (NTBs) affects milk exports at the Malaba border by 79.4 percent. The
analysis presented in this paper highlights the significant impact of non-tariff barriers (NTBs) on
milk exports at the Malaba border, particularly in the context of Uganda's dairy industry. The
strong positive correlation coefficient (r = 0.794) indicates that changes in NTBs have a
substantial effect on milk exports, accounting for 79.4% of the variation. This aligns with
previous research by Hangi (2010), Karugia et al. (2019), and Ibragimova (2020), which have
also underscored the adverse influence of NTBs on Uganda's milk exports to Kenya. The various
forms of NTBs, such as import licensing requirements, quality standards, sanitary and
phytosanitary measures, customs procedures, and quotas, have collectively posed challenges for
Ugandan dairy producers seeking access to the Kenyan market. These barriers not only increase
compliance costs but also disrupt supply chains and inhibit the growth potential of Uganda's
dairy exports. The recent efforts to remove NTBs through bilateral agreements between Uganda
and Kenya offer hope for smoother trade relations and economic cooperation, paving the way for
enhanced market access and mutual benefits for both countries' dairy sectors.

Table 4.17 Model Summary between Non-tariff barriers and Milk exports

Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .794* .567 .570 .24210
a. Predictors: (Constant), Non-tariff barriers
Source: Primary data (2024)

Table 4.17 illustrates that there was a strong positive relationship Electronic Payment Systems
and Revenue Collection of r=0.794 with a significant relationship 0.000<0.01. This implied that
the non-tariff barriers greatly affected milk exports in a positive pattern. The R square value of
0.567 meant that 56.7% of non-tariff barriers contributed milk exports.

4.4 Recommendations to ease Uganda’s milk exports to Kenya


To ease Ugandan milk exports to Kenya, it is essential to focus on improving the overall quality
and safety standards of the dairy supply chain. Here are some recommendations discovered by
this study that can help facilitate Uganda’s milk exports to Kenya:

Table 4.18: Recommendations to ease Uganda’s milk exports to Kenya


Customs Procedure Number of respondents Percentage of response (%)
Enhance food safety measures 45 100
Invest infrastructure 45 100
Promote training and education 42 93
Strength regulatory oversight 43 96
Encourage certification 45 100
Facilitate market access 44 98
Promote sustainability 43 96
Source: Primary data (2024)
Table 4.18 recommendations to ease Uganda’s milk exports to Kenya include 45 (100%)
enhance food safety measures, invest in infrastructure, and encourage certification; 44 (98)
facilitate market access; 43 (96) strengthen regulatory oversight and promote sustainability; 42
(93) promote training and education. This implies that recommendations provided by the study
include enhancing food safety measures, investing in infrastructure, encouraging certification,
facilitating market access, strengthening regulatory oversight, promoting sustainability, and
promoting training and education. The recommendations outlined in Table 4.18 to ease Uganda's
milk exports to Kenya are comprehensive and align with the strategies proposed by previous
scholars such as Okoro, Nzotta, Alajekwu (2019), Byaruhanga (2023), and Kabona (2024).
Implementing stringent food safety measures and standards along the dairy supply chain is
crucial to ensuring the quality and safety of milk products. Investing in infrastructure, including
storage facilities and transportation networks is essential to maintaining the quality of milk
during transit and storage, ultimately meeting export requirements. Providing training and
education programs for farmers and stakeholders in the supply chain is vital to promoting best
practices in milk production, handling, and storage, as well as enhancing food safety awareness
and compliance with international standards (Byaruhanga, 2023). Strengthening regulatory
oversight through enhanced frameworks and enforcement mechanisms will ensure compliance
with food safety regulations, while encouraging certification programs can enhance the
marketability of Ugandan milk products internationally (East African Community, 2017).
Facilitating market access by reducing trade barriers and tariffs, engaging in trade agreements,
and promoting sustainability in dairy farming are key strategies to ensure the long-term viability
and success of Uganda's milk exports to Kenya and beyond. Thus, by implementing these
recommendations, Ugandan companies can improve the quality, safety, and marketability of
their dairy products, thereby easing milk exports to international markets.

4.6 Chapter Summary


The chapter has presented the findings of the study. Correlation analysis has been used to
determine the relationship between the study variables. Brief explanations have been given
before or after the tables and figures that describe the meaning of the numbers presented within
the figures and tables. The next chapter provides the summary of the findings followed by
discussions based on the objectives, the conclusion and finally recommendations.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This section covers the summary of findings, conclusions, policy recommendations, suggestions
for further study, and limitations. The chapter presents summary, conclusions, and
recommendations focused on “the effect of Non-Tariff Barriers (NTBs) on Uganda’s Milk
Exports to Kenya, in the case of Malaba boarder.

5.2 Summary of the findings


The main objective of this study was to examine the effect of Non-Tariff Barriers (NTBs) on
Uganda’s Milk Exports to Kenya, in the case of Malaba boarder. The researcher used a mixed-
methods research design by specifically applying an explanatory sequential design. The response
rate was frequently used to compare the quality of the survey. The study targeted a sample of 52
respondents (46 milk exporters, 10 transporters, and 6 clearing agents). Out of the 46
questionnaires used in the field, 45 were recovered and 1 was unrecoverable, giving a percentage
response of 97.8%. Out of the recovered or used instruments, all were valid and used for data
analysis, thus giving a valid instrument percentage of 100%. The response rate was high because
many respondents had a clear explanation of the purpose of the study. Even though they were
worried about revealing their secrets, they had a belief that the results would help them gain a
competitive edge, drive innovation, and achieve long-term success. This is in line with Frederick
and Wiseman (2003), who asserted that a response rate has to be presented in research findings
as they represent the validity of the study, and failure to do so put the validity of the study
findings into question. The response was also supported by Mugenda and Mugenda (2003), who
classified responses variously: a response rate of 50% is adequate, any response not exceeding
60% or greater than 50% is good, and a response rate above 69% is very high. The response of
100% was therefore very good and would produce useful data; further, all the areas of data
collection were represented.

The study used case study resign with both quantitative and qualitative approaches. The primary
data was collected using both semi-structured questionnaire and interview guide. Quantitative
data was analyzed using descriptive statistics, while qualitative data was analyzed using content
analysis. Quantitative data was coded and entered into Statistical Packages for Social Scientists
(SPSS Version 20.0). The analysis was then based on descriptive statistics. Multiple regression
analysis was used to examine the relationship between Non-Tariff Barriers (NTBs) and Uganda’s
Milk Exports to Kenya.

From the study carried out, most respondents were male (53%), and a few (47%) were female,
meaning female respondents were more cooperative and present at the time of the study. On the
age of respondents, the results provided a mixed rate of ages, though mainly ranging from 21 to
50 years. By virtue of qualification, the majority (38) of respondents, constituting 96.3 percent,
was confirmed to be literate, and the majority of respondents were married.

On the effect of administration requirements on milk exports, the study found out that the
correlation between administration requirements and milk exports is 0.859. Considering the
significance level (sig = 0.000), the study can conclude that there is a significant relationship
between administration requirements and milk exports. This implies that administration
requirements are significantly (85.9%) related to milk exports. The significance level of 0.000
indicates a strong relationship between the two variables, with administration requirements
being significantly related to milk exports by 85.9%. This finding aligns with previous studies
(Brenton, Fanelli, and Wintersberger, 2017; Nkuingoua et al., 2022; Segal, 2023) and
highlights the crucial role that administration requirements play in shaping milk export
dynamics within the dairy industry. Basing on the findings and discussion of the study it can be
concluded that there exists a positive significant correlation between administration
requirements and milk exports.

On the effect of roadblock checks on milk exports, the study found out a significant number of
roadblocks, ranging from 10 to 25, depending on the specific regions along the journey. It is
evident by the study that there exists a strong positive relationship (r = 0.782) between the
presence of roadblocks and milk exports. The statistical significance level (sig = 0.001) further
supports the conclusion that this relationship is indeed significant. The insights derived from
this study align with the perspectives of previous scholars such as Hangi (2010), Daily Monitor
(2018), Kotey (2019), and Kabona (2022), who have highlighted the detrimental impacts of
roadblocks both physical and figurative, on the transportation and trade dynamics between
trading counties. Basing on the findings and discussion, the study concludes that there exists a
significant positive relationship between roadblock checks and milk exports.

On the effect of bribes on milk exports, the study found out that there is a correlation between
bribes and milk exports with a positive and significant relationship (r = 0.783, p<0.01). The
substantial 78 percent positive relationship between bribes and milk exports, as elucidated by
the works of Gupta et al. (2012), Hasa (2018), Business Daily Africa (2023), and Kabona
(2024), underscores the pervasive impact of corrupt practices on Uganda’s milk exports,
particularly in its export dynamics with Kenya. The study can conclude that bribes and milk
exports have a positive and significant relationship.

On the effect of custom procedures on milk exports, the study discovered that there is a
correlation between customs procedures and milk exports with a positive and significant
relationship (r = 0.671, p 0.00). The study emphasizes the necessity of compliance with customs
regulations to manage risks effectively, as non-compliance can lead to severe consequences for
the company. The references to East African Business Council (EABC) (2005), and Disdier and
Fontagné (2008), Ferrand (2014), Masinde (2015), Byaruhanga (2023) underscore the
significance of implementing robust compliance measures and internal controls to mitigate risks
associated with customs procedures. Therefore, the study can conclude that there is a positive
significant relationship between custom procedures on milk exports.

The results of the multiple regressions show that the two variables show that there is a strong
positive correlation coefficient (r) of (r = 0.794) 79.4%, while 20.6% is caused by other factors.
Therefore, a change in non-tariff barriers (NTBs) affects milk exports at the Malaba border by
79.4 percent. The analysis presented in this paper highlights the significant impact of non-tariff
barriers (NTBs) on milk exports at the Malaba border, particularly in the context of Uganda's
dairy industry. The strong positive correlation coefficient (r = 0.794) indicates that changes in
NTBs have a substantial effect on milk exports, accounting for 79.4% of the variation. This
aligns with previous research by Hangi (2010), Karugia et al. (2019), and Ibragimova (2020),
which have also underscored the adverse influence of NTBs on Uganda's milk exports to Kenya.
The various forms of NTBs, such as import licensing requirements, quality standards, sanitary
and phytosanitary measures, customs procedures, and quotas, have collectively posed challenges
for Ugandan dairy producers seeking access to the Kenyan market.

On the recommendations regarding the effect of Non-Tariff Barriers (NTBs) on Uganda’s Milk
Exports to Kenya,” the study suggested recommendations to ease Uganda’s milk exports to
Kenya including enhancing food safety measures, invest in infrastructure, and encouraging
certification, facilitating market access, strengthening regulatory oversight and promoting
sustainability, promoting training and education. The recommendations in this study align with
the strategies proposed by previous scholars such as Okoro, Nzotta, Alajekwu (2019),
Byaruhanga (2023), and Kabona (2024).

5.3 Conclusion of the study


Basing on the effect of administration requirements on milk exports, the study concludes that
there is a significant relationship between administration requirements and milk exports. The
significance level of 0.000 indicates a strong relationship between the two variables, with
administration requirements being significantly related to milk exports by 85.9%. Therefore,
there is a positive significant correlation between administration requirements and milk exports.

Basing on the findings of the study on the effect of roadblock checks on milk exports; the study
concludes that there exists a strong positive relationship (r = 0.782) between the presence of
roadblocks and milk exports. The statistical significance level (sig = 0.001) further supports the
conclusion that this relationship is indeed significant. Thus, there exists a significant positive
relationship between roadblock checks and milk exports.

Basing on the findings of the study on the effect of bribes on milk exports, the study concludes
that there is a correlation between bribes and milk exports with a positive and significant
relationship (r = 0.783, p<0.01). Therefore, the bribes and milk exports have a positive and
significant relationship.

Basing on the findings of the study on the effect of custom procedures on milk exports, the
study concludes that there is a correlation between customs procedures and milk exports with a
positive and significant relationship (r = 0.671, p 0.00). Therefore, there is a positive significant
relationship between custom procedures on milk exports.
Basing on the findings of the study on the multiple regressions show that the two variables show
that there is a strong positive correlation coefficient (r) of (r = 0.794) 79.4%, while 20.6% is
caused by other factors. Therefore, a change in non-tariff barriers (NTBs) affects milk exports.
The strong positive correlation coefficient (r = 0.794) indicates that changes in NTBs have a
substantial effect on milk exports, accounting for 79.4% of the variation. Therefore, there exists a
positive significant relationship between Non-tariff barriers (NTBs) and milk exports.

5.4 Recommendations of the study


On the recommendations regarding the effect of Non-Tariff Barriers (NTBs) on Uganda’s Milk
Exports to Kenya, the study recommends:

To implement stringent food safety measures and standards along the dairy supply chain is
crucial to ensuring the quality and safety of milk products.

Invest in infrastructure, including storage facilities and transportation networks is essential to


maintaining the quality of milk during transit and storage, ultimately meeting export
requirements.

Provide training and education programs for farmers and stakeholders in the supply chain is vital
to promoting best practices in milk production, handling, and storage, as well as enhancing food
safety awareness and compliance with international standards (Byaruhanga, 2023).

Strength regulatory oversight through enhanced frameworks and enforcement mechanisms will
ensure compliance with food safety regulations, while encouraging certification programs can
enhance the marketability of Ugandan milk products internationally.

Facilitate market access by reducing trade barriers and tariffs, engaging in trade agreements, and
promoting sustainability in dairy farming are key strategies to ensure the long-term viability and
success of Uganda's milk exports to Kenya and beyond.

5.5 Recommendations for further studies


The current study discovered that it was so difficult to collect some data due to the reluctance
and uncooperativeness of the respondents, who felt that they were being disturbed and
inconvenienced and would even fail to explain some technical terms. The researcher therefore
recommends that another study using the same variables be conducted by other exporting
companies (like maize and beaf) to avoid the limitations of inaccurate and incorrect information.

The current study was faced with limited time for data collection and other processes. To
overcome this challenge again, another study should be conducted with the authority of one
company and staff compelled to assist in data collection and analysis.

The study was also constrained by limited financial resources. The study therefore recommends
that other similar studies be carried out by the government itself on all its exporting companies,
and the studies should be fully sponsored to avoid limitations on financial resources.

The current study discovered a strong positive correlation coefficient (r) of (r = 0.794) 79.4%
with a significant relationship of 0.000<0.01, while 20.6% is due to other factors. This means
there are other factors affecting milk exporting. Thus, other studies may be carried out to check
the effect of each factor on milk exporting.

5.6 Conclusion
In conclusion, this chapter presents a summary of the study findings, conclusions, and
recommendations. The fact remains that most of the reasons mentioned above seem to hold true:
non-tariff barriers (NTBs) play a significant role in milk export (ME).

This paper quantifies the cost of various types of NTBs and evaluates their welfare impacts on
formal trade in milk in Kenya, Uganda, and Tanzania using a SEM. The data used in this study
were derived from a regional survey of formal traders and transporters undertaken within the
EAC border points in 2007. It is complemented by secondary data on milk production,
consumption, prices, and elasticity parameter estimates that were derived from various sources.
The quantification of the trade and welfare impacts of NTBs involved three main scenarios: a
complete elimination of all the existing NTBs within the EAC; a 50 percent reduction in the level
of the existing NTBs; and the welfare effects of separate elimination of individual types of NTBs
such as roadblocks, permits, and customs clearance.

In conformity with findings from other studies on regional trading blocks in Africa, intra-EAC
trade in milk is disturbingly low. The low regional trade flows within the EAC could be
attributed to the continued application of NTBs by the member states despite their commitment
to abolish them. One of the most interesting findings from this study is that the main types of
NTBs within the three founding members of the EAC are similar. They include administrative
requirements (mainly licenses, municipal and council permits), taxes/duties (mainly excise and
cess duty), roadblocks, customs barriers, weighbridges, licensing, corruption (for example,
through bribes), and transiting.

The transfer cost of milk cattle per kilometer was estimated by the summation of all costs
incurred as the traders and transporters moved their merchandise from the area of origin to their
final destination. These costs were further split into two groups: non-NTB transfer costs (costs
that are not NTB: vehicle hire and maintenance, loading and offloading, and transporters’
allowances) and NTB transfer costs (weighbridges, security, transiting, customs clearance, road
toll stations, branding of cattle, standards and certification, and bribes). On average the cost of
maize NTBs in U.S. dollars per kilometer per ton was estimated at $0.09, $0.15, and $0.11 in
Kenya, Uganda, and Tanzania respectively. The cost of beef trade NTBs in dollars per kilometer
per ton was estimated at $0.17, $0.31, and $0.23 in Kenya, Uganda, and Tanzania respectively.

The welfare impact emanating from the reduction or elimination of NTBs inmilktrade within the
EAC varies across the three countries. Specifically, a complete abolishment or a reduction of the
existing NTBs in milk trade increases intra-EAC milk trade flows. As a result, Kenya imports
more maize from both Uganda, and Tanzania and Uganda exports more beef to Kenya and
Tanzania. As a result, positive net welfare gains are attained for the entire EAC milk subsector.
In both cases, the gainers from the proposed reductions in NTBs can potentially compensate the
losers resulting in a potential improvement in welfare.

Within the EAC maize subsector, the greatest gainers from the elimination of NTBs would be
maize producers in Uganda while the greatest losers from this policy change would be maize
producers in Kenya. Ugandan maize producers benefit from the increasing domestic maize prices
and expand their exports to Kenya. In contrast, Kenya’s maize producers are hurt by the
declining maize prices and as a result cut back on production. However, Kenyan maize
consumers benefit from the elimination of NTBs, while their counterparts in Uganda and
Tanzania are hurt by this policy change. In addition, beef producers in Uganda would gain most
from the elimination of NTBs within the EAC while beef producers in Tanzania would be the
greatest losers from this policy change. These findings give compelling evidence in support of
eliminating NTBs within the EAC Customs Union.

The specific policy recommendations that can be drawn from this study include:

 Uganda government should streamline administrative procedures at border points to


improve efficiency by harmonizing trade regulations.
 Uganda government should speed up implementation of procedures at point of origin and
at the border points.
 There is need to minimize time loss at check points such as roadblocks and weighbridges.
 Uganda government should take a regional approach to removing NTBs, since they are
similar across the member countries and across commodities, so as to exploit economies
of scale.
 Efficient monitoring systems should be designed and implemented to provide feedback to
the relevant authorities on the implementation of measures to remove unnecessary
barriers to trade in the region. This would ensure that the measures implemented were
sustainable. Monitoring bodies should comprise stakeholders from government and the
private sector. To yield high impacts to all levels of traders, small-scale traders should
also be represented.
 Uganda government should fast track the complete elimination of all existing NTBs since
such a strategy would yield positive welfare gains.
 There is need to greatly improve the road network to reduce the high transportation costs.

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