Tomato Price Fluctuations and Vendor Profitability in Hoima Central Market, Hoima Oil City, Uganda

Purpose: This study aimed to examine the impact of tomato price fluctuations on the profitability of vendors in Hoima Central Market, Hoima Oil City, Uganda. It sought to identify the primary drivers of price volatility and their effects on market dynamics, providing actionable insights for stakeholders in the tomato value chain. Methodology: The research employed a combination of descriptive statistics and regression analysis to explore the relationship between price fluctuations and vendor profitability. Data were collected through surveys and interviews with tomato vendors, capturing details on income, trading practices, and the challenges associated with price changes. Findings: The study found that weather variations, pest and disease outbreaks, and seasonal supply shifts were the leading causes of price fluctuations. Other factors, such as natural disasters and supply chain inefficiencies, further exacerbated price instability. Vendors adopted strategies like adjusting purchase quantities in response to price changes and entering long-term agreements with suppliers to stabilize prices. Despite these challenges, most vendors experienced positive profitability, with an average profit of UGX 145,373.48. Regression analysis confirmed a statistically significant relationship between price fluctuations and profitability, highlighting the critical role of effective price management. Originality/Value: This study provides a detailed analysis of how price volatility impacts vendor profitability in a developing market context. Its findings emphasize the need for interventions such as targeted vendor training programs, the formation of cooperatives, and enhanced financial literacy to improve market resilience and vendor livelihoods. The insights contribute to a better understanding of market dynamics in the tomato value chain and inform strategies to mitigate the effects of price fluctuations.