Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Effect Of Reduced Market Risk On The Performance Of Mutima Quality Feeds In Natete Kampala
Kebirungi Margret, John Otim William
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 4, No. 12 |
| Published | 31 December 2025 |
| ISSN | 3006-4384 |
Abstract
The study investigated the effect of reduced market risk on the performance of Mutima Quality Feeds, a livestock feed enterprise located in Natete, Kampala. The research employed a mixed-methods approach, combining quantitative analysis of financial and operational data from 2019-2023 with qualitative insights from key stakeholders. The study period captured both high market risk conditions (2019-2021) and reduced market risk conditions (2022-2023) following implementation of risk mitigation strategies. The findings revealed that reduced market risk significantly improved business performance across multiple dimensions. Sales revenue increased by 43.7% from an average of UGX 87.3 million monthly (high-risk period) to UGX 125.4 million monthly (reduced-risk period). Profit margins improved from 8.2% to 14.6%, representing a 78% improvement in profitability. Customer base expanded by 56%, growing from 342 to 534 regular customers. Inventory turnover improved from 4.2 to 6.8 times annually, while stock- out incidents decreased by 71%. Regression analysis indicated that market risk reduction accounted for 68.3% of the variance in overall business performance (R² = 0.683, F = 87.42, p < 0.001). Reduced market risk exerted substantial positive effects on Mutima Quality Feeds' performance through multiple mechanisms including price stability, demand predictability, supply chain reliability, and enhanced customer confidence. The implementation of risk mitigation strategies transformed operational dynamics, enabling better planning, resource allocation, and customer relationship management. Feed enterprises should prioritize market risk assessment and mitigation through diversified supplier networks, contract-based procurement, price hedging mechanisms, customer loyalty programs, and market intelligence systems. Policy makers should support feed industry stabilization through regulatory frameworks, commodity price information systems, and facilitation of forward contracting arrangements.
Keywords
market risk
business performance
livestock feed industry
risk mitigation
Mutima Quality Feeds
Cite This Article
Kebirungi Margret & John Otim William (2025). Effect Of Reduced Market Risk On The Performance Of Mutima Quality Feeds In Natete Kampala. Metropolitan Journal of Academic Multidisciplinary Research, 4(12). https://journals.miu.ac.ug/pages/article.php?article_id=531
More in This Issue
View full issue →
16
Relationship Between Bank Loans And Growth Of SMEs In Kabale Municipality
Bank loans
SME growth
financial access
Kabale Municipality
17
Relationship Between Budget Allocation And Performance Of Health Care Services At Mulago Hospital In Central Division, Kampala, Uganda.
Budget allocation
healthcare performance
service delivery
Mulago Hospital
18
Relationship Between Cash Management And Financial Performance Of Small Business Enterprises In Main Market, Arua City.
Cash Management
Financial Performance
Small Business Enterprises
Cash Flow
19
Relationship Between Computerized Accounting And Financial Performance In Tropical Bank Limited Head Office Kampala Road.
Computerized accounting systems
financial performance
banking sector
Tropical Bank
20
Relationship Between Customer Complaint Management And Operational Performance In Equity Bank, Wandegeya Branch.
inventory management
organizational performance
inventory control
inventory tracking