MJAMR

Effect Of Reduced Market Risk On The Performance Of Mutima Quality Feeds In Natete Kampala

Kebirungi Margret, John Otim William


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
Metropolitan Journal of Academic Multidisciplinary Research

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

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