Value Addition in Rice Processing and Marketing in Rural Communities of Enugu State, Nigeria (original) (raw)
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Leap Domiciliaries & Raw Materials Research and Development Council, Abuja, 2019
This study examined local rice production and value addition in Ebonyi State, Nigeria. Data were purposedly collected from Ishiagu and Abakiliki from 144 rice value chain actors. It was found that wholesalers enjoy the largest share of the marketing margin, where at cross boundary markets, the wholesalers' profit goes as higher as N76.0/kg as compared to N39.5/ kg, received by local farmers, showing unequal distribution of benefits among the local rice value chain actors, where reward to traders is extremely higher than that of producers. The profitability analysis shows a net return of N4, 085 with a BCR of 1.14:1, meaning that local rice production is viable and profitable in the area. Two separate multiple regression analysis, using the double-log regression as the lead equation for the producers (farmers) gave R2 of 0.923 and F-Ratio of 51.031, being an indication that 92.3% of the variation in the rice output was explained by the explanatory variables, while 7.70% was accounted-for due to error term (ei) and un-captured variables. For the secondary value chain actors (transporters, millers, wholesalers and retailers), the exponential function gave R2 of 0.782 and F-Ratio of 38.104, being an indication that 78.2% of the variation in the rice output was explained by the explanatory variables (socio-economic characteristics) while 21.8% was accounted-for due to stochastic error term (ei) and uncaptured variables. The study recommended improvement of effectiveness cooperative membership to attract finance for rice production, inputs and value addition, purchase of machines for processing and packaging, transportation and marketing. Furthermore, lack of adequate agricultural infrastructure and market information systems was observed to be critical areas of policy concerns. Policies for microcredit institutions on provision of credits to local rice farmers are also recommended to improve rice productivity by capacitating smallholder farmers to use modern agricultural machinery.
Analysis of the Performance of Paddy Rice Marketing in Benue State, Nigeria
This study analysed the performance of paddy rice marketing in Benue State, Nigeria. The population of the study was made up of rice farmers in the three (3) geopolitical Zones of the State. Multi-stage sampling procedure was used for this study. One Local Government Area was selected from each of the geopolitical Zones. A total of two hundred and forty questionnaires were administered to the respondents. The objectives were achieved using descriptive statistics and Gross Margin analysis while the hypotheses were tested using multiple regression analysis, student t-test and Pearson's Product Moment Correlation. Majority (68.1%) of the respondents have attained some formal education, (66.9%) have market experience of over ten years, (50.7%) have household size between 6 and 10, (87.3%) are less than fifty years of age, (89.3%) are male while, (65.4%) are small holder farmers with sales income of 200,000 Naira or less per annum. The study also found that Gross Margin per hectare for paddy production in the study area was 112,123.56 Naira while paddy rice marketing was 126% price efficient. The study accepts the alternate hypotheses that states that: the socioeconomic characteristics of respondents have significant effect on efficiency; rice marketing in Benue State is profitable and the null hypothesis which states that the rice market in Benue State is not integrated. The study recommends that government should rehabilitate rural feeder roads to enable easy movement of produce and provide credit to encourage increase in farm sizes while marketers should form unions to enable them benefit from economy of scale and enrol for training on entrepreneurship.
Issues in rice marketing system: a case of central terai
Journal of agriculture and natural resources, 2022
This study was conducted to understand the challenges and prospects of rice marketing by taking case of central Nepal. Two focus group discussions along with eight key informants' interviews were conducted in Bara and Parsa districts of Nepal. Also, secondary information was collected by reviewing the related literatures. The study revealed that the consumer price of rice is almost double than the farm gate price, possibly due to the presence of several intermediaries in different nodes of the supply chain. Key market actors like large collectors, millers and wholesalers have a dominating role in price negotiation and supply of rice in the market. The rice value chain is not strong enough, which might be due to poor vertical and horizontal as well as backward and forward linkages among the key players. The demand of fine and aromatic rice is gradually increasing due to changing food habits of the consumers and their access to purchasing capacity as well. The high yielding short duration varieties of fine and aromatic rice need to be identified and developed to meet the growing demand of consumers. In addition, to boost productivity and profitability of rice, a better investment climate, risk sharing mechanism and strengthened value chain with efficient research and extension services are required.
Value Chain Analysis of Local Rice (Oryza glaberrima) Production in Ebonyi State, Nigeria
Agricultural Society of Nigeria, 2021
This study examined local rice production and value addition in Ebonyi State, Nigeria. Data were purposedly collected from Ishiagu and Abakiliki from 144 rice value chain actors. It was found that wholesalers enjoy the largest share of the marketing margin, where at cross boundary markets, the wholesalers' profit goes as higher as N76.0/kg as compared to N39.5/ kg, received by local farmers, showing unequal distribution of benefits among the local rice value chain actors, where reward to traders is extremely higher than that of producers. The profitability analysis shows a net return of N4, 085 with a BCR of 1.14:1, meaning that local rice production is viable and profitable in the area. Two separate multiple regression analysis, using the double-log regression as the lead equation for the producers (farmers) gave R2 of 0.923 and F-Ratio of 51.031, being an indication that 92.3% of the variation in the rice output was explained by the explanatory variables, while 7.70% was accounted-for due to error term (ei) and un-captured variables. For the secondary value chain actors (transporters, millers, wholesalers and retailers), the exponential function gave R2 of 0.782 and F-Ratio of 38.104, being an indication that 78.2% of the variation in the rice output was explained by the explanatory variables (socio-economic characteristics) while 21.8% was accounted-for due to stochastic error term (ei) and uncaptured variables. The study recommended improvement of effectiveness cooperative membership to attract finance for rice production, inputs and value addition, purchase of machines for processing and packaging, transportation and marketing. Furthermore, lack of adequate agricultural infrastructure and market information systems was observed to be critical areas of policy concerns. Policies for microcredit institutions on provision of credits to local rice farmers are also recommended to improve rice productivity by capacitating smallholder farmers to use modern agricultural machinery.
This study determined the economic determinants of rice marketing decisions among smallholder rural farming households, Federal Capital Territory, Nigeria. Data were obtained from primary source for this study. Data were collected through the use of well-structured questionnaire. The questionnaires were administered to two hundred and seven (207) smallholder rural rice farming households. Multi-stage sampling technique was adopted. Data were analyzed using Descriptive Statistics, Heckman Two Stage Model (Probit Model, and (OLS) Regression). The results of the Heckman two stage selection equation Probit model in the first stage revealed that educational level of the household head (P<0.05), farm size (P<0.01), extension services (P<0.05), price information (P<0.01), and marketing experience (P<0.01) were among the significant factors influencing market participation. The results of the second stage OLS model showed that the significant factors influencing the extent of market participation regarding how much quantity of rice sold in a given market include: education of the household head (P<0.10), quantity of rice output harvested (P<0.01), and expected price of rice output (P<0.05). The coefficient of the multiple determinations (R 2 ) was 0.849. This showed that the exogenous or explanatory variables included in the model explained about 85% variations in the quantity of rice sold in a given market. This study therefore, recommends that; smallholder farmers should be encouraged by providing them with credit facilities to influence their decision to produce marketable surplus to enable them participate in rice marketing, new innovations and technology that targets increased productivity should be promoted, provision of adequate extension officers is needed, input market supply for storage facilities should be made accessible to farmers, provision of rice processing equipment should be made available, effort to empower women should be designed, contract marketing should be encouraged, and information dissemination via communication devices for increased market participation and increased value sold among rice farmers should be a priority to eradicate poverty and improve livelihood of smallholder farmers. The study also provides insight into required policies and actions to be taken by government and NGOs to encourage market participation, eradicate poverty, provide food security and improve livelihood among smallholder rural rice farming households.
Economic Analysis of Paddy Rice Marketing in Kebbi State, Nigeria
International Journal of Applied and Scientific Research (IJASR), 2023
The study analysed the economics of paddy rice marketing in Kebbi State Nigeria. A multi stage sampling technique was used. Data were collected using structured questionnaires administered to 320 paddy rice marketers. Data was analysed using Descriptive statistics, Gross margin and multiple regression analysis. Majority 79.1% had attained one form of education while 56.3% were members of cooperative with an average membership of 7 years and had an average income of about ₦70,000. Result on costs and returns of paddy rice marketing had a net return of ₦10,330 per metric tonne, the return on naira spent was 7.3% which implied that for every ₦1 spent in marketing of paddy rice, a profit of 73kobo was realised as return to investment. The factors that affect price of paddy rice shows about 62% in the total variation in price of paddy rice was greatly influenced by cooperative membership, duration of storage, marketing experience and Distance to market at 5% level of significance. The determinants of profit earned by paddy marketers shows that the variables for storage cost and transportation cost were significant at 1% while licensing was significant at 5% level of probability.
Sarhad Journal of Agriculture
Factors influencing the output of rice produced and choice of marketing outlets among smallholder rural farming households are the main focus to improve rice production and increase the income of the farmers. Primary data were used for this study. Data were obtained using a well-designed well-structured questionnaire. The questionnaires were administered to two hundred and seven (207) smallholder rural rice farming households. Multi-stage sampling technique was adopted. Data were analyzed using Multinomial Logit Model, Gini-Coefficient, Double-Log Regression Model, (Cobb-Douglas) and Principal Component Analysis. The results of the Multinomial Logit regression model show that among the significant factors that influence the choice of rice market outlets were: sex of the household head (P<0.10), educational level (P<0.10), access to credit facilities (P<0.05), extension services (P<0.01), price information (P<0.05), market information (P<0.01) and, marketing experience ((P<0.05). The value of Gini-Coefficient calculated was 0.91429. The observed inequality in income distribution among smallholder rural rice farmers was a reflection of inefficiency in the market structure for rice. The results of Double-Log Regression model revealed that quantity of rice output harvested was positively and significantly influenced by farm size (P<0.05), the quantity of seed planted (P<0.01), the volume of chemical applied (P<0.05), labour input (P<0.01), and contract farming (P<0.05). Quantity of fertilizer and expected price of output was negative and significant at (P<0.01), and (P<0.05) probability levels respectively. The coefficient of the multiple determinations (R 2) in the production model was 0.51. This signifies that the explanatory variables included in the model accounted for about 51% variations in the quantity of rice output harvested in the study area. Smallholder rice farmers were faced with the following challenges in rice production and market outlet choice which include: Fire outbreak, thieves, cattle herdsmen attack, flood occurrence, transportation problem, poor storage facility, inadequate capital, lack of land/ tractor, poor price, high cost of chemical, inadequate fertilizer, lack of improved seed, inadequate extension officers, and lack of credit facilities. This study recommends that new innovations and technology that targets increased productivity should be promoted, provision of adequate extension officers is needed, input market supply for provision of seeds, fertilizers and storage facilities should be made accessible to farmers, provision of rice processing equipment should be made available, contract farming and marketing should be encouraged for increased rice production and market out choice for profit maximization among rice farmers to eradicate poverty and improve their welfare.
Rice Marketing as a Means of Poverty Alleviation in Niger State, Nigeria
Agricultura Tropica et Subtropica, 2014
This study examined rice marketing as a means of poverty alleviation in Niger State, North Central Nigeria. Ninety-eight representative rice marketers' households were used for the study. Descriptive statistics, Foster, Greer and Thorbecke poverty measures as well as logistic regression model were used as the analytical tools for the study. The result of the descriptive statistics shows that forty-nine percent of the rice marketers have no western education and majority of the rice marketers' households used open spaces for defecation. The result of the poverty profile shows that all the representative households were poor using 1.25 dollar a day poverty benchmark and only 32 percent were poor using the estimated relative poverty benchmark of N 1,894.2 per capita. The result of the logistic regression model shows the following factors influenced the poverty status of the rice marketers' households in the study area. These are age and gender of the rice marketers, household size, other sources of income, marital status of the rice marketers and their educational status. The study recommends manageable household size as well as improved level of education for members of the rice marketers' households for poverty reduction in the study area.
Developing competitive rice value chains
CABI eBooks, 2013
In a number of African countries, major advances were made in rice competitiveness some years ago through liberalization of rice marketing and milling. This led to the introduction of small rice hullers, which were able to process rice relatively inexpensively compared with larger mills, often owned by the state. There were also substantial savings in the cost of transporting paddy and the value for animal feed of the hulling by-products. However, with rice prices having risen on world markets and with advances in milling technology, it is time to revisit this question. The imported rice with which domestic production competes is of a quality standard not met by most small hullers, resulting in price discounts and lost profits. Evidence from Rwanda and a few other countries suggests that milling technology currently exists that allows for upgrading of quality without necessarily losing the advantages of operating on a relatively small scale. Better milling should take care of the problems of impurities, lack of uniformity, and high percentage of broken grains. Complementary investment in storage should also ensure that adequate supplies of local rice are available year round. This will not necessarily solve problems of taste, storability, cooking time, water absorption and other characteristics that are not apparent to the eye. Further testing will be required to determine the extent to which price discounts on local rice are due to these factors or to consumer prejudice.