A Value Chain Analysis of Rice Commodity: Value Addition and Develop Strategies (original) (raw)
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agriTECH, 2019
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Rice Value Chain Analysis in the Philippines: Value Addition, Constraints, and Upgrading Strategies
Asian Journal of Agriculture and Development, 2020
Using the value chain analysis (VCA) framework, this research analyzed the rice value chain (RVC) in the Philippines, examined the value additions, identified constraints, and proposed upgrading strategies to enhance the competitiveness of the rice industry and the specific segments in the RVC. Primary data were derived from key informant interviews in government and non-government agencies, surveys from farmers, paddy traders, millers, wholesalers, wholesaler-retailers, and retailers in 20 major rice-producing provinces and demand centers. Stakeholders’ workshops were also conducted to validate the preliminary findings and identify upgrading strategies. Descriptive and economic approaches were applied in data analysis. The country’s RVC starts with the provision of inputs to produce paddy, and ends with the consumption of milled rice. The RVC is dominated by a traditional multi-layered supply chain with interconnected chain actors composed of competing farmers, paddy traders, mille...
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Research Report - Humanities and Social Science, 2011
The value chains of rice has created a significant impact in the domestic rice price as well as in Indonesia. As we know from many literatures that providing rice product in time and at different places in the market is very important, especially in Indonesia. The facts that import rice is cheaper than domestic rice price has give a negative impact to the farmers. Thus, the performance of a value chains of rice is related to its structure and strategies of the actors operating these chains or channels are important to be considered by government. Value chain analysis is the sequence analysis of related business activities (functions) from specific inputs for a particular product to primary production, transformation, marketing and up to final consumption. In other words, we can say that value chains is perfoming several functions i.e start from producer (rice producer or farmers), processors (farmer or trader), traders (retailer or wholesaler) and transporter (transportation and sto...
International Journal of Financial Research, 2016
The study of a critical analysis of the value chain in the rice industry and its effects on the export rice industry in Kien Giang province, Vietnam conducted during the period from December 2012 to November2015. The research result showed that there were 450 persons who are rice exporters and farmers (412 processed and 48 missed) who to be interviewed and answered nearly 27 questions. The researcher had analyzed KMO test, the result of KMO analysis used for multiple regression analysis. The person responses measured through an adapted questionnaire on a 5-point Likert scale. Hard copy and interviewrice exporters and farmersby questionnaire distributed among rice exporters and farmers in KienGiang province. The regression analysis results showed that there were seven factors, which included of factors following: Development strategy; Control policy; Planning; Support policy; Rice seeds;Cultivation techniques andPost-harvest processingactually affected the export rice industry with 5 % significance level. The main objectives of this study were to to conduct a survey to find value chain that affecting the export rice industry in KienGiang province, to identify value chain that affected on the export rice industry in KienGiang province and to analyze and to test value chain that affected the export rice industry in KienGiang province.
Rice Value Chain Analysis: Rice Seed Production as a Profitable Agribusiness in Nueva Ecija
This study explored the rice value chain (RVC) in Nueva Ecija, value additions, found restrictions, and offered to upgrade solutions to improve the competitiveness of the rice industry and specific segments in the RVC using the value chain analysis (VCA) methodology. Farmers, paddy dealers, millers, wholesalers, wholesaler-retailers, and retailers in Nueva Ecija provided primary data. Workshops with stakeholders were also held to validate preliminary findings and identify upgrading strategies. The RVC begins with the provision of inputs for paddy production and concludes with the consumption of milled rice. The RVC is dominated by a traditional multi-layered supply chain with interconnected chain actors consisting of competing farmers, paddy traders, millers, and rice traders in each segment and, frequently, with the involvement of brokers in both paddy aggregation and rice distribution, thereby increasing marketing cost. The major constraints identified in the RVC included high production and marketing costs of paddy and rice due to low yield, high labor and material inputs, and a lack of critical infrastructure and market facilities (e.g., modern mills, dryers, cheap transport, and energy), resulting in high domestic paddy and rice prices and low competitiveness of the entire rice VC. To improve competitiveness, the rice industry should focus on developing and promoting yield-increasing, postharvest loss-reducing, and cost-cutting technologies, as well as those that improve overall RVC efficiency, such as investments in enabling infrastructure and facilities for transport, handling, storage, drying, and milling.
ENHANCING COMPETITIVENESS OF RWANDA'S RICE THROUGH VALUE CHAIN DEVELOPMENT; AN EMPIRICAL ANALYSIS
Since 2004, rice is a priority crop for food security and poverty reduction in Rwanda. Since the rice production has been declared a priority, the Government’s investment efforts have been directed towards to increase locally produced rice in order to reach its ambitious target of becoming self-sufficient in rice production. Despite these efforts in rice sector development, the national demand for rice has not yet satisfied as rice consumption has also been rising. Therefore, the country is still dependent on rice from outside; mainly from Tanzania, Pakistan, Uganda and Thailand. This study on Rice value chain in Rwanda as a Competitiveness Analysis targeting to increase the local rice on the markets by reducing importation of rice in short term objective and in the long term attain self-sufficiency with a possibility of export. To achieve these objectives, the locally produced rice has to be competitive on domestic market and on regional market in long-term. In other words, it has to be of quality and quantity that satisfy the demand. The overall objective of this study is to analyze the competitiveness factors of rice production in Rwanda on the local and regional markets. The study used both primary and secondary data sources. The statistical package for social sciences (SPSS) and Ms excel were used to analyze data. The generated outputs were presented in forms of tables and charts with respective percentages. The multiple linear regression analysis was used to assess the rice demand for both local and imported and calculation of costs of rice farmers. The results of this study indicated that the average yield per hectare at the visited area 5.7 Ton per hectare, which is relatively good compared to yield per hectare in the region which is 3.5Ton per hectare However the local production costs per Ha which 1,023,51Rwf is very high. The potential for improving competitiveness of locally produced rice in Rwanda has been assessed by looking at the nature of demand for both local and imported rice on one hand. This is the upper end of the rice supply chain. Analysis has also been done the lower end of the chain by looking at the nature of the short-run cost structure for rice farmers. From the demand perspective, it seems difficult to improve the competitiveness by for example lowering the market price for the local rice. Results obtained seem to suggest that, locally produced rice is a luxury its demand is income elastic and it has a positively sloped demand curve albeit not significantly so. From the analysis of the cost structure, farmers need to increase their levels of output to realize unexploited economies of scale, which would in turn enable them and other players in the rice supply chain to become more competitive. Regarding the Horizontal and vertical integration of actors along the value chain, the results of the study shown that 88% of farmers sold their production through cooperative/union while 12% sold individually. Also the results of the study shown that only 46% of farmers have a contract farming between farmers and buyers of their produce, while 79% have a contract with inputs dealers and 21% don’t have. On the market the results of the study shows that 70% of consumers prefer imported rice due to quality of rice as reported, while the level of sells or demanded rice on the market, the results shows that 55% of consumers prefer imported rice while 45% only like local rice. This is attributed to the culture of local rice in known a low quality and the distribution of local rice is not accessing more consumers. The respondents revealed area which need more attention by all players including improving quality (88%), improving the supply (75%), improving the relation between actors (68%) and increase the quantity (50%). The information generated from this study mainly helped to direct actors in the chains especially the producers, processors and traders. Findings based on the results of the study indicated different factors which may increase the competitiveness of locally produced rice on the local and regional markets those include. - To continue increasing production and productivity of rice - Increasing the extension services - Improving the quality of rice and marketing. - Streamline the horizontal and vertical integration of key players on the market The value chains actors will use this information in improving their way of operating and linking to reach the target market. Consequently profitability and the product value will be improved. Therefore this will help them to be more competitive on the Rwanda market.
An Economic Analysis of Paddy Value Chain in Thanjavur District of Tamil Nadu
Economic Affairs, 2020
In view of the economic importance of value addition the present study was taken up in Thanjavur district of Tamil Nadu, India to estimate value chain of paddy. The aim of the study is to identify the existing value chain and create new chain in the study area. Random sampling technique was used to select 60 farmers. The result showed that, the recovery of main and by product during rice milling was 60 per cent of rice, 10 per cent of broken rice, 15 per cent of rice bran, 10 per cent of husk and 5 per cent waste from one tonne of paddy. In value chain for rice production, the share in value addition was 26.42 per cent for rice millers, 0.16 per cent Rice bran crude oil, 0.09 per cent for Rice bran refined oil, 0.05 per cent for traders, 6.41 per cent rice retailers and 0.04 per cent for rice bran refined oil retailers. In value chain for flaked rice industry, the share in value addition was 14.71, 0.28, 0.08, 0.09, 8.04 and 0.08 per cent for Flaked Rice Industry, Rice Bran Crude Oil, Rice Bran Refined Oil, traders, flaked rice retailers and rice bran refined oil retailers in channel respectively. Finally the study concluded that, the value addition in the existing value chain was ` 5096 which can be increased to ` 9530 through proposed model. Highlights m The long marketing channel which includes more intermediaries and less value addition at farmer level results in low profit to the farmers. Developing a good value chain for rice which will benefit all the stake holders in rice value chain is the need of present hour.
African Crop Science Journal, 2016
The importance of rice (Oryza sativa L.) as a food and cash crop in Eastern Africa, is increasing, but its value chain is becoming complex. In 2012/13, rice value chain analysis was conducted in rice farming systems of Lake, Eastern and Southern-Highlands zones of Tanzania. A sample of 240 producers, 60 traders and 30 processors was involved in the study. The aim of this study was to enhance rice actors with knowledge of the rice value chain, and identify feasible upgrading strategies. The study results revealed that rice was staple crop for more than 50% of the communities in Kilombero, Kyela and Mvomero districts; and less than 30% in Rorya, Mbarali and Maswa districts. It was also an important cash crop (79-100%) in all districts. About 44 and 61% of the total crop area cultivated per household, in lowland rainfed and irrigated ecosystems, respectively were under rice cultivation. SARO 5 was the only improved variety widely grown by 27% of farmers out of 32 varieties. Rice yield ranged from 1.5 to 4.3 t ha-1 and varied greatly by ecosystem and variety. About 61-93% of farmers sold their rice paddy to collectors, used non-standard measurements. Farmers profits ranged from US $ 206.63 to 994.85 per hectare. Producer's share of selling rice ranged from 34 to 40%. This implies that upgrading strategies are required that can increase producers' market share and improve competitiveness of rice value chain.
Profitability of Actors in the Value Chain of Commercial Rice
This qualitative study explored the value chain of commercial rice in Nueva Vizcaya, Philippines. It presented the value chain map of commercial rice highlighting the profitability of each actor involved in the value chain, namely paddy rice farmers, primary traders, millers, retailers, and final traders (wholesalers and retailers). The findings revealed that the miller contributes the highest value-added cost to commercial rice production, accounting for approximately 40.39% of the total, followed closely by the farmers at 39.22%. The primary trader represented 10.93%, while the wholesaler and retailer contributed 6.72% and 2.07% respectively. Analysis of the percentage of profit to cost showed that farmers earned the highest percentage at 32.36%, followed by the retailer at 8.48%, the primary trader at 5.11%, the miller at 2.32%, and the wholesaler at 1.68%. However, when considering the operating cycle of each actor, it became apparent that the primary trader emerged as the highest-earning actor due to their shorter operating cycle compared to other actors in the value chain. Hence, venturing into paddy rice production, trading, milling, and wholesaling of commercial rice in Nueva Vizcaya is profitable, given the wide market demand for rice as a staple food. There is a viable opportunity to enhance profitability among the various actors in the value chain, particularly for farmers, by leveraging appropriate government support programs, specifically by maximizing the utilization of initiatives provided under the Rice Tariffication Law.
Analysis of Rice Value Chains - A Study of Bihar and Karnataka States in India
SSRN Electronic Journal, 2017
The present investigation was aimed for analyzing comparative value chain addition of rice production and marketing in Bihar and Karnataka States, based on primary data having 300 stakeholders selected using random sampling method from two purposively selected districts East Champaran and Davangere of Bihar and Karnataka, respectively, duly categorized into paddy growers, paddy wholesalers, millers, rice wholesalers, rice retailers and consumers. Farmers were the first value adding actors, and earned on an average of the gross return Rs 44,641.8/ha (East Champaran) and Rs 1, 32,117.26/ha (Davangere) by cultivating paddy. They added value of Rs 115.71 per quintal by drying, Rs 86.77 per quintal by selling in markets and Rs 127.27 per quintal by storing (speculation) of produce to sell in future in case of East Champaran district and in case of Davangere district. Paddy wholesalers, the second important key players, and added value of average Rs 65.8 per quintal and Rs 75.67 per quintal in case of both districts under study, respectively. Rice millers were important value adder in rice value chain and added value in three stages purchasing and milling of paddy and selling of rice. The value addition by rice millers estimated about 81.21 per cent and 26.55 per cent, and 60.63 per cent and 32.95 per cent by marketing and milling in East Champaran and Davangere district, respectively. Rice wholesalers were the fourth actor in value chain, value addition by them was about 10.69 per cent and 11.05 per cent in both districts, respectively. The profit earned from rice was Rs 2.38 per kg (East Champaran) and Rs 3.11 per kg (Davangere). Rice retailers, the final value chain actor received less value addition and the profit earned was estimated to be Rs 2.57 per kg and Rs 3.62 per kg in both the districts under study.