Rice Value Chain Analysis: A Case of Rice Cooperatives Supported by Deutsche Welthunger Hilfe, Southern Province, Rwanda Rice Value Chain Analysis: A Case of Rice Cooperatives Supported by Deutsche Welthunger Hilfe, Southern Province, Rwanda (original) (raw)
Related papers
2020
The marshlands soil fertility; favorable weather, natural water resources, and efficiency manpower make Rwanda highly suitable for rice cultivation. Even there were various supports for the Government of Rwanda and various NGOs like DeutscheWeltHungerHilfe (WHH). There was still a problem of using traditional techniques in rice farming which brings little performance, characterized by a lack of professionalism and inappropriate management of natural resources and small plots for rice producers. This study aimed to find out the level of paddy/rice production, processing, and marketing, and determine the added value through the working efficiency in the Southern Province, Rwanda. The purposely sampling of respondents was done from the rice chain actors, including 48 rice cooperatives, 2 processors, and 120 wholesales, retails, and consumers, mostly in the Southern Province. A well-structured questionnaire was used for data collection. The data collected from the field were analyzed through STATA 14 and Microsoft excel. The descriptive statistics (mean, arithmetic mean, and standard deviation) and multiple regressions were used to describe the results. The results pointed out that average rice value chain actors production cost were 223.5[profit: 96.5] rwf/kg(farmers), 150.62[gross profit: 191.88] rwf/kg(Millers), 61.7[profit: 53.3] rwf/kg(wholesales) and 51[profit: 96.5] rwf/kg(Retails). Rice farmers invested much more (money and time) and they were the ones who got low profit compared to others. This study recommends strengthening the technical and organizational capabilities of rice farmers and other value chain actors and builds strong linkages between rice farmers and rice processors companies.
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.
Rice farming and income distribution along the value chain in Rwanda
Developing Country Studies, 2017
Rice farming has become an integral part of the agricultural production in Rwanda and plays an important role in socioeconomic development of thousands of farmers. The activities related to rice sub-sector provides investment opportunities for actors who want to invest in it. Due to its importance, transforming it will definitely contribute not only to the rural sub-sector development but also to national economic development and poverty alleviation for rice farmers and improve the income of other actors in rice value chain. Despite the importance of rice farming in Rwanda little is known how it affects farmers' income and distribution of benefits between actors along the chain. This study aims at analysing the rice value chain and the level of distribution of benefits between value chain actors. The primary data was collected in Huye, Nyanza, Gisagara, Bugesera and Rusizi Districts and the total sample for rice farmers was 322, cooperatives 17, processors 9 and traders 28. To achieve the overall objective of the study; mixed methods were used and these include structured questionnaire for survey, interviews with key informants and focus group discussion. The research findings show that there are significant disparities in gains distribution along the value chain for two types of rice crop in surveyed areas; as margins range from 0.10 to 0.23 for Youan and from 0.12 to 0.25 for Watt. Farmers currently receive the highest margin while traders received the lowest. Moreover, although there is a formalised paddy processing and rice market supply, for 70% of wholesalers part of rice is still supplied by informal groups of small millers and traders. For a viable long-term rice value chain, it is required that paddy and rice are supplied through the formal trading system and the economic gains are fairly distributed among the various chain participants who should be linked through a shared objective to generate higher profits and create mutually beneficial outcomes.
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.
The Nature of Rice Value Chain Programme in the Central River Region, the Gambia
2019
This study focused on the nature of the rice value chain programme in the Central River Region of The Gambia. The instruments used for data collection was Focus Group Discussion and in-depth interview. Simple random sampling was used to select sixteen (16) villages out of which three hundred and eighty-four (384) farmers were used for the study. The data collected were transcribed for all the focus group comments; the comments were rearranged to have answers grouped for each interview protocol. The main ideas were organized into themes to generate an idea or ideas and quotations were identified for each theme. The findings were written in a narrative to describe the themes with quotations. Regarding the quantitative analysis, simple descriptive statistics including frequency and percentages were used for the surveyed data collected from the rice farmers and key informants. However, challenges ranging from inadequate machinery, fertilizer, seeds and market structures were some of the...
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.
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.
Effect of Rice Value Chain Programme on Rice Production in the Gambia
2022
This study on the effects of rice value chain programme on rice farmers' production was conducted in the Central River Region of the Gambia. The objective of the study seeks the effect of the rice value chain programme on rice farmers' production in Central River Region of The Gambia. The instruments used for data collection was Focus Group Discussion and In-Depth Interview. The study selected two (2) of the districts from Kuntaur Local Government Area and three (3) from Janjanbureh Local Government Area using purposive sampling technique after which simple random sampling technique was used to select sixteen (16) villages out of which three hundred and eighty-four (384) farmers were randomly selected for the study. The data collected was transcribed for all the focus group and interview comments, the comments were rearranged to have answers which were grouped together for each interview protocol. The findings revealed that, farmers benefitted from the rice value chain programme through interventions such as; available improved seed varieties and fertilizer which have improved rice production. However, challenges still exist in the form of insufficient fertilizer, seeds and market structures. From these findings, it is recommended that Non-Governmental Organizations and investors should supplement government efforts by providing sufficient and quality inputs (seed/fertilizer/machinery) and credit facilities to the rice farmers at a subsidized rate and on time and strengthen the linkages between farmer groups/cooperatives with buyers (Producer-Buyer linkage) for easy market access.
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.
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.