ABSTRACT
The study examined the
economics of rice production and marketing in Uzo-Uwani Local Government Area.
Using multi-stage random sampling technique, a total of 120 rice producers and
marketers were randomly selected. The relevant data for the study were
collected through a set of structured questionnaire administered to the
selected respondents. The study described the systems of rice production and
marketing in the study area, compared the socio-economic characteristics of
rice producers and marketers, and their effects on production and marketing of
rice, described the rice market and its distribution channels, compared costs
and returns of rice production and marketing, identified and examined the major
problems of rice production and marketing and made recommendations for
enhancing rice production and marketing. The analytical tools used in this
study included descriptive statistics, multiple regressions, enterprise
budgeting, costs and returns, marketing and gross margin analysis. Result of
the study showed that more males than females were involved in rice farming and
more females than males in marketing. Majority of both producers and marketers
were within the age bracket of 40-49 years. Amongst all the categories of
household sizes, those with 1-10 members for both the producers and marketers
had more output than others. Majority of the producers and marketers sourced
their funds from personal savings. Most farms and markets were of short
distances, therefore transport costs was affordable. Most marketers relative to
producers were new in rice business. The major socio-economic characteristics
that affected the net return from producers and marketers were number of
hectares of rice cultivated for the farmers, marital status, number of
household members involved in the business and distance from the house to the
market for the marketers. The prevalent types of rice production systems in the
area were rain fed upland and rain fed lowland. Two methods of rice processing
identified were hand pounding system and small mill system. The categories of
marketers identified in the area were those who buy paddy rice, store and sell
later; those who buy paddy, process and sell; and those who sell both paddy and
milled rice. Three main types of markets identified in the area were farm gate
markets, designated markets and central markets. The mean sales revenue
realized from a 2ha rice farm was calculated using enterprise budgeting to be N240,
000.00. This gave a net profit of N44, 525.00 and return per naira of
investment of N1.23.00. In line with the producers output, the
wholesaler buys and realized a total amount of N432, 000.00 with
net-income of N18.400.00 and return on Naira of investment as N1.45.00.
Comparatively, the result showed that the wholesalers made the highest profit
in the rice business. Lack of developed/fertile lands, funds, inputs, pest and
diseases were found to be the challenging constraints of the producers. While
inefficient/high cost of transportation, ineffective storage, inefficient
grading and standardization, shortage of labour/manpower are found to be major
constraints in the rice marketing-enterprise. Based on the findings of the
study, the following recommendations were made feeder roads should be
maintained by appropriate government authorities, this will help to retain the
affordable transport costs, grading and standardization should encouraged in
line with national and international best practices; proper training of both
farmers and marketers should be arranged by both government and
farmer-associations to encourage record keeping, the financial base of both
farmers and marketers should be boosted by Government and donor agencies
through the facilitation of loans from financial institutions and granting of
subsidies.
CHAPTER
ONE
INTRODUCTION
1.1 Background
Information
Equitable
and sustainable economic development cannot ignore basic food commodities
particularly in developing countries such as Nigeria. Basic food commodities
play important roles in economic development as their availability and costs
impinge on food security, expenditures and incomes of households, particularly
among poor segments of the population in both rural and urban areas. Of all the
basic food commodities, rice is particularly important (Akpokodje, et al,
2001). This is because in Asia, rice constitutes the staple food. In America
and Europe, it is frequently taken. In Africa, rice is more important in the
urban centres where evidence of rising level of income is more prominent (Lang,
1979; Fulani, 1980).
Nigeria is
one of the largest rice producers in West Africa (WARDA, 1981). In Nigeria,
also, it is one of the important cereal grains replacing some of the grains and
tuber crops. Rice used to be the “white mans” food meant only for the elites
and high class individuals in the society. The middle class and the peasants,
who constitute a higher percentage of the population, only ate rice at
Christmas and other major festive periods. Many of them had the belief that
rice symbolized Christmas and vice-versa (Ogbuakanne, 1998).
However,
combinations of various factors seem to have triggered the structural increase
in rice consumption. According to Akanji (1995), rising demand was partly the
result of increasing population growth. Also, increased income levels,
following the discovery of crude oil, led to the rise in the demand for the
commodity. The most important factor contributing to the shift in
Olufowole
and Joshua (1979) reported that, of the 25 varieties of rice recommended to
Nigerian farmers, only five were upland varieties while the remaining 20 were
for swamp production. The popular variety of upland rice in the study area is
FARO 1I while the most popular variety of swamp rice is IRRI 14/16. This is
considered to be the highest yielding rice variety, while FARO 25 ranked
second.
According to
WARDA (1981), IRRI (1990), and Maclean (2002), Nigeria’s rice production made
some remarkable gains from 1980 to 1989. The area under cultivation grew from
about 400,000 hectares in 1980 to 900,000 hectares in 1989. Paddy rice
production increased from about 600,000 tonnes in 1980 to about 1,422,000
tonnes in 1989 and 3.189.833 metric tonnes from 1990 -1999.
Prior to the
World Bank Rice Project and River Basin Development Authorities in Nigeria,
domestic rice production depended mainly on natural rainfall which was very
erratic in nature. Farmers under this system (rain fed)......
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