Economics of rice production/processing (RP/P) enterprises in Ibaji, Kogi Eastern Senatorial district, Nigeria
Article Sidebar
Main Article Content
Abstract
Background and Objective: There has been a steady increase in rice consumption among different categories of people in Nigeria. The closure of Nigeria’s borders against rice importation has further strengthened home-based production, processing, and consumption. The study focused on rice production/processing (RP/P) in Ibaji, Kogi Eastern Senatorial district, Nigeria. The study described the socioeconomic characteristics and activities of respondents, estimated their costs and returns, determined the effects of some selected variables on rice selling prices, and identified problems encountered in
the enterprise.
Methodology: A multi-stage sampling technique was used to elicit primary data from 120 respondents with the aid of a well-structured questionnaire coupled with personal interviews. Data obtained were analyzed using descriptive statistics, gross margin analysis, and multiple regression analysis.
Main Results: The results showed that most respondents were female (75.00%), with a mean age of 36 years. Additionally, most were married (81.67%), with a mean household size of six members. Land clearing, planting, weeding, pesticide application, and fertilizer application activities were major planting activities, while major processing activities were parboiling, dehulling, winnowing, cleaning, and packaging. Furthermore, the results showed that respondents earned an average revenue of $323.5 per annum on rice production/processing. They incurred a total cost of $162.6 per annum on rice production/processing with an average gross profit of $166.8 per annum. Also, the study showed that transportation cost (0.53; P < 0.01), distance to market (0.55; P < 0.05), quality of produced/processed paddy rice (-1.41; P < 0.01), and processing cost (0.07; P < 0.01) with R-square value of 0.513 had significant effects on selling price of rice respectively. Moreover, inadequate credit facilities, shortage of processing facilities, high cost of processing, inadequate transportation infrastructure, and high cost of transportation were the problems faced by the respondents (ranging from 65.8–100%).
Conclusions: The enterprise was dominated by productive married women with profitable returns. Therefore, the generation of adequate capital is imperative for business expansion and the purchase of adequate processing, storage, and transport facilities.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Adam, A.G. and T.D. Bidoli. 2018. Assessment of gender involvement in rice processing under staple crop processing of agricultural transformation agenda support program -1 (ATASP-1) in Kebbi State. Journal of Agriculture and Environment 14(2): 55–62.
Adamu, T. and U.M. Bakari. 2015. Profit efficiency among rain-fed rice farmers in Northern Taraba, Nigeria. J. Biol. Agric. Healthc. 5(8): 113–119.
Adejumo-Ayibiowu, D. 2010. Mapping of Poverty Reduction Strategies Papers (PRSP): Sector Strategies and Policies Related to Rice Development in Nigeria. Coalition for African Rice Development (CARD), Nairobi, Kenya.
Adenegan, K.O., S.O. Olorunsomo and L.O.E. Nwauwa. 2013. Determinants of market orientation among smallholder cassava farmers in Nigeria. Global Journal of Management and Business Research 13(6): 57–66.
Adisa, R.S., T.A. Ahmed, O. Ebenehi and F.O. Oyibo. 2019. Perceived benefits of adoption of improved rice production technologies among small-scale farmers in Kogi State, Nigeria. Journal of Agricultural Extension 23(1): 138–148. https://doi.org/10.4314/jae.v23i1.12.
Afolami, C.A., A.E. Obayelu, M.U. Agbonlahor and O.A. Lawal-Adebowale. 2012. Socioeconomic analysis of rice farmers and effects of group formation on rice production in Ekiti and Ogun States of South-West, Nigeria. J. Agric. Sci. 4(4): 233–244. https://doi.org/10.5539/jas.v4n4p233.
Akande, T. 2003. An overview of Nigerian rice economy. Available Source: http://www.unep/etu/etp/events/agriculture/nigeria.pdf.
Akarue, O.B. and S. Ofoegbu. 2012. Marketing analysis of rice in Udu Local Government Area of Delta State, Nigeria. Continental Journal of Agricultural Economics 6(2): 21–31.
Amah, V.E. and T.J. Atuboyedia. 2020. Comparison of regression model concepts for estimating traffic noise. J. Eng. Res. Reports. 12(1): 25–32. https://doi.org/10.9734/jerr/2020/v12i117072.
Ayanwale, A.B. and C.A. Amusan. 2014. Gender analysis of rice production efficiency in Osun State: Implication for the transformation agenda. Nigerian Journal of Agricultural Economics 4(1): 12–24. http://doi.org/10.22004/ag.econ.267885.
Bamidele, F.S., O.O. Abayomi and O.A. Esther. 2010. Rice consumption in Nigeria. J. Agric. Sci. Technol. 12(1): 1–11.
Bansal, U., A. Narang, A. Sachdeva, I. Kashyap and S.P. Panda. 2021. Empirical analysis of regression techniques by house price and salary prediction. IOP Conf. Ser.: Mater. Sci. Eng. 1022: 012110. http://doi.org/10.1088/1757-899x/1022/1/012110.
Danmaigoro, A., A. Ahmad, H.Y. Sanda and S. Audu. 2023. Economic analyses of smallholder rice farmers in Kebbi State, Nigeria. Int. J. Appl. Sci. Res. 1(2): 139–146. https://doi.org/10.59890/ijasr.v1i2.431.
Dixon, J., A. Gulliver, D. Gibbon and M. Hall. 2001. Farming Systems and Poverty: Improving Farmers’ Livelihoods in a Change World. World Bank Group, Washington, D.C., USA.
Djokoto, J.G. and D.E. Zigah. 2021. Gross margin of smallholder palm fruit processors with non-allocable inputs in Assin north and south districts in Ghana. J. Agric. Food Res. 5: 100177. https://doi.org/10.1016/j.jafr.2021.100177.
FAO (Food and Agriculture Organization of the United Nations). 2005. Addressing Marketing and Processing Constraints that Inhibit Agrifood Exports: A Guide for Policy Analysts and Planners. FAO Agricultural Service Bulletin 160. FAO, Rome, Italy.
Garth, H.O., N.I. Charles and D.E. Chris. 2016. Agro-industrialization through Institutional Innovation: Transactions Costs, Cooperatives and Milk-Market Development in the Ethiopian Highlands. Market and Structured Studies Division. Discussion Paper No.35.
Girei, A.A. and E.G. Onuk. 2016. Profitability of rice production in Fufore Local Government Area of Adamawa State, Nigeria. J. Agric. Res. 2(5): 53–63.
Hossain, M. and J. Narciso. 2004. Global rice economy: Long-term perspectives. In: FAO Rice Conference. Rome, Italy.
Isa, I., B. Shyti and K. Spassov. 2020. Multiple regression analysis used in analysis of private consumption and public final consumption evolution, case of Albanian economy. European Journal of Marketing and Economics 3(1): 63–70. https://doi.org/10.26417/ejme.v3i1.p48-53.
Kuku-Shittu, O. and A. Pradesha. 2013. An econometric analysis of rice demand in Nigeria. In: Proccedings of the 18th Annual Conference on Econometric Analysis and Policy Challenges in Africa. Cotonou, Benin.
Lapar, M.L., G. Holloway and S. Ehui. 2003. Policy options promoting market participation among smallholder livestock producers: A case study from the Philippines. Food Policy 28(3): 187–211. https://doi.org/10.1016/S0306-9192(03)00017-4.
Medagbe, F.M.K., S. Komatsu, G. Mujawamariya and K. Saito. 2020. Men and women in rice farming in Africa: A cross-country investigation of labor and its determinants. Front. Sustain. Food Syst. 4: 117. https://doi.org/10.3389/fsufs.2020.00117.
Musa, A.Y., I. Hussaini, M.A. Yau and F.M. Chibiyayi. 2023. An application of multiple regression model to ascertain whether naira redesign has achieved its objectives in Nigeria. World J. Adv. Res. Rev. 18(3): 834–841. https://doi.org/10.30574/wjarr.2023.18.3.1148.
Nkadimeng, M.N., G. Makombe, O. Mapiye, C. Mapiye, I. Oluwatayo, K. Dzama, C. Mojapelo, N. Mollel, J. Ngambi and M.H. Mautjana. 2021. A gross margin analysis for Nguni cattle farmers in Limpopo province, South Africa. PLoS ONE 16(6): e0253657. https://doi.org/10.1371/journal.pone.0253657.
Nwali, A.C. and A. Maureen. 2019. Marketing analysis of locally produced rice in Abakaliki Local Government Area of Ebonyi State Nigeria. Mediterr. J. Soc. Sci. 10(1): 39–47. https://doi.org/10.2478/mjss-2019-0004.
Rahji, M.A.Y. and M.O. Adewumi. 2008. Market supply response and demand for local rice in Nigeria: Implications for self-sufficiency policy. J. Cent. Eur. Agric. 9(3): 567–574.
Randela, R., Z.G. Alemu and J.A. Groenewald. 2008. Factors enhancing market participation by smallscale cotton farmers. Agrekon 47(4): 451–469. http://doi.org/10.22004/ag.econ.47656.
Samarpitha, A., N. Vasudev and K. Suhasini. 2016. Socio-economic characteristics of rice farmers in the combined state of Andhra Pradesh. Asian Journal of Agricultural Extension, Economics and Sociology 13(1): 1–9. https://doi.org/10.9734/AJAEES/2016/28696.
Shaibu, U.M. and Y.A. Shaibu. 2017. Adoption of determinants of improved farming technologies: An assessment of rural rice farmers in Kogi State, Nigeria. J. Agric. Rural Res. 1(1): 5–10.
Tiamiyu, S.A., I.U. Kolo, G.A. Adewale and U.B. Ugalahi. 2014. Trend analysis of milled rice consumption in Nigeria. Int. J. Agric. Pol. Res. 2(10): 329–333. http://dx.doi.org/10.15739/IJAPR.004.
Ukwuru, M.U., A. Muritala and A.O. Iheofor. 2018. Cereal utilization in Nigeria. Res. J. Food Nutr. 2(3): 1–12.
Uzonwanne, M.C., U. Ezenekwe, G. Nzeribe, N. Mathew and K.C. Adonike. 2020. Impact of transportation cost on prices of consumable commodities in Anambra State. J. Econ. Stud. 17(2): 195–204.
Yahaya, A.T., T.R. Shittu, M.A.K. Ogunjobi, C.O. Jayeola and A.O. Williams. 2017. Gross margin analysis of cocoa bread production. Int. J. Hortic. Agric. Food Sci. 1(2): 18–21.
Zalkuwi, J. 2019. Economics analysis of rice marketing in Mubi North Local Government Area of Adamawa State, Nigeria. Agric. Sci. Technol. 11(4): 356–359. http://dx.doi.org/10.15547/ast.2019.04.061.