Keywords
Rice
Value addition
Farming households
Taraba State
Value addition
Farming households
Taraba State
How to Cite
Rukwe, D. T., Barau, A. D., Aboki, E., Adi, Z. A., & Luqman, M. M. (2023). ECONOMICS OF RICE VALUE ADDITION AMONG FARMING HOUSEHOLDS IN TARABA STATE, NIGERIA. Journal of Agricultural Economics, Environment and Social Sciences, 9(2), 131-146. Retrieved from https://jaeess.com.ng/index.php/jaeess/article/view/194
Abstract
This study evaluated the Economics of Rice Value Addition among Farming Households in Taraba State, Nigeria. A multi-stage sampling procedure was used to select 240 respondents for this study and well-structured questionnaires was administered to farming households involved in rice value addition activities. Data collected were analysed using descriptive statistics, budgeting technique and multiple regression analysis. Results revealed that 70.4% of the activities were carried out by women, 53.8% of the respondents were married and 79.6% had some level of formal education. Mean household size and years of experience in activities were 12 persons and 18 years respectively. Only 26.7% and 31.7% of the respondents were members of cooperative society and had access to credit respectively. Respondents were engaged primarily in parboiling and drying. Net income obtained from value addition was ₦370,680.74 per annum and average rate of returns on investment was ₦1.41 indicating that for every ₦1.00 invested in value addition a profit of 41 kobo was made with operating ratio of 0.7 kobo. Cost of milling (-0.626), price of milled rice (0.311) and cost of paddy rice (0.0519) determined rice value addition enterprises’ profit. The major constraints encountered by respondents in rice value addition activities were inadequate funds, lack of appropriate value addition skill due to inadequate capacity building activities, lack of improved technology/method of processing and poor marketing information. The study concluded that rice value addition was a profitable venture. This study thus recommended that indigenous industries should be encouraged to fabricate small/medium capacity milling machines with parboiler, destoner and polisher features that would improve the quality of locally milled rice.
References
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Abu, B. M., Issahaku, H. and Nkegbe, P. K. (2016). Farm-gate Versus Market Centre Sales: A Multi-crop Approach. Agricultural Food Economics, 4 (21).
Adam, A. G., Bidoli, T. D., Ammani, A. A. and Oduehie, T. C. (2018). Gender Participation in Rice Processing Value Chain in kebbi and Sokoto States, Nigeria. Global Journal of Science Frontier Research: Agriculture and Veterinary, 18(2):54-60.
Adam, A. G. and Bidoli, T. D. (2017). Assessment of Gender Roles among Agro- Inputs Entrepreneurs in North West, Nigeria. (Jibril et.al edited). Proceedings of the 31st Annual National Conference of the Farm Management Association of Nigeria (FAMAN) held at Abubakar Tafawa Balewa University, Bauchi, Nigeria, 9th-12th October. 274-280.
Adeniyi, O.R. and O. T. Akande. (2015). Resource Use and Technical Efficiency in Value Addition to Cassava: A Case Study on Gari and Fufu Processing in Ogun State, Nigeria. American Journal of Experimental Agriculture 5(2): 139-147.
Aiyedun, E. A., Ebukiba, E. S., Otitoju, M. A., Ogbole, E. O. and Luka, A. (2021). Comparative Analysis of Marketing Efficiencies of Paddy and Locally Milled Rice (Oryza sativa L.) Marketers in the Federal Capital Territory, Nigeria. European Journal of Agriculture and Food Sciences, 3(6): 1-7.
Aminu, F. O., Rosulu, H. O., Toku, A. S. O., Dinyo, O. B., Akhigbe, E. C. (2017). Technical Efficiency in Value Addition to Cassava: A Case of Cassava-Garri Processing in Lagos State, Nigeria. Journal of Agriculture and Sustainability, 10(1): 97-115.
Anthony, L., Alabuja, F. O. and Ebukiba, S. E. (2022). Analysis of Sources and Socio-Economic Determinants of Access to Loan by Small Scale Rice Farmers in Gwagwalada Area Council, Federal Capital Territory, Nigeria. Eurasian Journal of Agricultural Research, 6(1): 17-33. Bello, R. S., Saliu, M. I., Olaniyan, A. A., Bello, M. B. and Ikechukwu, G. O. (2020). An Assessment of the Quality Assurance Programme in Nigeria Rice Processing Sector. Discovery Agriculture, 6(16): 144-158.
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Coulibaly, O., Arinloye, A. D., Faye, M. D. and Abdoulaye, T. (2014). Regional Cassava Value
Chain Analysis in West Africa: A Case Study of Nigeria. Working paper, West and Central African Council for Agricultural Research and Development (CORAF/WECARD), Dakar, September.
Ebukiba, E. S. and Ogbole E. O. (2020). Profitability Analysis of Paddy and Locally Milled Rice (Oryza sativa L.) Marketing in the Federal Capital Territory, Nigeria. European Journal of Agriculture and Food Sciences, 2(5): 1-5.
Egwu, W. E. (2018). Profit Analysis and Determinants of Value Added Rice among Farmers in Abakaliki Metropolis, Ebonyi State, Nigeria. Nigerian Agricultural Journal, 49 (1): 273-278. Ekundayo, B. P. (2023). Rice Production, Imports and Economic Growth in Nigeria: An Application of Autoregressive Distributed Lag. International Journal of Advanced Economics, 5(2): 48-56.
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Gyimah, K., Michael, J. and Hiroyuki, T. (2016). The Nigerian Rice Economy: Policy Options for Transforming Production, Marketing and Trade. Philadelphia: University of Pennsylvania Press.
Hussaini, A. S., Oladimeji, Y. U., Sanni, S. A. and Abdulrahman, S. (2019). Determinants and Profitability of Rice Farmers Investment in Value Addition Activities in Kebbi State Nigeria. International Journal of Social and Economic Research, 3(2): 101-109.
Ibitoye, S. J., Idoko, D. and Shaibu, U. M. (2014). Economic Assessment of Rice Processing in Bassa Local Government Area of Kogi State, Nigeria. Asian Journal of Basic and Applied Sciences, 1(2): 8-17.
Kamai, N, Omoigui, L. O, Kamara A. Y, Ekeleme, F. (2020). Guide to Maize Production in Northern Nigeria. International Institute of Tropical Agriculture, Ibadan, Nigeria. 27(1): 20-35.
Madu, A. B and Aniobi, U. J. (2018). Profitability Analysis of Paddy Production: A case of Agricultural Zone 1, Niger State Nigeria. Journal of Bangladesh Agricultural University, 16(1): 88–92.
Mahin, N., Hamideh, G. and Fereshteh, G. (2017). Snowball Sampling: A Purposeful Method of Sampling in Qualitative Research. Strides Development Medical Education, 14(3):1-6.
Mgbakor, M. N., Ugwu, J. N. and Chitor, C. C. (2014). Assessment of Value Addition in Rice Production and Processing in Adani in Uzouwani Local Government Area Of Enugu
Mmasa, J. J. (2013). Value Addition Practices to Agricultural Commodities in Tanzania. Tanzania Country Level Knowl. Netw. Policy Brief, 20: 1-15.
Obasi, P. C. and Enyia, C. O. (2016). Analysis of Value Addition and Livelihood Diversification among Fadama Users in Imo State, Nigeria. Federal University of Technology Owerri Journal, 2(2): 236-251. Obayelu, O. A., Agbohin, J. A. and Obisesan, O.O. (2022). Consumers’ Preference for Local Rice Brands in Ibadan Metropolis, Nigeria. Food and Agricultural Economics Review, 2(1): 12-17. Okoro, J. C., Ugah, D. E., Aroh, J. A., Obioha, O. G., Udoye, C. E. and Agwu, E. A. (2023). Perceived Factors Influencing Farmers’ Preference for Rice Varieties in Enugu State, Nigeria. Journal of Agricultural Extension, 27(1):72-93.
Oladimejl, Y. U., Abdulsalam, Z. and Abdullahi, A. N. (2015). Determinants of Participation of Rural Farm Households in Non-farm Activities in Kwara State, Nigeria: A Paradigm of Poverty Alleviation. Ethiopian Journal of Environmental Studies and Management, 8(6): 635-649.
Olaoye O. J. (2010). Dynamics of the Adoption Process of Improved Fisheries Technologies in Ogun State, Nigeria. A Ph.D Thesis in the Department of Aquaculture and Fisheries Management, University of Agriculture Abeokuta, Ogun State.
Olukosi, J. O. and Erhabor, P. O. (2005). Introduction to Agricultural Marketing and Prices. Principles and Application. Living Book Series, 3rd Edition, GU Publications Abuja. Pp 107.
Olukosi, J. O. and Erhabor, P. O. (1988). Introduction to Farm Management Economics: Principles and Applications. Agitab Publishers Limited, Zaria, Kaduna, Nigeria.77-83.
Omobolaji, O. O., Kabir, K. S., Kemisola, O. A. and Ghene, O. O. (2019). Choice of Processing Techniques among Rice Processors in Nigeria. World Journal of Entrepreneurship, Management and Sustainable Development, 15(1):70-83. Osabuohien, E. S., Okorie, U. E. and Osabohien, R. A. (2018). Rice Production and Processing in Ogun State, Nigeria: Qualitative Insights from Farmers' Association. In Food Systems Sustainability and Environmental Policies in Modern Economies, pp. 188-215.
Philip, D., Jayeobo, O. O., Ndirpaya, Y. and Oluwale, F. (2018). Innovation Opportunities in the Rice Value Chain in Nigeria, 2(3). https://research4agrinnovation.org/wp-content/uploads.
Price Water House Coopers (2022). Boosting Rice Production through Increased Mechanization. Available at https://www.pwc.com/ng/en/publications/boosting-riceproduction-through-increased mechanisation.html.
Riki, J. T., Maiguru, A. A., Zaku, S. S. and Auta, B. J. (2021). Investigation of Under-Utilised
Wood Species for Potential Utilisations in Taraba State, Nigeria. European Journal of Agriculture and Food Sciences, 3(5), 106-112.
Taraba State Diary (2018). Taraba State Government.
Taraba State Diary (2015). Taraba State Government.
Terwase, T. I. and Madu, A. Y. (2018). The Impact of Rice Production, Consumption and Importation in Nigeria: The Political Economy Perspectives. International Journal of Sustainable Development and World Policy, 3(4), 90-99.
Tigner R. (2018). Ag Decision Maker Partial Budgeting: A tool to Analyze Farm Business Changes. Iowa State University-Education and Outreach. Morril. Available:www.extension.iastate.edu/agdm. Toluwase, S. O. W., Osundare, F. O. and Adekunmi, A. O. (2019). Economic Analysis of Rice Marketing in Some Selected Local Government Areas of Ekiti State, Nigeria. European Journal of Food Science and Technology, 7(4): 9-23.
Uchendu, C. U., Abdulkareem, H. and Mele, F. (2021). Value Addition and Gross Margin Analysis of Soymilk and Soy Yoghurt in Tsibiri, Giwa Local Government Area of Kaduna State, Nigeria. Nigerian Association of Agricultural Economists 21st National Conference Lafia Conference Book of Proceeding.179-185.
Ugalahi, B. U., Adeoye, S. O. and Agbonlaho, M. U. (2016). Irrigation Potentials and Rice Self-Sufficiency in Nigeria: A Review. African Journal of Agricultural Research, 11(5); 298-309.
USAID (2019). Improved Package of Practices for Rice Production. USAID Markets. Maximizing Agricultural Revenue and Key Enterprises in Targeted Sites, Abuja.
WARDA (2015). Essence of WARDA, the Reason Why Nigerians are Hooked to Rice Women’s Involvement in the Agro-processing Enterprise of the National Special Programme for Food Security in Imo State, Nigeria. Report and Opinion, 2(7): 69-73.
Abu, B. M., Issahaku, H. and Nkegbe, P. K. (2016). Farm-gate Versus Market Centre Sales: A Multi-crop Approach. Agricultural Food Economics, 4 (21).
Adam, A. G., Bidoli, T. D., Ammani, A. A. and Oduehie, T. C. (2018). Gender Participation in Rice Processing Value Chain in kebbi and Sokoto States, Nigeria. Global Journal of Science Frontier Research: Agriculture and Veterinary, 18(2):54-60.
Adam, A. G. and Bidoli, T. D. (2017). Assessment of Gender Roles among Agro- Inputs Entrepreneurs in North West, Nigeria. (Jibril et.al edited). Proceedings of the 31st Annual National Conference of the Farm Management Association of Nigeria (FAMAN) held at Abubakar Tafawa Balewa University, Bauchi, Nigeria, 9th-12th October. 274-280.
Adeniyi, O.R. and O. T. Akande. (2015). Resource Use and Technical Efficiency in Value Addition to Cassava: A Case Study on Gari and Fufu Processing in Ogun State, Nigeria. American Journal of Experimental Agriculture 5(2): 139-147.
Aiyedun, E. A., Ebukiba, E. S., Otitoju, M. A., Ogbole, E. O. and Luka, A. (2021). Comparative Analysis of Marketing Efficiencies of Paddy and Locally Milled Rice (Oryza sativa L.) Marketers in the Federal Capital Territory, Nigeria. European Journal of Agriculture and Food Sciences, 3(6): 1-7.
Aminu, F. O., Rosulu, H. O., Toku, A. S. O., Dinyo, O. B., Akhigbe, E. C. (2017). Technical Efficiency in Value Addition to Cassava: A Case of Cassava-Garri Processing in Lagos State, Nigeria. Journal of Agriculture and Sustainability, 10(1): 97-115.
Anthony, L., Alabuja, F. O. and Ebukiba, S. E. (2022). Analysis of Sources and Socio-Economic Determinants of Access to Loan by Small Scale Rice Farmers in Gwagwalada Area Council, Federal Capital Territory, Nigeria. Eurasian Journal of Agricultural Research, 6(1): 17-33. Bello, R. S., Saliu, M. I., Olaniyan, A. A., Bello, M. B. and Ikechukwu, G. O. (2020). An Assessment of the Quality Assurance Programme in Nigeria Rice Processing Sector. Discovery Agriculture, 6(16): 144-158.
Benjamin, T. A. and Richard, W. N. Y. (2019). Determinants of Off-Farm Income among Smallholder Rice Farmers in Northern Ghana: Application of a Double-Hurdle Model. Hindawi Advances in Agriculture. Available online at https://doi.org/10.1155/2019/ 7246176.
Bose, A. A., Jatbong, J. N., Danwanka, H. A. and Zayyad, B. (2020). Assessment of Small Scale Paddy Rice Processing and Marketing in Dass Local Government Area, Bauchi State, Nigeria. International Journal of Science and Advanced Innovative Research, 5(2): 29-39.
Chidiebere-Mark, N., Donatus, O., Polycarp, O. and Steve, O. (2019). Profitability of Rice Production in Different Production Systems in Ebonyi State, Nigeria. Open Agriculture. 4: 237–246. https://doi.org/10.1515/opag-2019-0022.
Coulibaly, O., Arinloye, A. D., Faye, M. D. and Abdoulaye, T. (2014). Regional Cassava Value
Chain Analysis in West Africa: A Case Study of Nigeria. Working paper, West and Central African Council for Agricultural Research and Development (CORAF/WECARD), Dakar, September.
Ebukiba, E. S. and Ogbole E. O. (2020). Profitability Analysis of Paddy and Locally Milled Rice (Oryza sativa L.) Marketing in the Federal Capital Territory, Nigeria. European Journal of Agriculture and Food Sciences, 2(5): 1-5.
Egwu, W. E. (2018). Profit Analysis and Determinants of Value Added Rice among Farmers in Abakaliki Metropolis, Ebonyi State, Nigeria. Nigerian Agricultural Journal, 49 (1): 273-278. Ekundayo, B. P. (2023). Rice Production, Imports and Economic Growth in Nigeria: An Application of Autoregressive Distributed Lag. International Journal of Advanced Economics, 5(2): 48-56.
Federal Ministry of Agriculture and Rural Development (FMARD) (2012). Agricultural Transformation Agenda: Repositioning Agriculture to drive Nigeria's economy, presentation by the Minister of Agriculture and Rural Development, Abuja: Nigeria.
Federal Ministry of Agriculture and Rural Development (FARMAD) (2014). Nigeria’s Agricultural Transformation Agenda (ATA): Turning Nigeria into a Global Powerhouse in Agriculture.
Gyimah, K., Michael, J. and Hiroyuki, T. (2016). The Nigerian Rice Economy: Policy Options for Transforming Production, Marketing and Trade. Philadelphia: University of Pennsylvania Press.
Hussaini, A. S., Oladimeji, Y. U., Sanni, S. A. and Abdulrahman, S. (2019). Determinants and Profitability of Rice Farmers Investment in Value Addition Activities in Kebbi State Nigeria. International Journal of Social and Economic Research, 3(2): 101-109.
Ibitoye, S. J., Idoko, D. and Shaibu, U. M. (2014). Economic Assessment of Rice Processing in Bassa Local Government Area of Kogi State, Nigeria. Asian Journal of Basic and Applied Sciences, 1(2): 8-17.
Kamai, N, Omoigui, L. O, Kamara A. Y, Ekeleme, F. (2020). Guide to Maize Production in Northern Nigeria. International Institute of Tropical Agriculture, Ibadan, Nigeria. 27(1): 20-35.
Madu, A. B and Aniobi, U. J. (2018). Profitability Analysis of Paddy Production: A case of Agricultural Zone 1, Niger State Nigeria. Journal of Bangladesh Agricultural University, 16(1): 88–92.
Mahin, N., Hamideh, G. and Fereshteh, G. (2017). Snowball Sampling: A Purposeful Method of Sampling in Qualitative Research. Strides Development Medical Education, 14(3):1-6.
Mgbakor, M. N., Ugwu, J. N. and Chitor, C. C. (2014). Assessment of Value Addition in Rice Production and Processing in Adani in Uzouwani Local Government Area Of Enugu
Mmasa, J. J. (2013). Value Addition Practices to Agricultural Commodities in Tanzania. Tanzania Country Level Knowl. Netw. Policy Brief, 20: 1-15.
Obasi, P. C. and Enyia, C. O. (2016). Analysis of Value Addition and Livelihood Diversification among Fadama Users in Imo State, Nigeria. Federal University of Technology Owerri Journal, 2(2): 236-251. Obayelu, O. A., Agbohin, J. A. and Obisesan, O.O. (2022). Consumers’ Preference for Local Rice Brands in Ibadan Metropolis, Nigeria. Food and Agricultural Economics Review, 2(1): 12-17. Okoro, J. C., Ugah, D. E., Aroh, J. A., Obioha, O. G., Udoye, C. E. and Agwu, E. A. (2023). Perceived Factors Influencing Farmers’ Preference for Rice Varieties in Enugu State, Nigeria. Journal of Agricultural Extension, 27(1):72-93.
Oladimejl, Y. U., Abdulsalam, Z. and Abdullahi, A. N. (2015). Determinants of Participation of Rural Farm Households in Non-farm Activities in Kwara State, Nigeria: A Paradigm of Poverty Alleviation. Ethiopian Journal of Environmental Studies and Management, 8(6): 635-649.
Olaoye O. J. (2010). Dynamics of the Adoption Process of Improved Fisheries Technologies in Ogun State, Nigeria. A Ph.D Thesis in the Department of Aquaculture and Fisheries Management, University of Agriculture Abeokuta, Ogun State.
Olukosi, J. O. and Erhabor, P. O. (2005). Introduction to Agricultural Marketing and Prices. Principles and Application. Living Book Series, 3rd Edition, GU Publications Abuja. Pp 107.
Olukosi, J. O. and Erhabor, P. O. (1988). Introduction to Farm Management Economics: Principles and Applications. Agitab Publishers Limited, Zaria, Kaduna, Nigeria.77-83.
Omobolaji, O. O., Kabir, K. S., Kemisola, O. A. and Ghene, O. O. (2019). Choice of Processing Techniques among Rice Processors in Nigeria. World Journal of Entrepreneurship, Management and Sustainable Development, 15(1):70-83. Osabuohien, E. S., Okorie, U. E. and Osabohien, R. A. (2018). Rice Production and Processing in Ogun State, Nigeria: Qualitative Insights from Farmers' Association. In Food Systems Sustainability and Environmental Policies in Modern Economies, pp. 188-215.
Philip, D., Jayeobo, O. O., Ndirpaya, Y. and Oluwale, F. (2018). Innovation Opportunities in the Rice Value Chain in Nigeria, 2(3). https://research4agrinnovation.org/wp-content/uploads.
Price Water House Coopers (2022). Boosting Rice Production through Increased Mechanization. Available at https://www.pwc.com/ng/en/publications/boosting-riceproduction-through-increased mechanisation.html.
Riki, J. T., Maiguru, A. A., Zaku, S. S. and Auta, B. J. (2021). Investigation of Under-Utilised
Wood Species for Potential Utilisations in Taraba State, Nigeria. European Journal of Agriculture and Food Sciences, 3(5), 106-112.
Taraba State Diary (2018). Taraba State Government.
Taraba State Diary (2015). Taraba State Government.
Terwase, T. I. and Madu, A. Y. (2018). The Impact of Rice Production, Consumption and Importation in Nigeria: The Political Economy Perspectives. International Journal of Sustainable Development and World Policy, 3(4), 90-99.
Tigner R. (2018). Ag Decision Maker Partial Budgeting: A tool to Analyze Farm Business Changes. Iowa State University-Education and Outreach. Morril. Available:www.extension.iastate.edu/agdm. Toluwase, S. O. W., Osundare, F. O. and Adekunmi, A. O. (2019). Economic Analysis of Rice Marketing in Some Selected Local Government Areas of Ekiti State, Nigeria. European Journal of Food Science and Technology, 7(4): 9-23.
Uchendu, C. U., Abdulkareem, H. and Mele, F. (2021). Value Addition and Gross Margin Analysis of Soymilk and Soy Yoghurt in Tsibiri, Giwa Local Government Area of Kaduna State, Nigeria. Nigerian Association of Agricultural Economists 21st National Conference Lafia Conference Book of Proceeding.179-185.
Ugalahi, B. U., Adeoye, S. O. and Agbonlaho, M. U. (2016). Irrigation Potentials and Rice Self-Sufficiency in Nigeria: A Review. African Journal of Agricultural Research, 11(5); 298-309.
USAID (2019). Improved Package of Practices for Rice Production. USAID Markets. Maximizing Agricultural Revenue and Key Enterprises in Targeted Sites, Abuja.
WARDA (2015). Essence of WARDA, the Reason Why Nigerians are Hooked to Rice Women’s Involvement in the Agro-processing Enterprise of the National Special Programme for Food Security in Imo State, Nigeria. Report and Opinion, 2(7): 69-73.
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