Application of Portfolio and Stochastic Simulation Analysis for a Decision of Governance Structures Choice of Benin s Rice Producers

Prices volatility is one of the critical problems that highly affects smallholder producer s income and so, might contribute to deeper poverty. This study applies both portfolio and stochastic simulation analysis to decision of governance structures (GS) selection to find the income that can allow producers to maximize their revenue and minimize the risk of its fluctuation. Data were collected in Benin in 2015 about 300 rice producers. The respondents were randomly selected from forty-one (41) villages. The simulations of the incomes generated by the highest revenue portfolio and the lowest risk one indicate that for both a risk averse and a risk loving producer, the optimal portfolio consist of selling 17% and 83% of their production through spot market and formal contract, respectively, in the case of two GS. In the case of three GS, the best portfolio consists of selling 13%, 57%, and 30% of the production through spot market, formal contract, and farmer association. Finally, a portfolio that consist of selling 10%, 25%, 43%, and 22% of the production through spot market, informal contract, formal contract, and farmers association, respectively, is the best one in the case of four GS. Acknowledgement

Which Local Rice To Satisfy The Urban Consumers In Benin In Order To Ensure Rice Self-Sufficiency?

This study was initiated to identify the local rice varieties which can be promoted to satisfy the most the urban consumers’ requirements in Benin. Vikrey’s method of second price experimental auction was combined with “Endow-and-upgrade” method to collect data. The results show that the competitiveness of local rice vis-à-vis the most preferred imported rice is low. The most competitive local rice were the nonparboiled IR841, Gambiaca, and Nerica L20. Based on these results, the improved variety “IR841” and the local variety “Gambiaca” are the rice varieties to promote. However, the processing technology and the post-harvest activities need to be improved